Working People’s Finances: Government Policy

Tanmanjeet Singh Dhesi Excerpts

Tuesday 21st September 2021 Commons Chamber

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I express my gratitude to the Labour Treasury team for facilitating this opportunity to debate the devastating effect of Government policy on the finances of working people.

I know the British people have had a very difficult 18 months during the covid crisis, with the sorrowful loss of lives—inexcusably, the highest death toll in Europe —despite having our world-class NHS and our world-class public health systems, as well as an unforgiveable care home crisis, soaring unemployment, businesses closing, food bank usage skyrocketing and, most recently, the tragic debacle in Afghanistan, leaving many of us, especially my Slough constituents, and British Afghans in absolute despair. I do not think anyone in this Chamber could have foreseen the debilitating impact that a pandemic would have on our communities when we all had the honour of being elected as Members of Parliament.

I want to pay tribute to the extraordinary generosity and service of the Slough Council for Voluntary Service, the Slough Foodbank and other voluntary and faith groups within my constituency. But we as a nation should not have to rely so heavily on their good will. The Government should not be failing the most vulnerable, so as we emerge from what has been a very testing period for our economy, I despair at the direction this Government are taking us in. Instead of rebuilding, investing and stimulating our economy, it seems that they are more intent on ideological cuts to the very services and people that have kept this country going since March 2020.

There are the rises to national insurance, the universal credit cut, the upcoming freeze on the personal income tax allowance, inflation-busting rail fare increases and the highest petrol prices since 2013, as well as rampant waste, cronyism and corruption in the top levels of Government, the damage caused by the Government’s hard-line Brexit deal, and the supply chain and HGV drivers chaos leading to empty supermarket shelves. There is the Government forcing local authorities to raise council tax, and their unwillingness to outlaw the deplorable hire and rehire tactics of unscrupulous employers. There are some of the highest childcare costs in the world, a housing crisis worsened by a cladding crisis, and the absence of a sector-specific deal for our aviation sector, which at one point was world-leading, despite repeated pleas from the likes of myself and other hon. Members. There are the policing cuts leading to less safer communities, and the exorbitant increase in energy bills leaving many languishing in absolute despair.

This is all while we had a Tory Government asleep at the wheel and acting only when it is very late in the day. Make no mistake, although the Government may want to make it seem that way, these vital issues have not arisen solely because of the covid pandemic. These matters have been exacerbated by a decade of austerity and inadequate emergency support meeting a failing post-pandemic plan—a perfect storm that only leaves families worse off.

We in Slough have been impacted acutely by job losses and the inadequate Government support. With Heathrow and the largest singly owned trading estate, the Slough trading estate, on our doorstep, unemployment, furlough and food bank usage have all, sadly, increased. We must not allow a temporary crisis to unevenly and permanently change prospects across our country; we must assist those who have fallen on hard times through no fault of their own, not punish them further with ill thought-out Conservative Government policy.

[Mark Tami]

Does my hon. Friend agree that the aviation sector is not going to recover any time soon? It will need support, and not only for months; it will probably take years before it gets back to previous levels, and this Government are failing to recognise that.

--- Later in debate ---

[Mr Dhesi]

The crisis in Heathrow has impacted not only my Slough constituents but regional airports and the economy of Wales, about which I know my right hon. Friend feels passionately. That is why we must help the aviation sector. Heathrow used to be the busiest airport in Europe but is now no longer even in the top 10; that is diabolical and is a direct consequence of inaction by this inept Government. Not only is it the right thing to do to help the aviation sector, but it is how we will effectively recover as a nation.

One of the most immediate dangers facing my constituents from the Government’s barrage of cuts and policies is the cut to universal credit of £20 a week. Over £17 million will be cut from my constituency, and this will affect families who have battled through a pandemic, who were clapped, who face a very difficult job market, and whose children have only just returned to the routine of school. I have been contacted by constituents who have been furloughed then had their UC capped, and are struggling to make ends meet. There are self-employed people using up all their income and being told to use food banks and claim UC. Continued cries from the Government Benches that that is a solution is insulting to all the families who work tirelessly just to put food on the table.

[Kirsty Blackman]

Does the hon. Gentleman agree that it is disrespectful of the Secretary of State to say that such people can just pick up another couple of hours of work? A working mother already on part-time hours because of childcare cannot just suddenly become an HGV driver overnight or pick up a couple of extra hours; that is not how it works.

[Mr Dhesi]

The hon. Lady eloquently makes my point, and even that calculation of two hours has been demonstrated to be completely off the mark; the number of extra hours hard-working Brits will need to work is actually nine.

Another main issue on which constituents ask for my help is housing, and, sadly, that is unsurprising. Average rents have risen by £456 in a year, the highest rise since 2008, rising above average wages by over £2,000, leaving home ownership a distant or impossible dream for too many in the next generation.

[Alex Cunningham]

The issues my hon. Friend raises will also result in more debt. Is he surprised to learn that debt in this country is 123% of household incomes and that there have been 27,662 individual insolvencies in the second quarter of this year? People are in trouble now, and if this additional help is withdrawn how on earth are they going to make ends meet?

[Mr Dhesi]

My hon. Friend has demonstrated in this debate that he is an endless fountain of statistics; despite not being on the call list, he has made many interventions that make hard-hitting points to which the Government must listen.

It is important to highlight that home ownership is an impossible dream for so many in the next generation. That is because the quality and quantity of social and affordable housing is wholly inadequate, an issue the Government have failed to address despite being in power for well over a decade. A report showed that affordable housing increased by just 1% last year—90,000 homes short of the bare minimum needed to tackle this crisis. What about those who own homes that are now worthless due to Government inaction on unsafe cladding? That is an absolute shambles. It means a mother of two going without food to pay her rent and feed her children, and others moving from property to property due to rent arrears and evictions. One constituent even told me that their struggle with paying rent and bills made them feel like

“there is no way out”.

It is a vicious cycle—a downward spiral. Is this really the kind of society we want to live in post pandemic? I certainly do not.

We need to realise the potential in our great country and give businesses, families and young people the tools that they need to rebuild and prosper, not break them down before a recovery has even begun. We have a fantastic business hub and innovation centre in my constituency. Prior to the pandemic, we had among the highest business start-up rates in the entire country, we were in the top three for productivity, and we had a booming private sector providing thousands of jobs. But instead of giving the hard-working people of Slough support to ensure that they can once again thrive, these measures are pushing them further down.

In conclusion, I want to see ambition from this Government genuinely to rebuild stronger than before, with a greener, more efficient and innovative economy that will benefit us all, not just a select few.