Budget Resolutions

Debate between Matt Western and Rushanara Ali

Thursday 7th March 2024 Commons Chamber

[Rushanara Ali]

For a start, the former Prime Minister could certainly donate her earnings to the millions of children now living in poverty—poverty that was worsened by her crashing the economy. The parents of children in my constituency are having to work even more to make ends meet, particularly to pay their mortgages, which in some cases have doubled. That is the consequence of the rot that she and her Chancellor caused by crashing the economy.

[Matt Western]

On a more serious note, reports allege that, ahead of that mini-Budget, the then Chancellor briefed certain hedge fund managers and they made significant financial gains off the back of it. Surely there should be some comeback on that

Finance (No. 2) Bill

Debate between Matt Western and Rushanara Ali

2nd reading
Tuesday 16th November 2021 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The Bill and the Budget that it follows do little to respond to the scale of the challenges facing our country, many of which have been brought into sharp focus by how the coronavirus pandemic has hit our society, not to mention the long-term hit on our gross domestic product because of Brexit—a 4% hit to the economy, on top of a 2% hit from the pandemic, as forecast by the Government’s own Office for Budget Responsibility.

Nor does the Bill respond to the climate emergency, as hon. Members have pointed out. Despite the fact that the UK has just hosted the COP26 summit in Glasgow, the Government have no plan for growth. Growth would put more money in people’s pockets and increase tax revenues, but what we are seeing is a low-growth, high-taxes approach, meaning a greater burden on working people because of the Budget.

[Matt Western (Warwick and Leamington) (Lab)]

My hon. Friend makes an important point. Does she agree that the lack of stimulus from the Government contrasts with what is happening in the US? The Government seem to be making the same mistakes as after the financial crash in 2008-09.

[Rushanara Ali]

My hon. Friend is absolutely right. The US has already returned to pre-pandemic levels of growth, as have a number of European countries, whereas the UK is still playing catch-up. We need to learn lessons from what happened after the global financial crisis so that we can get growth back up to the level that we need.

The UK faces the additional challenge of making up for the long-term hit on our economy as a result of the trade that we are losing because of our exit from the European Union. Given that we have exited the European Union, we need to know how the Government will make up for the 4% hit on our GDP in the long term, alongside the 2% hit that I mentioned.

Under this Government, taxes will reach their highest level since the Clement Attlee Government in the post-war era. Clement Attlee had a lot to show for the increase: the national health service, our education system and the welfare state, much of which we have benefited from for generations and continue to benefit from. This Government have poor living standards, a poor economic outlook and weak economic growth to show for their tax rises. While the pockets of working people are being hit, this Bill, shockingly, allows a tax cut for banks. It cuts the surcharge on their profits from 2023, which, as I mentioned earlier, will cost taxpayers £1 billion a year. Nowhere is it clearer where this Government’s priorities lie, and where they think the tax burden should lie: the Bill gives a tax rise to workers and tax cuts to the banks.

The Government have wasted billions of pounds of taxpayers’ money by brazenly giving out PPE contracts to a number of people who are linked to the Conservative party. As the National Audit Office has pointed out, a significant amount of money has been wasted and a “high-priority” channel was provided for Government contracts linked to people in Government and they were 10 times more likely to be successful. Some estimates suggest that nearly £2 billion of contracts went to people with links to the Conservative party.

According to the Public Accounts Committee, the test and trace scheme, which cost billions of pounds, has not shown a benefit commensurate with the amount of money spent. If the Government had spent that money wisely, many billions would not have been wasted on crony contracts, and some of the money could have been spent on dealing with the loss of income that many have experienced and the poverty and inequality that people are facing in our country.

This Bill does nothing to improve our country’s bleak economic outlook. As the Office for Budget Responsibility has confirmed, the UK is suffering the slowest recovery in any major advanced economy. GDP in the UK at the end of this year is further below the 2019 level than it is in any other G7 country, and any future economic growth in the medium term is likely to be anaemic: the OBR forecasts an average growth rate of just 1.5% a year between 2024 and 2026. Meanwhile, our long-term growth rate fares little better. Brexit is forecast to reduce the UK’s GDP by a staggering 4%, and the OBR has drawn attention to a 2% hit as a result of the pandemic. If the Conservative Government had grown our economy at the same rate as other countries with advanced economies since 2010, the economy would have been £100 billion larger by 2019, leaving over £30 billion more to spend on public services without the need to raise taxes.

