Budget Resolutions

Nigel Evans Excerpts

Tuesday 12th March 2024 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I remind Members not to refer to current Members by their names, but to do so by their constituency or office.

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[Yvonne Fovargue (Makerfield) (Lab)]

There are things to welcome in the Budget when it comes to helping people struggling with hardship and debt, but they are more about tinkering than about providing solutions to the underlying problems. I welcome the extension to the household support fund, which is distributed by local councils and is a crucial lifeline for desperate families, but it is only for six months. That is wholly inadequate given the scale of the problem.

Increasing the repayment period for households on universal credit that take out budgeting advances from 12 months to 24 months is clearly helpful, especially for those struggling to make ends meet or coping with an emergency, but that still leaves millions of people on universal credit subject to unaffordable deductions from their benefits to repay other Government debts. Those deductions from an amount of money that is frankly too little to live on in the first place cause real hardship.

We have to put those small changes in the context of a cost of living crisis that is affecting millions of people. StepChange says that two in five people are currently struggling to keep up with household bills and credit commitments, and its advisers regularly speak to clients struggling to meet even the most basic needs, such as getting a healthy meal and keeping the heating on. They are also increasingly seeing people on negative budgets, which means that they do not have enough income to meet their necessary outgoings, let alone put towards paying off their debt. A new report published today by Christians Against Poverty highlights that and the fact that many people lack credit, but I am not sure the Government recognise the problem as well as those charities do. That is why people need more help with the fundamentals, such as council tax and energy bills. Where is the much-needed council tax support scheme and a social tariff for energy? Those changes would make a real difference.

We also need major changes to the kinds of debt solutions that advice agencies can offer. The announcement of the scrapping of the up-front £90 application fee and the uplift to the vehicle value to qualify for debt relief orders is a start, because debt relief orders were a real barrier to those in financial hardship who had to find £90 before they could even deal with their debts. The statement on financial vulnerability is welcome, but it is estimated that an extra 556,000 debt relief orders will be applied for—a 75% increase on 2023. The statement asserts that individuals will be put in contact with free debt advice where appropriate, so my question to the Chancellor is: where will the extra money come from to pay for the additional debt advice? The free advice sector is already overloaded. Debt advisers are working beyond their capacity and suffering burnout, and many are leaving the sector, despite their commitment to it. More and sustained funding is urgently needed.

Enough with tinkering around the edges. We need a system of simple and straightforward debt solutions, and we must ensure that people, including those on negative incomes, are always able to access the solution that best suits their needs. One part of the solution has to be to reduce creditors’ reliance on bailiffs, whose fees, which rose substantially last year in the middle of a cost of living crisis, are simply added to people’s debts, making them less and less affordable. Bailiffs are often part of the problem, not the solution. We have to encourage creditors—including public sector organisations, the Government and local authorities—to embrace a fairer and more effective system that prioritises affordable payment plans over the seizure of goods.

Of course, we need to prevent people from falling into debt in the first place, so we must look at the issues more holistically. The causes and solutions are complex. Many people affected by debt have multiple categories of debt, spanning lots of regulatory regimes. That complexity is replicated across Government and Whitehall, and laws and regulations span several Departments. For example, the regulation of “buy now, pay later” firms, which is far too delayed—I was really sorry to see that it appears to have been kicked into the long grass—is the preserve of the Treasury. Bailiff fees are an issue for the Ministry of Justice, and prepayment meters are the responsibility of the Department for Energy Security and Net Zero. The Department for Work and Pensions looks after deductions from universal credit, and rent arrears are dealt with the Department for Levelling Up, Housing and Communities—and that is not a complete list. Actually, all those Departments need to work together, and any policies need to have a financial inclusion impact assessment. That would stop many of the policies that are pushing people into more hardship and debt.

This may sound a little strange, but I am looking to introduce a ten-minute rule Bill to regulate e-scooters that use lithium-ion batteries, which will come under the Department for Transport. This is a financial inclusion matter, because it is often the cost of living that causes people to search for cheap bargains online that turn out to be anything but and are actually dangerous.

I will not pretend to have all the answers to the complex issues, but I do know that we have to have a joined-up approach to solving them. Far too many people in our country are struggling with what seems like hopeless debt, and they gain little from the tinkering and short termism of this Budget.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Angus Brendan MacNeil.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Sarah Olney will be the last speaker to have seven minutes, and we will then go to six minutes. Hopefully we can keep it at six minutes, if my maths is any good—I will be in the Chair then anyway, but we will see.

