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Ways and Means
20 March 2023
Lead MP
Michelle Donelan
Debate Type
General Debate
Tags
Migrants & BordersTaxationEmployment
Other Contributors: 57
At a Glance
Michelle Donelan raised concerns about ways and means in the House of Commons. Other MPs contributed to the debate.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The Chancellor of the Exchequer delivered a Budget that addresses the Prime Minister's five priorities: halving inflation, growing the economy, reducing debt, cutting waiting lists and stopping illegal immigration. The Government has restored financial stability with falling ten-year gilt rates, debt-servicing costs, mortgage rates, and peaking inflation at 10.7% down to 2.9% by end of 2023. Investments in science, technology, and AI are being made for long-term growth and job creation.
David Linden
Lab
Gower
Asked who caused the instability.
Geraint Davies
Lab
Cwmkasset
Concerned about 1,000 jobs across universities in Wales that are at risk due to EU structural funding ending. Asked if Government will provide bridge funding for these positions.
Desmond Swayne
Con
New Forest West
Asked how the government can attract private sector investment into science and tech sectors when institutions focus on reducing debt.
Chris Bryant
Lab
Rhondda
Highlighted the importance of aligning regulatory regimes with Europe to ensure business success in taking scientific ideas to market.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Asked for reassessment of rules around animal testing and experimentation, suggesting shift away from using animals as research subjects.
Jim Shannon
DUP
Strangford
Concerned about cardiac care delays for 370,000 heart patients awaiting elective care; asked what measures will be taken to address the situation.
Luke Evans
Con
Hinckley and Bosworth
Suggested need for updated regulation in tandem with technological advancements, using MHRA vaccine research as an example.
Stewart McDonald
SNP
Glasgow South
Noted the challenges in attracting top researchers due to low living standards compared to Western Europe; questioned if aspirations can be met under current conditions.
Luke Evans
Con
Hinckley and Bosworth
Mr. Evans questioned Ms Powell about the British Medical Association's positive statement regarding pension changes that would encourage senior doctors to return to work, thereby strengthening the NHS workforce.
Mr. Loughton challenged Ms Powell on the accuracy of Labour’s figures concerning the impact of pension reforms and referenced a Financial Times quote suggesting the calculations were muddled.
Mr. Bridgen asked whether a future Labour Government would reverse the current Government's pension changes immediately if they came to power.
Damian Collins
Con
Tunbridge Wells
The UK has a strong record in the Department for Science, Innovation and Technology. Investors and businesses recognise the UK as a global hub, especially London. The country has four of the world’s top 10 universities contributing to innovation and growth. The strategy focuses on driving economic growth, pro-competition policies, and setting high standards. Investment should be spread across the UK, with examples like Salford Quays in Manchester, Dundee and Edinburgh for video games, Birmingham City University's STEAMhouse centre, and the Greater Birmingham and Solihull Institute of Technology. The Government’s investment in research and development is significant. Digital competition needs support for British businesses throughout their lifecycle to ensure fair competition with tech giants. Standards are crucial, exemplified by the Online Safety Bill regulating AI-driven recommendation tools to prevent harmful content or hate speech. A UK AI sandbox should be established for trial of new technologies before rollout.
Carol Monaghan
SNP
Glasgow North West
The SNP spokesperson highlighted the need for a flourishing research and development landscape, which would produce economic benefits. However, she criticised the Government's failure to create an environment conducive to such development, citing job insecurity and low wages as reasons why many scientists leave their careers. She also raised concerns about nuclear power being classified as environmentally sustainable alongside renewable energy sources. Carol Monaghan emphasised the importance of supporting quantum technologies and proposed a national institute for quantum integration focused on outcomes. Additionally, she criticised the lack of progress on association to Horizon Europe, which is impacting research talent and investor confidence in the UK.
Tim Loughton
Con
East Worthing and Shoreham
I support the Budget. The Chancellor's measures on stability, balance, AI investment, carbon capture, R&D, fuel duty freeze, energy prepayment metres, veterans’ services, suicide prevention, social care for children, childcare policies, home insulation, pub tax, and beer duties are welcomed. However, more needs to be done for early interventions in child social care, workforce planning for social workers, free bus travel and rent deposit access for care leavers aged 18-25, and addressing capacity issues in wraparound childcare.
