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Ways and Means - Budget Resolutions and Economic SituationWays and Means
04 March 2021
Lead MP
Anneliese Dodds
Debate Type
General Debate
Tags
NHSEmployment
Other Contributors: 54
At a Glance
Anneliese Dodds raised concerns about ways and means - budget resolutions and economic situationways 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 UK has suffered the worst economic crisis among major economies due to the government’s mishandling of the coronavirus. The Chancellor dismissed this fact, but evidence shows higher infection rates and stricter lockdowns as primary reasons for the severe impact. The Budget failed to address critical issues like NHS funding, social care, education spending, job creation, green jobs, and support for families during a crisis.
Anneliese Dodds
Lab Co-op
Oxford East
The Chancellor's Budget failed to provide necessary support to the NHS, social care, schools, job creation programmes, green initiatives, and families. Instead of addressing these issues, it included cuts and policies that will exacerbate existing problems. The Budget also shows a return to previous economic models that have failed repeatedly.
Therese Coffey
Con
Suffolk Coastal
Responded to the Budget debate initiated by Anneliese Dodds, highlighting government measures such as furlough scheme supporting over 11 million jobs and self-employment income support scheme aiding over 2.5 million workers. Emphasised extension of £20 a week increase in Universal Credit for six months to support low-income households and the creation of kickstart scheme for young people, aiming to help them find employment. Also mentioned investment in freeports like Freeport East and Treasury North campus as part of recovery strategy.
Stephen Timms
Lab
East Ham
Asked about lack of extra support for disabled people claiming Employment and Support Allowance despite increased grocery costs during the pandemic.
Christchurch
Complimented the efficiency of Department for Work and Pensions officials, suggesting they could potentially transfer to Driver and Vehicle Licensing Agency to improve its performance.
Nigel Evans
Con
Crewe and Nantwich
Provided practical notes for remote speakers joining the debate, reminding them of the six-minute time limit and advised on how to manage their speaking time.
Alison Thewliss
SNP
Glasgow Central
Thewliss criticised the Government's approach to economic recovery and support schemes, advocating for an extended furlough scheme and self-employment income support. She highlighted the unfairness of recent fiscal measures, particularly regarding the fifth SEISS grant cut-off date. Thewliss also called on the Chancellor to increase NHS funding, provide a £98 billion stimulus for infrastructure investment, and address child poverty and welfare issues. She emphasised the need for redistribution policies during the pandemic and criticised the Government's handling of Brexit impacts.
John Redwood
Con
Wokingham
Welcomes the extension of support measures and acknowledges the revised borrowing forecast by OBR. Stresses the importance of promoting recovery, investing in public and private sectors, and maintaining fiscal discipline. Highlights opportunities for import substitution post-Brexit, suggesting initiatives in timber production, electricity capacity, food and fish industries to boost domestic economic growth.
Stephen Timms
Lab
East Ham
Critiques the Chancellor's lack of long-term vision and complains about the impending reduction in universal credit. Expresses concerns over the impact on legacy benefit claimants, particularly disabled individuals. Requests a restart for measuring poverty based on work by the Social Metrics Commission. Discusses underpayments of state pension and problems faced by highly skilled migrants due to 'no recourse to public funds' condition. Welcomes changes to universal credit advances recovery period and deduction rates.
Simon Jupp
Con
East Devon
Mr Jupp spoke positively about the budget's impact on his constituency of East Devon, praising measures such as the extension of the furlough scheme and restart grants for hospitality businesses. He highlighted support for regional airports, railway services, freeports, tax relief, and investment funds like the future fund. The super deduction was also noted to benefit companies through significant tax savings. Additionally, he mentioned extra support for veterans and the lowest paid.
Mary Glindon
Lab
Newcastle upon Tyne East and Wallsend
Ms Glindon criticised the Chancellor's budget for ignoring her constituency and much of the north-east region. She expressed disappointment over the lack of a north-east freeport bid acceptance, despite it meeting Government standards. Furthermore, she pointed out that support for offshore wind industries was also missing for her area, suggesting this would hinder local businesses' growth in clean energy sectors.