[Sarah Olney (Richmond Park) (LD)]

After years of economic chaos, unfair tax hikes and now Rishi’s recession, this desperate Budget is yet more evidence that the Conservative Government—

[Mr Deputy Speaker]

Order. The ruling was made earlier: we must not make reference to anybody’s Christian name or surname if they are current, serving Members. The hon. Lady is incredibly intelligent and I am sure she will find another way of making the point that she wishes to make.

[Sarah Olney]

Thank you, Mr Deputy Speaker. I apologise.

For millions of families and pensioners facing soaring mortgage and rent payments, skyrocketing energy bills and eye-watering food prices, the proposals announced by the Chancellor last week will barely touch the sides: no real help with the cost of living; no plan for economic growth; no real support for our NHS and public services; and no end to this Conservative barrage of stealth taxes. Is this really the best the Government have to offer? Thanks to this Government, the British public have endured the biggest fall in living standards since the 1950s, and more and more people across the country, including in the Chancellor’s constituency, are rightly saying that enough is enough. Instead of more empty promises, what they want is a general election as soon as possible, to get this tired Government out of Downing Street and get our country back on track.

In a veiled attempt to deceive the British public, the Chancellor seems desperate to convince people that he is cutting taxes. However, over this year and next, someone on average earnings will still be £383 worse off due to the Government’s freeze on the tax-free personal allowance. On top of that, they are already enduring higher energy bills, food costs, and rent and mortgage payments, all thanks to this Conservative Government. Meanwhile, the Government have left our public services stretched to breaking point. The Liberal Democrats have been calling on the Chancellor to end this crisis, particularly in our NHS, which is on its knees.

On doorsteps across the country, people tell us time and again how they cannot get a GP appointment, an ambulance on time, or see an NHS dentist. This is clear in places such as Molesey and Thames Ditton, where people are increasingly concerned that they are unable to see a doctor, and with GPs saying they have been left in the lurch by the Government. Despite the hard work of local doctors, the situation in Surrey has become dire after the Government slashed funding for GPs in real-terms by £9.2 million. That is also putting a huge strain on local hospitals, including St Peter’s Hospital in Chertsey, and Kingston Hospital in my constituency, which are paying the price for this Conservative Government’s failure properly to fund our health service.

The crisis facing our hospitals is also being felt in south London, where St Helier Hospital has been left to crumble, with no sign of the investment promised by the Government. A&E and maternity services are now at risk of closure, which could see up to 50,000 residents displaced for healthcare should further funding not be given. The situation in our health service is so bad that it is now hurting our economy, with more than 2.8 million people unable to work due to a long-term health condition.

The increase in economic inactivity since the start of this Parliament is estimated to have cost the taxpayer around £3 billion this year alone, and all because this Conservative Government have failed to fund our NHS and social care properly. Instead of properly addressing the crisis, the Chancellor merely plugged a hole that he had blown in the NHS budget in the first place. That is why the Liberal Democrats have called on the Government to deliver serious investment for our NHS, recruit more GPs, fix our cancer services, bring down waiting lists, and help people get the quality care they so desperately need.

I was, however, glad that the Government made positive steps on the issue of child benefit—something of great importance to my constituents in Richmond Park. The raising of the threshold at which child benefit can be accessed is welcomed by the Liberal Democrats, as is the proposed consultation on introducing a household-based system to determine eligibility, rather than basing it on individual incomes. I pay tribute to the work of my colleague, my hon. Friend the Member for North East Fife (Wendy Chamberlain), who has campaigned tirelessly on this issue and introduced a Bill on that subject a couple of weeks ago. I encourage the Government to go further to review how the high-income child benefit charge works, to ensure that hard-working families do not continue to incur excessive fines through no fault of their own.

I was also glad that the Chancellor listened to the concerns of the theatre industry, particularly those of the Society of London Theatre and UK Theatre, regarding theatre tax relief. Current higher rates of theatre tax relief have played a pivotal role in enabling UK theatre to be world-leading and innovative, which will enable bigger, bolder programming that helps nurture talent pipelines and reach more audiences. I now urge the Government to keep working with our creative industries, both in theatre and in other sectors, to help enable them to grow and continue to display the outstanding talent that we have in the UK.

Liberal Democrats welcome some measures in the Budget, but it simply does not go far enough. The Chancellor could have stood up last week, proposed a fair deal for the British people and taken steps to get our economy growing again. Instead, he gave us more of the same: another underwhelming set of announcements from this Conservative Government, who are out of touch, out of ideas and nearly out of time. He could have cancelled this unfair stealth tax and raised the tax-free personal allowance; he could have reversed tax cuts for the big banks and put in place a proper windfall tax on fossil fuel giants to help fund our public services; and he could have presented a serious strategy to stimulate economic growth by reforming business rates and developing an industrial strategy, as was done by the Liberal Democrats in government. Instead, he chose to appease his Back Benchers in a desperate attempt to save his party and maybe even his own seat.