Shabana Mahmood
Lab
Birmingham Ladywood
The UK’s long-term growth forecasts have been downgraded; the economy is weaker than before the pandemic. The cost of living crisis impacts families deeply, yet the Government's measures are seen as prioritising the wealthiest 1% with a £1 billion tax cut for those with pension pots over £2 million. This is deemed unfair and ineffective in addressing NHS staff shortages. Shabana Mahmood also criticised the lack of a proper windfall tax, suggesting it could bring in billions to help ease cost-of-living pressures. She emphasised the need for fairer tax burdens and measures that benefit all families rather than just the wealthy.
David Davis
Con
Goole and Pocklington
Davis draws on his experience from the Future of Banking Commission to discuss recent banking instability, referencing historical financial crises such as Glass-Steagall Act implementation and its repeal. He urges caution in current market conditions and suggests that a robust small-c conservative strategy is wise.
Wayne David
Lab
Caerphilly
David criticises the Budget's tax cuts for the richest 1%, arguing they will do little to encourage people into work or tackle economic inactivity. He highlights high levels of economic inactivity and chronic ill health in south Wales valleys, blaming central Government for these issues.
Kate Kniveton
Con
Burton and Uttoxeter
I support the Chancellor’s spring Budget, which takes important steps towards making Britain a science and technology superpower. My constituency of Burton and Uttoxeter hosts world-class businesses driving technological advancements such as hydrogen technologies. Improvements to infrastructure like the A50/A500 corridor are essential for economic growth and job creation. I urge the Chancellor to support initiatives that would turn Staffordshire into a centre for innovation, design, manufacturing and export of hydrogen products.
Chi Onwurah
Lab
Newcastle upon Tyne Central
The Budget is disappointing as it fails to address the economic decline faced by many regions under Conservative leadership. Wages have stagnated while prices for basic goods like bread and milk have risen sharply, leaving people in poverty. Significant cuts to public services in Newcastle exacerbate these issues. The Government’s failure to invest adequately in research and development tax credits hinders innovation and growth, particularly for small businesses.
Andrew Bridgen
Con
North West Leicestershire
Highlighted the importance of fuel duty freeze for economic growth in North West Leicestershire, emphasised the lack of public transport and the importance of distribution jobs. Advocated for the reopening of the Ivanhoe railway line to benefit constituents. Supported small modular nuclear reactors as a reliable energy source. Discussed investment zones and the need for Leicester and Leicestershire to join the proposed east midlands mayoral combined county authority to enhance economic opportunities in space-related industries. Emphasised the importance of energy security, scientific innovation, and collaboration between business and research establishments.
Stewart McDonald
Lab
Glasgow North East
Critiqued the Chancellor's short-sighted approach to economic planning, noting that the current UK Budget lacks strategic plans compared to initiatives in the US and EU. Highlighted issues such as declining living standards and slow economic growth due to Conservative policies. Quoted Andre Geim about researchers leaving the UK for better opportunities abroad due to low living standards. Emphasised the need for modern public services and a government that offers a bright future, citing statistics on household income and real wages from the ONS and other sources.
Bassetlaw
The Budget includes tax reliefs for R&D, with small and medium-sized enterprises getting £27 from HMRC for every £100 of R&D investment. The STEP fusion project in Bassetlaw is highlighted as a transformative venture moving from fossil to fusion energy. Clarke-Smith supports the establishment of an investment zone in the east midlands and commends the Government's pro-growth stance, mentioning concrete facilities, carbon capture plants, and the levelling-up partnership with £400 million for 20 different places. He emphasises childcare proposals for children from nine months onward and the freeze on fuel duty to help working people.
Edward Leigh
Con
Gainsborough
Mentions that Bassetlaw's STEP fusion project is within 5 miles of Gainsborough, showing interest in Clarke-Smith's points about local economic benefits.
Mary Glindon
Lab
Newcastle upon Tyne East and Wallsend
Expresses disappointment with the Budget for not addressing the NHS staff crisis or confirming a pay award for public sector workers. Concerns over childcare funding phasing in programme, nursery providers' challenges, lack of strategy for skills development, and North Tyneside's short-changed pothole funding are highlighted. Glindon criticises the missed opportunity to support small businesses and expresses worry about the ongoing cost of living crisis under Conservative rule.
William Wragg
Con
Hazel Grove
Mr Wragg discussed the announcement of a new community hub in Stockport, highlighting its importance for Marple and surrounding districts. He mentioned a five-lane swimming pool and other facilities included in the project, expressing satisfaction with this successful levelling-up bid. He also addressed issues regarding Greater Manchester devolution, urging the Government to listen to concerns raised by MPs from Greater Manchester.
