Cost of Living Increases Debate

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Department: HM Treasury

Cost of Living Increases

Marie Rimmer Excerpts
Tuesday 25th April 2023

(1 year ago)

Commons Chamber
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Marie Rimmer Portrait Ms Marie Rimmer (St Helens South and Whiston) (Lab)
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Families, businesses and the country are struggling. For too long, Government support has been too little and too late. During the pandemic, we would have fared much better if the health service had not had its money cut every year since the Conservatives came into Government. The energy crisis has also had a huge impact on our economy. Britain is the only major G7 economy that is still smaller than it was before the pandemic. The country is going backwards under this Government. Many families are having to fork out an extra £500 in mortgage payments following the disastrous Conservative Budget last year that crashed the country’s economy. This is real money; it is the real lives of our constituents, and people are facing real hardship. This is not an abstract statistic, yet instead of doing something to help families, the Government are cutting funding to councils. Even last year, they introduced stricter eligibility for free school meals.

I have the honour of representing a constituency that spans two councils: St Helens and Knowsley. They are wonderful places with a strong sense of community spirit, but there is no denying that the Conservative Government’s decisions have taken their toll over the past 13 years and caused real hardship. As they are the second and 22nd least well-off council areas in the country, the offer of support that is too little, too late is being felt by my constituents, particularly the vulnerable people, children and people with disabilities.

In 2010, central Government funding to St Helens was £127 million. This year, it is £11 million. In Knowsley, the second poorest council area in the country, the council’s funding has been cut by £485 per person since 2010, despite the average across the country being £188. It is the second poorest area in the country. These cuts have consequences. Local authorities have duties that they have a legal requirement to fulfil, but even with a council tax rise, services have had to be rationed in many areas. We are raising council taxes during the biggest cost of living crisis in a generation, and working people already face the highest tax burden in 70 years.

The Government should have learned their lesson by now after acting too little and too late over the pandemic and the energy crisis. Families and businesses could be crushed if the Government do not get there quickly enough with the support that is needed, but I doubt they will do it. This is real money that could be in the pockets of our constituents while the cost of the average weekly shop is skyrocketing. The Government need to cut business rates to help revitalise businesses. There is no denying that short-term support is required, but there is also a need for long-term council funding. The fair funding review has been delayed for too long. Who is benefiting? The better-off areas are benefiting at the expense of my constituents—

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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Order. We need to bring in the last Back-Bench speaker.