The Budget

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That this House passes the legislation at Third Reading

Poll ended at Fri Jun 18, 2021 8:49 am

Aye
8
38%
No
10
48%
Abstain/Present
1
5%
Absent
0
No votes
Admin
2
10%
 
Total votes: 21

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Michael Smythe
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The Budget

Post by Michael Smythe »

Madame Deputy Speaker,

I rise, today, to present the Government’s 2020 budget which, among other things, aims to provide massively needed investment into public services, while continuing to lower our national deficit as a percentage of GDP, and increasing our budget surplus on day-to-day spending, leaving our country in a stronger fiscal position as we head towards a strong Brexit deal, ready to come out the other side even stronger. This budget represents a change in the tides. The years of austerity, having provided us with a strong and stable financial base, have given way to a new era of public and private investment in what is still among the best places in the G7 to do business. In a very real sense, Madame Deputy Speaker, the years of difficult belt-tightening across the country have allowed us to now loosen our belts and enjoy the good fruits which they have produced.

When I took on the role, gratefully, of Chancellor of the Exchequer, I was presented with significant challenges, some unique and some as old as the office itself: to prepare the way for Brexit whether with or without a deal comically swigs a drink of scotch; to create the conditions necessary for a growing economy, and to maintain Britain’s competitiveness among the largest global economies, while ensuring that this growth is enjoyed by all of the sectors of British society; and to continue the work of my predecessors in reforming public spending so that future generations of Britons will not be burdened by the heavy debt load that we create today. These challenges, among some others, gave way to three principles which, I believe, are evident in the budget which I lay before the House today: namely, the principles of preparedness, fairness, and sustainability. I am pleased to say, Madame Deputy Speaker, that this budget, in my estimation, encapsulates those three principles well and I intend to demonstrate that here tonight.

Madame Deputy Speaker, the Treasury forecasts that, under this budget, we will see the economy continue to grow, we will see wages continue to rise, we will see the overall deficit as a percentage of our GDP shrink while the day-to-day spending surplus grows significantly. Likewise and importantly, our national debt will shrink as a percentage of our GDP, and the cost of our annual debt interest will be lower this time next year than it is right now -- this, despite the fact that gilt rates have increased. From a macroeconomic perspective, Madame Deputy Speaker, this budget is a success in every single category. In this sense, the budget which I have laid before you upholds the principle of sustainability: we are on track to balance the budget within ten years as many of the major investments that are made in this budget will be winding down in that time frame; within those ten years, we will continue to reduce the national debt as a percentage of the GDP by promoting significant economic growth, and we will, therefore, continue to lower the cost of borrowing as we do so.

The Government believes, as I have already said, in the principle of fairness and, in that vein, we have made several changes to the taxation rates in this country. First, and most significantly, we have eliminated the lower rate of Stamp Duty. This will provide British families and, especially, first-time homebuyers with a significant assistance in affording their homes. Any home which is purchased for less than 250,000 pounds will be free of Stamp Duty; similarly, any home which is sold for between 750,000 and 1,500,000 pounds will be taxed at a reduced rate of 8%. This is balanced out by a modest increase in the Stamp Duty rate for the highest valued homes in the country. We believe that this represents a fairer deal for British homebuyers: if the home you are seeking to purchase will cost less than the national average price of homes, then you will not be charged duty. We also anticipate that this will see the extraordinary growth in average house prices stabilize as it will be advantageous to the selling to keep the price of the home at or under the threshold for duty in order to raise the desirability of the house for potential clients.

By coupling this new structure of Stamp Duty with the significant investment in building new homes across the country, announced by my Rt. Hon. Friend, the Foreign Secretary, the Government believes that we are making home ownership significantly easier to achieve for the average British person, and that we are, therefore, encouraging the enterprising and aspirational spirit that we have set out to foster. It has long been a principle held by Hon. and Rt. Hon. Members of the Conservative and Unionist Party and, indeed, of other parties, that home ownership is the first rung on the ladder of social mobility. Well, this Government is putting that belief into action by making it easier to buy houses, both by removing the taxation on entry-level homes and by building more of them.

Madame Deputy Speaker, as part of the manifesto on which we were elected, the Government promised to freeze the lower rates of income tax and the National Insurance rates; we have done so and will continue to do so as long as we serve as Her Majesty’s Government.