Clive Lewis
Lab
Norwich South
Lewis argues that the Budget has failed in supporting people and businesses during the pandemic, tackling inequality, debt, initiating a green recovery programme, investing in public services like the NHS and schools, and rebuilding town centres. He criticises the lack of substantial stimulus measures, investment in essential public services, remedies for social care issues, improvements to social security systems, and support for those struggling with rent arrears or poverty.
Harriett Baldwin
Con
West Worcestershire
This Budget is seen as a step towards economic recovery, supporting people and businesses during the pandemic while also addressing public finance sustainability. It includes measures such as the super deduction on capital investment, future fund breakthrough for scaling up small businesses, and the Help to Grow initiative. However, there are concerns about the sensitivity of UK Government debt to interest rates and potential need for further fiscal tightening.
The Chancellor's Budget is criticised for missing opportunities to support public sector workers and frontline staff in NHS and emergency services. It failed to provide increases or recognition for their sacrifices, missed the chance to extend financial support to more self-employed people, and overlooked important issues such as supporting families affected by Primodos, addressing injustices faced by WASPI women, and providing justice for those impacted by thalidomide.
Welcomes measures to alleviate income problems but raises concerns about potential hardship when support ends. Proposes the retention of the £20 weekly uplift to universal credit, conversion of loans to grants for those unable to repay them, and targeted financial packages for private renters hit by pandemic-induced arrears. Also calls for legislative action on access to cash.
Mark Fletcher
Con
Bolsover
Yesterday’s Budget has been warmly welcomed across the country, particularly in Bolsover. The measures outlined have provided certainty for constituents on furlough and self-employment support, including newly self-employed individuals. Measures to help with cost of living were also introduced, such as a freeze in fuel duty and housing market assistance. More than 600 businesses in my constituency benefited from grants administered by local councils. The Budget included restart grants, VAT cut extension, business rates holidays extensions, new recovery loans, and a freeze on alcohol duty for pubs. The super deduction will boost business investment towards a greener future, while the Clay Cross towns deal and East Midlands freeport announcements represent significant economic projects in our region.
Fabian Hamilton
Lab
Leeds North East
While welcoming the announcement of the national infrastructure bank being based in Leeds, Fabian Hamilton criticised the lack of clarity regarding environmental standards and the absence of new investment for green recoveries in key industries. He highlighted that there was no new investment for sectors like automotive, aerospace, and steel, and noted disappointment with the exclusion of the green homes grant from the Budget. The furlough scheme extension is welcome but should not have been delayed until Budget day. Hamilton emphasised the need for meaningful action to save hospitality businesses struggling due to debt. He urged the Chancellor to address health inequalities and the housing crisis in a post-COVID era, calling for more investment in public services.
Jo Gideon
Con
Stoke-on-Trent Central
This Budget strikes the right balance by protecting those struggling while focusing on building back better, stronger, fairer and greener. Jo Gideon highlighted positive developments in Stoke-on-Trent, such as the city prospectus and high hopes for economic recovery. She praised the £20 uplift in universal credit and additional investment in apprenticeships and traineeships through schemes like kickstart and Help to Grow. The allocation of £150,000 to help develop bids for levelling-up fund opportunities was welcomed, along with support for capacity building in Stoke-on-Trent. Gideon expressed confidence that the city will be a bellwether for the success of levelling up.
Peter Dowd
Lab
Bootle
I received my first dose of the Oxford vaccine at Davey’s Chemist, which is run efficiently and effectively. I was disappointed that there was no support for the pharmacy sector in the Budget statement despite their significant contribution to the vaccination programme against covid. As a member of the all-party parliamentary pharmacy group, I recommend that the Government review the response from pharmacies during the pandemic, enable pharmacists to do more by giving additional resources and reassess the financial implications of asking pharmacies to pay back advances.
