Inflation: At least 100,000 more people at risk of being pulled deeper into poverty

Families on low incomes are facing a worrying winter ahead as today’s figures show inflation has hit 5.1%. The rising cost of utilities are especially challenging given they take up such a large share of low-income families’ budgets.

The Government recently announced that benefits will be uprated by 3.1% in April which will close some of the growing gap between people’s incomes and their costs. However, this does not address the immediate hardship families are experiencing this winter.

In October, the Office for Budget Responsibility projected inflation to peak at 4.4% by April but today’s 5.1% exceeds that level.

New JRF analysis based on OBR forecasts shows that should inflation be 4.4% by next April:

  • Around 100,000 individuals are at risk of falling into deep poverty (below 50% of median income after housing costs) due to benefit uprating being less than inflation in April
  • Around 7 in 10 of whom live in households that contain children
  • Around half live in working households

Given today’s high inflation figures, this could be an underestimate and even more individuals may be at risk of deep poverty.

The outlook is especially stark for people who are out of work and reliant on social security to make ends meet. These families have already experienced a £20-a-week cut to Universal Credit. This also comes after a decade of cuts and freezes to social security which has left the system wholly unable to provide the support millions of people need.

Katie Schmuecker, Deputy Director of Policy & Partnerships at the Joseph Rowntree Foundation, said: “It is deeply concerning that families on low incomes, who are already struggling to make their budgets stretch, are at risk of being pulled deeper into poverty. Prices are rising sharply and support available to people is inadequate.

“Everyone in our country should be able to afford the basics yet there is no sign of any respite on the horizon for families struggling to keep their heads above water.  Too many people who are being hit by rising energy bills and increasing food prices are forced to ask themselves what essentials they will go without this winter.

“In a country like ours, social security should, at a bare minimum, enable people to meet their needs with dignity. Unless the Government urgently strengthens support, we will see more and more people being pulled deeper into poverty and debt in the months ahead. This is not only harmful but also completely avoidable.”

Scottish Child Payment to be doubled, First Minister confirms

The Scottish Child Payment will be doubled to £20 per week per child from April 2022, the First Minister has announced. The decision has been welcomed by poverty camapigners.

First Minister Nicola Sturgeon confirmed that more than 105,000 children will immediately benefit from the increased payment, which supports low income families with children aged under 6.

First introduced in February 2021 as a £10 per week payment designed to tackle child poverty, it provides regular, additional financial support for eligible families.

The benefit, which is unique in the UK, will be fully rolled out to children under the age of 16 by the end of 2022, subject to data on qualifying benefits being received from the Department of Work and Pensions. It is expected over 400,000 children could be eligible for the doubled payment from that point.

From 2023/24 it will represent an annual investment in tackling child poverty of around £360 million a year. The increase to £20 per week further underlines the Scottish Government’s national mission to tackle child poverty.

The First Minister said: “The Scottish Government is determined to lift children out of poverty.

“Of the £2 billion a year that the Scottish Government invests to support people on low incomes, over £670 million is already targeted at children. Through the range of new payments delivered by Social Security Scotland, low income families receive, in the early years of each child’s life, £5,000 of additional financial support.

“At the heart of this is the Scottish Child Payment – the only payment of its kind anywhere in the UK, designed solely to lift children out of poverty and give them better lives. The £10 per week payment for eligible children under age 6 will be extended to all eligible children under 16 at the end of 2022; and we committed to doubling the payment to £20 per child per week within this Parliamentary term.

“I am proud that our budget will confirm that we will double the Scottish Child Payment from the start of the new financial year. This increase to £20 per child per week will reach over 105,000 children under age 6 in just four months’ time.  When we extend the Scottish Child Payment to all under 16s at the end of next year, over 400,000 children and their families will be eligible.

“This is the boldest and most ambitious anti-poverty measure anywhere in the UK. Delivering it isn’t easy. It will involve hard choices elsewhere in our budget. But it is a choice we are opting to make.

“Eradicating child poverty is essential if we are to build the strongest foundation for Scotland’s future. And that is what we are determined to do.”

Scottish Government Minister and Scottish Green Party Co-Leader Patrick Harvie said: “With rising inflation, energy costs and the recent UK Government cuts to Universal Credit, further action to tackle child poverty could not have been more urgent.

“I’m therefore delighted that the Scottish Government has been able to double the Scottish Child Payment from April, just months after our policy of free bus travel for children and young people goes live.

“These bold actions deliver on key commitments made in the cooperation deal between the Scottish Government and the Scottish Green Party, and will make a real difference to families across Scotland.”

Scottish Greens MSP Lorna Slater said the decision will be pivotal to tackling child poverty in Lothian. 

Ms Slater said: “With a new Covid variant, rising energy costs, inflation and the catastrophic impact of a Tory Brexit being felt, it is more important than ever that we do everything we can to help people that are being hit by Westminster’s cuts and austerity.

“That is why I’m delighted that we will see the Scottish Child Payment doubled in the forthcoming Scottish budget. This will be pivotal to tackling child poverty and will be welcomed by families that are feeling stretched, particularly those that have been hit by Boris Johnson’s punishing Universal Credit cut.

“With Greens in government we are delivering for people and the planet and making a real difference to families in Lothian and beyond.” 

“That is why we are introducing free bus travel for everyone under 22 from January, extending free school meals to all primary school pupils and ensuring that government contracts pay the real living wage. We will continue to work towards a fairer, greener Scotland.” 

Social Security Scotland delivers a number of benefits for families. These include Best Start Grant Pregnancy and Baby Payment, Early Learning Payment, School Age Payment and Best Start Foods.

The newly doubled Scottish Child Payment, together with the three Best Start Grant payments and Best Start Foods, could give families up to £8,400 by the time their first child turns 6.

Campaigners have welcomed the announcement:

Chris Birt, Associate Director for Scotland at Joseph Rowntree Foundation said: “This is very welcome news that will provide vital support for families with young children following what is expected to be a challenging winter as the cost of living continues to rise. Doubling the payment for older children cannot come soon enough. 

“As we noted in our Poverty in Scotland report, this investment alone will not be enough to meet the interim child poverty targets, but it is an important step in the right direction and will make a real difference to families.”

Universal Credit changes: how will they affect you?

Spending Review and Autumn Budget 2021: Universal Credit Taper Factsheet

FACTSHEET ISSUED BY HM TREASURY

The UK Government says the best way to support people’s living standards is through good work, better skills, and higher wages.

We will always give families the support they need and the tools to build a better life for themselves.

The UK’s modern Universal Credit (UC) benefit system ensures that people on the lowest wages are given the support they need to thrive and fulfil their potential.

As an incentive to find good work as the UK economy moves to a high-wage, high-productivity economy, the Government is changing the rate at which people’s UC award gradually reduces once they earn a salary – making work pay.  

How does the Universal Credit Taper work? 

The taper rate means that if people work more hours, their support is gradually withdrawn. It was withdrawn far more quickly in the old system.

Currently that taper rate starts at 63 pence – so for every £1, after tax, a person earns, their UC payment is reduced by 63pence.                                                                                         

The Government is taking decisive action to make sure work pays, and permanently cutting this taper rate by 8p from 63p to 55p, ensuring more money in people’s pockets.

Some households can earn a set amount before the taper kicks in. This is called the work allowance. 

What is the Work Allowance?

Households on UC who are in work and either looking after a child or have a household member with limited capability for work are being supported with an increase in their work allowances.

This is the amount that a person can earn before support begins to be withdrawn as the taper rate kicks in.  

Work allowances are currently set at £293 a month if the household receives housing support, or £515 if they do not receive housing support. These are both being increased by £500 per year.

Who is affected?

1.9 million households will benefit from these changes. For example, within five weeks, as a result of these changes:

  • A single mother of two, renting in Darlington, working a full-time job on the National Living Wage, will see her take-home income increase by £1,200 on an annual basis.
  • A couple with two children, renting their home with their two children, where one partner works full time at the National Living Wage, and the other works 16 hours a week at National Living Wage will be £1,800 per year better off. 

Taken together, this is an effective £2.2bn tax cut for around 2 million of the lowest earning working families.

This applies to England, Scotland and Wales. The Northern Ireland Executive will be provided with funding to implement an equivalent measure. 

Who has called for it?

the TUC: “If the aim of UC is to make work pay, the taper rate needs to be revisited’

Centre for Social Justice: “increasing work allowances would help those claimants who are highly motivated to re-enter a weakened labour market to have their incomes supported.”

Child Poverty Action Group“Lowering the taper would be welcome.”

Joseph Rowntree Foundation: ‘Increasing work allowances and reducing the taper rate would strengthen work incentives and help protect families on low earnings from poverty.”

Centre for Policy Studies: “The Government should implement improvements to work incentives within UC through a cut to the taper rate and increased work allowances. This is desirable in itself and would complement a broader economic programme for increased employment post-pandemic.”

When will it be introduced?

Changes like this are usually introduced at the start of the financial year in April, but in order to support families through the Winter, the reduction to the taper rate and increase to the work allowances will be implemented by the beginning of December 2021.

This builds on continued support to tackle cost of living:

  • We are supporting millions of workers by increasing the National Living Wage to £9.50 an hour in April 2022 from £8.91.
  • Young people and apprentices will also see their wages boosted as the National Minimum Wage for people aged 21-22 goes up to £9.18 an hour and the Apprentice Rate increases to £4.81 an hour.
  • Investing £170million in 2024-25 to increase the hourly rate to be paid to early years providers to deliver the government’s free childcare hours.
  • Saving consumers £3billion over the coming years on alcohol duty. The freeze will save consumers 3p off a pint of beer, 2p off a pint of cider, 14p off a 75cl bottle of wine and 52p off a 70cl bottle of Scotch.
  • The average driver will pay around £15 less fuel duty per tank as we freeze fuel duty for twelfth consecutive year, compared with pre-2010 plans.

Taking into account the increase in the National Living Wage, changes in Universal Credit, the freezing of the income tax Personal Allowance and the introduction of the Adult Social Care Levy:

  • A single parent with two children, working 16 hours a week at the National Living Wage in 2022/23 will still be around £590 better off in cash terms than if none these changes had been made.
  • A single earner couple with two children, working 35 hours a week at the National Living Wage in 2022/23 will still be around £1,200 better off in cash terms than if none these changes had been made.

New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced yesterday.

Weekly incomes and Costs for 2022/23Family 1: single adult, no children, not workingFamily 2: single parent, with one young child (assume age 5), part-time 16 hours per weekFamily 3: couple with two young children (assume 7 and 5). One FT workerFamily 4: single parent, with one young child (assume age 5), full-time 35 hours per weekFamily 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements£77£278£433£333£489
Weekly gain from taper rate and work allowance£0£8£19£19£31
      
Total loss from higher cost of living due to…-£13-£16-£23-£18-£24
1) increase in energy prices-£7-£7-£7-£7-£7
2) overall cost of living increase-£6-£8-£13-£8-£13
3) increase in National Insurance and impact of inflation on earnings£0-£1-£3-£3-£4
      
Overall weekly gain or loss after measures and cost of living-£13-£8-£4£1£7

Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.

