I strongly welcome this Budget. We should acknowledge that over the past 18 months, this country has faced a national emergency comparable only to the outbreak of the second world war. We have already spent £407 billion supporting
schools, businesses and industries in my constituency and across the country to tackle the impacts of the covid-19 pandemic, without which we would have had destitution on the streets. I recognise the economic and financial challenges that the Government are facing. We have a national debt of over £2.2 trillion, equivalent to around 100% of our gross domestic product. That is why the Government are doing everything possible to square the circle in terms of spending on public services and dealing with the deficit and debt. It is not an easy task.
My two passions in politics have always been championing education and skills, and cutting the cost of living. I support this Budget because despite the circumstances I have just set out, the Chancellor has tried to address both. This is a true worker’s Budget in many ways, because there is a strong desire across the country to improve the cost of living and for low taxation. I previously supported the temporary £20 uplift to universal credit payments, but I genuinely think that the Chancellor’s decision to decrease the universal credit taper rate and uplift the work allowance is a better solution in the long run, because it gets people out of the poverty trap and incentivises more people into work. That will both boost people’s income and earnings and help reduce unemployment as we move into a high-productivity and skilled economy.
In addition, we have the £500 million invested in families and early years intervention, helping those who are struggling the most. We have the record 6.6% rise in the national living wage, which I campaigned hard for the Cameron Government to introduce, to £9.50. We have the fuel duty freeze—something I have campaigned for, probably to the annoyance of the Treasury—continuing for the twelfth year in a row, saving motorists £15 every time they fill up. That is what makes a difference to those who are just about managing. I hope that the Government will do much more to cut the cost of living. We should cut taxes for lower earners as soon as economic conditions allow and we should look at ways to further reduce energy bills. Cutting the cost of living must be the Government’s central mission.
On education, the Budget’s focus on skills, schools and families, as described by the Secretary of State for Education in his opening remarks, should be welcomed. Education and skills are the most important rung on the ladder of opportunity. They are the golden thread that tie together all our investments and our futures.
The outbreak of coronavirus was nothing short of a national disaster for our children. The four horsemen of the education apocalypse came galloping towards young people to create a widening attainment gap, worsening mental health issues, an ever-increasing number of safeguarding hazards, and a challenge to their skills development and life chances. We should never again fully close the schools in the way that we did.
The Budget showed a real recognition from the Chancellor and the Education Secretary that those challenges can be overcome through family hubs, the catch-up and education recovery funding, and the rocket-boosting of skills. Not much has been said today about the extra £2.6 billion of funding to strengthen the provision for children with special educational needs, but it is important and will be welcomed by parents across the country.
The lifetime skills guarantee announced last year created the blueprint for the skills funding package, which provides an extra £3 billion for T-levels and adult skills, among other things. That is a 42% increase in skills funding in cash terms, which will put vocational and technical education on a par with traditional academic learning and give financial teeth to the skills agenda.