Director Christine Quigley summarises what today's Budget means for Labour
Labour is likely to have been blindsided by the scale and scope of spending announced by the Chancellor today. Pundits are already pointing out that many of the new measures would sit comfortably in a Labour budget, making it challenging for outgoing Leader of the Opposition Jeremy Corbyn MP to criticise.
Labour MPs have been quick to seize on the fundamental dichotomy of the Budget. It ostensibly supports the Government’s Net Zero agenda with announcements on green transport, support for lower-carbon forms of energy and improving broadband and mobile connectivity across the country. However, at the same time the Chancellor announced an enormous £27bn on roads as part of the second Road Investment Strategy, a £500m-a-year Potholes Fund, retaining entitlement to use red diesel across a range of sectors and a freeze on Air Passenger Duty for short-haul flights, which could well clash with Net Zero plans without other support.
Labour has also been critical of the lack of focus on key issues such as social care and the impact of Universal Credit. The Government has pledged to invest an additional £1bn into social care, but not until next year, while there is significant frustration that a government with a large majority isn’t taking immediate action on the growing crisis in care. The five-week waiting period for Universal Credit remains unchanged, despite former Work and Pensions Minister Will Quince admitting last summer that he had changed his view about the impact of this after meeting women who had turned to sex work because of this waiting period. Furthermore, there is frustration among parts of the left around today’s announcement that people affected by coronavirus won’t need to attend a jobcentre to claim Universal Credit or access advance payments, with many arguing that this exception for coronavirus should be the rule for anyone experiencing ill-health.
In the coming days, the Shadow Treasury team will be drilling down into the detail of today’s Red Book announcements, holding the Government to account on how the significant increases in spending will be funded. Expect the ‘magic money tree’ line to feature heavily in Labour press releases this week. HM Treasury’s own distributional analysis shows that the poorest income decile will be worse off in cash terms after this Budget, with those in the eighth and ninth deciles doing best. As the Conservatives seek to consolidate their gains in former ‘red wall’ seats, Labour will be on the attack on the impact of Budget measures on individuals and communities across the country.