TUC General Secretary Frances O’Grady said: “Workers on universal credit should always have been able to keep more of their wages.

“This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”

Record £41 billion per year for Scotland in budget

‘The Budget delivers for people in Scotland’

  • UK Government will provide a record £41 billion per year to the Scottish Government.
  • Scotland will also benefit from UK-wide support for people and businesses, green jobs and investment to level up opportunities.
  • Targeted funding will support local projects across Scotland, including road and infrastructure improvements, investment in local communities and funding for businesses.

The Chancellor today announced Barnett-based funding for the Scottish Government of £41 billion per year – delivering the largest annual funding settlement, in real terms, since devolution over 20 years ago. This includes a £4.6 billion per year spending boost – as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.

Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.

As part of the significant spending plans, Scotland will receive an average of £41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Government’s budget each year. The Scottish Government will now receive around £126 per person for every £100 per person of equivalent UK Government spending in England.

Chancellor of the Exchequer, Rishi Sunak said: “This is a budget for the whole of the UK. We’re focused on what matters most to the British people – the health of their loved ones, access to world-class public services, jobs for the future and tackling climate change.

“By providing record funding, the Scottish Government can tackle backlogs in the NHS and ensure people in Scotland get the support they need as we recover from the pandemic.

“The UK Government continues to level up opportunities across all parts of the UK, with investments in green jobs and high-speed internet access for thousands more homes in Scotland through Project Gigabit.

Scottish Secretary, Alister Jack said: “The Budget delivers for people in Scotland, and right across the UK.

“The Scottish Government’s block grant, boosted by an additional £4.6 billion a year due to spending in England, means that the funding for the Scottish Government is the highest it has ever been.

“It demonstrates our commitment to level up right across the UK. The Budget ushers in an era of real devolution, ensuring money is spent on projects that matter most to people in Scotland.

“The UK Government made a clear commitment to maintain Scotland’s level of funding following the vote to leave the EU, and we have delivered on that promise. We are taking decisions in the UK rather than in Brussels and dealing directly with local authorities who know their communities best.

“From the Knoydart community pub, to Dumbarton town centre and the Granton Gasworks – all these projects will bring real, visible improvements for local communities. Special funding for Glasgow’s iconic Burrell Collection and Extreme E will help drive economic growth and jobs on the back of culture and tourism.

“The continuation of the freeze on spirit duty will be a boost to Scotland’s thriving whisky industry.

“Over the past 18 months the UK Government has been focused on protecting people’s livelihoods, their incomes, and their jobs. We now need to look to the future, to build a stronger economy for people in all parts of the UK.”

Targeted funding in Scotland

On top of the record funding for the Scottish Government, Scotland will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses. Targeted projects in Scotland include:

Over £200 million to be invested in Scotland to boost the post-pandemic recovery and enhance the Scottish economy, including:

  • £172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre.
  • Over £1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets.
  • Providing £1.9 billion for farmers and land managers and £42.2 million to support fisheries.
  • Up to £1 million, to support the delivery of a ‘green’ formula E race showcasing Hebridean Green Hydrogen to a global audience.
  • Expanding the existing trade and investment hub in Edinburgh to grow trade for Scotland.
  • Up to £3 million to bring world-class art exhibitions to the Burrell Collection in the heart of Glasgow.

UK-Wide Support

As a result of our strong United Kingdom, Scotland will benefit from:

  • A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity
  • Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
  • New funding for the British Business Bank to establish a £150 million fund in Scotland, helping Scottish businesses to get the financing they need.
  • The new £1.4 billion Global Britain Investment Fund which will support investment directly into Scotland.
  • A record £20 billion by 2024-25 in Research and Development supporting innovation in Scotland.
  • Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills.
  • An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
  • Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles.
  • A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918.

BUDGET REACTION

Rachel Reeves MP, Labour’s Shadow Chancellor, responding to the Budget, said: Families struggling with the cost of living crisis, businesses hit by a supply chain crisis, those who rely on our schools and our hospitals and our police – they won’t recognise the world that the Chancellor is describing. They will think that he is living in a parallel universe.

The Chancellor in this budget, has decided to cut taxes for banks. So, Madame Deputy Speaker, at least the bankers on short haul flights sipping champagne will be cheering this budget today.

And the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, expecting them to cheer today for £2 billion given to compensate.

In the long story of this Parliament, never has a Chancellor asked the British people to pay so much for so little.

Time and again today, the Chancellor compared the investments that he is making to the last decade. But who was in charge in this lost decade? They were.

So, let’s just reflect on the choices the Chancellor has made today – the highest sustained tax burden in peacetime.

And who is going to pay for it?

It’s not international giants like Amazon – the Chancellor has found a tax deduction for them. It’s not property speculators – they’ve already pocketed a stamp duty cut. And it’s clearly not the banks  – even though bankers’ bonuses are set to hit a record high this year.

Instead, the Chancellor is loading the burden on working people. A National Insurance Tax rise – on working people. A Council Tax hike – on working people. And no support today for working people with VAT on their gas and electricity bills.

And what are working people getting in return? A record NHS waiting list, with no plan to clear it, no way to see a GP and still having to sell their home to pay for social care.

Community policing nowhere to be seen, a court backlog leaving victims without justice and almost every rape going unprosecuted.

A growing gap in results and opportunities between children at private and state schools. Soaring number of pupils in supersize classes and no serious plan to catch up on learning stolen by the virus. £2 million announced today – a pale imitation of the £15 billion catch up fund that the Prime Minister’s own education tsar said was needed. No wonder, Madame Deputy Speaker, that he resigned.

Now the Chancellor talks about world class public services. Tell that to a pensioner waiting for a hip operation. Tell that to a young woman waiting to go to court to get justice. Tell that to a mum and dad, waiting for their child the mental health support they need.

And the Chancellor says today that he has realised what a difference early years spending makes. I would just say to the Chancellor, has he ever heard of the Sure Start programme that this Tory government has cut?

And why are we in this position? Why are British businesses being stifled by debt while Amazon gets tax deductions?

Why are working people being asked to pay more tax and put up with worse services?

Why are billions of pounds in taxpayer money being funnelled to friends and donors of the Conservative party while millions of families are having £20 a week taken off them?

Madame Deputy Speaker, why can’t Britain do better than this?

The Government will always blame others. It’s business’ fault, it’s the EU’s fault, it’s the public’s fault.

The global problems, the same old excuses. But the blunt reality is this – working people are being asked to pay more for less for three simple reasons:

  •     Economic mismanagement,
  •     An unfair tax system,
  •     And wasteful spending.

Each of these problems is down to 11 years of Conservative failure and they shake their heads but the cuts to our public services have cut them to the bone. And while the Chancellor and the Prime Minister like to pretend they are different, the Budget they’ve delivered today will only make things worse.

The solution starts with growth. The Government is caught in a bind of its own making. Low growth inexorably leads to less money for public services, unless taxes rise.

Under the Conservatives, Britain has become a low growth economy. Let’s look at the last decade – the Tories have grown the economy at just 1.8 percent a year.

If we had grown at the same rate as other advanced economies, we could have spent over £30bn to invest in public services without needing to raise taxes.

Let’s compare this to the last Labour Government. Even taking into account the global financial crisis, Labour grew the economy much faster – 2.3 percent a year.

If the Tories matched our record, we would have spent £30bn more on public services without needing to raise taxes.

It could not be clearer. The Conservatives are now the party of high taxation, because the Conservatives are the party of low growth.

The Office for Budget Responsibility confirmed this today – that we will be back to anaemic growth. The OBR said that by the end of this Parliament, the UK economy will be growing by just 1.3%. Which is hardly the  plan for growth that the Chancellor boasted about today, hardly a ringing endorsement of his announcements.

Under the Tory decade we have had ow growth and there’s not much growth to look forward to.

The economy has been weakened by the pandemic but also by the Government’s mishandling of it.

Responding to the virus has been a huge challenge. Governments around the world have taken on debt, but our situation is worse than other countries.

Worse, because our economy was already fragile going into the crisis. Too much inequality, too much insecure work, too little resilience in our public services.

And worse, because the Prime Minister dithered and delayed, against scientific advice – egged on by the Chancellor – we ended up facing harsher and longer restrictions than other countries.

So, as well as having the highest death toll in Europe, Britain suffered the worst economic hit of any major economy.

The Chancellor now boasts that we are growing faster than others, but that’s because we fell the furthest.

And whilst the US and others have already bounced back to pre-pandemic levels, the UK hasn’t. Our economy is set to be permanently weaker.

On top of all of that, the Government is now lurching from crisis to crisis. People avoiding journeys because they can’t fill up their petrol tank is not good for the economy. People spending less because the cost of the weekly shop has exploded is not good for the economy. And British exporters facing more barriers than their European competitors because of the deal that this government did is not good for the economy.

If this were a plan, it would be economic sabotage. When the Prime Minister isn’t blagging that this chaos is part of his cunning plan, he says he’s “not worried about inflation.”

Tell that to families struggling with rising gas and electricity bills, with rising prices of petrol at the pump and with rising food prices. He’s out of touch, he’s out of ideas and he’s left working people out of pocket.

Madame Deputy Speaker, Conservative mismanagement has made the fiscal situation tight. And when times are tight it’s even more important to ensure that taxes are fair, that taxpayers get value for money. But the Government fails on both fronts.

We have a grossly unfair tax system with the burden heaped on working people.

Successive budgets have raised council tax, income tax and now National Insurance. But taxes on those with the broadest shoulders, those who earn their income from stocks, shares, and property portfolios have been left largely untouched.

Businesses based on the high street are the lifeblood of our communities and often the first venture for entrepreneurs.

But despite what the Chancellor has said today, businesses will still be held back by punitive and unfair business rates. The Government has failed to tax online giants and watered-down global efforts to create a level playing field.

And just when we need every penny of public money to make a difference, we have a government that is the by-word for waste, cronyism and vanity projects.

We’ve had £37 billion for a test and trace system that the spending watchdog says, ‘treats taxpayers like an ATM cash machine’. A yacht for ministers, a fancy paint job for the Prime Minister’s plane and a TV studio for Conservative Party broadcasts, which seems to have morphed into the world’s most expensive home cinema.

£3.5bn of Government contracts awarded to friends and donors of the Conservative Party, a £190 million loan to a company employing the PMs former Chief of Staff, £30 million to the former Health Secretary’s pub landlord. And every single one of those cheques signed by the Chancellor.

And now he comes to ordinary working people and asks them to pay more. More than they have ever been asked to pay before and at the same time, to put up with worse public services. All because of his economic mismanagement, his unfair tax system and his wasteful spending.

There are of course some welcome measures in this budget today, as there are in any budget.

Labour welcomes the increase in the National Minimum Wage, though the Government needs to go further and faster. If they had backed Labour’s position of an immediate rise to at least £10 an hour then a full-time worker on the minimum wage would be in line for an extra £1,000 a year.

Ending the punitive public sector pay freeze is welcome, but we know how much this Chancellor likes his smoke and mirrors. So, we’ll be checking the books to make sure the money is there for a real terms pay rise.

