Budget Resolutions Debate

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Karin Smyth

Main Page: Karin Smyth (Labour - Bristol South)

Budget Resolutions

Karin Smyth Excerpts
Wednesday 8th March 2017

(7 years, 1 month ago)

Commons Chamber
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Karin Smyth Portrait Karin Smyth (Bristol South) (Lab)
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It is an honour to follow the hon. Member for Tonbridge and Malling (Tom Tugendhat). Bristol South has a proud industrial and economic heritage. It is part of the west of England economy, which contributes more than £10 million to the Treasury every year, but it is also home to some of the greatest health inequalities in England. The last Labour Government recognised the contribution made by the people of Bristol South to our prosperity. The last Labour Government invested in our future, in our young people and in the fabric of our city, but they also recognised the severe economic need that people faced. This Government continue to short-change the people of Bristol South, and today is no exception.

Let us consider the contrast between the 13 years of the last Labour Government and what has happened since 2010. In health, investment in doctors and nurses meant the shortest waiting times that NHS has ever experienced, with demonstrable improvements in health outcomes. The money allocated by the Labour Government meant that after more than 50 years of campaigning, the people in my community finally got the hospital that they had been waiting for—the excellent and well-appreciated South Bristol community hospital.

In education, teachers, support staff and teaching assistants improved educational outcomes for children. Every secondary school was rebuilt under Labour, with new classrooms, laboratories and other facilities in Bedminster Down and Ashton Park schools, as well as in schools in Whitchurch, Hengrove, Hartcliffe and Withywood. Families from across Bristol South benefited hugely from Sure Start, and a brand new £30 million state-of-the-art post-16 campus was an investment in our further education. Further education was thriving, with a wealth of adult skills opportunities.

But what has life been like since 2010? On health and social care, the Public Accounts Committee, of which I am a member, has asked for an end to the bickering about funding. The money is not enough for the programme of work that is expected, and the Government need to start being honest with the public about that. Today does not alter that position.

In education, our children face school funding cuts—every school in my constituency will lose out—and children’s services are under threat. Headteachers have told me their concerns about losing £1.9 million in cuts across the city, with a £1.8 million cut in the education services grant and a reduction in special needs funding as well. This Government have cut 40% from the adult skills budget, and there is now a gaping hole in adult training provision. We expected some social care money and that money is welcome, but over three years it is not enough. I look forward to the Green Paper, but it bodes ill that the Government have already said they do not want to talk about a death tax. Such talk will not help the future of older people in our society.

Under Labour, child benefit went up and child tax credits were introduced. We cut long-term unemployment and introduced the national minimum wage. Pensioners were lifted out of poverty, and children were lifted out of relative poverty. Now, under this Government, the one in five households in Bristol South that rely on tax credits have lost out. The Library has shown that the bedroom tax has cost Bristol South people some £3.6 million. Some 9% of people in my constituency are hard-working, entrepreneurial self-employed people, and today is a devastating blow for them.

With some hubris, the Chancellor said today that

“they don’t call it the ‘last’ Labour Government for nothing.”

I assure him and the people of Bristol South that the next Labour Government will once again reward their hard work, recognise their endeavour and deliver for them all.

--- Later in debate ---
Clive Betts Portrait Mr Betts
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It is completely pot luck, as my hon. Friend says. The Chancellor should not rule out a more appropriate approach to assessing people’s estates when they die, and to determining what contribution should be made towards social care costs.

Karin Smyth Portrait Karin Smyth
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Does my hon. Friend agree that the opportunity has been missed to give us an understanding of what postponing part 2 of the Care Act will mean, and of the Conservative party manifesto commitment that people would not have to sell their house to fund their care, once their spending on care had gone above a certain level?

Clive Betts Portrait Mr Betts
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Absolutely. That is clearly a major problem with the system, and it needs to be addressed. I think my hon. Friend is referring to the Dilnot recommendation that people should pay no more than £72,000 in total for their care. When the Minister with responsibility for social care came to the Select Committee, he said that Dilnot would be implemented, but I am not sure how that fits in with this long-term review. I hope that the Government can explain that better in their Green Paper.

There has been no commitment to a cross-party look at this issue. The Chair of the Health Committee, the hon. Member for Totnes (Dr Wollaston), and the Chair of the Public Accounts Committee, my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier), have requested a cross-party review before the publication of the Green Paper, or at least an element of cross-party scrutiny of its proposals. At some point, we have to look at this issue for the long term, assuming that the Conservatives will not be in office for ever.

I also want to address the issue of business rates. The Government have brought this problem on themselves by extending the period between revaluations from five to seven years. That has made the problem worse, because the difference between what businesses were paying before the revaluation and the new rates is wider as a result of the period being longer. We need a commitment to more frequent revaluations. The Government mentioned that in 2015, but it seems to have fallen off the radar. The Select Committee agreed with the Government at the time, so let us have a commitment to more regular and more frequent revaluations.

Will the Government give an absolute commitment that the extra money that they have brought in to help with the revaluation, which I welcome, will not cost local government a single penny, either next year or thereafter? The Treasury should pay for it all. I also agree with the point made by my hon. Friend the Member for Rochdale (Simon Danczuk) that we need to know how the extra money that will be given to local government for discretionary reliefs is to be allocated between councils. Will it be allocated on a fair and transparent basis? When will we be given that information?

I have said to the Communities and Local Government Secretary that if the Government are looking for a fairer way of conducting valuations for business rates—to ensure that the digital services and online shopping sectors pay more, for example—we in the Select Committee will help with that review. It is also clear that there is something wrong with the proportion of payments being made by shops on the high street and by shops in out-of-town centres, and we need to look at that as well.

In 2010, the Conservative Chancellor at the time said that after five years of austerity he would have balanced the budget. Seven years later, after an awful lot more austerity than most of us could possibly have imagined, another Conservative Chancellor is saying that there will be five more years of austerity, after which he will still not have balanced the budget. That is an awful lot of pain for my constituents for very little gain, and there is no sign at all that austerity will end while this Government are in power.