Budget Resolutions and Economic Situation - Income tax (charge)

Part of the debate – in the House of Commons at 7:54 pm on 8 March 2021.

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Photo of Julie Elliott Julie Elliott Labour, Sunderland Central 7:54, 8 March 2021

This Budget is taking place at a key time for the economy of this country. It is an economy coming out of a crisis that has caused businesses to shut and jobs to be lost, and that has harmed the prospects and potential of so many people across this country. The Budget was a chance to conduct a transformative change as we emerge from the crisis, to make the country fairer for all, to reward our key workers and to build a secure and prosperous future that ensures that any economic recovery from the pandemic is felt right across the country. It is clear, though, that the Budget failed to do that.

The Chancellor talks about support for the north-east, but travel any further north than Teesside and it is clear that the Government have forgotten us. The council in Sunderland, like many across the country, has done a brilliant job throughout the pandemic, working tirelessly to support businesses and providing vital services on a shoestring budget, but the Budget falls well short in helping it to do its job. Across the country, there are people who have had lifelong jobs suddenly finding themselves unemployed, and millions of children in this country are still living in poverty. What does this Budget do for them, and what does it do for the millions already excluded?

Then it emerged that our NHS workers, who have been working harder than ever over the last year, saving lives and taking care of our loved ones, will be given at best only a 1% pay rise, coming out of this year with a real-terms pay cut. Then there is our social care system, which was not mentioned once by the Chancellor—no funding lifeline for a system on its knees; no support for care homes or those who devote their lives to working in them. Our NHS and social care staff deserve much better.

Let me move on to the digital skills agenda and the proposals that the Chancellor outlined last week. I wrote to him on this subject, and while any investment in digital skills is welcome—from the boot camps announced last year to the announcement of help to fund software upgrades and training for SMEs—it seems that he is looking at sticking plasters rather than at solving the issue of digital inequality. That seems like the theme of this Budget.

Thanks to charities such as Laptops for Kids in the north-east and Rebuyer UK based in Sunderland, many more children and young people have had access to technology and connectivity. That is great for education—those new devices can be used both at home and in school—but it causes new issues too. It widens the gap. The Government need a comprehensive strategy for upskilling those who are out of work to provide support and devices to those who need them. The Budget was underwhelming, unequal and unsurprising.