Labour also welcomes the Government’s decision to reduce the Universal Credit taper rate, as we have consistently called for. But the system has got so far out of whack that even after this reduction, working people on universal credit still face a higher marginal tax rate than the Prime Minister. And those unable to work – through no fault of their own – still face losing over £1000 a year. And for families who go out to work everyday but don’t get government benefits, on an average wage, who have to fill up their car with petrol to get to work, who do that weekly shop and who see their gas and electricity prices go up – this budget today does absolutely nothing for them.

We have a cost-of-living crisis.

The Government has no coherent plan to help families to cope with rising energy prices. Whilst we welcome the action taken today on Universal Credit, millions will struggle to pay the bills this winter.

The Government has done nothing to help people with their gas and electricity bills with that cut in VAT receipts as Labour has called for. A cut that is possible because we are outside the European Union and can be funded by the extra VAT receipts that have been experienced in the last few months.

Working people are left out in the cold while the Government hammers them with tax rises.

National Insurance is a regressive tax on working people, it is a tax on jobs.

Under the Chancellor’s plans, a landlord renting out dozens of properties won’t pay a penny more. But their tenants, in work, will face tax rises of hundreds of pounds a year. And he is failing to tackle another huge issue of the day. Adapting to climate change.

Adapting to climate change presents opportunities – more Jobs, lower bills and cleaner air. But only if we act now and at scale. According to the OBR, failure to act will mean public sector debt explodes later, to nearly 300% of GDP.

The only way to be a prudent and responsible Chancellor is to be a Green Chancellor. To invest in the transition to a zero-carbon economy and give British businesses a head-start in the industries of the future.

But with no mention of climate in his conference speech and the most passing  of references today, we are burdened with a Chancellor unwilling to meet the challenges we face.

Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are in a global race without the support they need and the Chancellor is promoting domestic flights over high speed rail int he week before COP26.

It is because of this Chancellor that in the very week we try and persuade other countries to reduce emissions, this Government can’t even confirm it will meet its 2035 climate reduction target.

Madame Deputy Speaker, everywhere working people look at the moment they see prices going up and shortages on the shelves. But this Budget did nothing to address their fears.

Household budgets are being stretched thinner than ever but this Budget did nothing to deal with the spiralling cost of living. It is a shocking missed opportunity by a government that is completely out of touch.

There is an alternative.  Labour would scrap the business rates and replace it with something much better by ensuring online giants pay their fair share. That’s what being pro-business looks like.

We wouldn’t put up National Insurance for working people, we would ensure those with the broadest shoulders pay their share. That’s what being on the side of working people looks like.

We’d end the £1.7 billion subsidy the Government gives private schools and put it straight into local state schools. That’s what being on the side of working families looks like.

We’d deliver a climate investment pledge – £28bn every year for the rest of the decade. That’s Giga-factories to build batteries for electric vehicles, a thriving hydrogen industry and retrofitting, so we keep homes warm and get energy bills down. That’s what real action on climate change looks like.

This country deserves better but they’ll never get it under this Chancellor who gives with one hand but takes so much more with the other.

The truth is this – what you get with these two is a classic con game. It’s like one of those pickpocketing operations you see in crowded places. The Prime Minister is the front man – distracting people with his wild promises. All the while, his Chancellor dips his hand in their pocket. It all seems like fun and games until you walk away and realise your purse has been lifted.

But people are getting wise to them. Every month they feel the pinch. They are tired of the smoke and mirrors, of the bluster, of the false dawns, of the promises of jam tomorrow.

Labour would put working people first. We’d use the power of government and the skill of business to ensure that the next generation of quality jobs are created right here, in Britain.

We’d tax fairly, spend wisely and after a decade of faltering growth, we’d get Britain’s economy firing on all cylinders.

That is what a Labour budget would have done today.

Edinburgh Pentlands SNP MSP Gordon MacDonald said that the Tory UK Government’s budget makes it clear that “independence is the only way to give Edinburgh a fair recovery from the pandemic.”

Gordon MacDonald said that the budget, described by the head of the Institute for Fiscal Studies as “actually awful” for living standards, is failing the people of Scotland by failing to tackle the cost of living crisis, the Brexit crisis and the climate crisis whilst the Tory Government prioritise cuts to the cost of champagne and giving tax breaks to bankers.

The Edinburgh Pentlands MSP said: “What the Tory UK Government has outlined today does not meet the ambition needed to build a fair and sustainable recovery and to tackle the cost of living crisis.

“It’s painfully clear that there will be no fair recovery from the pandemic under Westminster control.

“This Tory budget fails Scotland as a whole and doesn’t go anywhere near supporting people in Edinburgh, who are being hit by an energy crisis, a Brexit crisis, labour shortages and an inflation crisis under Westminster control.

“The UK Government budget is leaving families in Edinburgh hundreds of pounds worse off next year due to Tory cuts, tax hikes and the soaring cost of Brexit.

It’s little wonder that, in May’s election, the people of Scotland voted overwhelmingly for a different future when they gave the SNP the highest share of the vote since the dawn of devolution and a clear mandate for an independence referendum – Independence is the only way to keep Scotland safe from Tory cuts.”

Commenting on today’s budget and spending review (Wednesday), TUC General Secretary Frances O’Grady said: “The chancellor has gone from pay freeze to pay squeeze.

“The chancellor admitted that we will have zero pay growth across the economy next year. And he has no plan to get real wages rising for everyone after an eleven year pay squeeze, with average real pay growth over the next four years predicted to be just 0.3 per cent.

“Millions of key workers who saw us through the pandemic will still be worse off than they were in 2010. That puts vital services under pressure as even more staff leave, and it risks the recovery.  

“He should have announced fair pay deals for whole industries, negotiated with unions, designed to get pay and productivity rising in every sector.

“Families face a triple whammy of a £1,000 universal credit cut, tax hikes and fast-rising energy and food bills. All the while wages across the economy stand still.”

On the universal credit taper cut, she added:

“Workers on universal credit should always have been able to keep more of their wages. This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”

Centre for Cities’ Chief Executive Andrew Carter said: “Raising the National Living Wage is a quick win for the levelling up agenda and will have the biggest impact in the places that are crucial to the Prime Minister winning the next election. Four of the five places where the most people will benefit are in the North.

“While a pay increase is good news for people struggling with the cost of living crisis, it does not address the reasons why they live on low pay in the first place: a lack of well-paid jobs in their local area.

“We’ve seen today the beginnings of a plan focused on skills, innovation and infrastructure to address this, but turning it from rhetoric to reality will depend on ministers’ willingness to work with metro mayors and councils on delivering it.

“I am now looking to the delayed Levelling Up White Paper to set out how this will happen.”

Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said: “This is a tale of two Budgets for families on low incomes. 

“For those in work, the change to the taper rate and work allowance, alongside the National Living Wage increase, are very positive steps, allowing low-paid workers to keep more of what they earn. Together these measures improve our social security system for working families and demonstrate a serious intent to turn the tide on the pre-pandemic trend of rising in-work poverty.  

“But the reality is that millions of people who are unable to work or looking for work will not benefit from these changes. The Chancellor’s decision to ignore them today as the cost of living rises risks deepening poverty among this group, who now have the lowest main rate of out-of-work support in real terms since around 1990. 

“Among the people in our society who cannot work are cancer patients, people with disabilities and those caring for young children or elderly parents. 

“Their energy bills and weekly shop are going up like everyone else’s and they face immediate hardship, hunger and debt in the months ahead. The Chancellor had an opportunity to support families on the lowest incomes to weather the storm ahead, and he did not take it.” 

New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced today.

Weekly incomes and Costs for 2022/23Family 1: single adult, no children, not workingFamily 2: single parent, with one young child (assume age 5), part-time 16 hours per weekFamily 3: couple with two young children (assume 7 and 5). One FT workerFamily 4: single parent, with one young child (assume age 5), full-time 35 hours per weekFamily 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements£77£278£433£333£489
Weekly gain from taper rate and work allowance£0£8£19£19£31
      
Total loss from higher cost of living due to…-£13-£16-£23-£18-£24
1) increase in energy prices-£7-£7-£7-£7-£7
2) overall cost of living increase-£6-£8-£13-£8-£13
3) increase in National Insurance and impact of inflation on earnings£0-£1-£3-£3-£4
      
Overall weekly gain or loss after measures and cost of living-£13-£8-£4£1£7

Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.

Peter Kelly,Director of the Poverty Alliance, said: “It is a shameful, unjust decision that makes the Chancellor’s rhetoric about ‘levelling up’ seem as empty as the pockets of the hundreds of thousands of people swept into poverty as a result.”

Dragged Down By Debt

JRF Study reveals scale of debt crisis among low-income households

  • Number of low-income households in arrears has tripled since pandemic hit 
  • 4 in 10 working-age low-income households fell behind on bills during pandemic 
  • Millions are behind on rent and bills and have had to take on new borrowing 
  • JRF calls for urgent action to support low-income families through cost-of-living crisis and prevent worsening wealth inequality 

A large-scale study of households on low incomes has revealed the extent of the debt crisis hanging over the UK’s poorest families as the country braces to weather a cost-of-living crisis. 

The analysis by the Joseph Rowntree Foundation (JRF) looks at households in the bottom 40% of incomes in the UK – those with a household income of £24,752 or less. This represents around 11.6 million households.  

It estimates that 3.8 million such households are in arrears with household bills, totaling £5.2bn. 950,000 are in rent arrears; 1.4 million are behind on council tax bills; and 1.4 million are behind on electricity and gas bills. 33% of low-income households are now in arrears, which is triple the 11% estimated by a similar study prior to the pandemic.   

Working-age households on low incomes (those aged 18-64) have been particularly hard hit: 44% are in arrears. For households aged 18-24 this rises to almost three-quarters (71%) of people being in arrears. 

The survey shows clear signs that the profound financial impact of the pandemic has dragged families who were previously just about managing into arrears on essential bills. A large majority of households who are now behind on their household bills (87%) said that they were always or often able to pay all their bills in full and on time before the pandemic hit.  

This is not surprising given people on low incomes were more likely to lose income during the pandemic due to job loss, reduced hours or being furloughed. Even before recent energy price rises began to bite, six in ten households on low incomes (62%) reported that their costs increased during the pandemic.  

The other clear trend in the survey is the increased borrowing taken on by households on low incomes. Around 4.4million such households have taken on new or increased borrowing, and their total amount of borrowing comes to an estimated £9.5bn. 69% of households with new or increased borrowing are also in arrears. 

 The study highlights groups that have been hit particularly hard. Over half of the households in the following groups have been pulled into arrears: 

  • Families with children (55%),  
  • Households in London (55%),
  • Households with a person under 45 answering the survey (56%),  
  • Black, Asian and minority ethnic households (58%) 

Many families on low incomes are still reeling from the huge £20 per week cut to Universal Credit and Working Tax Credit earlier in the month. It is worrying that the survey was conducted in September when many of the households surveyed received the uplift which has now been removed. 

Energy bills and other costs are continuing to rise, with the price of energy projected to soar further in the coming months. An increase in National Insurance contributions next April is another extra cost many working people will face.

Of the households surveyed who receive Universal Credit, 40% are not confident they will be able to pay their bills in full and on time, while 35% don’t think they will be able to avoid taking on more debt. Half (50%) of these households say they do not feel confident they can find a job or work more hours, calling into question the Government’s insistence on jobs as the only solution. 

