Cost of Living Increases

Florence Eshalomi Excerpts

Tuesday 25th April 2023 Commons Chamber

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

I beg to move,

That this House condemns successive Conservative Governments for their mismanagement of the economy over 13 years; regrets that this has resulted in the UK being the only G7 economy that is still smaller than before the pandemic, with squeezed wages and higher mortgage rates that have increased costs by £500 a month for some households; further regrets that successive Chancellors have made working people pay for the Government’s economic failure with 24 tax rises since 2019, creating the highest tax burden in 70 years, while refusing to abolish the non-domicile tax loophole; is extremely concerned about the impact on household budgets of an inflation rate of more than 10 per cent with food prices rising at their fastest rate in 45 years; therefore calls on the Government to ease the cost of living crisis by freezing council tax this year, paid for by an extended windfall tax on oil and gas company profits; further calls on the Government to cut business rates for small businesses and support energy intensive industries including food manufacturers with their energy bills to help bring down the cost of everyday items; and finally calls on the Government to adopt Labour’s economic mission to secure the highest sustained growth in the G7 with good jobs in every part of the country.

It astonishes me that the Conservatives are acting like the cost of living crisis is over and their economic plan is working. The Chancellor is proudly boasting that Britain is back. He has even said:

“The declinists are wrong and the optimists are right. We stick to the plan because the plan is working.”—[Official Report, 15 March 2023; Vol. 729, c. 847.]

What planet does the Chancellor live on? Does he understand the reality on the ground for all of our constituents? Does he understand that on the Prime Minister’s watch, our economy is weaker, with the UK forecast to have the worst growth in the G7 this year? Real wages are lower than they were 15 years ago, with families in the UK going into the cost of living crisis significantly poorer than those in comparable European countries. The price of everyday essentials has risen by an eye-watering £3,000 since 2020, and never before have people in this country paid so much money for so little value from their public services.

The disconnect between this Conservative fantasy and the experiences of ordinary people could not be wider. Decent, hard-working people across the country are being forced to cut back on the things that underpin a good life. Mr Deputy Speaker, I will explain what I mean by a good life: a meal out once in a while with close friends, the special annual family holiday that you look forward to all year round, and a decent home to call your own. Those are increasingly things of the past; instead, people are left worrying about how they are going to pay their household bills at the end of the month and their rocketing mortgage costs.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

I thank my hon. Friend for opening her speech in such a powerful way. Does she agree that it is really worrying that we hear tales of parents going without a meal, just to make sure that their children are able to eat?

--- Later in debate ---

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

In terms of maths, no matter how far a number of my constituents try to make the pennies stretch, they are just not stretching enough. Families’ incomes continue to go down and costs continue to go up. That is the reality of the Tory Government. The cost of living crisis has been going on for some time, and it is important that we do not talk about it as something normal and something we should accept. Every day I see that with my constituents, who are so desperate with nowhere to go. We see it in our casework and our advice surgeries. Household incomes are being squeezed. To put that in context, food prices are going up 50% faster than elsewhere in the G7, putting Britain’s food inflation rate at a staggering 19.2%. That is not some abstract maths figure from economists; that is felt in people’s weekly shop. When people go to the supermarket, they find that the price of sugar is up by 42%, milk is up by a third, and pasta by a quarter. Those are basic food items that families need to survive. That is the maths they are struggling with when they struggle to pay for this cost of living crisis.

I want to highlight the impact of this crisis on young people, which far too often we forget. We talk about young people being the future, but a number of them are struggling to live day to day. They are struggling with zero-hours contracts. We see the claims about youth unemployment going down, but these young people are in insecure jobs—Deliveroo jobs. That is not aspiration. That is not what I want for young people in Vauxhall. I want them to have long-term careers, not insecure jobs, yet that is the reality behind the figures that Conservative Members keep citing.

I am proud to represent Vauxhall. On my visits to schools and youth centres I seebold and passionate-thinking young people, but a number of them feel that politics is not for them, does not speak to them, and that the economy is skewed against them. The sad reality is that they are right. Instead of the Government getting behind votes at 16, votes are being supressed next month with the introduction of voter ID. Why are the Government so scared of allowing young people to vote? Why?