Mike Kane
Lab
Wythenshawe and Sale East
Mr Kane criticised the Chancellor's Budget for failing to address people's realities and delivering little support. He highlighted issues such as pension cuts, high living costs, and struggling businesses. He also mentioned the delayed introduction of free childcare expansion and welcomed the extension of energy bill help but called it sticking-plaster politics. Mr Kane advocated for investment in green energy, better regeneration projects, and a more robust levelling-up plan for his constituency.
Maggie Throup
Con
Erewash
The speaker commends the Chancellor's measures to halve inflation, support people with high energy bills, and avoid a recession. She highlights the role of the Medicines and Healthcare Products Regulatory Agency in facilitating faster access to cutting-edge medical products through innovative work funded by the Budget. Additionally, she mentions the importance of health tech partnerships and public health measures aimed at prevention for workforce productivity. Throup also welcomes the £60 million funding for public swimming pools.
Dan Carden
Lab
Liverpool Walton
The speaker questions the impact of 13 consecutive spring Budgets from a Conservative Chancellor on his constituents' lives, noting real wages are lower now than when Conservatives came to power in 2010. He criticises the managed decline of people's living standards and hopes for national renewal with a new deal for working people, including a bold clean energy transition and wealth spread across all communities.
Edward Leigh
Con
Gainsborough
I am delighted to follow my hon. Friend the Member for Bassetlaw in praising the Government for bringing a nuclear fusion site to West Burton, near Gainsborough. This is an opportunity for apprenticeships and regional involvement. The town of Gainsborough has received £10 million in levelling-up funds from the Secretary of State for Levelling Up, Housing and Communities, despite potential risks to local development due to the Home Office’s plans involving RAF Scampton. There is a need for efficient public spending control and co-ordination between various government departments such as the Home Office, Ministry of Defence, and Department for Levelling Up, Housing and Communities. The Chief Secretary of the Treasury must ensure value-for-money across sectors, including the restoration and renewal programme. We should consider private health provision to improve outcomes and support mothers who want to stay at home with their children through measures like the marriage tax allowance.
Southgate and Wood Green
The current cost of living crisis demands that the Government prioritise working people by providing affordable energy bills, reducing food bank use, alleviating rent and mortgage hikes, and addressing income inequality. Despite a temporary fix with frozen energy bills, 31% of constituents are worried about using food banks in the next year due to high costs. The Chancellor’s priority on tax cuts for the wealthy contrasts sharply with families' struggles under Tory economic mismanagement. A proper windfall tax could help offset the profits of oil and gas giants, which benefit from record profits while individuals suffer financially. Renters need relief as London rents rise by 17.8% yearly. Local councils face funding cuts hindering their ability to address housing shortages and insecurity. Hospices struggle with rising energy costs; more urgent financial support is necessary.
Virginia Crosbie
Con
Ynys Môn
Crosbie argues that the Budget is an example of investment in Britain and levelling up communities, particularly mentioning £20 million for Holyhead's breakwater refurbishment. She emphasises the importance of nuclear energy development under Great British Nuclear, advocating for inclusion in green taxonomy to attract investment. She highlights the potential of small modular reactors (SMRs) and their economic benefits for Ynys Môn, including the regeneration of Wylfa. She also mentions her constituency's bid to become a freeport and its potential impact on local employment.
Nia Griffith
Lab
Llanelli
Griffith criticises the Chancellor’s Budget as insufficient in addressing climate change and industrial competitiveness compared to other nations. She expresses concern over factory closures due to lack of investment incentives, especially concerning multinational companies. She calls for comprehensive investments like those proposed by Labour, emphasising the need for a robust automotive transformation fund and export hubs. Griffith highlights failures in renewable energy policies and grid capacity issues, questioning the Government's intentions to accelerate development of necessary infrastructure. She also discusses the Horizon programme and its impact on UK universities.
Robert Syms
Con
Poole
He acknowledges the economic consequences of the public health emergency and supports the Government's approach to managing inflation, improving living standards, and reducing taxation. He highlights improvements in the economy compared to predictions from last year and emphasises the importance of a balanced energy mix including nuclear power.
Dwyfor Meirionnydd
She criticises the current Budget for not addressing structural issues in Wales's economy and calls for more investment in research, innovation, and universities. She expresses concern about funding cuts to Welsh universities and highlights potential projects such as Project ARTHUR at Trawsfynydd and renewable energy development.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
The current Budget is weak, unambitious and does not address real economic issues faced by UK citizens. It includes the highest tax burden in 30 years, stagnant wage growth leaving workers worse off, and a lack of strategy for economic recovery. The frequent changes to government plans reflect internal conflicts within the Conservative party and inadequate leadership. The Budget supports the wealthiest at the expense of public services like social care and NHS.
