Budget Resolutions and Economic Situation

Toby Perkins Excerpts

Tuesday 9th March 2021 Commons Chamber

[Mr Toby Perkins (Chesterfield) (Lab) [V]]

It would be impossible not to recognise that the Chancellor, as he sat down to consider what was in his Budget, would have had the start of some very grey hairs in that carefully coiffured mop of his. It would be understood that the reason he was nervous doing that Budget was that he knew not only that he had presided over the worst recession of any major country, but that it had coincided with the period when we had entered the worst death rate of any major nation. He also knew that he was the Chancellor of a party that, after a previous global incident—the global banking crisis of 2008—blamed the Government for not cutting at a time of economic crisis, which everyone recognised to be entirely economically illiterate. So he was going to have to ignore the advice that his own party had been providing.

The hon. Member for Cities of London and Westminster (Nickie Aiken), a few moments ago—maybe accidentally —hit upon the point. She said that our economy would take many years possibly to recover to its previous position. Then she highlighted and welcomed a series of measures that were just a few months long. What we needed from the Budget was a long-term plan—a sense that the country had a plan for how we were going to make our economy work in future.

The right hon. Members for Tunbridge Wells (Greg Clark) and for Maidenhead (Mrs May) spoke powerfully about the apparent end of the industrial strategy, because more than ever before, what we needed from the Budget was a long-term plan. The Secretary of State for Education keeps looking at Germany and saying that we will have a skills environment that could match Germany, but in Germany not only do they have an engrained industrial strategy that all of the Government work collectively on— they also have individual Government Departments that work collectively together. Here, we have a skills approach that pays no attention to the economy or the industrial approach that the Treasury is taking and a confused picture for employers as to what is expected from them. We have a kickstart scheme that only 2,000 people have got jobs from, when we were promised 100,000. We have had a refusal to adopt the apprentice wage subsidy that the Labour party called for, which would have made a massive difference. We have an apprenticeship levy that is sending £330 million back every year. It is no wonder that the Government are painting such a gloomy economic picture.