Tulip Siddiq
Main Page: Tulip Siddiq (Labour - Hampstead and Highgate)Department Debates - View all Tulip Siddiq's debates with the HM Treasury
Cost of Living Increases
Tulip Siddiq Excerpts(1 year, 7 months ago)
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Tulip Siddiq (Hampstead and Kilburn) (Lab)
I beg to move,
That this House condemns successive Conservative Governments for their mismanagement of the economy over 13 years; regrets that this has resulted in the UK being the only G7 economy that is still smaller than before the pandemic, with squeezed wages and higher mortgage rates that have increased costs by £500 a month for some households; further regrets that successive Chancellors have made working people pay for the Government’s economic failure with 24 tax rises since 2019, creating the highest tax burden in 70 years, while refusing to abolish the non-domicile tax loophole; is extremely concerned about the impact on household budgets of an inflation rate of more than 10 per cent with food prices rising at their fastest rate in 45 years; therefore calls on the Government to ease the cost of living crisis by freezing council tax this year, paid for by an extended windfall tax on oil and gas company profits; further calls on the Government to cut business rates for small businesses and support energy intensive industries including food manufacturers with their energy bills to help bring down the cost of everyday items; and finally calls on the Government to adopt Labour’s economic mission to secure the highest sustained growth in the G7 with good jobs in every part of the country.
It astonishes me that the Conservatives are acting like the cost of living crisis is over and their economic plan is working. The Chancellor is proudly boasting that Britain is back. He has even said:
“The declinists are wrong and the optimists are right. We stick to the plan because the plan is working.”—[Official Report, 15 March 2023; Vol. 729, c. 847.]
What planet does the Chancellor live on? Does he understand the reality on the ground for all of our constituents? Does he understand that on the Prime Minister’s watch, our economy is weaker, with the UK forecast to have the worst growth in the G7 this year? Real wages are lower than they were 15 years ago, with families in the UK going into the cost of living crisis significantly poorer than those in comparable European countries. The price of everyday essentials has risen by an eye-watering £3,000 since 2020, and never before have people in this country paid so much money for so little value from their public services.
The disconnect between this Conservative fantasy and the experiences of ordinary people could not be wider. Decent, hard-working people across the country are being forced to cut back on the things that underpin a good life. Mr Deputy Speaker, I will explain what I mean by a good life: a meal out once in a while with close friends, the special annual family holiday that you look forward to all year round, and a decent home to call your own. Those are increasingly things of the past; instead, people are left worrying about how they are going to pay their household bills at the end of the month and their rocketing mortgage costs.
Florence Eshalomi (Vauxhall) (Lab/Co-op)
I thank my hon. Friend for opening her speech in such a powerful way. Does she agree that it is really worrying that we hear tales of parents going without a meal, just to make sure that their children are able to eat?
Tulip Siddiq
I thank my hon. Friend for that intervention. She is a doughty champion for the children from deprived families who live in her constituency. We have surgeries where people line up to speak to us who cannot afford to eat because, as my hon. Friend says, they are saving their money to buy one meal for their children. This is Britain in 2023. We should not be in this situation.
It is important to remember how we got here in the first place. The Government have mishandled the cost of living crisis at every turn. Indeed, we will never forget the Conservatives crashing the economy last year, and we will never forgive them for it.
Layla Moran (Oxford West and Abingdon) (LD)
The hon. Lady is totally right about the perverse choices that people are having to make. A young mum in Abingdon who has her kids in childcare is having to decide whether she pays the debt that she owes to the childcare provider, pays her prescription charges, or buys food for herself and her children. How is that a country that we can be proud of? It is because the Conservatives mismanaged the economy, is it not?
Tulip Siddiq
I thank the hon. Member for her intervention. She has outlined lots of situations that we hear about every day from our constituents, yet the Conservatives say that their economic plan is working—it is clearly not working. The resulting rise in interest rates and the economic instability have added £500 a month to first-time buyers’ bills. For too many, dreams of home ownership and starting a family have been destroyed—another pillar of the good life knocked away.