Figures from Barnardo’s show that one in four young people now live in poverty, and sadly many more face going hungry. Yesterday, children from Stockwell Primary School visited Parliament, and they spoke to me about their worries and concerns. I recently co-chaired an event of the all-party group for London, with the hon. Member for Bromley and Chislehurst (Sir Robert Neill). We hosted an event with a youth charity, London Youth, to hear directly from young people about what the cost of living crisis is doing to them. We heard how many of them are having to take on weekend jobs alongside their schoolwork, just to support their families who are struggling. We heard stories of young people stepping up to care for their younger siblings, because their parents are having to work more hours because childcare is extortionate. We heard about those young people’s abject lack of hope of being able to move and have secure roots because—guess what?—they cannot afford to buy.

I have spoken about the need for us to end section 20 notices, and the impact that the cost of living crisis is having on insecure housing. If we want our young people to have hope, be successful, and contribute to the economy, we need to support them by not abandoning them, and by not making them suffer through the cost of living crisis. We need to give those young people hope, and that will happen only with a Labour Government.

Economic Situation

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Wednesday 12th October 2022 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

Small businesses across my constituency are watching the news with utter dread. They have just about survived the pandemic, the Brexit uncertainty and the collapse of the tourist trade in London, which really affects my constituency—we normally have more than 3 million people going through Waterloo station alone. The spiralling costs, combined with the recession, will wipe out any existing benefits or support from the Government. These businesses simply do not have six months. The Chief Secretary has gone on and on about growth, but does he agree that growth will happen only if these businesses survive the winter?

[Chris Philp]

That is why we have offered the energy price guarantee to businesses as well as to consumers, and why we are keeping corporation tax low at 19% rather than putting it up. Of course, that helps businesses of all sizes: any business making £50,000 a year or more in profit will benefit from the freeze in corporation tax. We do not yet know, as far as I am aware, whether the Labour party supports that position. The shadow Chancellor is sitting impassively, not giving any indication whether she supports lower taxes; I think the House would love to hear at some point what her views are.

Those are the things that we are doing to help businesses. Last night, we voted—the Labour party voted for it as well—to reduce the national insurance burden on businesses. That is the plan that we have to help businesses, and I am very proud to stand behind it.

Oral Answers to Questions

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Tuesday 11th October 2022 Commons Chamber

[Andrew Griffith]

My right hon. Friend the Secretary of State for Levelling Up, Housing and Communities will make a statement to the House in the coming weeks.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

A constituent wrote to me and said, “What world do the Tories live in? I guess one where you protect the rich and wealthy. The suggestion that the Treasury thinks that a person on £30k a year can buy a home in London is frankly laughable and salt in the wound.” How does the Minister expect my constituents in Vauxhall who are already struggling to pay their rent to save to buy a new home on a salary of £30k?

[Andrew Griffith]

I will be very happy to write to the hon. Lady and to talk to her constituents about the unprecedented intervention that we have made to protect them this winter from their energy bills, putting valuable certainty and confidence not just into every household, but into every business and the economy. That is why the International Monetary Fund has today increased its growth forecast for the United Kingdom.

Financial Statement

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Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

The White Paper from the Secretary of State for Levelling Up, Housing and Communities was in fact warmly welcomed by many colleagues from across the House. More broadly, is backed up with tens, if not hundreds, of billions of pounds of extra funding. The results are seen in our employment growth, which has been strongest in those regions outside London and the south-east.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

The Chancellor confirmed a business rate discount for businesses up and down the country, to a rateable value of £110,000. A number of businesses in my constituency do not qualify for that. A number of businesses across London did not get any benefit during the pandemic. One of the key ways that the Chancellor could help many businesses—not just those in Vauxhall—is through VAT cuts for tourism. People are not coming back to the tourism sector; we have seen record low numbers. Does the Chancellor agree that a permanent cut to 12.5% will help those businesses get back on their feet?

[Rishi Sunak]

All statistics show that the hospitality industry is recovering very well: cash balances are healthy, and business insolvencies are down. That is in part thanks to the support that we have put behind that industry. The uncapped business rate discount will provide support to hundreds of thousands of businesses. It is right that we target support at those who need our help most, whether they are businesses or families and individuals.