It is, of course, an inevitability that a budget which makes such key investments across several departments will, if it is to be a responsible and sustainable budget, raise some taxes. Notably, the Government will increase the Gambling Duty to be in-line with the VAT at 20%. It is our belief that gambling is, essentially, a luxury service and that it, therefore, should be taxed at the same rate as any other luxury service. The taxes on beer, wine and spirits have been raised modestly, by no more than a pound per 500 ml.

There are two tax increases which have been adopted by the Government as a targeted effort to discourage certain behaviour. First, the cigarette tax has been increased by 2 pounds per pack of 20 cigarettes. This is for two reasons: first, to discourage the practice of smoking tobacco products at all; and second, to account for the significant and predictable rise in healthcare costs associated with smoking tobacco products across the lifetime of a smoker. Recalling the principle of fairness, we believe that a 2 pound increase to the cigarette tax goes some way toward representing the self-chosen risk of increased use of public services associated with the habit. Secondly, we have opted to increase the carbon price by the same amount. Simply, this is to discourage the use of fossil fuels. The expected revenue from this increase has been earmarked for additional investment in renewable energy research.

Of course, Madame Deputy Speaker, there is an elephant in the room when it comes to taxation changes in this budget and I would be remiss if I did not discuss it. The Government is increasing the rate of Corporate Taxes in this budget to 25%. With this increase, Britain maintains the lowest corporate tax rate in the G7, save for America but, most importantly, we are continuing to invest in our businesses and we are continuing to put in real work to secure for them ever-wider reaching trade opportunities. It must also be said that during the years of austerity, the average British person made significant sacrifices in order to allow corporations to enjoy lower taxation rates; and corporations, as a result, experienced extraordinary growth. We are asking those same corporations, whose successes are built on the backs of the hard work of the British people and the sacrifices they made during those austerity years, to now pay a small share so that British public services can be brought up to the standard expected of a country with such extraordinary economic growth. This increase, coupled with the investments that we are making in British business, and the negotiations we will undertake as a Government to open new trade horizons for British business, I believe, represent a deal which is prepared for Brexit, fair for all involved, and sustainable for the future of British industry.

Madame Deputy Speaker, this budget has secured lower taxes for those who have felt the burden of austerity most and it has raised some taxes on those for whom the austerity years have been beneficial. What I have not yet discussed, and what I intend now to summarize, is how this budget is investing in all areas of British life, in all parts of Britain, to create a country worthy of the strong economy that we have seen fostered by sound, Conservative fiscal management. With this budget, I am extremely proud to invest more than 30 billion pounds in our health and education services. We will cut down waiting times in local clinics, we will ensure that hospitals across the country are fully staffed with excellent professionals, and we will invest billions of pounds into primary and local care so that British people from all across the country can get the care they need in their own communities.

In a similar way, we will build, over the next year, 150 new secondary schools and 100 new primary schools, we will hire 17,000 new secondary and primary teachers, 26,000 new teachers’ assistants, and 12,000 new support staff so that we can radically cut down on class sizes and increase the adult-to-child ratio. As part of our Government’s discussions with the various teachers’ unions across the country, and in response to the rise of violence and threats of violence against teachers in the schools, this comes as a much-needed relief to overburdened teaching professionals and represents a significant investment in the future of our country. In addition to these investments, local governments can count on an additional 600 pounds per pupil in the form of funding per student.

For school-leavers, the Government is pleased to be funding an additional 45,000 new apprenticeship places, and is increasing the funding per apprentice by 2,000 pounds. This will give more people an opportunity to begin their work early and gain valuable on-the-job experience. We believe that the apprenticeship scheme has been very successful in the past and are proud to be expanding it further this year and in subsequent years.

Madame Deputy Speaker, as promised, the Government will also be investing in British businesses this year. More than 200 million pounds of additional funding will be provided export credits and support to assist British businesses to adjust and reach out to new and emerging markets once our exit from the European Union arrives. Furthermore, as my Rt. Hon. Colleague, the Deputy Prime Minister, announced, the Government has agreed in principle to work with the Scottish government on a project to link Scotland to Northern Ireland. Funding has been allotted to the HS2 budget this year for preliminary testing and designs to be drawn up as we prepare to examine the feasibility of the project.