Gagan Mohindra
Con
South West Hertfordshire
The Treasury team's ability to be dynamic in a changing environment has saved many people from financial ruin. The Government’s unprecedented support, especially with universal credit and the furlough extension, has helped prevent job losses as predicted at the start of the pandemic. I welcome the Budget's certainty about VAT cuts and the furlough extension, restart grants and business rates holidays, and the extension to stamp duty holiday and new mortgage guarantee for homebuyers. However, I urge the Chancellor to look at wholesale reform of business rates and address commercial rent delays by blue-chip and cash-rich companies.
Ellie Reeves
Lab
Lewisham West and East Dulwich
The Budget does not provide adequate support for many constituents, such as enterprising self-employed individuals working across multiple sectors who have been excluded from support. The cliff edge of £50,000 in earnings means that those earning over this amount or operating through limited companies are completely excluded from help. I also represent independent businesses struggling to survive the crisis despite the welcome news of restart grants, which may come too late for many viable businesses.
Jane Hunt
Con
Loughborough
Yesterday’s Budget placed a strong emphasis on jobs and livelihoods, announcing schemes and programmes to help people get back into work. The Chancellor introduced restart grants and discretionary funding for businesses to ensure they have vital capital needed to kickstart operations, providing additional support to employees until they are back at work. Additionally, the Budget focuses on improving social mobility through initiatives like a careers and skills hub in Loughborough that offers apprenticeships, traineeships, and T-levels at Loughborough College. The hub will provide local residents with the necessary skills for better-paid jobs and support business growth.
Wendy Chamberlain
Lib Dem
North East Fife
The Chancellor's Budget has revealed significant flaws in social security provision, with an increase of £20 per week in Universal Credit not extending to legacy benefits. Unpaid carers received a derisory 5p a day increase rather than the required £20 a week. The decision to end the universal credit uplift after six months and freeze the personal allowance means that those who need financial support most will be further disadvantaged. Wendy Chamberlain criticised the Government's kickstart scheme for its initial restrictions on businesses with fewer than 30 vacancies, highlighting the impact of the pandemic on young people’s job prospects. She also raised concerns about the lack of VAT reduction for essential services such as hairdressing and beauty treatments, which are critical to women's economic recovery.
Paul Howell
Con
Sedgefield
Paul Howell supports the state's intervention when necessary, such as the extension of universal credit uplift and furlough scheme. He welcomes measures to support private sector businesses and encourages further investment in agriculture. He highlights the importance of short-term financial aid and long-term opportunities like the restart programme and kickstart scheme. He commends local infrastructure projects for economic recovery and emphasises the Conservative party's commitment to levelling up and delivering for northern constituencies.
Colleen Fletcher
Lab
Coventry North East
Colleen Fletcher criticises the Government’s handling of the pandemic, arguing that their policies exacerbated poverty and inequality. She expresses concern over the temporary extension of the £20 universal credit top-up for only six months, stating it will affect 16,000 individuals in Coventry North East. She warns about increased dependency on state support if this benefit is removed.
Bob Stewart
Con
Beckenham
Bob Stewart supports the Chancellor's pragmatic approach to borrowing and economic recovery. He highlights the extension of the furlough scheme until September, the benefits for self-employed individuals, and the £20 uplift in universal credit. He expresses concern about leaseholders with remedial costs of cladding not being addressed in the Budget but remains supportive overall.
Carmarthen East and Dinefwr
Welcomes the Chancellor's commitment to underpin public health strategies with economic support but questions whether measures like furlough will be extended if Wales needs a different strategy. Supports increasing corporation tax to 25%, citing global averages and plans by other nations, highlighting Biden’s proposed $1.4 trillion taxation plan focusing on corporate taxes. Criticises the Chancellor's income tax proposals as too timid, advocating for increased taxation on high incomes and personal wealth. Calls for a review of capital gains tax and varying corporation tax within the UK to redirect investment to less productive areas. Emphasises the need for digital world taxation reform.