National Insurance Contributions Increase

Florence Eshalomi Excerpts

Tuesday 8th March 2022 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

Having listened to the debate this afternoon, I want to draw the few Members on the Conservative Benches back to what our motion is actually seeking. It is very clear: it is asking the Government to cancel the planned 1.2% rise in national insurance contributions that will cost families, on average, £500 per year from this April. The issues around funding for health and social care, as my hon. Friend the Member for Sheffield South East (Mr Betts) outlined, are long-standing. This did not start during covid, and it has not been addressed by this Government for successive years. When 50% of Britons are saying that they cannot afford this additional increase in the cost of living, we are asking the Government to address this and cancel this rise now to support families.

Across my constituency of Vauxhall, the reality of a cost of living crisis is nothing new for many residents. They have been trying to make the pennies last for many years. The ill effects of the universal credit system, the erosion of workers’ rights and an utter failure to tackle the housing crisis have left so many Vauxhall residents—

[Matt Rodda (Reading East) (Lab)]

My hon. Friend is making an excellent speech. I would like to ask her about the housing crisis. In my constituency, in Reading and Woodley, many residents suffer, as she says, from the rising cost of living, but they suffer particularly because of the great increases in mortgage and rental costs. Will she focus on that matter, and will the Minister also look into it?

[Florence Eshalomi]

My hon. Friend makes a really valid point. In London, the big issue of the cost of living is being pushed up by the cost of our housing crisis, and this is experienced right across the country. Household costs continue to go through the roof, including for many people in insecure tenancies and people in the private rented sector who are also hit hard.

The rise in national insurance will do nothing to alleviate the suffering felt by my constituents but will simply combine with booming fuel prices to push more and more of them into poverty. The effect of this cannot be overstated. More than 8,000 people in Vauxhall already live in fuel poverty. That means that they cannot afford to keep their home warm without dropping into poverty. How have we got to a state where thousands of people in the centre of one of the richest cities in the world, in one of the richest countries in the world, are having to make the impossible choice between living in poverty or living in a cold home? That is the reality for many of my constituents.

The Government can point as much as they want to extenuating circumstances, but they cannot hide from the failures on their own doorstep that have made the events of the past couple of years unnecessarily hard. Neither can it be said that the solutions they offer are sufficient, or progressive enough, in alleviating the costs of households. While the Government have proclaimed to be living with covid, the reality for many people in Vauxhall is that they are still reeling from insufficient support during the pandemic, and local industries face a long tail of this crisis. These include self-employed people who were unfairly excluded from Government support. Many of the people who have contacted me built up personal debt during the pandemic to stay afloat, only to be hit now with the double whammy of the national insurance and energy cost hikes.

In the lead-up to the 2015 general election, the then leader of the Conservative party talked about fixing the roof when the sun is shining. At the same time, the Conservative and Liberal Democrat coalition took a wrecking ball to the effective schemes introduced by Labour that were fixing a million roofs every year. The result is that, with the heavy rain of the fuel price crisis on the horizon, our housing stock still suffers from inefficiencies that will mean that more and more households face impossible choices in the next couple of months.

On this International Women’s Day, I pay tribute to the women across Vauxhall who are working around the clock behind the scenes to make ends meet: the women who are juggling insecure zero-hours contract jobs to pay their bills; the women who are forced to return to work early because of the crippling costs of childcare; the women who are at the forefront of working with our young people caught up in violence, running to the scene and reassuring the community when there has been a tragic incident; and the women who will continue to go without just to ensure that their extended family members or the people they are caring for are supported. They are the very same women who will be hit by this national insurance crisis.

The tangibility of many households in Vauxhall’s ability to cope is close to a tipping point. While there are things that the Government cannot control, they must use all the levers they have available to ensure that households stay afloat. Refusing to impose a national insurance rise now is one of those levers, and it is one that the Government must use if they have the interests of households up and down the country at heart. I ask Conservative Members to reassess their commitment to supporting working families and cancel this rise.

[Madam Deputy Speaker (Dame Rosie Winterton)]

We will now have a five-minute time limit so I can get everybody in.