Madame Deputy Speaker, the Government is conscious of the need to increase police presence on the streets and, following an announcement some time ago by a Secretary no longer with us, we are making early investments into growing the size of the police force in this country. We anticipate that we will be able to hire some 8,000 new police officers and PCSOs this year and will continue to invest in recruitment and training to achieve the targets set by the Rt. Hon. Gentleman some time ago.

Madame Deputy Speaker, there are so many more extraordinary highlights in this budget, but I fear I have waxed on long enough that I could put Hon. and Rt. Hon. Members to sleep. Since I value Parliamentary democracy and the debate which is a part of it, I do not wish to do that and I will therefore summarise my remarks thus: I believe that this budget, of which I am immensely proud, will represent a welcomed change for the British people. It does not put investment and fiscal responsibility as opposites, but harmonizes them in a way which will see our public services resurrected without doing damage to our economic stability and future. Raises Scotch Madame Deputy Speaker, this budget will make our economy and our public services more prepared, fairer, and more sustainable and I therefore commend it fully to the House. Takes a drink before sitting down and accidentally spilling the remainder of its contents on the Prime Minister’s pants.
The Budget
The Rt. Hon. Michael J. Smythe
Member of Parliament for Chelsea and Fulham
Chancellor of the Exchequer

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Emily Greenwood
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Re: The Budget

Post by Emily Greenwood »

Post by Emily Greenwood » Sun Jun 13, 2021 5:52 pm
Mr Deputy Speaker,

This is a government of big gestures.

We've seen no end of big projects being announced, big words being used. But zoom in a little bit closer, and you see the problem: they're never quite the same. Zoom in, and a dearth of transformative vision is revealed. You need only look at the order papers over the past year when it comes to infrastructure alone. We've had Heathrow, then Heathwick; HS2 for, against and then for again - we've even had what is now called the Dundas Tunnel, but don't tell the right honourable gentleman.

We've had police in schools, then a sudden albeit welcome reversal of course to give that duty to Ofsted. We've seen plans for social care being announced but never materialising. Over the past year, we've been "moving forward" under the member for Altrincham and Sale West; we've been looking at a "bigger Britain"; and now a "stronger United Kingdom". Big phrases, big gestures, even.

And now, Mr Deputy Speaker, we have this budget of big gestures. We've seen no end of big spending pledges with big bombastic words to sell them. But zoom in a little bit closer, and you see the problem: a dearth of transformative vision.

I am keen not to be misunderstood, Mr Deputy Speaker. There is much in this budget that my party welcomes - not least because it rectifies problems this government has itself created for the past eleven years and which we have called for rectification of time and time again. There are many of these areas where I can finally welcome the government’s conversion to what we have been saying for a long time. I want to briefly note in this context, even if the government seems too embarrassed to admit it, that the winter fuel payment cuts disaster has been scrapped - after a full year of Labour asking the government to do right by our elderly.

In fact, it is a testament to this government’s tardiness in action that it touts such investments in public services and yet I am reminded of the sad fact that such still is only enough to see us back to the heydays of last decade, in the midst of austerity, rather than the better days that went before it for our public services, those who staff them and those who rely on them.

That is augmented by the fact that these investments aren’t merely purely restorative, but that they are often incomplete and overlook entire sections of them for the most eye-catching bottom line. Instead of providing a cradle-to-grave education service, the government has chosen to focus on schools - but the crucial years before school and at university are neglected. Modern working parents who wish to see their child receive a good pre-school education get no helping hand from this government - as do the students who, having been saddled with a tuition fees hike from its earliest days, once again see their funding frozen. And remember that new duty they gave to Ofsted to protect our teachers? They promised extra funding, but this budget does not deliver it. This jeopardises progress on this vital issue to the teaching profession - and many will be disappointed.

Instead of building further hospitals and transforming the social care sector as promised, this government has elected to invest in clinics and primary care. A worthy cause, but hardly the big transformative next step it is made out to be. And what of our brave bobbies? We’ve focused earlier in this House on the big promises made of hiring new bobbies - and indeed, you’d say this budget does so. But there was another crucial part of a true solution to the challenge of putting more bobbies on our streets that is as easily swept aside in the quest for big headline figures as it is - one the police themselves have said is crucial to redemption. No word of the 5% payrise that is needed to retain all these new bobbies.

