Contribution
Indifference to poverty, as we have just heard, marks out the political divisions of our time. The task of restructuring our economy to ensure that those who serve and work hard are not exploited by profiteers and the powerful is our mission. Today, it is clear which side Labour is on. Leveraging resources from accumulated wealth, not simply income, must be the economic pivot that this Parliament determines to make. We should hold wealth accountable, not just the fruits of hard labour. That is why I welcome measures such as the surcharge on council tax.
As John Maynard Keynes said:
“The difficulty lies, not in the new ideas, but in escaping from the old ones”,
such as the notion that the success of growth will trickle down to provide economic security. Generations have failed to receive that. Unlike the economic engineering we have seen today, economic neoliberalism has been a failed experiment that holds people back and holds people down in poverty. Some 14.5 million people now sit below the poverty line, and 4.5 million children sit in poverty. Tonight, 180,000 children will not sleep in their own bed, and 1 million children are in destitution and dependency, not given dignity or decency. We inherited that shameful legacy from those on the right.
Today is monumental: 450,000 children lifted out of poverty, 1,650 of them in my constituency. Scrapping the two-child limit is the right thing to do—it is the Labour thing to do—but we must go further. Another 80,000 are held back by the Tory benefit cap, and I trust that the child poverty strategy will ditch the cap and the ideology behind it. When a baby comes to York hospital with hypothermia, and when a mother begs me for formula because she has no milk, we must recognise the impact of pregnancy and baby poverty. It causes low birth weight, malnutrition and impeded development. From cold and damp homes, we get poor lung health. I therefore urge the Government to look specifically at women during pregnancy and at their babies, and to say that we will prioritise lifting them out of poverty, because it will make a difference to their life course.
As we seek to abolish child poverty here at home, I plead with the Government to recommit to 0.7% of GNI for overseas development aid. Every child’s life must be of equal worth, no matter where that child is born. Cutting aid will be catastrophic for infants, and we must not contemplate it. Instead, we must restore our commitment to 0.7%.
The moral injustice of the social determinants of poverty must be addressed. After a decade in this place, I have concluded that holding power and wealth in Westminster and Whitehall fails to realise the opportunities across the towns and cities of our country. A pound spent by a Government has a limited reach, but when infused with partnerships and people in localities, it stretches further and deeper into the solutions that can transform lives. The Government must trust our communities and invest to return better health, better education, better employment and opportunities for all. Today I challenge them to embark on a radical devolution of the nation’s resources to our communities, making finances work harder and reach further, restructuring services with transformational local partnerships and relationships.
I urge the Government to review the broad rental market area. Housing injustice is a major cause of poverty in York. The local housing allowance has fallen far below rental costs, to nearly 50%, and a review is essential, while more social housing is a priority. We must examine this issue. Enabling local revenue-raising is also critical, and after years of lobbying hard for it I welcome the tourism levy, which, at just the price of a cup of coffee, will raise £7 million for York.
I urge the Chancellor to look at cities such as York, because we are struggling. Our city may have an affluent core, but much is extracted, leaving it with a very high cost of living and a low-wage economy. Eight communities in York sit in the lowest quintile nationally, and the Government funding formulas are failing us across the board. We receive the lowest funding of any unitary authority but we are far from the most affluent, with one of the lowest settlements for health, schools, special educational needs and disability, police and fire. The cumulative impact has caused significant impediment. School heads who come to York cannot believe the inequity. We have far less than other areas for health and care, we need more police on our streets, and our brilliant Labour local authority is on its knees. Combined with decades of fiscal oversight, the cumulative impoverishment has driven a cultural change in York, and, sadly, the new fair funding formula is just not fair for our city. We are experiencing disadvantage, and I want the Government to look into this inequity in order to understand why the matrices are not working economically for our city and others like it and how the Treasury can rebalance them. I trust we can have a meeting to discuss that.
I believe that Labour can build a safe and secure economy, nationally and in my city, working for all. Addressing poverty, its causes and effects, must always be our driving force: keeping the elderly warm, giving disabled people dignity, and ensuring that child poverty is consigned to history. Today resets the moral purpose of politics, powerfully showing Labour on the side of families and communities, using our socialist roots to collectivise revenue to work for the common good. Poverty, in all its forms, destroys the hope that we long for and the opportunities that we need. Labour must always recognise that ending the injustice of poverty and inequality is our moral purpose, and the route to a strong economy.