It is clear that the British public will not be fooled by the Chancellor’s deception. Right across the country, voters are sick and tired of this Conservative Government, and are ready to vote for change at the next general election.

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[Navendu Mishra (Stockport) (Lab)]

I will start by talking about housing, because it is the issue that I receive the largest amount of correspondence on. In 2019, the Conservative Government committed to build 300,000 homes a year by the mid-2020s. We are now well into 2024 and the Government do not look anywhere near reaching the target, nor does the Budget contain measures to improve progress in that regard. In Stockport borough, Conservative and Liberal Democrat councillors voted against participation in the Greater Manchester spatial framework in 2020, depriving Stockport council of funds and co-ordinated support to build more houses. Now, a Liberal Democrat-controlled council is building far fewer homes than are needed, and progress towards a local plan for housing has been painfully slow.

In January this year, the waiting list for social housing in Stockport borough was 5,995 households. Sadly, as of this week, the figure stands at a staggering 6,400 households. In Stockport, 2,300 households filed applications for homelessness assistance in 2022-23: a 22% rise on the previous year. In November last year, 137 households were in temporary accommodation, with 29 families in hotels. The council’s forecasted spend on temporary housing is due to top £500,000 this financial year.

I am also concerned by the increase in buy-to-rent developments in Stockport, which are where a wealthy institutional investor will buy the entire property—often an apartment block—with the properties only available to rent rather than to buy. I have tabled a number of written parliamentary questions on the matter due to the impact that such developments have on increasing average rental rates in the area and the negative impact they sometimes have on our community fabric. I will continue to press on that, because I do not think that the Government have a grip on the housing situation. As I said, I continue to receive large amounts of correspondence from constituents struggling with housing issues on a daily basis. The harsh reality is that the Conservative Government have failed the people of Stockport and those across England when it comes to comes to housing.

I also want to talk about cuts to local schools in my constituency. Data released recently by the National Education Union showed that the Government’s funding decisions have resulted in 70% of maintained schools in England facing real-terms cuts since 2010. That includes 66% of maintained primary schools and 88% of maintained secondary schools. In my constituency, 84% of schools have less funding in real terms than they did in 2010 due to Government cuts. That equates to a loss in per-pupil funding of £392 and a total change in school spending power of £3.2 million for all the children in my constituency. The worst affected primary in my constituency, Bridge Hall Primary School, has suffered a loss in real-terms per pupil funding of £1,752 and a loss in overall spending power of almost £340,000. The worst impacted secondary school, Stockport Academy, has seen a loss in real-terms per pupil funding of £1,528 and a change in its overall spending power of almost £1.5 million. After 14 years of cuts, an extra £12.2 billion is needed to restore school spending power to 2010 levels, repair crumbling school buildings and tackle the SEND crisis that our children are facing.

I also want to mention the rise in prescription charges and the impact that has, often on low-income people and deprived communities. The prescription charge exemption list is outdated and unfair and does not reflect the reality of many people living with long-term medical conditions. The Prescription Charges Coalition is calling on the UK Government to review that outdated exemption list, with support from the Health and Social Care Committee to achieve that change. While the extension of the household support fund is welcome, 80% of those surveyed by Parkinson’s UK in 2023 did not even know it existed. What steps are the Government taking to inform those who need it most and to ensure that people with such conditions have that support?

Finally, may I mention the good work of the Campaign for Real Ale in supporting local pubs? I have a fantastic range of pubs, hospitality businesses and brewing institutions in my constituency, but sadly we have lost 25% of the pubs in my constituency since 2010. As I am sure you are aware, Mr Deputy Speaker, our pubs make up a big part of our community fabric, and when a pub closes the implications are much wider than just the range of establishments available. The Government have sadly failed to deliver the long-term change needed to the business rates system that unfairly penalises bricks-and-mortar businesses such as pubs.

I have tabled a number of written and oral questions on this issue since my election in 2019, but sadly I do not see any change in Government policy. We have an award-winning distillery in my constituency: Stockport Gin. I recommend you try it, Mr Deputy Speaker; it will soon be stocked in the Strangers Bar. Robinsons of Stockport, an iconic brewery business going back to the 1940s, and others have been campaigning for reform to the business rates system. I hope that the Government will pay attention, because losing valuable institutions like our long-standing pubs is a loss to the community and the nation. I will end it there. Thank you for calling me to speak, Mr Deputy Speaker.

[Mr Deputy Speaker (Mr Nigel Evans)]

I look forward to you buying me a pint—of anything, quite frankly.