The comparison between how poorer and wealthier households have fared during the pandemic is striking. The Bank of England found that wealthier households have tended to accumulate savings during the pandemic. 

These households were more likely to stay in work and to be able to work from home, reducing daily costs, and to save money during lockdown due to enforced saving. Homeowners also benefited from rising house prices. 

JRF is urging the Government to put in place a package of support at the Budget to ease pressure on low-income households and prevent further debt. 

As well as urging the Government to reinstate the £20 in Universal Credit, the report also recommends that the Government provide at least £500m additional grant funding via the Household Support Fund for targeted debt relief. 

It is also essential to address the systemic drivers of debt including through writing off Tax Credit debts when people move onto Universal Credit and addressing Universal Credit advance repayments that many households have no option but to take on during the five-week wait for the first payment.

This flaw in the design of the benefit has long been criticised by food banks and anti-poverty groups for causing ‘destitution by design.’ 

Katie Schmuecker, Deputy Director for Policy & Partnerships at JRF said: “There is a debt crisis hanging over millions of families on low incomes. Behind these figures are parents gripped by anxiety, wondering how they will put food on their children’s plates and pay the gas bill; young people forced to rely on friends to help cover their rent and avoid eviction.  

“While many households on higher incomes have enjoyed increased savings and rising house prices during the pandemic, people on low incomes are under serious financial pressure that shows no sign of abating. As a society, we believe in protecting one another from harm. As costs pile up and incomes have been cut, we urgently need to rethink the support in place for people at the sharp end of the cost of living crisis.  

“The Budget is about priorities. We know the Chancellor is capable of taking bold action to protect people from harm when it is required. Reinstating the £20 per week increase to Universal Credit and boosting funding for councils to tackle debt must be priorities in next week’s Budget. We must give families the firm foundations they need to flourish and take part in our economic recovery.” 

New report highlights ‘appalling’ worsening poverty rate for people in Scotland’s minority ethnic communities

A new briefing highlights shocking inequalities faced by people in minority ethnic communities in Scotland, with unequal access to secure, well-paid work, affordable housing and social security contributing to significantly higher poverty rates for this group. 

Its key findings include: 

  • Almost half of children in minority ethnic communities in Scotland are growing up in poverty (48%). This is double the rate for all children (24%) 
  • Workers from minority ethnic communities earn on average £2,300 less per year than white workers  
  • These workers are more than twice as likely (11%) to be on insecure work contracts compared to white workers (5%)  
  • 30% of minority ethnic households rent their homes privately which is generally the most expensive type of housing, compared to 13% of white households 

The analysis by the Joseph Rowntree Foundation (JRF) shows two in five people in minority ethnic communities in Scotland live in poverty, which is twice the national average.

While poverty rates for white people have remained relatively stable over the last 20 years, for people in minority ethnic communities poverty has increased. 

Shockingly, almost 1 in 2 children in minority ethnic communities grow up in poverty. In 2017 the Scottish Parliament unanimously agreed ambitious targets to reduce child poverty to under 18% by 2023/24, and to under 10% by 2030. In doing so they identified several ‘priority groups’ including minority ethnic families.

Worryingly, Scotland is not on track to meet these targets, and in this ‘priority group’ poverty levels have been steadily increasing.

The analysis paints a stark picture of the labour market for minority ethnic people in Scotland, one of comparatively low pay, high underemployment and high job insecurity compared to white people, as well as high in-work poverty. A worrying 3 in 10 minority ethnic people are in poverty despite at least one person in the family working, compared to 1 in 10 white people. 

As well as a significant pay gap of £1.26 per hour compared to white workers, workers in minority ethnic communities are also more likely to be ‘underemployed’, which is not being able to work as many hours as desired, and to be employed on insecure contracts. 

15% of minority ethnic workers were underemployed in 2019, compared to 9% of white workers. Insecure contracts such as zero hours, temporary and seasonal contracts are characterized by a lack of predictability as to when and how many hours will be worked and are a driver of in-work poverty.

These are more than twice as common among minority ethnic workers (11%) compared to white workers (5%).  

The report also highlights that minority ethnic women are significantly more likely to be economically inactive (45% compared to population average of 22%) but a lack of data prevents detailed analysis of the drivers behind this.

Existing research suggests that caring responsibilities, a lack of suitable, affordable childcare, and discrimination based on ethnicity, gender and religion all play a part. 

As well as these constraints on ability to earn, the report also finds that it costs more to be from a minority ethnic community in Scotland. You are more likely to live in unaffordable housing, and more likely to live in the private rented sector which is generally the most expensive tenure and one that has fewer rights and a higher chance of having to move compared to other tenures. 

Only 4% of people from minority ethnic communities are homeowners in Scotland, with only 1% of this group enjoying the security of owning their home outright without a mortgage.  

JRF is urging far greater urgency from the UK and Scottish Governments, along with employers and trade unions, to create a labour market that offers equal opportunities for minority ethnic workers and offers a route out of poverty.  

A key frustration in compiling the report was the lack of data available for people from minority ethnic communities in Scotland, which lags behind what is available for the white population. It creates a deeply concerning inequality in Scotland’s ability to understand the high poverty rate for this group, let alone tackle it.  

Chris Birt, Associate Director for Scotland at JRF said: “While it is wrong that any child in Scotland is growing up in poverty, it is appalling that children from minority ethnic communities are so much more likely to have their childhoods blighted by hardship than their white peers.

“The clock is ticking on our child poverty targets, and it is deeply concerning that things are actually getting worse, not better, for children in minority ethnic communities despite them being a priority group for the Scottish Government. But this is not just about meeting targets. It is about stamping out the appalling racial inequalities that are holding back children across our country. 

“Higher poverty rates for people in these groups are frightening but they are not inevitable. Our analysis suggests that minority ethnic communities face barriers at every turn, from employment to housing to social security support. The UK and Scottish governments, and employers, must work with urgency to remove these barriers.  

“If the Scottish Government wants to reduce racial inequalities in Scotland it must start collecting the appropriate data. Children in minority ethnic communities have been named a priority, but until we can accurately measure the problem, how much of a priority can they really be?” 

Boris Johnson: Getting On With the Job or More Bluff and Bluster?

BUILDING BACK BETTER: Prime Minister Boris Johnson addressed the Conservative Party Conference in Manchester yesterday. This is what he told the party faithful:

Isn’t it amazing to be here in person

the first time we have met since you defied the sceptics by winning councils and communities that Conservatives have never won in before – such as Hartlepool

in fact it’s the first time since the general election of 2019 when we finally sent the corduroyed communist cosmonaut into orbit where he belongs

and why are we back today

for a traditional Tory cheek by jowler?

It is because for months we have had one of the most open economies and societies

and on July 19 we decided to open every single

theatre and every concert hall and night club in England

and

we knew that some people would still be anxious

so we sent top government representatives to our sweatiest boites de nuit to show that anyone could dance

perfectly safely

and wasn’t he brilliant my friends?

let’s hear it for Jon Bon Govi

living proof that we, you all

represent the most jiving hip happening and generally funkapolitan party in the world

and how have we managed to open up

ahead of so many of our friends?

You know the answer, its

because of the roll-out of that

vaccine

a UK phenomenon

the magic potion invented in oxford university

and bottled in wales

distributed at incredible speed to vaccination centres everywhere

I saw the army in action in Glasgow

firing staple guns like carbines as they set up a huge vaccination centre

and in Fermanagh I saw the needles go in like a collective sewing machine

and they vaccinated so rapidly that we were able to

do those crucial groups one to four

the oldest and most vulnerable faster than any other major economy in the world

and though the disease has sadly not gone away the impact on death rates has been astonishing

and I urge you all to get your jabs because every day our vaccine defences are getting stronger and stronger

and you, all of you, and everybody watching made this roll-out possible

you each made each other safe

so perhaps we should all thank each other

go on – try a cautious fist bump

because it’s ok now

and we in turn thank the

volunteers, the public health workers, the council workers

the pharmacists

but above all our untiring unbeatable unbelievable NHS

and as a responsible conservative government we must recognise the sheer scale of their achievement

but recognise also the scale of the challenge ahead


‍The NHS

When I was lying in St Thomas’s hospital last year l looked blearily out of my window at a hole in the ground between my ICU and another much older Victorian section and amid the rubble of brick they seemed to be digging a hole for something or indeed someone – possibly me

but the NHS saved me

and our wonderful nurses pulled my chestnuts out of Tartarean pit

and the other day I went back on a visit

and I saw that the hole had been filled in

with three or four gleaming storeys

of a new paediatrics unit

and there you have the metaphor my friends for how to build back better now

we have a huge hole

in the public finances

We spent £407 bn on covid support

and our debt now stands at over two trillion pounds

and waiting lists will almost certainly go up before they come down

covid pushed out a great bow wave of cases

people did not or could not seek help

and that wave is now coming back

a tide of anxiety washing into every A and E and every GP

your hip replacement

your mother’s surgery

and this is the priority of the British people

does anyone seriously imagine that we should not now be raising the funding to sort this out

is that really the view of responsible conservatives?

I can tell you something

Margaret Thatcher would not have ignored this meteorite that has just crashed through the public finances

she would have wagged her finger and said more borrowing now is just higher interest rates and even higher taxes later

when this country was sick our NHS was the nurse

frontline health care workers

battled against a new disease

selflessly

risking their lives sacrificing their lives

and it is right that this Party that has looked after the NHS for most of its history

should be the one to rise to the challenge

48 new hospitals

50,000 more nurses

50m more GP appointments

40 new diagnostic centres

and fixing those backlogs with real change

because the pandemic not only put colossal pressure on the NHS

it was a lightning flash illumination of a problem we have failed to address for decades