Mr Toby Perkins (Chesterfield) (Lab)
My hon. Friend is absolutely right to point to the Chancellor’s suggestion that the Government are the optimists and we are the declinists. In fact, are the optimists not those people who have taken on a mortgage and achieved that dream of home ownership, and who are being so cruelly let down by the incompetence of this Government?
Tulip Siddiq
My hon. Friend is absolutely right. We have to ask the Conservatives how they can continue to live in this fantasy world, because it does not match the reality on the ground. Let us not forget the impact of rising prices. Food prices are growing 50% faster than anywhere else in the G7, putting Britain’s food inflation rate at 19.2%, compared with an average of 12.8%. The price of sugar is up by an incredible 42%. Milk is up by more than 33%, and pasta is up by 25%. The UK has the highest inflation level in western Europe. That is a national scandal.
David Johnston (Wantage) (Con)
The hon. Lady says that the inflation figures here are higher than anywhere else in the G7. Food price inflation in Germany is over 22%, compared with 17% in the UK. Is that also the fault of the Conservative Government?
Tulip Siddiq
I assume that the hon. Gentleman is not proud of all the figures I am outlining and the high inflation that is coming up. The Conservatives can manipulate the stats all they want, but they cannot run away from the fact that we are falling behind our peers. That is not something I am proud of, and they should not be either.
Since 2020, the cost of a typical food shop is up by £700 a year. Clothing and footwear are up by £140. Household goods and services are up by £360. Transport is up by £800. [Interruption.] I do not know why Government Members are laughing; these are real figures that our constituents are dealing with. The essentials of housing, fuel and power are up by a shocking £1,480.
Dr Luke Evans (Bosworth) (Con)
Is the hon. Lady aware that the Government have subsidised people’s energy bills by about 50%, and if so, by how much would Labour subsidise them?
Tulip Siddiq
I will come to energy shortly. If the hon. Member were able to answer, I would ask him whether he thinks 50% is enough, because it is not enough. If he speaks to people on the ground, he will see how much they are struggling. The rising costs of everyday essentials mean that families across the country are making cutbacks just to stay afloat. That has been devastating for local economies, with communities losing the businesses and institutions that bind us together.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
It is a fact that the village of Altnaharra in my constituency is every year the coldest place in the entire United Kingdom. We already have pensioners having to make the invidious decision to wrap themselves up in blankets and put the heating off. No one should face that sort of decision.
Tulip Siddiq
I thank the hon. Member for his intervention. The situations being described are not what we want to hear about in our country in 2023, and we should not be proud of this record; we should be trying to do better.
Under this Government, more than 6,000 pubs, nearly 4,000 local shops and 9,000 bank branches have closed on our local high streets. That is nothing to be proud of.
Margaret Greenwood (Wirral West) (Lab)
My hon. Friend is making a powerful speech, and I am sure we have all been concerned by stories from our constituents who are missing out on meals, eating out-of-date food or unable to clean their clothes as often as they want. Does she share my concern that that is having a devastating impact on the development of young children in the early years? We need to know that those children are fed and have heating.
Tulip Siddiq
My hon. Friend is always fighting for her constituents, and she is absolutely right. As someone who was on the shadow Education team before I came to this role, I know that if our young children are not fed or looked after properly, they will not fulfil their potential in this country. We should be looking at the future generations, and the Government are ignoring them.
The Government’s mishandling of the cost of living crisis is just another chapter in the long story of 13 years of economic failure. More than a decade of Conservative rule has seen our country fall behind as the British economy has experienced low growth, rock-bottom productivity rates and chronic under-investment.
Kim Leadbeater (Batley and Spen) (Lab)
My hon. Friend is making an important speech. I find it deeply offensive that Conservative Members are laughing at some of these statistics. That just shows how out of touch they are with the reality of life for so many people across this country. Does she agree that it is an absolute travesty in 2023 that we have families where children are having to share beds, sleep on the floor or sleep in the bathtub because people cannot afford to move house, to pay their rent and to pay for food for their families? That is not a laughing matter.
Tulip Siddiq
I thank my hon. Friend for her intervention. Having campaigned in her constituency, I know there are huge levels of poverty in certain places. Someone from the back said that we are lucky here because we are MPs and get paid a decent salary. We certainly should not be laughing at people who are struggling to make ends meet.