Given poor growth and high taxes, it is no wonder that the outlook for living standards is so dire. The director of the Institute for Fiscal Studies has described the outlook for living standards as “actually awful”, with the country facing

“five more years of stagnant living standards at best”—

and that is in the context of a decade of stagnant wages. How are people meant to cope with all that has happened over the last decade as well as the impact of the pandemic and the increase in fuel prices and the cost of food caused by disruptions in supply chains?

In-work poverty has reached record levels under the Conservative Government. There are now 2 million more people from working households living in poverty than there were in 2010. Of the 6 million families who were hit by the £20-a-week cut in universal credit, fewer than a third will benefit from the changes in the universal credit taper rate. While those changes are welcome, 4 million other people will not be given the help that they need. As the Minister herself admitted, many of those people have caring responsibilities or serious disabilities, and are not in a position to return to work. Their incomes will fall dramatically: they will lose £1,000 a year, and that will force more of them into severe poverty.

In my constituency the child poverty rate has increased over the years, and now stands at 60%. Nearly 20,000 households, which include 11,000 children, have been hit further by the universal credit cut. According to the Independent Food Aid Network, there has already been a 66% increase in demand at food banks across the country since the cut, after only a few weeks. As we approach Christmas, the food bank queues are growing longer and longer in constituencies such as mine, and food banks are struggling desperately to cope with the spike in demand. That is only set to become worse. It seems that the Government have learnt nothing from the lessons taught by campaigners such as Marcus Rashford; in fact, they have made matters worse for people who desperately need support.

The Government have also failed to deliver on their net zero promises. There has been plenty of rhetoric and little substance, and, indeed, a cut in domestic air passenger duty was announced in the run-up to COP26. We have a Government who are treating the climate emergency as an afterthought rather than something that is central to what we do in the future. We need a green jobs and a green investment revolution, and, as has already been said, we need a focus on a just transition. The Government do not seem to have the commitment or the ambition to deal with a climate emergency.

The Bill lands tax rises on working people while giving tax cuts to banks, and this feels like groundhog day because a decade ago, when the Government first came to power, their instincts were very similar. There were tax breaks for bankers and austerity for the rest of the country, and that has continued: the Government have reverted to their worst instincts. There is evidently no plan for economic growth, and we are facing a terrible future with low growth and high taxes. What we need is a Government who will stimulate growth, invest in improving people’s living standards, and ensure that there is more fairness in the distribution of income and opportunity across our country.

If the Government were serious about growth and improving our productivity, which has been poor for a very long time on their watch, they would invest significant sums in school catch-up, so that our economy can benefit from the investment in skills in creating an economic future that addresses the challenges we face now. We have a long way to go to catch up with other countries because of the twin hit on our economy from the pandemic and the long-term impact of leaving the EU. That is why we needed this Government to be creative and innovative in their policy announcements, and bold in terms of investment in our businesses, small, medium and large. They need to do that on a greater scale than we have seen if we are to recover from what has happened in recent years in our country.

Nightclub Safety

Debate between Matt Western and Rushanara Ali

Monday 8th November 2021 Westminster Hall

[Matt Western (Warwick and Leamington) (Lab)]

I will pick up on some of the points made by the hon. Member for Wycombe (Mr Baker) and by my hon. Friend the Member for Gower (Tonia Antoniazzi).

This has not come out of nowhere, but the incidence, escalation and scale of the issue are extraordinary. Although date rape drugging was on my radar—and, I am sure, that of many others—this sudden phenomenon of spiking through needle is a shocking escalation.