Miriam Cates
Con
North East Hertfordshire
Critiques the Chancellor's expansion of the 30-hour childcare scheme for babies from nine months, arguing it will not effectively support parents' return to work or boost the economy. Emphasises that current statistics show only 40% usage of the existing offer for three and four-year-olds due to its non-free status and inflexibility. Argues against the premise that UK families face highest childcare costs, suggesting the issue is low net income after taxes rather than absolute childcare costs. Proposes a shift towards household taxation and increased child benefits as alternatives to the current policy.
Cat Smith
Lab
Lancaster and Wyre
The Budget is seen as failing to address the needs of constituents, particularly in rural areas. It was noted that wages are lower now than they were 13 years ago and public sector workers have not received a deserved pay rise. The Chancellor's proposed education policies lack support for students facing cost-of-living issues and primary schools lacking basic facilities struggle to provide wraparound childcare services. Additionally, there is no mention of rural transport infrastructure improvements or poverty alleviation measures in the Budget.
The Chancellor's Budget focuses on stabilizing the economy post-pandemic and reducing inflation. It includes immediate cost-of-living measures such as extending free childcare, maintaining fuel duty cuts, and supporting energy price guarantees. The speaker highlights the levelling-up partnership for Stoke-on-Trent which unlocks £400 million for economic development. There is also significant extension of tax relief for manufacturing companies to boost productivity and investment in advanced ceramics sector. The Budget aims to enhance local transport networks including railway restoration projects.
Stephen Morgan
Lab
Portsmouth South
This Budget represents a continuation of Conservative economic mismanagement, leading to stagnant living standards, stretched public services, falling investment and a lack of long-term vision. The OBR predicts real incomes will fall almost to pre-2010 levels... A proper windfall tax on oil and gas companies' profits is urgently needed.
I welcome the Chancellor's Budget as it offers economic stability, protects constituents from global headwinds and stimulates growth. It extends 30 hours of childcare to nine months, offers energy price relief... I support full expensing for businesses and investment in science and technology.
Daniel Zeichner
Lab
Cambridge
Universities like Cambridge are key to economic growth through innovation. However, the Government's policies have hindered this progress by failing to provide stable funding and a supportive tax environment for R&D activities.
Bracknell Forest is well-positioned for an investment zone due to its strong economy, presence of international companies, partnership with Reading University, and existing innovation clusters. The proposed changes in the Budget, such as R&D tax credits and infrastructure support, are beneficial for local businesses.
Ruth Jones
Lab
Newport West and Islwyn
The Chancellor’s Budget fails to address the pressing needs of Newport West constituents, offering tax cuts for the wealthiest while neglecting the livelihoods and well-being of ordinary people. The OBR downgraded the UK's long-term growth forecast, confirming that under this Conservative Government, real weekly wages are expected to remain below 2008 levels until 2026. Dawn Jones, a pensioner from Newport West, now struggles with mortgage payments due to economic decline, highlighting the impact on individuals’ lives.
Doncaster North
The Budget includes changes to pensions that will ensure immediate access to necessary healthcare services for citizens. The £4 billion allocated can provide parents with choices regarding childcare, enhancing family life and supporting economic activity. Doncaster has the potential to become a hub for science and technology through initiatives like Boeing’s manufacturing presence and SMRs in nuclear energy. This investment zone will bring jobs and quality of life improvements, marking a positive shift from past industrial decline.
Mike Amesbury
Lab
Weaver Vale
Last week’s Budget failed to address the needs of working people and hard-pressed families. After 13 years, there is no growth, taxation at a 70-year high, houses are not affordable or being built adequately, schools are under-resourced, hospitals are not being rebuilt as promised, and there is a £2,000 tax increase for remortgaging homeowners. The budget failed to help people's wages grow or address the green economy. People's purses and wallets remain empty due to food banks becoming a growth industry, wage declines of 5.7%, and no re-resourcing of local authorities to fill potholes or support adult social care and children’s social care.
Paul Blomfield
Lab
Sheffield Central
The Chancellor's Budget ignored the crisis in public services, particularly health and social care. NHS staff morale is falling with pay cuts; ambulances take up to 15 hours for critically ill patients; over 7 million people wait for elective care; GPs are under pressure due to a shortage of fully qualified doctors; many struggle to find an NHS dentist; there's a staffing shortage in adult social care, and unpaid carers face debt issues. The Budget failed to address these critical issues despite the growing need for investment.
