I apologise for being absent for part of this debate to attend a delegated legislation Committee, but I have heard the majority of the speeches. It is an honour to follow my hon. Friend the Member for Clwyd South (Susan Elan Jones), and to hear her witty but correct analysis of the Budget and the things she thinks need to be done.
This Budget holds mixed fortunes for my constituents, but I will first thank the Chancellor for extending the period in which enhanced capital allowances are available in enterprise zones by a further three years. Why? The former world-famous Swan Hunter shipyard, which the previous Tory Government closed 20 years ago, was purchased by our Labour council in 2009. It is now being developed by our Labour mayor, Norma Redfearn, under the name of Swans, as a site for companies in the offshore and renewable supply industries. The new Swans site sits alongside successful companies such as oil and gas fabricators OGN, and award-winning subsea fabricators SMD. It borders Shepherd Offshore, which lies in the neighbouring constituency of Newcastle upon Tyne East. Most importantly, it forms the bulk of our enterprise zone on the north bank of the Tyne. The news announced by the Chancellor gives more commercial leverage to North Tyneside council’s excellent regeneration team, to support businesses that already want to come to the Swans site, and that will create thousands of jobs for local people over the next few years.
But mixed fortunes it is. My researcher in North Tyneside, Eddie Darke, goes to the Innisfree social club in Longbenton every week. He told me about two of his pensioner friends who remarked to him, “There is nowt in the Budget for us, Eddie”. Those gentlemen, I am sure they will not mind me saying, are hardened drinkers, yet they know that with just a penny off a pint, it would involve an awful lot of drinking before they feel any economic benefit, even at club prices.
It has been said many times in this debate that the Budget will benefit the most well off. This is certainly true, as the Chancellor extends his austerity measures well into the future. What comfort is there for thousands of public sector workers who will, in effect, see their living standards cut further, in a mere 1% pay increase, if they get even that? The real cost of living crisis is hurting single people, families, those who are employed, those who are unemployed, and young and old alike. The crisis has not been addressed to any degree, and that will not help people to feel confident about their future fortunes.
I recently carried out a survey across a community in my constituency where households live in a range of accommodation from lovely riverside apartments to local authority sheltered homes. The community is made up of mixed age groups and those in different economic circumstances. I found that since the coalition Government came to power, 67% of those constituents said that they are worse off, with only 6% saying that they are no worse off. Some 54% thought they would be worse off over the next two years, while only 30% thought they would be better off in future. Sadly, 71% are worried about their energy bills and 42% are very concerned about the rising cost of food.
I do not see anything in the Budget that will change those statistics significantly, or help any of my constituents improve their lot in relation to the high cost of living. Why did the Chancellor not freeze energy bills and take up some of the sound proposals from Labour that would see the books balanced in a much fairer way? I am optimistic about jobs being created on the north bank of the River Tyne. We are desperate for those jobs. I am, however, equally pessimistic for my constituents, whether they are working or, through no fault of their own, on benefits. They will not benefit from the Chancellor’s Budget and they will continue to struggle to make ends meet. This is in no way a Budget for them.
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