It’s the same with investment in Housing. Granted, the government did invest a lot in replenishing the housing stock. And it sounds truly awesome, Mr Deputy Speaker, I’ll give them that. But again, if you look under the hood, is it really? Because our housing crisis is most acute at the base of the housing market - in social housing that has been sold off, for those most in need. And this government has shown its true priorities by doing exactly nothing more in real terms to help those most in need onto the housing market, rental or otherwise. No more funds for social homes, no more funds for the Troubled Families Scheme - all the while, they’re cutting Stamp Duty for the wealthier home owners. Many who are struggling to find a place to live that they can afford will question, and quite rightly so, whether that money could not have been used to give them some much-needed relief.

I turn, as I started, to infrastructure, another headliner which has seen much activity and, I’m afraid, much disappointment for communities up and down this country. Connecting communities is absolutely crucial to our success after Brexit. So I was sad to see that all we see in those terms is the latest prestige project that is the Dundas Tunnel. I can see the right honourable gentleman twitching in chagrin - that’s quite alright, I can only imagine how it would feel to be upstaged by one’s colleagues. It would be funny if this government’s timidity, broken only by the Deputy Prime Minister’s desire to make a mark, wasn’t costing communities which have been on the losing side for too long. No investment in real terms in fixing our roads, or in finally securing rail and bus services to serve the needs of communities up and down this country - again, for this government, infrastructure remains a nice big figure to put on a poster, but not something that should work for all of us.

And that is such a shame because the very communities abandoned by this government will be those who stand to suffer most from the government’s decisions. I have been very passionate in advocating for compensation for these communities to be compensated for what they lose in structural funds and subsidies for rural communities when we leave the EU. I was dismayed to find not a single penny to that effect could be spared. Despite what the government is saying, rural communities will see their funds cut. Despite what the government is saying, they will lose out again when their farmers lose access to direct subsidies overnight. There is no action to help vulnerable communities up and down this country weather the loss of regional development subsidies from the Structural Funds. This government is letting down these forgotten communities - and is aggravating it through false boasting.

In fact, there’s more problems coming for trust in politics from the contrast between this government’s words and its actions evidenced by this budget, even if you discount the big words of previous tenants of 10 Downing Street. The PM himself named welfare as one of his big issues. But as ever more people migrate onto universal credit, a system facing many problems, there’s hardly a real increase to be found to help those struggling and end austerity for them. In fact, even as universal credit claims increase, the number of claims for the working tax credit have also increased. That’s incredibly alarming, Mr Deputy Speaker, because it means an explosive increase in the number of people for whom work doesn’t pay. And the government is not doing anything to help them, even with the evidence right in front of their own eyes.

With much fanfare, the government announced that it would back a bid to bring football home for the World Cup. It’s coming home - I’d be excited, as would many across this country! Alas, the government has undermined it with a big cut to the Culture, Media and Sports Budget.

Similarly, the Environment, Food and Rural Affairs budget is also heavily targeted for cuts - on top of the loss of EU subsidies. And this is quite a problem because these cuts would threaten to negate the welcome investment in decarbonising our energy supply. But again, the action is less dramatic than necessary - yes, we’ll have investment in decarbonising our energy supply, but the budgets that should help local communities cut their emissions, mitigate the effects of flooding and help prepare for the future, creating those jobs the PM promised are cut - and that risks throwing away the progress we need.

And the galling thing is, Mr Deputy Speaker, it’s not as if we couldn’t have done more. Don’t take it from me, take it from the headline figures of this budget - in fact, from its bottom line. We’re running a historically big day-to-day surplus. You can’t tell me, tell this House, tell the people of Britain that there was no more that we could have done. This budget seeks to do what is needed to put nice images on the socials, one whose promise is belied by the many devils in its details and the many ways in which it fails to live up both to what is necessary and what is possible.

In so many areas of this budget, that’s the picture - big problems this government itself caused, big headline figures that purport to solve them, but upon closer inspection this government simply lacks the interest in an integral vision to truly solve the problems. It is the kind of cheap, soulless political scoreboard mentality that has come to characterise politics in this country - that has disappointed so many in this country in their politicians time and time again. Because what goes for big words goes for big numbers as well - they risk disappointing if they’re not backed up by transformative vision.