I remind the House that, when Labour was in government, real GDP growth averaged 2%. If growth had continued at the same rate under this Tory Government, we would have £40 billion more to spend on our public services, without having to raise a single tax. Instead, a lack of strategic policy making, economic uncertainty and the absence of an industrial strategy mean that the UK is going through the slowest economic recovery in the G7.
Jerome Mayhew (Broadland) (Con)
The hon. Lady is asserting that the UK economy has fallen behind since 2010. Does she recognise the figures that show that this country has actually grown faster than Italy, Japan and France since 2010 to date and that, since 2016—since the Brexit vote—it has grown at about the same pace as Germany?
Tulip Siddiq
The Conservatives can manipulate the stats as much as they want, but they cannot run away from the fact that we are falling behind our peers. [Laughter.] I do not care how much Conservative Members want to laugh; I know that is the truth. It is families who are bearing the brunt of the low growth. A decade of stagnant wages has left the British people highly exposed to rising prices. If the hon. Member who just intervened can dispute this figure, he is welcome to intervene again: the average French and German family are now 10% and 19% richer than their respective British counterparts. If we continue down this path of managed decline and our growth rate stays where it has been over the past decade, families in the UK will be poorer than those in Poland by 2030 and poorer than those in Hungary and Romania by 2040. I see the hon. Member—
Jerome Mayhew
It is a great pleasure to be given the role of the Opposition spokesman from the Back Benches here, but there is a difference between economic data that is factual, has happened and can be verified, and straight-line projections of the future between now and 2030 that have not happened and will not happen.
Tulip Siddiq
As I figured, the hon. Member did not have a response to the question I asked. If we do not break with the Tories’ failed economic model, the necessary underpinnings of a good life—as I have mentioned, fair wages, secure work, a decent home—will be further eroded.
Christine Jardine (Edinburgh West) (LD)
The hon. Lady is making a powerful case and making a salient point. Does she agree that the constituents she has already mentioned, who are dealing with all these price hikes—the worst in 45 years—and who come to our constituency offices every week, do not care that we grew faster than Italy in 2010, but they care that they cannot heat their homes now and cannot feed their children and they are worried about their elderly parents? The blame can be laid at nobody’s door but this Conservative Government’s.
Tulip Siddiq
I thank the hon. Member for her intervention. She is absolutely right. This Conservative fantasy just does not match up to the reality on the ground.
Instead of putting forward a comprehensive plan for growth, successive Conservative Chancellors have made hard-working families pay for their economic failure. The Conservatives have become the party of tax rises for the hard-working majority. Since 2019, the British people have been hit with 24 tax rises. It is the highest tax burden in 70 years. Earlier this month, we saw council tax bills rise above £2,000—some Members might think that is funny; it is not funny for my constituents—for the first time, as the Chancellor effectively forced councils to put up rates by reducing their funding. That saw families who were already struggling hit with an additional average tax hike of 5.1%—[Interruption.] If Conservative Members have something to say, instead of chuntering from a sedentary position, they should intervene. They should not shout from the front.
Simon Baynes
Earlier, the hon. Lady mentioned fair work. Does she agree that the rise in unemployment under the last Labour Government from 2.1 million to 2.5 million, and the 45% increase in youth unemployment, is far removed from fair work?
Tulip Siddiq
May I remind the hon. Gentleman that the last Labour Government introduced the first minimum wage, slashed child poverty and slashed pensioner poverty because we grew the economy—something this Government have failed to do?
Alex Davies-Jones (Pontypridd) (Lab)
My hon. Friend is making a powerful speech and outlining exactly what Labour did in government to make a difference for working people. In Labour-led Wales, where the hon. Member for Clwyd South (Simon Baynes) is also an MP, we have just increased the education maintenance allowance, which was scrapped in England, to give students the opportunity not to have to choose between buying books and going to school, and having to find a job to support themselves.
Tulip Siddiq
I hope hon. Members hear that before they start criticising any sort of Labour Government.
Things are only set to get worse. The Government’s stealth tax and freeze on income tax and national insurance contribution thresholds will, according to the Resolution Foundation, cost households £25 billion a year by 2027-28.