Fixing Social Care

In 1948 this country created the National Health Service but kept social care local

and though that made sense in many ways generations of older people have found themselves

lost in the gap

when covid broke there were 100,000 beds in the NHS

  • and 30,000 occupied by people who could have been cared for elsewhere

whether at home or in residential care

and we all know that this problem of delayed discharge is one of the major reasons why

it takes too long to get the hospital treatment that your family desperately need

and people worry that they will be the one in ten

to suffer from the potentially catastrophic cost of dementia

wiping out everything they have

and preventing them from passing on anything to their families

and we Conservatives stand by those who have shared our values

thrift and hard work

and who face total destitution in this brutal lottery

of old age

in which treatment for cancer is funded by the state

and care for alzheimers is not – or only partly

and to fix these twin problems of the NHS and social care

we aren’t just going to siphon billions of new taxes into crucial services

without improving performance

we will

use new technology so that there is a single set of electronic records as patients pass between health and social care

improving care

and ensuring that cash goes to the frontline

and not on needless bureaucracy

When I stood on the steps of Downing Street I promised to fix this crisis

and after decades of drift and dither

this reforming government

this can do government

this government that got brexit done

that is getting the vaccine rollout done

is going to get social care done

and we are dealing with the biggest underlying issues of our economy and society

the problems that no government has had the guts to tackle before

and I mean the long term structural weaknesses

in the UK economy

It is thanks to that vaccine roll-out that we now have the most open economy and the fastest growth in the G7

we have unemployment two million lower than forecast

We have demand surging

and I am pleased to say that after years of stagnation – more than a decade – wages are going up

faster than before the pandemic began

and that matters deeply

because we are embarking now on a change of direction that has been long overdue

in the UK economy

we are not going back to the same old broken model

with low wages

low growth

low skills

and low productivity

all of it enabled and assisted by uncontrolled immigration

and the answer to the present stresses and strains

which are mainly a function of growth and economic revival

is not to reach for that same old lever of uncontrolled immigration

to keep wages low

the answer is to control immigration

to allow people of talent to come to this country

but not to use immigration as an excuse for failure to invest

in people, in skills

and in the equipment the facilities the machinery they need to do their jobs

the truckstops – to pick an example entirely at random – with basic facilities where you don’t have to urinate in the bushes

and that is the direction in which this country is going now

towards a high wage

high skill

high productivity

and yes, thereby low tax economy

that is what the people of this country need and deserve

in which everyone can take pride in their work and in the quality of their work

and yes it will take time

and yes it will sometimes be difficult

but that was the change that people voted for in 2016

and that was the change they voted for again powerfully in 2019

and to deliver that change we will get on with our job

of uniting and levelling up across the UK

the greatest project that any government can embark on

We have one of the most imbalanced societies and lop-sided economies

of all the richer countries

it is not just that there is a gap between London and the South east and the rest of the country

there are aching gaps within the regions themselves

what monkey glands are they applying in Ribble Valley

what royal jelly are they eating

that they live seven years longer than the people of Blackpool

only 33 miles away

Why does half of York’s population boast a degree and only a quarter of Doncaster’s

This is not just a question of social justice

it is an appalling waste of potential

and it is holding this country back

because there is no reason why the inhabitants of one part of the country should be geographically fated to be poorer than others

or why people should feel they have to move away from their loved ones, or communities to reach their potential

When Thomas Gray stood in that country churchyard in 1750 and wrote his famous elegy

as the curfew tolled the knell of parting day

he lamented

the wasted talents of those buried around him

the flowers born to blush unseen

the mute inglorious miltons who never wrote a poem

because they never got to read

the simple folk who died illiterate and innumerate

and he knew that it was an injustice

let me ask you, maybe you know

where was he standing when he chewed his pensive quill ? Anybody know

Correct, thank you, he was standing in Stoke poges

my friends there may be underprivileged parts of this country but stoke poges is not now among them

in fact it was only recently determined by the Daily Telegraph

and if you can’t believe that, what can you believe my friends

to be the 8th richest village in England

since gray elegised, Buckinghamshire has levelled up to be among the most productive regions in the whole of Europe

Stoke Poges may still of course have its problems

but they are the overwhelmingly caused the sheer lust of other people to live in or near Stoke Poges

overcrowded trains

endless commutes

too little time with the kids

the constant anxiety that your immemorial view of chalk downland is going to be desecrated by ugly new homes

and that is why levelling up works for the whole country

and is the right and responsible policy, because it

helps to take the pressure off parts of the overheating South East

while simultaneously

offering hope and opportunity to those areas that have felt left behind

and let us be clear that there is a huge philosophical difference between us and labour

because in their souls they don’t like levelling up

they like levelling down they do

they like decapitating the tall poppies and taxing the rich till the pips squeak

they dislike academic competition latin I hear

and in Islington – I kid you not I have seen it with my own eyes – they like kids to run races where nobody actually wins

and I have to tell you I don’t believe that is a good preparation for life

let alone for the Olympic games

and if you insist on the economic theory behind levelling up

it is contained in the insight of Wilfredo Pareto

a 19th century Italian figre who floated from the cobwebbed attic of my memories

that there are all kinds of improvements

you can make to people’s lives he said

without diminishing anyone else

Rishi will I am sure confirm this

and we call these pareto improvements

and they are the means of levelling up

and the idea in a nutshell it is that you will find talent genius flair imagination enthusiasm everywhere in this country all of them evenly distributed

but opportunity is not

and it is our mission as conservatives to promote opportunity

with every tool we have

and it is still a grim fact that in this country

that some kids will grow up in neighbourhoods that are safer than others

and some will be, as Priti was saying, some will be sucked into gangs

and some will be at risk of stabbing and shooting

and some will get themselves caught in the one way ratchet of the criminal justice system

and many others will not

that’s why levelling up means fighting crime

putting more police out on the beat as we are

and toughening sentences

and rolling up the county lines drugs networks as we are

1100 gone already

and giving the police the powers they need

to fight these dealers in death and misery that’s what we want to do

– and what is Labour’s answer, by the way –

to decriminalise hard drugs apparently

to let the gangsters off with a caution

an answer that is straight from the powder rooms of the North London dinner parties

and nothing to do with the real needs of this country

crime has been falling

and not just by the way because we took the precaution of locking up the public for much of the last 18 months

but because you have a conservative government that understands the broken windows theory of crime

I read a learned article by some lawyer saying we should not bother about pet theft

Well I say to Cruella de Vil QC – if you can steal a dog or a cat

then there is frankly no limit to your depravity

and you know those people gluing themselves to roads

I don’t call them legitimate protestors

like some Labour councillors do I, some Labour councillors actually glue themselves to roads

I say they are a confounded nuisance who are blocking ambulances, stopping people go about their daily lives

and I am glad Priti is taking new powers to insulate them snugly in prison where they belong

what I found most incredible of all was the decision by Labour

now led by lefty Islington lawyers

to vote against tougher sentences for serious sexual and violent offenders

and on behalf of the entire government I tell you

we will not rest until we have increased the successful prosecutions for rape

because too many lying bullying cowardly men are using the law’s delay

to get away with violence against women

and we cannot and we will not stand for it

and I know that there are some who now tell us that we are ungenerous and unfeeling in our attempts to control our borders

and I say – don’t give me that

This is the government that stood up to China and announced that we would provide a haven for British overseas nationals in Hong Kong

30,000 have already applied

and I am really proud to be part of a Conservative government that will welcome 20,000 Afghans

people who risked their lives to guide us and translate for us

we are doing the right and responsible thing

and speaking as the great grandson of a Turk who fled in fear of his life I know that this country is a beacon of light and hope for people around the world

provided they come here legally

provided we understand who they are and what they want to contribute

and that is why we took back control of our borders

and will pass the borders bill

because we believe there must be a distinction between someone who comes here legally and someone who doesn’t

and though I have every sympathy with people genuinely in fear of their lives

I have no sympathy whatever

with the people traffickers who take thousands of pounds

to send children to sea in frail and dangerous craft

and we must end this lethal trade

we must break the gangsters’ business model

and is it not a sublime irony that even in French politics there is now a leading centre right politician calling for a referendum on the EU

Who is now calling for France to reprendre le controle??

it’s good old Michel Barnier

that’s what happens if you spend a year trying to argue with Lord Frost

the greatest frost since the great frost of 1709

and we will fight these gangs at home and abroad

because their victims are invariably the poorest and the neediest

and I will tell you what levelling up is

a few years ago they started a school not far from the Olympic park

a new school that anyone could send their kids to

in an area that has for decades been one of the most disadvantaged in London

that school is Brampton Manor academy and it now sends more kids to Oxbridge than Eton

and if you want proof of what I mean by unleashing potential

and by levelling up

look at Brampton Manor

and we can do it

There is absolutely no reason why the kids of this country should lag behind

or why so many should be unable to read and write or do basic mathematics at the age of 11

and to level up

– on top of the extra 14 bn we’re putting into education

and on top of the increase that means every teacher starts with a salary of £30k

we are announcing a levelling up premium of up to £3000 to send the best maths and science teachers to the places that need them most

and above all we are investing in our skills, skills folks

our universities are world beating, I owe everything to my tutors and they are one of the great glories of our economy

but we all know that some of the most brilliant and imaginative and creative people in Britain

and some of the best paid people in Britain

did not go to university

and to level up you need to give people the options

the skills

that are right for them

and to make the most of those skills and knowledge

and to level up you need urgently to

plug all the other the gaps in our infrastructure that are still holding people and communities back

As I’ve been saying over this wonderful conference to you

when I became leader of this party, there were only, can you remember, what percentage of households had gigabit broadband when you were so kind as to make me leader? 7 percent, only 7 percent

and by the new year that will be up to 68 per cent

thanks to Rishi’s superdeduction the pace is now accelerating massively

as companies thrust the fibre-optic vermicelli in the most hard to reach places

it’s wonderful, for years SNP leader Ian Blackford has been telling the Commons that he is nothing but a humble crofter on the isle of Skye

well now we have fibre optic broadband of very high quality that we can inspect the library or is it perhaps the billiard room of Ian Blackford’s croft

and that is levelling up in action

and my friends it is not good enough just to rely on zoom

after decades of ducked decisions

our national infrastructure is way behind some of our key competitors

It is a disgrace that you still can’t swiftly cross the pennines by rail

a disgrace that leeds is the largest city in Europe with no proper metro system

a waste of human potential that so many places are not served by decent bus routes

transport is one of the supreme leveller-uppers

and we are making the big generational changes shirked by previous governments

we will do Northern Powerhouse rail

we will link up the cities of the midlands and the north

we will restore those sinews of the union that have been allowed to atrophy

the A1 north of Berwick and on into Scotland

the A 75 in Scotland that is so vital for the links with northern Ireland and the rest of the country

the north wales corridor

and we will invest in our roads

unblocking those coagulated roundabouts and steering-wheel-bending traffic lights

putting on 4000 more clean green buses

made in this country

some of them running on hydrogen

and as we come out of covid

our towns and cities are again going to be buzzing with life

because

we know

that a productive workforce

needs that spur

that only comes with face to face meetings

and water cooler gossip

if young people are to learn on the job in the way that they always have and must

we will and must see people back in the office

and that is why we are building back better with a once in an a century £640bn pound programme

of investment

and by making neighbourhoods safer

by putting in the gigabit broadband

by putting in the roads and the schools and the healthcare

we will enable more and more young people everywhere

to share the dream of home ownership

the great ambition of the human race

that the left always privately share but publicly disparage

and we can do it

Look at this country from the air
Go on google maps

you see how our landscape has been plotted and pieced and jigsawed together by centuries of bequests and litigation

a vast testament to security of title

trust in the law

a confidence that is responsible for so much international investment

you see how rich this country is growing

the billions of loving and incremental improvements to homes and gardens

you can see how beautiful it is

vast untouched moorland

and hills

broadleaf forests

we are going to re-wild parts of the country and consecrate a total of 30 per cent to nature

we are planting tens of millions of trees

otters are returning to rivers from which they have been absent for decades

beavers that have not been seen on some rivers since tudor times

massacred for their pelts

are now back

and if that isn’t conservatism, my friends I don’t know what is

build back beaver

‍and though the beavers may sometimes build without local authority permission

you can also see how much room there is

to build the homes that young families need in this country

not on green fields

not just jammed in the south east

but beautiful homes on brownfield sites

in places where homes make sense
Home ownership
And this government is helping young people to afford a home