Nadia Whittome
Lab
Nottingham East
Critiques the Chancellor's Budget as a failure to address austerity, highlighting that the UK has experienced one of the worst death rates and recessions due to poverty pay, job insecurity, and cuts in public services. Criticises the increase in corporation tax alongside giveaways to big businesses before 2024 and the lack of support for green homes grants or social care plans. Accuses the Government of failing to tackle a rigged economic system that benefits billionaires at the expense of key workers.
Bob Blackman
Con
Harrow East
Supports the Chancellor’s measures announced in the Budget but raises concerns over the lack of detail regarding loan schemes for cladding remediation and strategies to clear rent arrears. Expresses worry about freezing the lifetime allowance on pensions, potentially discouraging medical professionals from continuing work. Calls for further funding to compensate victims of the Equitable Life scandal and advocates for incentives for people to save money.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
While there are welcome measures such as extending the furlough scheme, business rates holiday, new support for self-employed, and funding for cultural recovery, these short-term giveaways do not address long-term issues. There was no pay rise for key workers, no recovery plan for NHS after a decade of cuts, no mention of schools or teachers, and no help for leaseholders in unsafe buildings. In September, unemployment will rise when furlough ends, and the poorest households will face a significant fall in income due to the end of the £20 uplift to universal credit.
The Chancellor presented a Budget showing great imagination despite difficult circumstances. It continued support during pandemic restrictions and laid foundations for investment, including the go-ahead for the Thames freeport that will benefit my constituents in Tilbury, one of the poorest towns. This freeport policy encourages inward investment from overseas to develop redundant industries such as Ford's Dagenham site and the Petroplus oil refinery site, facilitating new technology development and economic growth in east London.
The Chancellor missed an opportunity to secure economic prosperity by creating green jobs through investment in electric vehicle production, tidal projects, hydrogen clusters, and the green homes grant. Instead of addressing precarious employment and low pay, he refused to take action on fire and rehire tactics. The Budget barely papers over the cracks with a £20 million for floating offshore wind production, no new investment for a green recovery in automotive sectors, and insufficient funding from the national infrastructure bank compared to European Investment Bank support.
Richard Drax
Con
South Dorset
The Chancellor's Budget was an impressive performance that aimed to steer the UK through difficult economic conditions without raising taxes. He emphasised enterprise and innovation for economic growth, with a focus on low taxes and less state intervention. Richard supports measures like extending business rates holidays and VAT cuts but warns of the unsustainable level of borrowing. His message is clear: support must continue for businesses as they are essential to funding public services.
Paula Barker
Lab
Liverpool Wavertree
The Chancellor's predecessors made hard choices over a decade, but these led to a squeeze on living standards and insecure work. The Budget lacks ambition in addressing deep-rooted structural inequalities between regions, and there is little support for manufacturing or public sector workers who have kept the country going during the pandemic. Disappointingly, social care was ignored again. Paula criticises the priorities of the Tory Government as misplaced.
The Chancellor’s Budget is a good one that supports larger companies and SMEs, including self-employed individuals and those in low-wage employment. Chris welcomes measures like extending furlough support and universal credit until October 2021, as well as the super deduction tax cut for businesses to encourage investment and job creation. He also highlights initiatives such as the Restart Scheme, Kickstart scheme, and traineeships aimed at supporting the unemployed back into work.
Sarah Jones
Lab
Croydon West
Madam Deputy Speaker, I would like to focus my brief remarks on how the Chancellor could deliver growth in south London. As house prices rise in inner London, people move to outer London where they find marginally more affordable housing. Croydon exemplifies this shift. We face higher levels of deprivation and a high number of looked-after children, unaccompanied asylum seekers, and old people’s homes despite receiving less funding per person compared to some inner boroughs. Funding for local authorities must be rebalanced to support additional costs other areas do not have. South London has missed out on major transport investments; we need investment in our transport system, infrastructure, and high streets. We require a level playing field so that south London can tackle its challenges and receive proper funding for services.