Tulip Siddiq
Not now, as I want to make some progress. At the same time, the Chancellor has given the 1% wealthiest pension savers a £1 billion handout, and he has continued to defend the indefensible: the non-domicile tax loophole. Instead of growing the economy and boosting wages, the Conservatives have resorted to hammering ordinary people with tax rises. It is time for a radically different approach.
Tulip Siddiq
I will make a bit of progress. We need a bold plan for growth that confronts the problems of the UK’s declining economy head on. That is why the Government must adopt Labour’s mission to secure the highest sustained growth in the G7, with job creation and productivity growth in every part of the country, making everyone, not just a few, better off. That may seem ambitious, but Britain has so much potential.
Tulip Siddiq
I am just about to come to the part of my speech about the windfall tax and business rates, so if the hon. Gentleman listens carefully, he will hear. The talents and efforts of working people and British businesses mean that we lead the way in financial and legal services, and the tech and life sciences sectors. With a proper industrial strategy, the UK economy will not just lead the pack again, but communities written off by the Conservatives will have the backing they need to make their full contribution to our great nation. Labour will achieve that by forging a new covenant between Government and industry, bringing in public investment through our green prosperity plan to support new industries. That will include investment in areas such as fuel cell manufacturing, nuclear, hydrogen and home insulation to bring down energy prices and create well-paid jobs in the industries of the future across the UK, while fixing the holes in the Brexit deal and bringing in a proper supply chain strategy will help to tackle inflation and build the resilient trading economy we need to get ahead.
Labour will work in partnership with businesses to help people get the skills and opportunities they need. We will not leave potential untapped. We will fix the apprenticeship levy, improve local employment services and help first-time buyers get on the housing ladder through a comprehensive mortgage guarantee scheme to boost local living standards. Only Labour, through our plan to grow the economy, will create the conditions for a good life in every part of the country. We will create well-paid jobs, bring home ownership back within reach for young families and ensure that the NHS delivers for all.
Tulip Siddiq
The hon. Member may want to sit down and hear the next bit because I am sure he is going to ask the same question.
However, we also recognise that people need help today. That is why, if Labour were in government today, we would freeze council tax this year to stop bills from rising above £2,000, paid for by an extended windfall tax on oil and gas company profits. Even though Office for National Statistics figures confirm that 2022 was a record year for North sea oil and gas profits—even though the ONS confirmed that—the Conservatives are again choosing to protect the energy giants’ windfalls of war.
Tulip Siddiq
I think the hon. Gentleman should listen, actually.
By refusing to backdate the tax to January 2022, end the investment allowance tax loophole and raise the rate in line with other countries, the Chancellor has left billions on the table, leaving working people to pick up the rising council tax bill. Labour would use the additional funds raised by a proper windfall tax to cut energy bills for domestic food manufacturers and processors, and we would cut business rates for small shops, paid for by properly taxing online giants, to bring down the eyewatering cost of everyday items. We would also reverse the Conservative decision to hand the 1% wealthiest pension savers a £1 billion handout and instead introduce specific measures to keep doctors in work. And we would close the non-dom tax loophole, so people who live and work here pay their tax here. We would use that money to fund one of the biggest expansions of the NHS workforce in history. Those are straightforward measures. The Government could introduce them today to show people they are on their side, but we know they will not because they have given up on Britain.
At the heart of today’s Opposition day debate is a simple question that everyone up and down the country will be asking themselves: “After 13 years of Conservative rule, am I better off?” The simple answer is no. People now have a clear choice: between a tired Conservative Government out of ideas, and a Labour party committed to forging a new partnership with British business to create good jobs and boost wages; between a Conservative Party that puts developers before first-time buyers, and a Labour party committed to the principle of home ownership and giving young families a start in life; and between the Conservatives, the party of high taxation and Government handouts to the wealthiest 1%, and Labour, the party committed to putting working people and businesses first, freezing council tax and cutting business rates to ease the cost of living. Only the Labour party has a serious plan for growth to improve living standards and wages for working people. [Interruption.] Those on the Conservative Benches can laugh all they want, but only the Labour party has a vision of a better life for the British people.