This first Labour Budget has been about fixing the foundations to deliver change. Today marks the first time in UK history where a woman has presented the Budget to the country, and I am proud that this Labour Government has delivered this monumental moment.
A serious change was needed after the previous Conservative Government who had 14 years of economic mismanagement and crashed the economy. Mortgages have been sent through the roof, billions of pounds of taxpayers’ money were spent on a failed asylum system, private rail companies propped up despite not delivering, and millions spent on dodgy COVID contracts.
Our country voted for change. This Budget will work to support public services, drive growth across the country, fix the foundations and deliver on the promise of change that we were elected on.
The changes to fiscal rules introduced by the Chancellor today will free up approximately £100 billion for infrastructure investment for the next five years, including for transport and energy.
The Government has announced a ten-year plan to finally address the issues within the NHS. £22.6 billion will go towards the day-to-day health budget, plus a £31 billion increase in the capital budget: the largest increase in spending outside of Covid since 2010. New funding will be provided to deliver an extra two million NHS operations, scans and appointments a year. This will help us to do what is necessary to fix the NHS, bring down waiting lists and increase the capacity for procedures.
I was particularly pleased to hear the announcements on rail transport. This Government has committed to improving connectivity across the North in Manchester, Birmingham, Leeds, York and Oldham. It was refreshing to hear that Greater Manchester mayor, Andy Burnham, will become one of the first in the country to gain integrated settlements which will give these areas “meaningful control of the funding” and how it is allocated. The Labour Government will get Britain moving and improve our local services.
This Government is committed to the growth of clean energy. This will come from investment in hydrogen power projects and carbon capture projects. This comes alongside the setting up of GB Energy in Aberdeen to make the UK a clean energy superpower and support our industrial strategy.
In 2025, the National Living Wage will be increased to £12.21 an hour. This will give over 3 million workers a pay rise and go a long way to securing a genuine wage that people can live on. There will also be additional funding to crack down on shoplifting gangs, to save independent and larger retailers from petty theft.
The education sector has been given a £6.7 billion increase in capital funding for school building, and the removal of the 20% VAT relief on private school fees will go a long way in providing extra funding for the 94% of pupils who attend state schools. The Government is planning to triple investment in breakfast clubs to £30 million, so children are ready to learn at the start of each school day. I am also pleased to hear the £1 billion uplift to special educational needs and disabilities to support work to reform the system for pupils with special educational needs.
Although many difficult decisions have been made at this Budget, I support this Labour Government’s commitment to protecting working people, fixing the NHS, addressing the urgent housing crisis and giving young people the greatest opportunities in life.