Jerome Mayhew
Con
Broadland and Fakenham
Yesterday’s Budget had to support people and businesses through this moment of crisis, fix the public finances and build our future economy. The Government’s support has saved millions of jobs and prevented hundreds of thousands of businesses from going bust. My local jobcentre in Fakenham plans to double the number of job coaches across the country. I welcome the Chancellor’s decision to continue massive support for employment, self-employed individuals, and businesses right through to September. This is a Budget for recovery and growth; it lays the ground for fiscal recovery and future prosperity with gradual tax increases starting from freezing income tax thresholds and increasing corporation tax on profits of larger companies in two years’ time after boosting investment.
Yesterday, my right hon. Friend the Chancellor delivered a Budget that responded to the continuing needs of this country, supporting growth and those in need. The Chancellor has realised not just my hopes for Darlington but those of our council, Tees Valley Mayor and community I serve by helping children growing up in Darlington aspire to careers without having to leave their hometown thanks to the lifetime skills announcements. The announcement of a freeport for Teesside will also have a long-lasting impact for Darlington. Employed, unemployed, self-employed and employers of my constituency welcomed everything that was announced yesterday.
Bill Esterson
Lab
Sefton Central
This Budget was a political spectacle rather than an economic solution. It failed key workers with pay freezes, imposed council tax hikes on households, and neglected small businesses in need of financial relief.
The Chancellor's announcement of the levelling-up fund is particularly significant for Peterborough. Prior to this Budget, the city had already benefited from substantial investment including funding for a new university, revitalising the city centre, additional police officers and support for local councils to tackle covid-19.
Salford
Yesterday’s Budget was littered with betrayals. Public services were betrayed by a lack of additional funding, workers received no pay rise and Salford saw 90% of new town funds allocated to Conservative seats. The Budget also ignored financial hardship, household debt crises, the building safety crisis and those excluded from support.
The Chancellor’s Budget showed a deep understanding of how small businesses operate and the need for support through furlough schemes and kickstart initiatives. It also provided investment in infrastructure and skills which will enable young people to gain business leadership training.
Arfon
The extension of the £20 uplift to universal credit is welcome, but it is concerning that this will be cut in September. With nearly 5,000 universal credit claimants in Arfon and over 47,000 households in Wales depending on it, cutting benefits at a time when families need support increases poverty. The Chancellor’s argument that the improvement was temporary does not address the real needs of those who rely on this benefit. The Government's policy deliberately imposes hardship on people during difficult times, which is unjustified and further exacerbates the challenges faced by individuals and families.
Tom Hunt
Con
Ipswich
The Budget was positive for Ipswich with £25 million allocated through the towns deal fund and the creation of Freeport East. The town deal will support various projects such as a health and social care academy at the University of Suffolk, training future nurses and social workers, and a maritime skills academy to develop local craftsmanship. These initiatives demonstrate the Government's commitment to levelling-up across the country and addressing specific needs in Ipswich.
Lilian Greenwood
Lab
Nottingham South
The Chancellor’s Budget fails to address critical issues such as NHS funding, social care support, and educational inequalities. The extension of universal credit is welcome but the cliff-edge cut will disproportionately affect those on legacy benefits at a time when unemployment is expected to peak. There are no measures in place to help businesses recover or address long-term economic challenges. This Budget represents Tory mismanagement and fails to provide the necessary support for recovery.
Joanna Cherry
SNP
Edinburgh South
The Chancellor’s Budget misses opportunities to address fundamental issues faced by businesses, families, and individuals. While the extension of furlough and universal credit is welcome, it does not provide long-term solutions or certainty for recovery. The increase in corporation tax for profitable companies is positive but there is a need for further measures such as online taxation to ensure fair distribution. There are also concerns about business rates impacting small businesses' ability to recover post-pandemic.