Mr Deputy Speaker, the member for Altrincham and Sale West said when he arrived at Number Ten that “We have no way to move now but forward; we cannot go back, we cannot stand our ground. We must move forward.” I couldn’t agree more with the Prime Minister’s predecessor - we cannot go back. Britain needs a new course after Brexit. One that goes beyond platitudinous slogans such as a Bigger Britain or a Stronger United Kingdom, beyond big words and big numbers into a truly transformative vision of what our country can be - what it must be!

And that’s why I emphatically urge the House to heed my words - you cannot chart a new course while driving in reverse. The problems Britain faces - created by over a decade’s worth of Conservative government, or yet to be created by this government’s continued inability to get its act together - are so deep that not even big headline figures cannot hope to solve thim without a truly transformative vision.

This budget and its defence shows that the only overarching vision this government has is a willingness to say anything that may help it survive a while longer, rather than to help making Britain and its people thrive. It shows, once again, that this government has run out of steam, out of ideas - right at the moment that this country needs the biggest transformation since the creation of the National Health Service. It must do better, but alas, it simply cannot do better. And that is why I urge the House to send them back to the drawing board - or, if need be, back to the country, so that a new government can return with fresh vigour to do what they cannot.
Emily Greenwood MP
Labour MP for Copeland (2010-present)
Shadow Minister for Schools (2013-present)

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Re: The Budget

Post by Juliet Manning MP »

Madam Deputy Speaker,

I rise today to commend my Right Honourable friend, the Chancellor, for a budget which delivers two crucial things: fiscal prudence at a time of global economic uncertainty, and diligent investment in public services. It is a budget which maintains this government’s strong record for discipline, as we continue to restore our nation’s finances after the financial crash. This year, the economic outlook is positive: GDP growth remains steady, unemployment remains at a historic low, inflation remains below the 2% target and total tax revenues are projected to rise. The Chancellor succeeds, in this budget, in creating a £17 billion surplus on day-to-day spending whilst reducing the capital budget deficit as a percentage of GDP and lowering our nation’s debt interest repayments by nearly £900 million. This is a budget which continues the long process of thatching a roof which Labour smashed through, Madam Deputy Speaker. The people of this country have not forgotten the jobs lost, the livelihoods ruined and the families pushed to breaking point by Labour’s mishandling of our public finances. It took the Conservatives to right the ship and with prudent economic management our economy is continuing to go from strength to strength.

Alongside a commitment to fiscal prudence, the Chancellor has committed to a bold package of much-needed investment in our critical infrastructure and public services. Today, the Chancellor is proposing a 2% pay rise across the board for all public sector staff, even whilst maintaining the second-lowest rate of corporation tax in the G7. Madam Deputy Speaker, as promised by the Conservatives at the last election, there is again this year no rise in income tax, national insurance contributions or VAT - meaning that millions of people across the United Kingdom will have more money in their pocket.

I was proud during my short tenure as Public Services and Social Affairs Secretary to declare an end to the housing crisis: this budget confirms seed funding for nearly 600,000 new homes, many of them to be built in the three new garden cities outlined by myself some months ago. These new homes, 40% of which will be affordable starter homes and social housing, will make home ownership a reality for the many rather than a privilege for the few. And the government is doing even more to promote home ownership by eliminating stamp duty on the sale of all properties under £125,000, making it more affordable than ever to get a foot on the housing ladder.

Madam Deputy Speaker, Fuel Duty remains frozen even as we invest more in public transportation, ensuring that prices at the pump remain stable and the millions who depend on their cars to get to work or take the kids to school are not left out of pocket. And £55 million of new funding for local public transport will ensure that alternatives to using the car are more readily available than ever before.

The government continues to commit to High Speed 2, with possible extensions of the network into Scotland and beyond now being mooted by my Right Honourable friend, the Deputy Prime Minister. And more than £200 million in additional funding for export credits will ensure that as we leave the European Union and chart a new course as an independent trading nation, Britain’s businesses can rely on the government to support them as they seek to sell their wares across the globe.

The government is recruiting almost 8,000 additional police officers this year with a £50 million boost to police procurement. It is this government that is taking steps to ensure our communities feel safer, and I am proud of the Chancellor’s commitment to putting more bobbies, rozzers, peelers and po-po back on the beat where they belong.