Economic Update

Florence Eshalomi Excerpts

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

My right hon. Friend is absolutely right and I can give her that reassurance. I hope that today’s announcements will provide her with the confidence she needs that both I and this Government are committed to being on the side of those hard-working families, whom she does an enormous amount to represent and champion in this House.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

The Chancellor said that energy suppliers will apply the discount on people’s bills from October. Vauxhall constituents contact me almost daily, including residents who live in properties that are too cold to heat and residents pleading for help to get repairs done. Current data suggests that more than 8,000 households in Vauxhall already live in fuel poverty. What does the Chancellor have to say to my constituents who are already unable to make ends meet and who face a hike of over £700 in their energy bills?

[Rishi Sunak]

What I can tell them is that they will not have to wait until October, as the Labour party’s proposals would have had them do. They will receive £150 in April, and then in October they will receive the rebate on their bills at a time when the energy price cap will be looked at again. So it is appropriate that there is further action to provide support then. That is why this policy is the right policy. By using the council tax system, we can get money to people faster—£150 in April for the hon. Lady’s constituents.

Coronavirus Grant Schemes: Fraud

Florence Eshalomi Excerpts

Tuesday 18th January 2022 Commons Chamber

[John Glen]

I thank the right hon. Gentleman for his question. I do not accept the premise behind it, but I do accept that we moved £81.2 billion of support through various schemes out to businesses and individuals up and down the country, and that there was an element of fraud, which we will continue to bear down on aggressively.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

The Minister may be aware that my Vauxhall constituency is home to world-renowned arts and cultural centres and small independent theatres, many of which are supported by young, up-and-coming independent actors, freelancers and artists who received no support whatsoever. Seeing the Government wipe away this £4.3 billion debt is another slap in the face for people who have struggled for the past 22 months without any support, even though they are taxpayers. I pay tribute to the many business improvement districts across Vauxhall—the South Bank BID, Vauxhall One, Brixton BID and This is Clapham—which support small and independent businesses up and down my constituency that struggled and often did not qualify for any grants because of the rateable values associated with inner-London constituencies. Does he understand that many people feel anger when they see the Government write off this £4.3 billion?

[John Glen]

As a former arts Minister who visited many of those organisations in the hon. Lady’s constituency in years past, I recognise the enormous contribution that creative industries make there and across the country. Of course, the grants we gave through the Department for Digital, Culture, Media and Sport, the recovery fund, and the support through local authorities got to many of those organisations. I stand here today not with a sense that nothing could have been done better, but recognising that there was a balancing act between speed of delivery of support to businesses, and complexity, with the delays that would inevitably have ensued. I am contrite about our not getting everything right, but I am also clear about the real dilemma that we faced at the time.

0.7% Official Development Assistance Target

Florence Eshalomi Excerpts

Tuesday 8th June 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I thank the right hon. Member for Sutton Coldfield (Mr Mitchell) for his persistence in bringing this issue to the House today. I am deeply concerned by the UK stepping back from its responsibilities to the world’s poorest and abandoning its commitment by cutting aid, and so are many of my Vauxhall constituents who have contacted me.

Six years ago in 2015, we were the first G7 nation to enshrine in law our commitment to the UN’s target of 0.7% of gross national income on overseas aid. As we prepare to host the G7 summit at the end of this week, the UK is breaking its promise, while other G7 countries such as France and the USA are maintaining or increasing their aid commitments. This is not the global Britain we want the world to see. The aid budget should be used to tackle the global challenges facing us all: the pandemic, the climate crisis and rising poverty and inequality.

A few months ago on 8 March, we celebrated International Women’s Day, and men and women across the UK spoke out against violence against women and girls. We can choose to challenge and call out the inequality we know that so many women continue to face. I am sure that Members across the House would agree that one of the best ways to help address that inequality is to ensure that women and girls have access to vital education —not only at home here in the UK, but right across the world.

The UK’s ambitious targets of getting 40 million more girls into school and 20 million girls reading by the age of 10 by 2026 have been adopted by the G7. Indeed, the Prime Minister said a few weeks ago on 12 May:

“Supporting girls to get 12 years of quality education is one of the smartest investments we can make as the world recovers from Covid-19. Otherwise we risk creating a lost pandemic generation…I’m going to be working throughout the UK’s G7 presidency to ensure leaders invest in those girls and boost children’s life chances around the world.”

