Budget Resolutions and Economic Situation — House of Commons, 2016-03-21
Topic: Social Welfare
Jo Cox (Labour, Centre-left): As is now abundantly clear, the Budget was developed with short-term politics in mind rather than compassionate, long-term economics. On one level, we have to admire the sheer audacity of the Chancellor: the audacity of someone who genuinely thought that he could get away with rewarding Tory donors in the City with a cut in corporation tax while attempting to cut benefits for disabled people, get away with cuts affecting those who were least likely to vote Conservative while sticking to his mantra that "we are all in this together", or get away with preaching about the northern powerhouse just as the Department for Business, Innovation and Skills closes its Sheffield office and moves all 200 jobs to London. Today, all that he has got away with is shirking his duty to come to the House and account for his failure and the black hole in his Budget, and his reputation is now in tatters There was never any compassion in trying to cut the benefits of 370,000 of the most vulnerable disabled people in our society by £3,500 a year. As we know, this Government have always hit disabled people hard, through the bedroom tax and cuts in employment and support allowance, but I would have had much more sympathy with today’s U-turn had it been based on the warnings from charities such as Sense, which called last Wednesday’s Budget a "bleak day for disabled people" A constituent of mine is disabled, and determined to carry on working. The personal independence payment helps him to do that. When he gets home, his joints are so stiff that his wife has to help him go to the toilet and have a bath, yet he is determined to go on working. He wants to keep working because he wants to keep his dignity; the Chancellor wanted to take it away. The Chancellor has performed a U-turn, not to help my constituent and help him to keep his dignity, but in an attempt to keep his own dignity. All that we need to know now is who he will pick on next in order to fill the £4.4 billion hole in his Budget. We can be sure of one thing: even after today, the most vulnerable in our society will continue to pay for the Government’s failures Let us take the announcement of business rates relief. On the face of it, the announcement was good news for small businesses in my constituency, but our local councils could find themselves cutting more services for those in need in order to make up the shortfall in their budgets. In my local area, we are proud to have more small and medium-sized businesses in the economy. In Kirklees, small business relief accounts for 11% of net rates income, as opposed to 4% in England as a whole. When 100% retention is introduced and the promised compensation for the loss of income ends, the council will be stuck once again, trying the balance the books to pay for a short-term victory for the Chancellor. As my hon. Friend the Member for Sheffield South East (Mr Betts) explained so clearly, despite the vague assurance that we heard today that councils would be compensated, the Red Book includes no explanation of where the money will come from and how long it will last The Chancellor was no less audacious in telling us great things about the northern powerhouse. If only we could believe him. Electrification of the trans-Pennine rail route would be a crucial development, but the project has been announced, cancelled, re-announced, delayed, and then re-announced once more, and we still have no clear commitment from the Chancellor as to when it will happen. There is nothing clever about announcing big investments and then running for cover when it comes to their implementation Indeed, work has only just started on 9% of the projects in the Chancellor’s infrastructure pipeline. A lack of infrastructure investment fuels poor productivity. Like so many of the Chancellor’s audacious predictions, productivity forecasts—as we now know—have been revised down for the next five years, and, once again, it is the north that suffers as low productivity strangles economic growth, holds back wages, and delays the much-promised recovery. The output of the Leeds city region is now 12% behind the national average I am afraid that I can feel no compassion for this Chancellor. He wanted the poorest fifth in our country to lose an average of £550 a year, while the richest fifth gained £250.