Budget Resolutions

Brendan O'Hara Excerpts

Tuesday 30th October 2018 Commons Chamber

[Brendan O'Hara (Argyll and Bute) (SNP)]

It is a pleasure to follow the hon. Member for Berwick-upon-Tweed (Mrs Trevelyan), who, despite being on the wrong side of the line at the border, is always entertaining.

Despite the Chancellor’s rather dead-pan delivery of yesterday’s lengthy Budget, the simple truth is that not one of us can trust or believe a single word we heard. Whether on jobs, investment, tax cuts, austerity, extra funding for the NHS or universal credit, the truth is that the Budget is little more than a wish list cobbled together by someone seriously lacking in ambition. It is, none the less, a wish list of what the Chancellor would like if everything turns out the way he hopes it will in the Brexit negotiations. If those negotiations go pear-shaped—I reckon one would get pretty short odds on that being the case—he has admitted that we will all be back here in the spring for what he described, rather euphemistically, as a fiscal event.

In short, what we heard yesterday was, “This is what I’d like to do in an ideal world, but just don’t mortgage the farm on it happening because we have absolutely no idea how Brexit will turn out, and if it doesn’t go well, everything will be up in the air and we will have to do it all again before the clocks go forward.” The Chancellor basically admitted that his Budget will not be able to withstand Brexit. What a way to run a country. What a way to run an economy. Perhaps saddest of all, given that this was his best shot, what a paucity of ambition on the part of the Chancellor.

Anyone watching yesterday who had hoped for or expected the fulfilment of the Prime Minister’s promise of an end to austerity would have been left sorely disappointed. This Budget most certainly did not sound the death knell for austerity. Public sector workers, the low-paid, the disabled, the sick and those seeking employment will all still continue to bear an unfair share of the burden of austerity. Frances O’Grady, the general secretary of the TUC, was absolutely right when she said:

“This Budget does not undo the austerity that has devastated public services. And it lacks the investment needed to speed up wage growth after the longest pay squeeze in 200 years”.

Let no one be in any doubt that, 10 years on from the financial crash, austerity is far from over. The UK Government will continue to balance the books on the backs of the poorest, weakest and most vulnerable in our society.

[Luke Graham (Ochil and South Perthshire) (Con)]

The growth commission that was commissioned by the Scottish Government said that there would be 25 years of austerity if Scotland separated. How would Scotland balance the books then?

--- Later in debate ---

[Brendan O'Hara]

I refer the hon. Gentleman to the commission’s report and advise him to read it, rather than simply taking the crib sheet handed out by his party.

Much has been made of the Chancellor’s announcement that £20 billion of new funding would be made available to the NHS over the next five years. We are told that that funding will be transformational for the national health service, but let us put it into perspective. The new money, which we welcome, averages out at a 3.4% increase per annum for the next five years. That is actually still less than the average funding increases received by the NHS in the first 60 years of its existence. All the Chancellor announced is that NHS funding, having been squeezed mercilessly by the Tories in the past decade, is returning to a position that is a little below its historical average. The reality is that in releasing this money, the Chancellor has simply removed the Treasury’s heavy boot from the neck of the national health service. If the Chancellor had had the good manners to remain in the Chamber until my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) had spoken yesterday, he would have heard him ask why the Scottish national health service is being short-changed in the Budget to the tune of £50 million a year, which makes a cumulative shortfall of £250 million over the five-year period. That £50 million is enough money to pay for 1,200 nurses in Scotland.

In his Budget, the Chancellor had the perfect opportunity to do the right thing: stop the roll-out of universal credit dead in its tracks until the well-publicised faults in the system, which are hurting the poorest and most vulnerable in our society, have been fixed properly, once and for all.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Further to that point, is it not a scandal that the Highland Council has to fork out £2.5 million of its carefully hained resources to pay for the roll-out of universal credit? What might that £2.5 million have done for some of the poorest people in areas such as Argyllshire and my constituency?

[Brendan O’Hara]

I could not agree more. The hon. Gentleman is absolutely right to highlight the cost to councils and individuals of the appalling roll-out of universal credit. The Government know that it is wrong, but they are pigheadedly determined to see it roll out. The Budget was the Chancellor’s perfect opportunity to stop it, but he refused. For reasons best known to himself, he decided instead to tinker around at the edges, with the promised money coming nowhere close to meeting the shortfall that was created by his predecessor. The Chancellor has decided to do almost nothing for those who are currently on universal credit and are struggling under the work allowance, the two-child cap and the benefit freeze.

As Gillian McInnes, the manager of the citizens advice bureau in my Argyll and Bute constituency, said:

“The Government has still not done enough to address the real problems of universal credit, which are causing serious hardship for many families. Without further support for families, many parents and children will be left in a desperate situation, with many”—

indeed, many more—

“forced into using food banks.”

This was the Chancellor’s opportunity to end austerity—he chose not to. This was his opportunity to stop and fix universal credit—he chose not to. Instead, he and the UK Government chose to hand out tax cuts to the wealthy while continuing to try to balance the country’s books on the backs of the poorest in our society. Heaven help us all if this was the Chancellor’s “good guy Budget”—the one that was based on the Government securing a half-decent Brexit deal. One shudders to think what he has up his sleeve when we are all forced to reconvene in this place early next year for his fiscal event, if and when the Brexit negotiations go totally pear-shaped.