Many of the headlines relating to this budget will be focused on the National Health Service, Madam Deputy Speaker, and with good reason. The government is delivering £15 billion in additional funding for the NHS this year alone, recruiting 10,000 new doctors and consultants and 25,000 new nurses. Funding is being made available to open new NHS clinics and GP surgeries in some of our most under-pressure areas, and an £8 billion investment in primary and community care means that we can address health concerns more quickly within the community. Funding for mental health services is set to rise by £2 billion - almost doubling - and will transform Britain into a world-leader in mental health support and treatment. The prescription charge is set to be cut in real terms, and £900 million in extra funding for the procurement of medical equipment will see our hospitals readied for the new decade. The promise of Brexit is fulfilled, Madam Deputy Speaker, with more than £350 million a week extra going into our NHS since the referendum in 2016.

In education a similar revolution is afoot, with an unprecedented £18 billion investment in schools and colleges. Work will start on 250 new schools this year, with over 30,000 new teachers entering training. Per-student funding is set to rise so dramatically that the average secondary school will be half a million pounds better off this year than last, and 45,000 additional apprenticeship places will provide a viable alternative to students who choose not to attend university. With per-apprentice funding rising by £2,000, apprenticeships in the UK will be bigger and better than ever before.

I am pleased to say that in my own Department, the 0.7% foreign aid target continues to be met - and exceeded - with £16 billion in funding going to some of the most deprived and desolate communities around the world this year. Funding is made available for construction to start on the first of two new aircraft carriers - which I can announce today will be christened the HMS Duke of Edinburgh - and Britain continues to exceed NATO targets for defence spending.

At both ends of the social security spectrum the Chancellor proposes significant investment, with a generous boost for pensions and a 14.3% rise in Child Credits. 2,500,000 people have now migrated on to Universal Credit with legacy benefits continuing to be wound up, and the result is more targeted support for those who need it most.

Funding for housing construction is doubled, and £800 million in additional grants to local authorities is made available. Scotland, Wales and Northern Ireland each receive substantial budget boosts of 12% each, representing an extra £120,000 in every million spent by the devolved executives. And I am very happy to report that the BBC receives a 7.2% funding increase in spite of Opposition scaremongering about the Broadcasting Act.

In conclusion, Madam Deputy Speaker, this is a budget for Britain’s future. It increases the current account surplus by over 1,000% and reduces the overall deficit, leaving us paying less in debt interest even as the gilt rates rise. It freezes income tax, VAT and national insurance contributions, even whilst pumping unprecedented sums into infrastructure and public services. This is a budget for which the Chancellor must be heartily commended, and I commend his work and this budget to the House.
Rt Hon. Ms Juliet Manning MP
Member of Parliament for Clwyd West

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Re: The Budget

Post by Michael Smythe »

Hear, hear!
The Rt. Hon. Michael J. Smythe
Member of Parliament for Chelsea and Fulham
Chancellor of the Exchequer

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Re: The Budget

Post by Ashton Edwards »

Mr Speaker,

I echo the comments made by the Right Honourable Member for Workington. We have a budget that is designed to look good and to sell talking points, but it's lacking the sort of bold action that we were led to believe would be coming.

A fantastic example is in the area of social care.

The Right Honourable Member for Finchley and Golders Green, in laying out his grand vision for Britain, called out social care three times, saying that it is important to have a system that has the financial support to serve people in need. That Right Honourable Member highlighted his upbringing and history as giving him a foundation for compassion and for bringing out the best in people.

And then we have this budget, which provides not a single additional appropriation for a social care system that has been a failure.

Our current system sees people selling their homes in order to make massive payments on social care bills. Every HOUR, 5 people sell their homes in Britain to pay for social care, which can total £50,000 a year or more. It sees 1.5 million over-65s are going without assistance that they need to get by in daily life. It sees nearly 100 people every HOUR getting turned down for financial assistance for social care. And that's a direct result of the same austerity policies that this Government continues to support and say has been good for Britain: billions pulled out of local authority budgets leaving them with nothing to actually help people.

Despite the promises of several Ministers in this very Government to take action on social care, to help revitalise a system that needs help, we've seen not a single movement in the right direction.

There is, though, a hailing of the massive new surplus in day-to-day spending; this spending could easily reform a broken social care system. Labour has laid out how; while I don't expect this Government to take our ideas, I had at least hoped to see something.

