Budget Resolutions and Economic Situation

Apsana Begum Excerpts

Tuesday 9th March 2021 Commons Chamber

[Apsana Begum (Poplar and Limehouse) (Lab) [V]]

Before the pandemic, a decade of austerity left far too many trapped in low-paid, insecure work, consistently failed by the social security system. The brutality of this failing economic regime has been further exposed throughout the coronavirus pandemic, with at least 3 million people being left without economic support. The post-covid economic recovery needs to be built upon equitable distribution of income and wealth and new jobs. But beyond the rhetoric of levelling up, a redistributive economic vision that can deliver the future that people across the UK deserve was wholly missing from the Budget.

Despite finally listening to trade unions and campaigners with regard to the furlough scheme, there was not nearly enough to secure a recovery that puts people in a better position than when they entered the pandemic, never mind laying the foundations for the economy to meet the challenges of the future, including tackling climate change and mass unemployment. Yes, the main rate of corporation tax will increase from the present 19% to 25%, but not until 2023. At the same time, the rich and big business are being treated to mouth-watering tax giveaways and reliefs, despite unclear evidence about whether that will actually create the investment needed.

Beyond the limited extensions of job and business support schemes, there is very little about providing support for public services and public investment and a lasting boost to welfare for those hit hardest by the crisis. Not only was this Budget a missed opportunity for a care-led green recovery that creates decent, well-paid, unionised jobs and addresses our care crisis. It will create widespread inequality and precarity. It actually laid out significant cuts to public spending.

The lockdowns and an inadequate social security system have caused widespread financial hardship, unemployment and debt, and yet the Budget fell far short in tackling poverty, low pay and the deepening divisions in our society. It risks plunging more people into poverty and forcing them to queue outside food banks. The £20-per-week top-up of universal credit, which was introduced at the start of the pandemic, will be temporarily retained and will help some 6.5 million families, but only until September. At the same time, there is no increase in the statutory sick pay of £95.85 per week. Despite the ongoing performed gratitude towards those working on the frontline, the Government did not end the wage freeze for public sector workers. That is an absolute insult.

In the long run, we need an inclusive, intersectional recovery to rebuild our economy and recover from the pandemic and entrenched inequality. I am sick of looking around me and seeing the hard work and creativity of my local people often go unrewarded.