Paul Blomfield
Lab
Sheffield Central
The Chancellor acknowledged the economic damage of covid-19 but failed to address the impact of Brexit, which will hit GDP by 0.5% in Q1 and a long-term reduction of 4%. Business organisations warned against obstacles to trade with the EU, yet the Government did not listen or act. The NHS faced underfunding leading up to the pandemic, causing capacity issues; instead of addressing this, the Chancellor proposed a £30 billion cut. Social care was neglected despite promises for reform. Universal credit uplift was maintained but should continue beyond October and extend to legacy benefits. Labour argues that the Budget lacks ambition and fails many people.
Janet Daby
Lab
Lewisham East
The Budget fell short of long-term investment in public services and communities, necessary after a year of economic devastation due to the pandemic. It did not provide emergency funding for NHS backlog reduction or mental health support post-pandemic. Social care was forgotten despite severe challenges during the pandemic. Green initiatives like green home grants were absent, as was additional education funding and increased statutory sick pay. The Housing Secretary’s announcement on unsafe cladding details was missing from the Budget. Local councils are facing further cuts due to reduced Government funding since 2010; this undermines community rebuilding efforts.
Mary Foy
Lab
City of Durham
The Chancellor's Budget lacked imagination and substance, failing to address social, economic, and climate crises. It was seen as a plan to increase poverty with cuts to universal credit and no support for disabled people’s legacy benefits. NHS workers received only claps and a pay freeze despite their efforts during the pandemic; there were also no plans to tackle backlogs or mental health issues in the healthcare sector. Public services face £14 billion cuts over this Parliament, affecting local councils’ ability to fund community support. The Chancellor's approach towards businesses did not provide strategies for recovery from pre-pandemic struggles.
Sarah Olney
Lib Dem
Richmond Park
This Budget benefits selected beneficiaries rather than the nation as a whole; it fails to address real business rates reform, devolution of power to local authorities, and investment in green economy. The super deduction plan is not beneficial for cash-strapped firms who are struggling with debt and facing future hikes in corporation tax.
The Chancellor's plans on stealth taxes, pension taxes, and a 50p rise for statutory sick pay may not be well-received. Support schemes involve complex applications and administration, leaving many businesses and individuals unsupported. The super deduction policy takes no account of whether investment would have occurred anyway or the areas that will benefit, potentially costing rather than saving jobs.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
The Chancellor failed to support communities and businesses through the economic crisis caused by the pandemic and did not outline a comprehensive recovery strategy. There is no meaningful plan for NHS, social care, schools, local council services or housing crisis. The Budget downgrades living standards with public sector pay freeze and council tax increases. No new investment has been announced for green recoveries in key industries like automotive and aerospace.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
The speaker criticises the Chancellor's Budget, highlighting its focus on high taxes, unemployment, and low growth. He calls for a clear roadmap to economic recovery with a relentless focus on jobs and acknowledges the varying impacts of the pandemic across different demographics. Reynolds argues that the Chancellor failed to address the challenges faced by young people, unemployed individuals, those on legacy benefits, and others impacted by the crisis. He also criticises cuts to universal credit and working tax credits, advocating for a continuation of the current uplift due to its inadequacy in supporting families during the pandemic. The speaker emphasises that the Budget lacks focus on future challenges such as education, town centres, mental health issues, and NHS recovery.
Douglas Ross
Con
Moray
The hon. Member for Moray raised a point of order regarding the recent announcement by the International Trade Secretary suspending tariffs on UK products including Scotch whisky and cashmere. He sought to put on record how positively received this decision has been in his constituency, Scotland, and across the UK, and asked if there is an opportunity for Mr Speaker to invite representatives from the Government to explain further measures planned to eliminate these tariffs completely.
Eleanor Laing
Con
Not specified
Ms Laing responds to a point of order regarding the announcement in the hon. Gentleman's constituency and mentions that the debate on the Budget will continue on Monday and Tuesday, with a focus on 'Investment-led recovery and levelling up' on Tuesday.
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