I have to imagine that the £17.1 billion surplus is slim comfort to the family that spent £220,000 over four years on social care for their mother even after they sold their house to make ends meet.

The billboards and ads this Government has put up on this budget probably have cost more than that.

I appreciate that this Government is spending more. They will say this is not a repudiation of austerity... but it is. Raising taxes, spending across the board except for a few areas... this is not where the Tories were a few years ago. And I am glad to see that.

But there are so many missed opportunities to do more and bring meaningful change for Britain.

This Government is pulling us out of the CAP, but has not provided any more funding for rural programmes to help farmers.

This Government is raising taxes on businesses, but it's investment in renewable energy, in meaningful infrastructure, is a pittance. Spending is flat on programmes that could help businesses with research and development, with innovation, with growth. At the same time they're overseeing the growth in the number of people getting tax credits meant to supplement low income, without any proposals to promote wage growth or advancement for workers.

This Government is spending more on homes, but they're keeping spending on housing assistance flat. There will be more properties to invest in by wealthy overseas investors, but there won't be any method to help people who have wanted homes, who need homes, to get them into them. No programmes to reduce rough sleeping or homelessness.

This Government isn't increasing access to early education; one of the best methods to combat inequality and poverty.

This Government isn't spending anything more on Ofsted despite legislation that would see this agency protecting teachers who face abuse and violence.

This Government isn't listening to police officers when they say that, to avoid attrition in the ranks, raises of 5% are more justified than the mere pittance above inflation that they're getting here.

After so many years in power, this Government has found themselves staking an amazing position. They have said everything that has come before needs to be thrown out: spending reviews, austerity, even Brexit deals. But when faced with a chance of making a meaningful mark on Britain and truly improving lives and building the foundation for future growth and development, they avoid that path too.

The spending commitments should be lauded, but they should also lead somewhere. This budget does not do that. It makes up for a decade of underinvestment- or it tries to- within the span of one year. But it could be so much more... and it's sadly a missed opportunity.
Ashton Edwards MP
MP for Kensington (2017-) | Labour
Shadow Foreign Secretary (2020-2021)
Shadow Health and Social Affairs Secretary (2020-2021)
Shadow Digital, Culture, Media and Sport Secretary (2019-2021)

Shadow Health, Education and Social Care Secretary (2019-2020)
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Re: The Budget

Post by Kayla Gray »

Thank You Mr Speaker,

The Chancellor began his address by stating that years of cruel and callous austerity have given the country a “strong and stable financial base”. I think the Chancellor may have had a bit too much to drink before beginning his address because the reality is in direct contrast to that. I will attempt now to once again set the record straight on austerity to this house, just as my right honourable friends the members for Islington North and Hayes and Harlington had worked tirelessly to do during their time on the front bench.

In 2016, the IMF, who were one of those championing cuts the most, admitted that austerity did much more harm than good, and even as far back as 2012, Olivier Blanchard pointed out that austerity did understated damage to a weakened economy. Looking at the specific impact of austerity on Britain, the Trade Union Congress said it was a ‘travesty’ that “such an economically ruinous policy saw the light of day”, and they are absolutely right in saying that. In 2018, the United Kingdom economy grew at it’s slowest rate since 2012. Pay growth in 2017 was half of what it was in 2007. We have seen an explosion of insecure and low paid jobs over the last decade with rising in-work poverty. This was UN rapporteur Philip Alston’s conclusion when he stated that “even full time employment is no guarantee against in-work poverty”. Low wages and insecure work are the symptoms not of a strong economy, but of one severely weakened by a decade of neglect.

But now turning to the contents of this budget rather than the Chancellor’s address, when you look beyond the headlines and the graphics posted by the Foreign Secretary on twitter, it is clear there are glaring issues with this budget.

Mr Speaker, first of all, allow me to start with education, an area I am more familiar with due to my experience working as a teacher as well as my time as Shadow Minister for Schools from 2018 until the election of the Member for Islington North’s successor as Labour leader. Firstly, for nursery children, there is no increase in free childcare hours at all. Additionally, there has been no decrease in the price of tuition fees and a real term cut in university funding per pupil as well as frozen grants to universities, meaning universities see a real term cut in funding overall.

