Government's Management of the Economy Debate

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Department: HM Treasury

Government's Management of the Economy

Grahame Morris Excerpts
Tuesday 23rd February 2021

(3 years, 2 months ago)

Commons Chamber
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Grahame Morris Portrait Grahame Morris (Easington) (Lab) [V]
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I wonder who is really living in a surreal world when I hear some of the contributions from the Government Benches. Perhaps Conservative Members should have a look at the levels of national debt and some of the dreadfully incompetent decisions that are making matters worse, and walk a mile—or a short distance—in the steps of ordinary people and have a dose of reality.

Covid-19 has highlighted the fundamental weaknesses in the UK economy. Clearly, we have suffered some of the worst death rates in the world, coupled with a fall in economic activity suffered by no other major developed economy. Those weaknesses in our economy have been created over the last decade. Compounding the problem is the fact that the governing party has systematically undermined our vital public services.

I am well aware, because I served on the Bill Committee, that the NHS went through a costly and unnecessary reorganisation that has squandered billions of pounds and opened up our health service to privatisation. The problems are so acute that now, after only eight years, the Government have published a White Paper for a new health and social care Bill. I find it difficult to understand when I see the Prime Minister and his Ministers applauding our key workers—surely it is reasonable to ask where they have been during the last decade of public sector pay freezes. On the eve of the pandemic, falling real-terms wages in the NHS contributed to a workforce crisis. Year on year, taking account of inflation, wages have fallen for 10 years.

Nowhere has been more hard-pressed in the last decade than local government. We now have the Government’s council tax bombshell, which is only weeks away. Instead of helping hard-pressed families in areas like mine, a succession of Governments led by the Conservatives have passed on the financial burden for maintaining local services to local taxpayers through higher council tax. At a time when local authorities such as Durham have had £260 million cut from their budgets, we should applaud them and congratulate them on their work with their public health teams to reduce covid transmission.

We should look at the realities of universal credit and what happens, year on year, when Ministers quietly cut the strings of our social security safety net. Sadly and unnecessarily, the Prime Minister maligned my hon. Friend the Member for Leeds East (Richard Burgon) yesterday during the statement for his trade union affiliations. Like my hon. Friend, I am proud of my trade union affiliations and the role trade unions have played in defending the living standards of working people.