Jessica Morden
Lab
Newport East
The Chancellor's Budget reflects Conservative economic failure, including lower growth and wages compared to 2010. It includes a tax cut for the richest 1% while neglecting pensioners with modest incomes. The Budget lacks support for decarbonisation of the steel industry and does not adequately address high manufacturing energy bills or provide relief for those affected by previous budget changes, especially concerning retirement plans and energy costs.
Helen Hayes
Lab
Dulwich and West Norwood
The Chancellor's Budget is inadequate in addressing the dire state of the UK economy, with the weakest G7 performance and negative growth. It neglects public servants who have been at the frontline during the pandemic, leading to demoralisation, underpayment, and burnout among healthcare workers and others. The Government’s tax priorities are wrong, as it favours tax cuts for fewer than the richest 1% while not addressing the cost of living crisis or childcare issues adequately. It also fails to address social housing shortages and retrofit programmes.
Clapham and Brixton Hill
The Budget's impact on living standards is catastrophic, with a predicted record fall over the next two years and a decline in public service spending as a proportion of GDP. Additionally, there are significant losses to Scottish universities due to Brexit, impacting research and development potential. Employment opportunities at world-leading projects have been decimated, and 19 top researchers seek EU positions for better funding assurances.
The Chancellor's four Es priorities lack substance when compared to the damage caused by Brexit on Scotland’s science sector. Universities lost almost £1 billion in funding since leaving the European Union, affecting research and development potential and reducing opportunities for highly skilled researchers. Additionally, there has been a significant decrease in EU student numbers choosing to study in Scotland due to Brexit's impact.
The Scotch whisky industry faces a significant increase in duty despite promises from the Government. This negatively impacts supply-chain jobs in constituencies like mine. The Government's commentary on pensions taxation is ill-thought out, with most beneficiaries not being NHS clinicians as claimed. Abolishing the lifetime allowance is an expensive policy that does little to address workforce shortages or retain nurses. The Budget fails to address energy bills and prioritises tax cuts over support for constituents.
Justin Madders
Lab
Ellesmere Port and Bromborough
The UK economy remains smaller than it was pre-pandemic. The Budget fails to address the issue of stagnant wages and high inflation, with real wages projected to be 5% less at the beginning of 2025 compared to 2019 levels. This stagnation has cost families £11,000 over 15 years. If wages had continued to grow as they did before 2008, every individual would now be £233 a week better off and the gap will widen to £304 by 2027. The number of people using food banks is increasing despite being employed.
The current Government has overseen stagnant economic growth for 13 years, doubling public debt from 45% to 90% of GDP since the last Labour government. The Budget aims to halve inflation but may actually exacerbate it due to proposed pay cuts and strikes caused by poor negotiations. Businesses are struggling with record insolvencies up 30% since 2020, while material prices and energy costs continue to rise.
Jim Shannon
DUP
Strangford
Mr Shannon thanked the Chancellor for his work and acknowledged the difficulties in decision-making. He emphasised the need to support public transport providers, stressed the importance of making work worth people's while, and provided an example of a mother struggling with rising costs despite working hard. He welcomed measures such as the pothole plan and help for SMEs but highlighted concerns over the child benefit threshold, which he argued is unfair and needs urgent change to support those in need. Additionally, he called for more robust data on NHS workforce information and urged investment in cardiovascular care to address the backlog of elective procedures.
James Murray
Lab Co-op
Ealing North
The Budget fails to provide a clear plan for economic growth, with forecasts showing the UK as the only G7 economy expected to shrink this year. The impact on constituents has been severe, and Labour's ideas such as extending the energy price cap and reforming NHS pensions were largely ignored or partially adopted.
Victoria Atkins
Con
Louth and Horncastle
The Minister discussed the Government's plan to grow the UK economy through science, innovation, and technology. She highlighted achievements such as increased growth rates compared to other major economies, successful investment zones, corporation tax reduction, R&D expenditure credits for SMEs, and support for life sciences and creative industries. The Minister also addressed concerns about R&D tax relief fraud and emphasised the importance of prioritising research and development even in challenging fiscal circumstances.
Emma Hardy
Lab
Kingston upon Hull West and Haltemprice
Asked the Minister about her stance on concerns regarding fraudulent investments under the R&D tax relief scheme, which reportedly amounts to over £1 billion lost to taxpayers. The Labour MP highlighted HMRC's inability to fully recover this loss.
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