Mike Kane – 2023 Speech on the Budget
The speech made by Mike Kane, the Labour MP for Wythenshawe and Sale East, in the House of Commons on 20 March 2023.
It is a pleasure to follow the hon. Member for Hazel Grove (Mr Wragg). I look forward to catching up once again at our annual meet-up at the carnival in July, and I wish him all the best with his therapy.
The Secretary of State mentioned the great British invention of tarmac. John Loudon McAdam was a Scottish engineer in the 17th and 18th centuries who added coal tar to stone surfaces. That became tarmac, or “tarmacadam”—that is where the name comes from. I thought it was an odd reference for the Secretary of State to make, though, as we cannot get enough money for our crumbling roads and the potholes that we all face.
Every day, I hear residents and businesses in Wythenshawe and Sale East talk about the harsh realities of the cost of living at the moment: old-age pensioners are afraid to put on their heating; more and more working families are using food banks; nurses, teachers and firefighters are struggling with household bills as costs go up and their pay stays the same; people are unable to meet private rents or manage rising mortgage rates; and local businesses are closing down because of overheads.
Last Wednesday, the Chancellor had a chance to show that he is on the side of Britain’s people and businesses with a Budget that offered real support and serious solutions, but that is not the Budget we got. Instead, what the Chancellor offered was a Budget that did worse than deny people’s realities: it insulted them, with a £1 billion pension cut for the richest 1%; a stealth tax freezing income tax levels, meaning workers will see their pay squeezed further; and an overarching message that the Government’s plan was working and the economy was not that bad, at the same time as the OECD announced that the UK will be the only—the only—G7 economy to shrink this year.
Where the Chancellor came closest to offering real support, he did so by stealing ideas from others, yet bungled the detail. The hon. Member for Bassetlaw (Brendan Clarke-Smith) mentioned the expansion of free childcare. Sadly, we will not see that crucial support to help parents get back into work introduced in full until September 2025. As it stands, the subsidy from childcare providers is so high that it threatens to put them out of business.
I welcome the extension of the help with energy bills. The Government again capitulated to what Labour and campaign groups have been calling for, for months. But with an extension of just three months and more limited support, what we are seeing is more sticking-plaster politics. Where is the investment in green energy, which is the only way we will achieve true energy security? Then there was more of the same, with recycled ideas and empty promises from the many Tory Chancellors and Prime Ministers of the past. To level up, the Chancellor announced plans for the Truss-Kwarteng “investment zones”. Forget HS2, Northern Powerhouse Rail or solid regeneration projects for Wythenshawe town centre and Sale town centre, all of which have been delayed or denied by the Government. Instead, they think these low-tax, reduced regulation, potential Canary Wharfs will generate jobs and skills in left-behind communities. These are far from the serious solutions that Britain needs. What the Chancellor put forward is a Budget that denies reality, delivers little and borrows heavily; a Budget from a Government who are out of touch, out of ideas and quickly running out of time.
Under this Government, people are getting poorer. People are being supported into work, but getting paid less and taxed more, while public services struggle to cope—all the hallmarks of an economy in managed decline. Our people and businesses deserve more. We need a Budget that delivers for people, communities and businesses like those in Wythenshawe and Sale East: 1,600 homes for Wythenshawe town centre, if we had got our levelling up bid; 250 homes for Sale town centre; investment to regenerate Wythenshawe hospital, but with the hospital building programme stuck in the muck we could build 1,000 homes on that site with the right release of investment; an HS2 station near my constituency and an extended Metrolink loop line; a station on the mid-Cheshire line; scrapping business rates; and a proper plan to address skills gaps that are holding back our small and large businesses.
What we need is a Budget that acknowledges reality and the scale of the challenge head-on, but meets them with the hope, ambition and determination needed to get Britain back on the path to growth. But for that style of Budget, it seems we will have to wait longer still.