It has been a scandal – a rebuke to all we stand for

that over the last 20 years the dream of home ownership

has receded

and yet under this government we are turning the tide

we have not only built more homes than at any time in the last 30 years

we are helping young people on to the property ladder

with our 95 per cent mortgages

and there is no happiness like taking a set of keys

and knowing that the place is yours

and you can paint the front door any colour you like

as it happens I am not allowed to paint my own front door, it has to be black

but I certainly don’t have far to go to work

and if you don’t have too far to go to work

and the commute is not too dreadful

and if

the job suits your skills

and your wifi is fast and reliable

then I tell you something else

that housing

in the right place

at an affordable price

will add massively not just to your general joie de vivre

but to your productivity

and that is how we solve the national productivity puzzle

by fixing the broken housing market

by plugging in the gigabit

by putting in decent safe bus routes and all other transport infrastructure

and by investing in skills skills skills

and that by the way is how we help to cut the cost of living for everyone

because housing, energy, transport

are now huge parts of our monthly bills

and it is by fixing our broken housing market

by sorting out our energy supply – more wind, more nuclear, becoming less dependent on hydrocarbons from abroad

by putting in those transport links

we will hold costs down and save you money

and we will make this country an even more attractive destination for foreign direct investment

We are already the number one

– look at the Nissan investment in Sunderland

or the Pfizer vaccine manufacturing centre that’s coming to Swindon

and with these productivity gains we will turbo charge that advantage

and help businesses to start and grow everywhere

so let me come now to the punchline of my sermon on the vaccine

It was not the government that made the wonder drug

it wasn’t brewed in the alembicks of the department of health

It was, of course it was Oxford University, but it was the private sector that made it possible

behind those vaccines are

companies and shareholders and, yes,

bankers

you need deep pools of liquidity that are to be found in the City of London

it was capitalism that ensured that we had a vaccine in less than a year

and the answer therefore is not to attack the wealth creators

it is to encourage them because they are responsible for the aggregate increase in the country’s wealth

that enables us to make those pareto improvements

and to level up everywhere

and to rub home my point

it is not just that vaccination has saved more than 120,000 lives

Vaccination has allowed us to meet like this

and blessed us with such rapid growth

with wages rising fastest for those on lowest incomes

and that levelling up in action

The vaccines have ensured that by a simple vowel mutation jabs jabs jabs

become jobs jobs jobs

the world’s most effective vaccines have saved our open society and free market economy

and it is our open society and free market economy that have produced the world’s most effective vaccines

and that is the symmetry in the lesson of the covid vaccines

– science, innovation, capitalism –

is vital now for the challenge we face

the challenge the whole humanity faces

is even more existential for our way of life

in just a few weeks time this country will host the summit of our generation in Glasgow

when the resolve of the world is put to the test

can we keep alive the ambition of Paris – to stop the planet heating by more than 1.5 degrees

government can’t do it alone

and taxpayers certainly can’t do it alone

the other day I took a boat out into the moray firth

to see an aquatic forest of white turbines towering over the water like the redwoods of california

and you have no idea of their size until you see them up close

the deceptive speed of their wings

twice the diameter of the London eye

their tips slicing the air at more than 100 miles per hour

and I met the young men and women

apprentices

who had moved straight across from the world of oil and gas

and they had the same excitement at working amid winds and wave

and being able to see whales and dolphins from the office window

but they had the extra satisfaction that goes with knowing you are doing something to save the planet

and get Britain to Net Zero by 2050

and that is the symmetry represented by these giant windmills

massive and innovative private sector investment

and a government taking the tough decisions to make it possible

that’s the difference between this radical and optimistic Conservatism

and a tired old Labour

did you see them last week, did you watch them last week in Brighton

hopelessly divided I thought they looked

their leader like a seriously rattled bus conductor

pushed this way and that by, not that they have bus conductors any more unfortunately, like a seriously rattled bus conductor pushed this way and that by a corbynista mob of sellotape-spectacled sans-culottes

or the skipper of a cruise liner that has been captured by Somali pirates

desperately trying to negotiate a change of course

and then changing his mind

and remember Labour’s performance during the pandemic

flapping with all the conviction of a damp tea towel

They refused to say that schools were safe

they would have kept us in the European medicines agency

and slammed the brakes on the vaccine roll out

the Labour leader attacked the vaccine task force for spending money on outreach to vaccine hesitant minority groups

when it is hard to think of any better use of public money

and let us try to forgive him on the basis that he probably didn’t know what he was talking about

in previous national crises labour leaders have opted to minimise public anxiety and confusion by not trying to score cheap party political points

one thinks of Attlee or even Michael foot in the falklands crisis

sadly that was not the approach taken by captain hindsight

attacking one week

then rowing in behind when it seemed to be working

the human weathervane

the starmer chameleon

and in his final act of absurd opportunism he decided to oppose step four of the roadmap in July

that’s right folks

if we had listened to captain hindsight we would still be in lockdown we wouldn’t have the fastest growth in the G7

if Columbus had listened to captain hindsight he’d be famous for having discovered Tenerife

and how utterly astonishing that in the last few weeks labour should actually have voted against new funding we’re putting frward for the NHS

and we need to remember why and how we have been able to back people through this pandemic at all

it was because we Conservatives fixed the economy

we repaired the damage Labour left behind

every labour government has left office with unemployment higher than when it came in

every single one – ever since the party was invented

and today we are going to fix this economy and build back better than ever before

and just as we used our new freedoms to accelerate the vaccine rollout

we are going to use our brexit freedoms to

to do things differently

we are doing the borders bill

we have seen off the European superleague and protected grassroots football

we are doing at least eight freeports

superfertilised loam in which

business will plant new jobs across the UK

and now we are going further

not only jettisoning the EU rules we don’t need any more

but using new freedoms to

improve the way we regulate in the great growth areas of the 21st century

as we fulfil our ambition of becoming a science superpower

gene editing

data management

AI

Cyber quantum
we are going to be ever more global in our outlook

we have done 68 free trade deals including that great free trade deal with our friends in the EU that they all said was impossible

and after decades of bewildering refusal we have persuaded the Americans to import prime British beef

a market already worth £66 m

build back burger I say

‍and you ask yourself how have the americans been able to survive without British beef for so long?

and if you want a supreme example of global Britain in action

of something daring and brilliant that would simply not have happened if we had remained in the EU

I give you AUKUS – an idea so transparently right that Labour conference voted overwhelmingly against it

and I know that there has been a certain raucus squaukus from the anti-aukus caucus

But Aukus is simply a recognition of the reality that

the world is tilting on its economic axis

and our trade and relations with the Indo pacfific region are becoming ever more vital than ever before

and that is why we have

sent the amazing carrier strike group

to the far east

been performing manoeuvres with 40 friendly countries

HMS Queen Elizabeth

as long as the entire palace of Westminster

and rather more compelling as an argument

than many speeches made in the house of commons

it has dozens of F35s on board

and 66 thousand sausages aboard

not because want to threaten or be adversarial to anyone

either with the F35s or indeed the sausages

but because we want to stick up for the rule of law that is so vital for freedom of navigation and free trade

and that is what brings AUKUS together

Australia, UK, US

shared values

a shared belief in democracy and human rights

‍and a shared belief in the equal dignity and worth of every human being

very few countries could have pulled off the Kabul airlift – an astonishing feat by our brave armed forces

even fewer have the same moral priorities

No other government brokered a deal such as this government did with Astra Zeneca

so that the Oxford vaccine has been distributed at cost around the world

more than a billion low cost vaccines

invented in Britain

saving millions of lives

we are led by our values

by the things we stand for

and we should never forget that people around the world admire this country for its history and its traditions

they love the groovy new architecture and the fashion and the music and the chance of meeting Michael in the disco

but they like the way it emerges organically from a vast inherited conglomerate of culture and tradition

and we conservatives understand the need for both and

how each nourishes the other

and we attack and deny our history at our peril

and when they began to attack Churchill as a racist I was minded to ignore them

it is only 20 years ago since BBC audiences overwhelmingly voted him the greatest Briton of all time

because he helped defeat a regime after all that was defined by one of the most vicious racisms

the world has ever seen

but as time has gone by it has become clear to me that

this isn’t just a joke

they really do want to re-write our national story

starting with hereward the woke

we really are at risk of a kind of know nothing cancel culture know nothing iconoclasm

and so we Conservatives will defend our history and cultural inheritance

not because we are proud of everything

but because trying to edit it now is as dishonest as a celebrity trying furtively to change his entry in Wikipedia

and its a betrayal of our children’s education

churchill’s last words to his cabinet, actually his whole ministers but his cabinet were there

were

Never be separated from the americans

pretty good advice I’m sure you’ll agree –

‍–

and ended with the observation

man is spirit

He was right there.

I believe that through history and accident this country has a unique spirit

the spirit of the NHS nurses AND the entrepreneurs

whose innovative flair means that there are three countries in the world that have produced more than 100 unicorns not a mythical beast

tech companies worth more than a billion dollars each

They are the US and China and the UK and those unicorns they are now dispersed around the United Kingdom in a way that is new to our country, that is the spirit of levelling up

and we need the spirit of the NHS nurses and the entrepreneurs because each enables the other

I mean

the spirit of the footballers who took England into the final of a major knock out tournament for the first time in the lives of the vast majority of the people of this country

probably, looking around at all you young thrusters, the majority of you in this room

the indomitable spirit of Emma Raducanu

her grace and her mental resilience when the game was going against her

because that is what counts

the spirit of our Olympians

it is an incredible thing to come yet again in the top four

a formidable effort for a country that has only 0.8 per cent of the world’s population

in spite of the best efforts of some us jacob

but when we come second in the Paralympics as well –

that shows our values

not only the achievement of those elite athletes

but a country that is proud to be a trailblazer

to judge people not by where they come from

but by their spirit

and by what is inside them

That is the spirit that is the same across this country

in every town and village and city that can be found

that can be found in the hearts and minds of kids growing up everywhere

and that is the spirit we are going to unleash.

While the conference hall lapped it up, others were less generous:

The SNP said: 🤦 Boris Johnson’s shameless attempt to shift the blame will do nothing to fix the crisis he has caused.

⚠️ Tory Universal Credit cuts and regressive tax hikes will push families into poverty.

🚨 Yet, just like Thatcher, the Prime Minister fails to show an ounce of regret.

Commenting on the Prime Minister’s speech at Conservative Party conference, in which he claimed previous goverments ‘haven’t had the guts’ to tackle big issues in our economy and society, Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said: “The Prime Minister has not had the guts to look the millions of people whose incomes are being cut today in the eye and tell them how they are expected to get through the year ahead.  

“The Prime Minister’s attempt to strike an upbeat tone is completely at odds with the despair people are feeling and the cost-of-living crisis we are now facing. He has chosen to cut £20 a week from the incomes of millions including many who are in work as well as those who cannot work due to sickness, disability or caring responsibilities. 

“Promises of a ‘high wage, high skill economy’ that will take years to reach will offer no comfort to families whose incomes have been cut, and the Government knows this.  

“It is a sign of profound disrespect that he did not even acknowledge the struggle people across the country on low incomes are facing on the very day that the biggest ever cut to social security comes into force.” 