On top of this, we have seen no real terms increase to housing upgrade and support, social rent subsidies, no real terms increase for the troubled family scheme, neglecting those most in need of assistance when it comes to housing. There are cuts to the Department for Environment & Rural Affairs which has also lost EU funding following Brexit, this leaves rural communities vulnerable to issues like flooding and shows that this government is not ready to seriously tackle the environmental issues we face.

We also are facing a crisis in our prisons, with prison violence at unprecedented levels. What is this budget's response to this? No increase in the number of prison officers. No new prisons. A real term cut to rehabilitation funding. We had 10,424 assaults on prison staff from June 2018 to June 2019 and staffing levels at our current prisons are unsafe. We need new prisons and we need more staff at our current prisons to tackle this crisis, but instead of taking action, this government did nothing to address it.

However, Mr Speaker, while the fine print of this budget leaves it lacking for many of the most vulnerable across this country, the government has refused to raise taxes on the highest earners, frozen inheritance taxes and cut taxes on the higher rate on stamp duty. This shows the government’s true colours, they are serving the richest in our society while just using everyone else as election pawns. The Conservatives used to pride themselves on having a “long term economic plan” in the days of Cameron and Osborne, now this government is playing opinion poll politics. They’ve lost their majority, hopped into bed with the Liberal Democrats and know an election could be right around the corner, so they want to give themselves a short term poll boost rather than serving Britain’s long term interests.

This budget is an opinion poll budget, but despite the Chancellor’s rhetoric about the “strong financial base”, it is also an admission that the last decade of austerity has failed Britain, and that the way forward is through investment in this country. My party has been advocating this since 2015 and it is nice to see that the Conservative party might have finally caught up, unfortunately they are half a decade too late. However, as I stated earlier, I do have my doubts about the opinion poll budget, as it was David Cameron who said “austerity is never over until we’ve cleared the deficit”. While one possibility is that the party opposite have finally realised one of their many mistakes over the last ten years, the other is this is a ploy for a mini-polling boost before a possible general election and a return to austerity if the Conservatives are in government at the next budget.

Whilst stealing the Member for Islington North’s slogan “For the many, not the few”, the Conservatives have made a budget for themselves and their party polling while failing to deliver a long term vision for a “Stronger United Kingdom”, as appears to be the new Prime Minister’s soundbite. This opinion poll budget fails Britain and I urge this house to vote against it. It is time for fundamental change to society, and the only way to achieve that is a transformative socialist government to lead a post-Brexit Britain, just as there was after the Second World War with a vision for real investment for Britain’s long term benefit.
Kayla Gray MP
Labour Member of Parliament for Holborn & St Pancras (2015-)
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Re: The Budget

Post by Ashton Edwards »

Hear, hear!
Ashton Edwards MP
MP for Kensington (2017-) | Labour
Shadow Foreign Secretary (2020-2021)
Shadow Health and Social Affairs Secretary (2020-2021)
Shadow Digital, Culture, Media and Sport Secretary (2019-2021)

Shadow Health, Education and Social Care Secretary (2019-2020)
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Re: The Budget

Post by Sir Dylan Macmillan »

DIVISION! CLEAR THE LOBBIES!
Sir Dylan Macmillan
MP for North East Bedfordshire 2001 - Present

Shadow Chancellor 2016
Chancellor 2015
Chancellor of the Duchy of Lancaster 2014 - 2015
Leader of the House of Commons 2012 - 2014
Secretary of State for International Development 2010 - 2012
Conservative Party Chairman 2008 - 2010
Shadow Chief Secretary to the Treasury 2005 - 2008
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Sir Dylan Macmillan
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Re: The Budget

Post by Sir Dylan Macmillan »

The Ayes to the Right - 330
The Noes to the Left - 287

The Ayes Have It, The Ayes Have It! Unlock

For:
Con
Lib
DUP

Against:
Lab
SNP
PC
Alba
Grn

Abstain:
CUK
UKIP
Sir Dylan Macmillan
MP for North East Bedfordshire 2001 - Present

Shadow Chancellor 2016
Chancellor 2015
Chancellor of the Duchy of Lancaster 2014 - 2015
Leader of the House of Commons 2012 - 2014
Secretary of State for International Development 2010 - 2012
Conservative Party Chairman 2008 - 2010
Shadow Chief Secretary to the Treasury 2005 - 2008
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