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Budget Resolutions and Economic Situation

The Budget was an opportunity to give hope to those who have seen their household budgets squeezed and their livelihoods destroyed by the Government's economic policies. On Wednesday, however, we saw the Government's priorities. They were to help the few, not the many; to help the millionaires, not the millions. The Government chose ideology, not fairness. The impact of the Tory-led Government's austerity measures is plain to see: with rising prices, squeezed living standards and soaring unemployment, this is a return to the Thatcher years of the 1980s. In Preston, unemployment has risen month by month. In February 2012, 3,733 people were claiming jobseeker's allowance, which is double the figure under the Labour Government. We have seen an increase of 439 from February 2011—a 13% increase in a year—and an increase of 169 since January 2012, which represents a 5% increase in just one month. The most striking figure is the increase in long-term youth unemployment, and I fear that that will be the hallmark of this Government. Long-term youth unemployment in Preston has tripled in the last year. This problem is not unique to my constituency; it is endemic across the country. Young people and families are the victims of the Government's reckless austerity measures, which I fear will lead to a lost generation of young people. I ask the Minister and other Government Members how it can be fair that 14,000 people earning £1 million or more are getting a tax cut of over £40,000 a year when a family with children earning just £20,000 will lose £253 a year from this April. That is on top of the VAT rise, which is costing families an average of £450 per year. The Government's priorities are clear: tax cuts for the few while others wallow in the mess created by the Government. To repeat a comment picked up on by the hon. Member for Cleethorpes (Martin Vickers): these are the same old Tories. This Budget is a tax raid on pensioners. In Preston, there are 5,894 people aged between 60 and 64. A large proportion of them will be the victims of the Chancellor's decision to freeze personal allowance for pensioners, with those turning 65 next year set to lose up to £322. There are currently 16,622 pensioners in Preston, and a considerable percentage of them will have to pay this granny tax, along with 480,000 other income tax paying pensioners in the north-west of England. The economy in the north-west is already suffering. The Budget also does nothing to help manufacturing. The Prime Minister and the Chancellor have made it clear that they envisage the rebalancing of our economy through manufacturing. For Preston and Lancashire, manufacturing is not only our heritage but our future. As a Lancashire MP, I am proud of the work that BAE Systems and the BAE work force have done over the generations. As we know, however, BAE has lost the contest for preferred partner with the Indian Government owing to the lack of activism on the part of this Government. In January, it was announced that French defence firm Dassault would be the Indian Government's preferred partner for the building of their fighter jets, instead of BAE Systems with its Typhoon. In the White Paper ““National Security Through Technology””, the Government have made it clear that they will no longer give British companies preferred status. If the British Government will not give that preferred status, why should the Indian Government give it to companies such as BAE? It beggars belief that the Government do not support British industry, but the Budget illustrates that fact. The Budget shows no plans to support the nuclear industry. I hope the Government will look again at providing support to ensure that the Westinghouse AP1000 nuclear reactor is secured at Wylfa in Anglesey. This project would not only generate jobs in Anglesey, but create a Westinghouse service-based business with more than 200 jobs located in central Lancashire. This should have been the Budget for jobs and growth. Instead, it was a battle of pure politics between the coalition partners, with the winners being the millionaires and the victims the ordinary hard-working people. If this Government were to have any credibility on jobs and growth, they should have used the Budget to support companies such as BAE Systems and Westinghouse at the Springfields plant near my constituency. The Budget included announcements on transport. Preston is a major hub for Lancashire, connecting Lancashire to Scotland, London, Liverpool and Manchester. I welcome the fact that the Government are looking to add to the trans-Pennine rail route by upgrading and electrifying the Manchester to Preston line. Why, however, are the HS2 plans so timid? The Transport Secretary and her team should not be so timid in pushing forward HS2, which would provide greater capacity and reduce journey times between major cities. Instead of legislating for the first phase of the new high-speed line from London to Birmingham, taking forward HS2 as one project, beginning construction in the north as well as the south would have been the answer to solving the nation's rail problems—instead of just looking after the south. Labour Members remember the famous phrase, ““We're all in this together.”” With youth unemployment at record highs and pensioners having had their money snatched by the Chancellor, there is nothing to excuse the callous and scandalous closure of the Remploy factory in Preston and others across the country. Where were the measures in this Budget to help the disabled? The systematic attacks on disabled people—whether it be through the removal of benefits or the closure of the Remploy factories—show that this Government have no shame about victimising the most vulnerable in our society. This Budget provided a chance for a stimulus to jobs and growth in our country, and a chance to show the British people that the Government were on the side of ordinary hard-working families. Yet again, the country has been let down. This Budget will be celebrated by the few, but it will hurt the many.