In terms of the wider issue, the figures obtained by the BBC back in 2019 showed an increase in recorded cases of drink spiking of more than 2,600 since 2015. This is a significant problem in our society. Just this week, Nottinghamshire police said that they had received a total of 15 reports of alleged spiking with a sharp object since 2 October. That is from a month ago, and that is just in Nottinghamshire. Her Majesty’s inspectorate of constabulary and fire and rescue services has called violence against women “an epidemic”, and says that the authorities have to treat it with as much urgency as they fight terrorism.

I am sure that many of us will have been horrified by the incident in Texas, which illustrates that this is not just a UK problem. There is a phenomenon and copycat behaviour, as mentioned by my hon. Friend the Member for Gower, in terms of social media and how quickly these things get shared, perhaps among males, not just across campuses, towns, cities and countries but globally. In Texas, where eight people died and hundreds were hurt, police are investigating reports that somebody in the audience was injecting people with drugs, such that several concert goers had to be revived with anti-drug overdose medicine.

As of 23 October, the National Police Chiefs’ Council had collected 198 reports of drink spiking, in addition to the 56 reports of incidents involving a needle. This is not necessarily an epidemic at this stage, but it is a seriously concerning phenomenon. Freedom of information requests from “Sky News”, which were published back in 2018, found that reported incidents of spiking had doubled in the three years before. Although I do not have the data to hand and did not have time to put it all together, it is really alarming to see where this phenomenon is taking us.

[Rushanara Ali]

Does my hon. Friend agree that this problem has a new face to it but, as he has pointed out, it has been there in the form of drugs being used for rape? I have certainly come across examples in my constituency in the past. Does he agree that the use of needles adds another health dimension, with the potential spread of diseases such as HIV, and that hospitals need to respond to that risk as well? Does he agree that Universities UK needs to come together and address some of the challenges at university level in order to support students? Finally, does he agree that conviction is required for those who are perpetrating, and that we need to know what the police are being instructed to do by the Government in order to get a grip on this issue before more fatalities occur?

Covid-19

Debate between Matt Western and Rushanara Ali

Monday 2nd November 2020 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

My hon. Friend is generous in giving way and is making such important points. Does she agree that the immediacy —the urgency—that has been lacking in this country was evidenced in countries such as Australia and New Zealand? They got on top of it really quickly and acted hard and fast, which is why Australia had zero cases over the weekend.

[Rushanara Ali]

I could not agree more with my hon. Friend. Our Government could have learned from many other countries and got a grip on contact tracing and testing. Instead, what we have seen is chaos—false promises, over-promising and under-delivering. That has damaged public confidence. The public confidence that we all worked to build, across party, at the beginning of the crisis during the first wave, has been squandered by the failures of this Government.

There are now four times as many people catching covid than anticipated. The delay in introducing restrictions has already cost lives in constituencies such as mine, and we are already seeing a high prevalence of death rates among those from black and minority ethnic communities and those from poorer backgrounds—the patterns are very similar to what happened before. This time the Government know where the problems are, and their failure is completely unacceptable and inexcusable.

Given the scientific advisers’ own projections in the graphs that they showed the country last week, we are expecting even greater human cost and even more lives being lost because of the delay and the failures to act. That is why it is an absolute scandal that the Government have spent £12 billion on a private contractor, Serco. They call it “the NHS app”, but they did not use the public sector. They should have formed a proper alliance between the public and private sectors—nobody is saying that it should be one or the other. We should be pragmatic, but we should get value for money.

It seems that organisations and companies that have shown complete incompetence are being rewarded with contracts. It seems as if there is a contracts programme for Conservative party donors. I raised the issue of the PPE contracts with the Prime Minister, and he has still failed to answer—it has been weeks now. There have been £1 billion of contracts without proper due diligence.

The rate of death among certain communities was very high, and it continues to be in this crisis. The Government also need to act now to provide support to the 3 million who were excluded during the first crisis and continue to get very little support as we head towards to the lockdown. They are being left out. When children go hungry in our constituencies and public money is being wasted on some contracts on which contractors are failing to deliver, the Government need to act to ensure that we get value for taxpayers’ money.

Finally, local authorities and local public services desperately need help if they are to provide support to get the contract tracing done and get a grip on the virus. I call on the Government to work with them, support them and provide the funding that they need to protect us all.