Budget Resolutions and Economic Situation

Claire Hanna Excerpts

Tuesday 9th March 2021 Commons Chamber

[Claire Hanna (Belfast South) (SDLP)]

The Budget represents interim measures, which may be understandable, given the economic climate, but it also represents missed opportunities, which are much less excusable—missed opportunities to have a genuine and meaningful green recovery, to invest in a resilient health service and the NHS workforce, or to support those who have lost jobs and income over the last year. It appears that the Government have not learned much from the last decade. Rather than injecting stimulus through people to tackle inequality, such as through a meaningful living wage or investing in child care, infrastructure or skills, they are choosing to leave it to the market to encourage growth and recovery.

Not only have businesses been dealing with pandemic, but many are seeking to survive and recover from the shock of Brexit, on which the Chancellor was suspiciously quiet. Northern Ireland finds itself in a unique position due to the Northern Ireland protocol, because we have access to both the UK and EU markets. This is not the best of both worlds—that was the EU or, at a push, the backstop. That is because both worlds—the EU and the UK—have been diminished by Brexit. Northern Ireland and its people opposed Brexit, but it has been imposed on us, so responsible political parties such as the Social Democratic and Labour party are working to make the best of the hand we have been dealt. I wish that those Northern Ireland MPs who campaigned relentlessly for Brexit would find it in themselves to be constructive now.

Making lemonade with the lemons we have been handed requires the Government to work with Northern Ireland Executive partners to develop an investment plan for Northern Ireland, based on promoting the business advantages of investing at this crossroads, including big opportunities in agrifoods, advanced manufacturing and green and low-carbon technology. There is now a chance for Northern Ireland to have its first ever unique selling point and to move towards climate-friendly production and a gear change in our historically poor productivity.

Overall, despite the Government’s chat on green recovery, this Budget does not do much to convince us of genuine ambition in this regard. The SDLP has spoken in the past 12 months about the opportunity for a generational rethink and a turning point, including on the climate. The year that we have had to reflect on what is really important in life, work and society has been a perfect opportunity to transition from obsessing exclusively about economic growth to a Budget that mainstreams the enhancement of the health and wellbeing of individuals, communities and the environment.

There has been insufficient focus on the environment and on those who are already living economically precarious and marginal lives. Yes, the Chancellor was dragged kicking and screaming to extend furlough and universal credit, but the poorest households will still see their income drop by 7% while unemployment benefits are at their lowest real level since the early 1990s. This is not levelling up; rather, it favours those who have been able to build up savings. This Budget does not allow the whole of society to recover. Finally, the lack of ambition and investment for the NHS workforce is bitterly disappointing, given what they have just gone through on our behalf, and the U-turn away from the derisory 1% pay increase needs to come fast.