Economic Growth Debate

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Department: HM Treasury

Economic Growth

Margaret Greenwood Excerpts
Tuesday 14th November 2023

(5 months, 3 weeks ago)

Commons Chamber
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Margaret Greenwood Portrait Margaret Greenwood (Wirral West) (Lab)
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The King’s Speech was an opportunity for the Government to address the serious issues facing the country. Instead, it offered little in the way of hope for the millions waiting for NHS appointments, for the millions struggling to pay their bills, or for the millions of adults who struggle to read and write; and it dashed the hopes of everyone who is concerned about the climate emergency.

The NHS is in crisis, with more than 7 million people on waiting lists for routine treatment in England. Government spending on health has not kept pace with need. “The Rational Policy-Maker’s Guide to the NHS”, published by The 99% Organisation, presents the average annual change in per capita health spending—adjusted for population and demographic factors—by UK Governments since 1979. It shows that the Labour Government between 1997 and 2010 oversaw an average annual increase in per capita health spending of 5.67%. However, there was an annual average reduction of 0.07% under the coalition Government, and the Conservatives presided over a reduction of 0.03% between 2015 and 2021. Tory austerity is destroying our NHS.

This year, integrated care boards are required to make average efficiency savings of an eyewatering 5.8% at a time when we have massive waiting lists. Not only does that deliver misery to millions of patients, but it is damaging the economy, as people waiting for vital treatment have their recovery delayed, and so too their return to work. A Government who fail the NHS fail the economy, so I urge the Government to change tack and use the autumn statement to provide the NHS with the resources it needs.

Our levels of poverty and inequality are a source of shame and need to be addressed urgently. More than 14 million people in the UK, including 4.2 million children and 2.1 million pensioners, were living in poverty in 2021-22—about 1 million more people than in the previous year. Analysis by the Joseph Rowntree Foundation found that an estimated 1.8 million UK households, containing nearly 3.8 million people, including a million children, experienced destitution at some point in 2022. Shockingly, the study found that rates of destitution have more than doubled in the last five years as a result of benefit cuts and cost of living pressures. Paul Kissack, chief executive of the Joseph Rowntree Foundation, said that the Government are “choosing not to” act. Olivier De Schutter, the UN’s special rapporteur on extreme poverty and human rights, described poverty levels in the UK as “simply not acceptable” and said that the Government are violating international law.

OECD figures suggest that, compared with European Union countries, the UK has high levels of income inequality. Poverty and inequality are not inevitable; they can be addressed through progressive taxation, social security and investment in skills and education. The Government should start by abolishing the two-child limit and increasing child benefit. A Government who keep a large proportion of the population in poverty and ill health are a Government who have failed.

Illiteracy among adults is another driver of poverty and inequality. In the King’s Speech, the Government have yet again ignored the 7.1 million adults in England—one in six, or 16.4% of the adult population—who are functionally illiterate. Poor literacy skills make it harder for people to get good jobs, find and secure decent housing, and access services and use public transport, and it impacts on the wellbeing and educational development of their children, too. I call on the Government to carry out a review of adult literacy levels, and to come forward with strategy to improve them.

The climate and ecological emergency that we are facing affects us all, yet this irresponsible Government have announced a Bill that will support the future licensing of new oil and gas fields. It is sheer folly for the Government to be prioritising fossil fuels when we face climate disaster. The challenge we face is immense, and we need a Government who will invest in home-grown clean power and insulate 19 million homes, as Labour would do.

The Government have still not come forward with an outright ban on underground coal gasification, a risky technology to extract fossil fuels that has the potential to destroy the important ecosystem of the Dee estuary in my constituency. My constituents are adamant, as am I, that they do not want to see UCG under the Dee. Nor have the Government come forward with an outright ban on fracking—again, something that my constituents and I are opposed to. I call on the Government to ban both those technologies once and for all as a matter of urgency.

This King’s Speech shows a Government who have no intention of addressing these very serious issues: the future of the NHS, poverty, inequality, the cost of living crisis, illiteracy in adults and the climate crisis.