Anneliese Dodds MP, Labour’s Party Chair, responding to the Prime Minister’s speech at the Conservative Party conference, said: “Boris Johnson’s vacuous speech summed up this whole Conservative conference. The PM talked more about beavers than he did about action to tackle the multiple crises facing working people up and down the country.

“Far from getting a grip on the spiralling costs of energy, fuel and food, the Tories are actively making things worse – cutting incomes today for six million families by over £1,000 a year.

“Britain deserves a fairer, greener and more secure future. Last week Labour set out how we can get there. This week it’s clear that after over a decade in power the Conservatives don’t have a clue.”

Responding to Boris Johnson’s speech to the Conservative Party Conference, TUC General Secretary Frances O’Grady said: “If Boris Johnson was serious about levelling up Britain, he wouldn’t be slashing universal credit in the middle of a cost-of-living crisis.  

“The PM is in no position to lecture people on wages when he is holding down the pay of millions of key workers in the public sector.  

“And when he is doing nothing to fix the gaping hole in local authority budgets that has resulted in most social care workers being paid less than the real living wage. 

“As the country’s biggest employer, the government should be setting an example on paying staff properly – not skimping on wages. 

“My advice to the PM is simple. The best way to level up pay and conditions across the country is to give workers and their unions more bargaining power at work. 

“11 years into a Conservative government we hope that he can finally learn this lesson.” 

Commenting on the PM’s claims that wages are rising, Frances added: “Wages are barely rising above inflation, and millions of key workers – who got us through this crisis – are facing a real-terms pay cut this autumn.” 

Biggest ever overnight cut to social security “makes a mockery of levelling up”

This morning, around 5.5 million families across the United Kingdom are waking up £1,040-a-year worse off due to the Prime Minister imposing the biggest ever overnight cut to social security.

Despite fierce opposition from across the political spectrum, his government has pressed ahead with this controversial cut which will cause immense, immediate and avoidable hardship.

As the cut comes into effect today, the Prime Minister must face the five most serious consequences of his cut:

  1. Half a million more people pulled into poverty, including 200,000 children.
  2. Makes social security wholly inadequate by reducing the main rate of out-of-work support to its lowest level in real terms since around 1990 and its lowest ever level as a proportion of average earnings.
  3. Around 20% of all working-age families across the UK have lost £1,040 a year. 6 in 10 single parent families will be affected by this cut.
  4. 1.7 million people who will experience this cut to Universal Credit are unable to work – due to caring for others, disability, or illness – a promise of higher wages will do nothing to help them.
  5. The cut takes £6 billion of spending power out of local economies. The cut has the most severe impact in Yorkshire and the Humber, the North East, North West and West Midlands, although no region will be left unscathed.

Helen Barnard, Deputy Director of the Joseph Rowntree Foundation, said: “Today the Prime Minister has imposed the biggest ever overnight cut to social security. It makes a mockery of his mission to level up.

“Despite overwhelming opposition, he is ploughing ahead with a cut which fundamentally undermines the adequacy of our vital social security system as we face a cost-of-living crisis. This is not building back better, it’s repeating the same mistakes made after the last financial crisis.

“The Government says a key test of levelling up is improving living standards, yet they have just made around 5.5 million low-income families £1,040 a year worse off. People’s bills won’t get £87-a-month cheaper from today, in fact they are going up.  Ministers’ arguments in recent days beg the question: has the party that created Universal Credit forgotten the purpose of the system?

“The Prime Minister is abandoning millions to hunger and hardship with his eyes wide open. Low-income families urgently need him to reinstate this vital lifeline.”

Participants in the Covid Realities project responding to the Prime Minister’s comments on the eve of the cut:

“My husband has been in his job for 25 years +, he hasn’t received a pay rise in 5 years and has recently been told there’s no way he will get one anytime soon.

So I’m sorry but there’s no fix there for us. Once again the only option is to struggle and I’m tired of it.” – Emma, England, Covid Realities

“He has no idea how tough it is and how hard people are working to make ends meet!

It is sickness inducing that he completely misses the point that families will either be cold or hungry due to this cut.” – Kim, Wales, Covid Realities

“Fuel and food is on the increase and … families on a low income cannot afford to absorb these costs.

“It is short-sighted to not think of the long term costs involved when already impoverished working families cannot sustain themselves.” – Aurora, England, Covid Realities

“So our prime minister has said he knows it is tough for people on low incomes, does he honestly? … How as parents can we support our children when we are going without food, hungry and unable to concentrate and even sleep at night with worry and stress, do you really understand?

 … I would invite any MP to come and actually experience the day to day drain of living on low income and the impact that has on our mental and physical wellbeing.” – Caroline, Northern Ireland, Covid Realities 

Political consequences:

  • 413 parliamentary constituencies across Great Britain will see over a third of working-age families with children hit by the planned £1,040-a-year cut to Universal Credit and Working Tax Credit.
    • Of these 413 constituencies, 191 are Conservative – 53 of which were newly won at the last general election or in a subsequent by-election.
  • In 35 local authorities across Great Britain, 50% or more of working-age families with children will be impacted by the planned cut.

“THE NASTY PARTY IS WELL AND TRULY BACK”

Edinburgh Pentlands SNP MSP Gordon MacDonald has condemned the £20 a week cut to Universal Credit, which comes into force today. The First Minister of Scotland, the First Minister of Wales and the First Minister of Northern Ireland have also condemned the measure.

The previous week, the Scottish Parliament voted overwhelming to support cancelling the Tory UK Government’s planned £20 a week cut to Universal Credit.

Gordon MacDonald also raised the matter with the Cabinet Secretary for Social Justice, Housing and Local Government, Shona Robison seeking information on what representations the Scottish Government has made to the UK Government.

Ms Robison confirmed that the Scottish Government had written to the UK Government on eight separate occasions since March 2020 to ask it to retain the much-needed £20 uplift. In addition on 30 August, Ms Robison joined colleagues from Wales and Northern Ireland to write to the UK Government to urge it to retain the uplift. They are yet to receive a response.

SNP MSP Gordon Macdonald for Edinburgh Pentlands said: “The Scottish Parliament overwhelmingly spoke and demanded the Tory UK Government halts their plans to scrap the uplift to Universal Credit.

“Sadly, we also witnessed every single Tory MSP failing to stand up to their Westminster bosses in opposing the £20 a week cut – the biggest welfare cut since the 1930s at the worst possible time.  Even former Scottish Tory leader, Ruth Davidson and six former Tory DWP Secretary of States, opposed the cut.

“I am standing up for the 32,022 households impacted across Edinburgh, but the Tory Government at Westminster has now implemented their plans that will rip more than £1,000 a year out of the hands of the most vulnerable at a time when they need it most.

I am quite frankly shocked, but not surprised, that the Scottish Tory MSPs not only voted to back the Universal Credit cut which will condemn thousands of families to poverty, but actively defended it – the Nasty Party is well and truly back.

“History will remember them for this – Scottish Tory MSPs are letting down thousands of families and children with this callous cut in favour of propping up their Tory chums in the UK Government who are imposing these policies on the people of Scotland.

“This demonstrates once again how the people of Scotland cannot afford to continue to suffer under Westminster control. We need to have the option of choosing a different path in a referendum which can give us the full powers of independence where we can build a fairer Scotland.”

JRF: The Chancellor may say he has a plan for jobs – but he has no plan for paying the bills

Chancellor of the Exchequer Rishi Sunak made the keynote speech at the Conservative Party conference in Manchester yesterday. On the week the Tories will cut the £20 Universal Credit lifeline, the Chancellor told the conference:

Whatever it takes.

That phrase, and those press conferences, were my introduction to so many of you as Chancellor.

It was daunting to face such a challenge in my first days in office. And what it also meant is that more than a year has gone by before I had the chance to meet you all properly. And that is why these last few days have been such a joy. Meeting you all face to face and hearing so many of you say to me “Wow, you’re even shorter in real life!”

Nothing can ever prepare you to become Chancellor, especially in recent times. There have been occasions where it really did feel that the world was collapsing. In those moments, there are certain things I fell back on. Yes, my family. Yes, my colleagues. Yes, my tremendous Treasury team.

And yes, the person who made all this possible, the person who delivered a thumping Conservative majority, my friend, our leader, the country’s Prime Minister, Boris Johnson.

But the other thing I fell back on is something we all have in this room. Our values. Our Conservative values.

I believe in some straightforward things.

I believe that mindless ideology is dangerous. I’m a pragmatist. I care about what works, not about the purity of any dogma. I believe in fiscal responsibility. Just borrowing more money and stacking up bills for future generations to pay, is not just economically irresponsible. It’s immoral.

Because it’s not the state’s money. It’s your money.

I believe that the only sustainable route out of poverty comes from having a good job. It’s not just the pounds it puts in your pockets. It’s the sense of worth and self-confidence it gives you. So I will do whatever I can to protect people’s livelihoods, and create new opportunities too.

And when it comes to those new opportunities, I am very much a child of my time. I spent the formative years of my career working around technology companies in California. And I believe the world is at the beginning of a new age of technological progress which can transform jobs, wealth, and transformed lives.

So: pragmatism. Fiscal responsibility. A belief in work. And an unshakeable optimism about the future. This is who I am. This is what I stand for. This is what it will take. And we will do whatever it takes.

Our Plan is Working

And there can be no prosperous future unless it is built on the foundation of strong public finances.

And I have to be blunt with you. Our recovery comes with a cost.

Our national debt is almost 100% of GDP – so we need to fix our public finances. Because strong public finances don’t happen by accident. They are a deliberate choice. They are a legacy for future generations. And a safeguard against future threats.

I’m grateful, and we should all be grateful to my predecessors and their 10 years of sound Conservative management of our economy. They believed in fiscal responsibility. I believe in fiscal responsibility. And everyone in this hall does too.

And whilst I know tax rises are unpopular. Some will even say un-Conservative. I’ll tell you what IS un-Conservative.

Unfunded pledges.

Reckless borrowing.

And soaring debt.

Anyone who tells you that you can borrow more today, and tomorrow will simply sort itself out just doesn’t care about the future.

Yes, I want tax cuts. But in order to do that, our public finances must be put back on a sustainable footing.

Labour’s track record on the public finances speaks for itself.

Since 2010, we’ve had 5 Labour Leaders, 7 Shadow Chancellors and innumerable spending pledges. And in all that time they still haven’t got the message. The British people won’t trust a Party that isn’t serious with their money. That’s why they vote Conservative.

We must never forget that the fundamental economic differences between us and Labour run very deep.

Differences not just about debt and borrowing but about how to deal with the real pressures people face in their lives.

And right now, we are facing challenges to supply chains not just here but right around the world and we are determined to tackle them head on.

But tackling the cost of living isn’t just a political sound bite. It’s one of the central missions of this Conservative government.

Picture this: you’re a young family. You work hard, saving a bit each month. But it’s tough.

You have ambitions for your careers for your children.

You want to give them the best more than you had.

Now you tell me: Is the answer to their hopes and dreams, just to increase their benefits?

Is the answer to tell that young family the economic system is rigged against you, and the only way you stand a chance is to lean ever more on the state?

Be in no doubt, that is the essence of the Labour answer.

