Budget Resolutions — House of Commons, 2021-10-27
Topic: Macroeconomics
Clive Stanley Efford (Labour, Centre-left): I have often found myself wondering what levelling up means and how we know that we have got there. I have discovered the answer in the Budget today. It means that the Tories’ ambition is to get back to Labour’s level of public funding in 2010. Eleven wasted years—the Chancellor and the Prime Minister are trying to create the impression that this Government have only been in power for the last two years, and that they were not part of austerity and the years that followed. We cannot return to a system of austerity that kicks the stuffing out of our public services to the point that they do not have the resilience to respond to something such as the covid pandemic. Covid taught us that we need resilient public services—services that we are not only entitled to, but that we so desperately need to have in place The Tory austerity years from 2010 saw the lowest annual increases in NHS spending—lower even than under Margaret Thatcher, so she would be very proud of the Government. There have been cuts to police funding; central Government grants for policing fell by 30% in real terms between 2010 and 2019. There have also been cuts to education funding. According to the IFS, education funding from 2010 to 2019 was the worst since the 1970s. Government funding for local authorities has fallen by an estimated 49% in real terms from 2010 to 2018. Our public services were already stretched before covid came along In 2010, funding for Sure Start—we have heard a lot about that today—was £1.8 billion. It was cut by a third by 2018, with over 500 centres closing between 2011 and 2017. We now have today’s announcement of £300 million. That is nowhere near to getting us back to where we were with Sure Start. We have had all the guff about wraparound services, but these could easily have been provided through Sure Start—why was it cut? We heard from the Chancellor about youth spending, with another 300 youth clubs. Youth service spending was £1.4 billion in 2010. By 2019 it had been cut to £429 million, and 700 youth clubs went, as well as 4,500 youth workers Then we have the 21,000 police officers that were cut. The Conservatives came here and told us that they were going to cut 21,000 police officers but that it was going to result in more police officers being on the street. They closed nearly 600 police stations. In London, they took £1 billion away from policing; when the Prime Minister was Mayor, we lost our safer neighbourhood teams. My local Tories are now campaigning about closures of police stations—the brass neck! The Tories were warned that cutting 21,000 police officers would lead to rising crime, as it did, and now they are panicking and trying to put 20,000 officers back, as was confirmed in this Budget. Like burglars wanting to be thanked for returning stolen goods, they want to be thanked for reversing the cuts that they made in the first place It is the same in the NHS. Capital spending is back to 2010 levels—so we cannot not welcome that. We have 80,000 vacancies in the NHS. The Tories cut nursing bursaries. They were warned that that would lead to a lack of recruitment among nurses. We now have 38,000 nursing vacancies—nearly half the vacancies in the NHS. What was the Government’s response after covid—after everything nurses had done? The Government wanted to give them a 1% pay increase. That is not the way to deal with the recruitment crisis in the NHS. There was precious little about that in the Budget. A Nursing Times survey indicated that 80% of nurses feel that patient safety is compromised due to the severe staff shortage. Health Education England is saying that we need £900,000 per year for training to plug the gaps in nurse numbers in our NHS. In 2015, the Government promised 5,000 doctors, but we are 1,300 down on that figure In education, it is a similar situation. According to the IFS annual review of education funding, teachers’ pay has fallen by 9% since 2010. Total spending per pupil in England was just over £6,400 in 2020. Compare that with the high point of £7,200 in 2010, under the last Labour Government. Now we are going back to 2010 levels, the Chancellor claims in the Budget. Overall, the most deprived secondary schools have received a 14% real-terms cut per pupil between 2010 and 2020, compared with just 9% in the least deprived areas. Go tell that to the red wall seats! The IFS says that represents the largest cut in over 40 years. The increase in spending in previous years under the Labour Government was 60%. Cuts to our children’s education just highlight the reality of Tory austerity Britain. Under austerity, our children’s education was expendable. Funding had consistently been cut since 2010. Small wonder that the Tories failed to fund the catch-up that our children need following covid and refuse to feed our children during the school holidays Since 2010, as part of austerity, the Tories’ strategy has been intentionally to impose a cut on public sector pay. As a result, average public sector pay is £900 lower today in real terms than it was in 2010. For many, the loss in pay was more than £900 a year. For example, nurses and community nurses at NHS band 5 are more than £3,000 worse off today in real terms than they were in 2010. Residential care workers employed by local government are nearly £1,900 worse off in real terms. Ambulance drivers are £1,600 worse off in real terms. Now we are told that the Government believe that public sector workers deserve a pay rise. Will it be funded? Do they intend to restore public sector pay to 2010 levels in real terms? Will they fund those pay rises no matter what is recommended, or will the Government insist the increases are found from within existing budgets, as they did with nurses’ pay this year What does levelling up mean when it comes to poverty? In 2010, 49,000 people received three days’ worth of emergency food from Trussell Trust food banks; in 2019, that number was 1.9 million; and in the last financial year, it was 2.5 million. Is reducing reliance on food banks a measure of levelling-up success? Since 2010, the number of pensioners in poverty has risen from 1.6 million to 2.1 million. The TUC found that the number of children growing up in poverty in working households has risen since 2010 by 800,000 to 2.9 million. Working households comprised 37% of those below the official poverty level in 1994-95. By 2017-18, that had risen to 58%. Most people in poverty live in a family with someone in work—a dramatic change from 20 years ago according to the Joseph Rowntree Foundation. Will we see those people levelled up as a result of this Budget? I think not Then there is the cut to universal credit. In my constituency, 8,690 households containing 5,383 children will lose a combined £9 million. That is £9 million they will not have available to survive from day to day. That is £9 million that will not be spent in my local community. They will be facing the costs of inflation, fuel bills and food prices that they cannot avoid. The living wage increase does not touch families living on universal credit. It only affects the 2 million people on the national living wage. As we heard earlier from my right hon. Friend the Member for Newcastle upon Tyne East (Mr Brown), the taper on that was at 75%. When we take into consideration income tax—income tax relief has been frozen, so that is an increase—and the increase in national insurance, with the marginal rate of tax for people on the national living wage, the change will be minimal. They will be lucky if they end up with £7 a week—not the large figures read out by the Chancellor Getting funding back to the levels of 11 years ago is not progress. It is an indictment of the Tories’ record and underlines the fact that we have had 11 wasted years of Tory austerity. Sadly, following this Budget, I think that that will continue.