Reducing the aid budget is in direct contradiction to the rhetoric from the Prime Minister a few weeks ago and the reality faced by millions of people working across the world to support women or girls and many others across the aid sector. The cuts will have far-reaching consequences for some of the world’s most marginalised and vulnerable people. Projects such as the International Rescue Committee’s Girls’ Education Challenge—the UK’s key programme for supporting girls’ education in Africa and Asia—could now be at risk because of this cut. I am concerned by the UK’s sudden role—[Inaudible.]

[Mr Deputy Speaker (Mr Nigel Evans)]

I think we have just lost Florence. I am terribly sorry. [Interruption.] I think we will have to leave it there. I call Pauline Latham.

Commission on Race and Ethnic Disparities

Florence Eshalomi Excerpts

Tuesday 20th April 2021 Commons Chamber

[Kemi Badenoch]

I wholeheartedly agree with my hon. Friend. This is very much part of the ethos of the equality hub: there is no point in enacting policy and then not checking to see whether it is successful. In fact, too many resources have probably been spent on creating activities but not necessarily checking whether they are generating the benefits that we expect. I thank my hon. Friend for that question and assure him that that is the way we intend to approach these issues.

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

I put on record my thanks for the work of the Runnymede Trust and declare an interest as a former member of staff there, working as its public affairs manager. The Runnymede Trust is a leading race equality think-tank and has, through some of its quality work and research, helped to identify issues in respect of addressing race equality in this country.

I wish to focus on the commission and the issues around education. The commission focuses a lot on the educational experience of young black and minority ethnic students, but I hope the Minister will agree with me on this. A few years ago a Runnymede Trust article highlighted the fact that when a number of black and minority ethnic students who do well at GCSE and A-level go to university, their degree classifications are much lower, which has a big impact on them securing work when they leave university. Will the Minister agree to look at this issue and not just accept the commission’s report in terms of saying that for all black and minority ethnic students educational attainment is going in the right direction?

[Kemi Badenoch]

I am pleased that the hon. Lady has actually read the report. As I said, I am happy to debate and disagree, but not to be misrepresented.

The hon. Lady raises an interesting point about what is happening in education. I should clarify that the good news that the report highlights is around GCSEs; it probably agrees with her about what is going on in higher education. The report talks about black students being more likely to take poorer quality courses at less prestigious universities, and there is a big disparity in the fact that black students are the least likely to go to a high tariff provider and are 1.7 times more likely than their white peers to attend what the report describes as “low tariff institutions”. Part of the difference is due to the high progression rate into higher education for black students, but the report also talks about the sort of advice that they are given. It is very much an issue that we should explore further and I will encourage colleagues from the Department for Education to look into it. If the hon. Lady wants to write to them directly, I encourage her to do that.

I thank the hon. Lady for her question and note her comments about the former Runnymede Trust. We on the Conservative Benches have worked well with people such as Trevor Phillips, and one of the commissioners, Samir Shah, is also a former chair of the Runnymede Trust, but I cannot accept the behaviour of the current chair and some staff members.[Official Report, 22 April 2021, Vol. 692, c. 6MC.]

Government's Management of the Economy

Florence Eshalomi Excerpts

Tuesday 23rd February 2021 Commons Chamber

[Florence Eshalomi (Vauxhall) (Lab/Co-op) [V]]

The last decade has seen huge changes to our economy and the way we work, most notably the advent of the gig economy, characterised by short-term contracts or freelance work instead of permanent jobs. It is a work force dominated by women and workers from black and minority communities. That type of economy works well for people who can choose where, when and how they work, but it does not work for everyone—those who have no choice but to take whatever low-paid, insecure work they can get.

This pandemic has revealed and exacerbated deep structural inequalities in Britain today, and it has also created winners and losers. Public Health England found that black and minority ethnic communities were more likely to live in overcrowded houses in deprived areas and have jobs that exposed them to high risks of contracting the virus—a cocktail of conditions that had left them more vulnerable to unemployment and the risk of death.

We must take the opportunity to reflect on the lessons of the pandemic. Time and time again the Government have promised to reform the gig economy, but their flagship employment Bill is nowhere to be seen. We need to ensure that that Bill enshrines strong protections for gig economy workers, so that as we start to recover and rebuild the foundations of our economy and Britain, we build a Britain that will benefit everybody.