Not only does Labour’s approach not work in practice. It is a desperately sad vision for our future.

But there is an alternative. An approach focused on good work, better skills, and higher wages.

An approach that says: ‘Yes, we believe in you. We will help you. And you will succeed.”

And better still, it’s more than words. It’s a plan in action. A Conservative plan and Conference it is working.

We’re giving people the means and opportunities to help themselves

Governments rarely get to set the tests by which they will ultimately be judged.  

And our test is jobs.

Remember, as economies around the world pulled the shutters down, forecasters were predicting unemployment to reach 12%. Millions of people were on the precipice of losing their jobs, their livelihoods, and their homes.

Well, the forecasts were wrong.

The unemployment rate is at less than 5% and falling. That’s lower than France, America, Canada, Italy, and Spain.

And we now have one of the fastest recoveries of any major economy in the world.

Now it wasn’t that the forecasters had bad models No. It’s just their models did not take account of one thing – and that was this Conservative Government. Our will to act and our plan to deliver.

An increased national living wage. The restart programme. Sector based work academies. Doubling work coaches. Job finding support. Traineeships. Apprenticeship incentives. Skills Bootcamps.  And the Prime Minister’s Lifetime Skills Guarantee.  

All things we are doing that won’t just help people but will give them the means and opportunities to help themselves. ‍

Our plan for the future

I believe in good work, better skills, and higher wages.

I believe that every person in this country has the potential to become something greater.

And I know that we, and only we, the Conservative party, are the ones who can make that happen.

And our economy cannot be what we need it to be without the courage, creativity and sheer force of will that each new generation brings.

Yet, at its peak just under 1 in 3 workers under 25 were on furlough. One in three.

That’s one million people who didn’t have the fall back of a career history or a network of contacts, and in many cases hadn’t even moved into their first job.

And so what did we do? We created the Kickstart scheme, up running and working in a matter of months. A landmark programme that is helping young people start exciting new careers.

And thanks to our plan, young people, just like John Chihoro who introduced me today, are starting those new jobs in their thousands.

So to give more young people the same chance as John, I can confirm we are expanding our successful Plan for Jobs into next year.

The Kickstart scheme extra support through the Youth Offer, the Job Entry Targeted Support scheme, and our Apprenticeship Incentives. All extended because we believe in the awesome power of opportunity.

And we are going to make sure that no young person in our country is left without it.

But what we do today means little if we don’t also have a plan for tomorrow.

A plan for the future.

A future economy shaped by the forces of science, technology, and imagination.

The years I spent in California left a lasting mark on me, working with some of the most innovative and exciting people in finance and technology. Watching ideas becoming a reality. Seeing entrepreneurs build new teams.

It’s not just about money.

I saw a culture, a mindset which was unafraid to challenge itself, reward hard work, and was open to all those with the talent to achieve.

The future is here

I look across the United Kingdom and that culture is here too in the young people I’ve already spoken about today, unencumbered by timidity and orthodoxy.

And it’s there in our willingness to take risks not just on companies, but on people.

People with the raw potential to create a wave of the most dynamic high growth companies. A wave that will reach the farthest corners of the world.

That optimism, that unshakeable belief that the future, can be different and better was also at the heart of Brexit.

I remember over five years ago being told that if I backed Brexit my political career would be over before it had even begun.

Well, I put my principles first. And I always will.

I was proud to back Brexit. Proud to back Leave.

And that’s because despite the challenges in the long term, I believed the agility flexibility and freedom provided by Brexit would be more valuable in a 21st century global economy than just proximity to a market.

That in the long term a renewed culture of enterprise willingness to take risks and be imaginative would inspire changes in the way we do things at home.

Brexit was never just about the things we couldn’t do. It was also about the things we didn’t do.

That’s why we introduced the super deduction, a UK first in tax policy which is triggering an explosion in capital investment.

That’s why we created the Help to Grow scheme another UK first to help small and medium sized companies digitize skill up and scale up.

That’s why we launched the Future Fund another UK first in government investment backing high potential start-ups.

My point is this: even if you can’t see it yet, I assure you, the future is here.‍

Now is the time to turn to the future

Last year alone the UK attracted more venture capital investment to our startups than France and Germany combined.

And along with enhanced infrastructure and improved skills, we are going to make this country not just a Science Superpower, not just the best place in the world to do business… I believe we’re going to make the United Kingdom the most exciting place on the planet.

Take Artificial Intelligence. Once the stuff of science fiction. Now it’s reality – and we’re a global leader.

The steam engine kicked off the industrial revolution. Computers delivered automation. The internet brought information exchange.

And as the latest general-purpose technology, AI has the potential to transform whole economies and societies.

If Artificial Intelligence were to contribute just the average productivity increase of those three technologies, that would be worth around £200 billion a year to our economy.

And so today, I am announcing that we will create 2,000 elite AI scholarships for disadvantaged young people and double the number of Turing AI World-Leading Research Fellows, helping to ensure that the most exciting industries and opportunities are open to all parts of our society.

New policy, focused on innovative technology, supporting jobs for the next generation, a sign of our ambition for the future.

Because that’s why we are here. All of us. That’s why we became members of the Conservative party.

That’s why you all give up so much of your time sacrificing things that are important to you in order to help build a better future.

You know, the longer I spend in this job, the more I realise that the worst parts of politics are driven by fear. Fear of change. Fear of losing. The fear of being wrong. Even fear of the future.

And when people get scared they create divisions. They say: “you’re either with us or you’re with them.” But you cannot make progress if you’re pitting people against each other.

That’s what you get from a tired, fearful sort of politics. We saw it last week in Brighton.

It’s not just that Labour don’t like us. They don’t even like each other.

Whereas we, the Conservatives, are now and always will be the party of business and the party of the worker.

The party of the private sector and the public sector.

A party for the old and the young.

The British people want a party that can get things done.

So, at just the moment when it feels like we’ve done enough, that we’ve gotten through, that we can take a rest, we must not stop.

Now is the time to show them that our plan will deliver.

And now is the time, at last, at long last, to finally turn to the future.

Thank you.

Responding to the Chancellor’s speech at Conservative Party Conference, Helen Barnard, Deputy Director of the Joseph Rowntree Foundation, said: “The Chancellor may say he has a plan for jobs but he has no plan for paying the bills.

“He spoke of doing whatever it takes to protect people’s livelihoods, yet he is cutting the incomes of around 5.5 million families by £1,040 a year on Wednesday when we are facing a cost of living crisis.

“It is completely wrong to suggest there is a trade-off between good jobs and adequate social security when they are both essential to improving people’s living standards.”

“This cut will impact many working families and inadequate social security makes it harder for people to seize opportunities whilst they struggle to stay afloat. We must ensure people who are sick, disabled or caring for others and therefore unable to work can meet their needs with dignity.

“To impose the biggest ever overnight cut to social security would be economically irresponsible which is why it is so fiercely opposed from across the political spectrum. The Government can’t credibly claim to be levelling up while levelling down people’s incomes. He must abandon this cut.”

JRF issues stark warning on child poverty targets in key state of the nation report

“It is time for the Scottish Government to stop walking and start running”

The Scottish Government must take urgent action to avoid missing its own child poverty targets by a significant margin, leaving families across the country locked in poverty. The cut to Universal Credit by the UK Government in just two days’ time makes the task more urgent. 

Kicking off Challenge Poverty Week with its annual state of the nation report, Poverty in Scotland 2021, the Joseph Rowntree Foundation (JRF) paints a picture of poverty levels in Scotland just before the Covid-19 pandemic.

It highlights a failure to make inroads into the significant levels of poverty among the priority groups for action as identified by the Scottish Government, including families from an ethnic minority background, families where someone is disabled, those with a child under the age of one and single parent households.

Key findings for these groups include: 

  • More than 80% of children in poverty are in one of these groups.  
  • 100,000 children in poverty in live in a household where someone is disabled – a shocking 40% of all children in poverty 
  • Children from minority ethnic backgrounds make up 7% of the population yet make up 16% of all children in poverty 
  • Children in two or more priority groups have a much higher poverty rate (36%) than those in one priority group (25%) and nearly three times that of those in no priority group (13%). 

These figures are pre-Covid 19, and much evidence has highlighted the unequal impact the pandemic has had on many of these groups, meaning their current situations could be much worse. This lays bare scale of the challenge facing the Scottish Government if it is to meet its targets and makes clear the need for targeted action to support these groups.  

The report was produced alongside the End Poverty Scotland Group, an advisory group of people from across Scotland with first-hand experience of living on a low income.  

Alex, a member of the advisory group said: ‘If over 80% of children in poverty are still in one of the priority groups, how much of a priority  are we, really?’ 

The findings also highlight the importance of full-time work in reducing poverty in Scotland. 54% of people who are in families where no one is working are in poverty. People in families where someone is working part-time have a poverty rate of 30% while the poverty rate for people in families where at least one person is in full-time work is 10%.  

The desire and need to work was a strong theme from the advisory group, but the inflexibility of childcare provision was highlighted as a consistent barrier. The group expressed deep frustration that in most cases people were trying to create a better life for them and their families, but success was often despite the system rather than because of it.  

The report urges both the Scottish and UK Governments to increase the adequacy of social security in order to drive down poverty levels. 

JRF recommends that the Scottish Child Payment is doubled as soon as possible and that the upcoming Tackling Child Poverty Delivery Plan must set out a clear and measurable course towards meeting those targets. It must include a far greater scale and pace of activity to support families in the priority groups who are most at risk of poverty. 

The UK Government’s cut to Universal Credit and Working Tax credit in just two days’ time will cut £1,040 per year from the incomes of 450,000 families in Scotland. This cut will increase poverty in Scotland across all groups, not just families with children.

The UK Government is responsible for 85% of social security spending in Scotland and the responsibility for the impact of this cut lies at their door. As well as reversing the cut, the report recommends reform of rules such as the five-week wait for the first payment of Universal Credit, and the two-child limit, which drive destitution and hardship in Scotland as they do in other parts of the UK. 

Chris Birt, Associate Director of JRF in Scotland said: “The Scottish Government has rightly set a national mission to end child poverty and has put in place steps to move us in the right direction. But we are on course to miss our targets by some distance. Such a political failure would have a profound human cost –  tens of thousands more children will experience childhoods blighted by hardship and anxiety. 

“It is time for the Scottish Government to stop walking and start running, by immediately doubling the Scottish Child Payment and by significantly increasing the scale and pace of its programme to support families in priority groups.  The forthcoming Budget and Tackling Child Poverty Delivery Plan will be crucial in putting us on a path to meeting our targets. 

“All tiers of government must look at the design and cultures that underpin public services. The group of people on low incomes who co-authored the report are clear in the need for a more constructive approach underpinned by kindness and ease of use as well as more accountability to the people who use the systems. 

“The responsibility for the cut to Universal Credit falls squarely at the UK Government’s door.  It is a failure of both compassion and of policy.  Its decision to impose the biggest overnight cut to social security in the history of our welfare state will cause immediate and widespread hardship in Scotland. With reserved powers, comes reserved responsibility.  

“Our social security system should protect people from poverty, but the UK Government is instead choosing to condemn them to it.”