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My Response to the Budget

The Chancellor announced his Budget this month. This is an important opportunity each year for the Government to set out a positive agenda for our economy and to fully unlock the potential across Britain. Unfortunately, I believe that this Budget didn’t go far enough.

In my role as Shadow Exchequer Secretary to the Treasury, I expressed my concerns about the lack of ambition in the Budget and I spoke about what Labour would do differently. Firstly, the Government still refuses to implement a proper windfall tax to make the oil and gas giants pay their fair share. This means they are leaving billions on the table that could be used to help families with the cost of living.

Furthermore, in this Budget the Chancellor announced a tax cut to the richest 1% and their pension pots. I believe this was wrong and Labour would reverse this handout.

You can see a clip of my interview on Channel 4 News discussing the budget and how Labour would do things differently here

Labour plans to deliver on Britain’s call for change with a new way of governing that will build a fairer, greener, more dynamic Britain with power closer to people. We will provide vital public investment through our Green Prosperity Plan, updating our planning system to remove barriers to investment in new industries and meet our net zero targets.

I believe the country needs stability and not the chaos we have recently seen from this Conservative Government. We have a serious plan for growth and want to see all our nations and regions benefit from and contribute to the jobs and growth of the future.

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Abena challenges the Government’s lack of long-term support for Businesses

On 9th January, as Shadow Exchequer Secretary to the Treasury, I spoke in the House of Commons in response to the Government’s latest statement on Non-domestic Energy Support for businesses.

I challenged the Government on this announcement, which proves their policy is just another example of sticking-plaster politics. Last year, businesses were promised clarity by this government, however, constant chaos in the Conservative party has meant firms, workers, and families had to go another Christmas worrying about their energy bills.

We all know that businesses need to plan ahead but these policies are forcing them to live day to day and not knowing what the next month will bring, let alone the next quarter. Unfortunately, as I stated to the Minister, this week’s announcement did not have to be this way and is just a sticking plaster for the wider energy challenges. There needs to be a long-term plan or this merry-go-round will only continue.

Speaking in the house, I set out Labour’s plans to “back British businesses and give them the certainty they need to plan and invest”. This includes scrapping business rates with a fair tax on the online giants, having a long-term industrial strategy alongside which our industries can invest, and, dealing with the energy crisis at its source.

You can read my speech here or watch the full speech here.

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Abena speaks out, another U-Turn on Alcohol Duty

I recently popped into the Standard, a pub in my Erith and Thamesmead constituency, which is really struggling with soaring energy bills and the lack of Government support. It needs the Government to be on its side.

Today the Government  announced they are freezing alcohol duty rates for six months.  I spoke out on behalf of British venues like the Standard who are concerned about this  sudden change after  the previous Chancellor announced a freeze, the current Chancellor scrapped it, and now it is back on.

This government isn’t providing the certainty that businesses and their hard-working employees need in order to plan for the tough winter ahead. Labour believes the alcohol duty system could be reformed to make the system  “simpler, more economically rational and less administratively burdensome on businesses and HMRC.”

You can watch my speech using the following link here, and you can read my speech here

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Abena closes the Financial Services and Markets Bill Debate

On 7th September, as Shadow Exchequer Secretary to the Treasury, I spoke in the House of Commons on the Financial Services and Markets Bill, making the closing arguments for the Opposition.

I broadly welcome this legislation. I am committed to helping the UK’s financial sector maintain its position as a competitive global financial centre. At the same time, this should not mean any compromise on financial stability or consumer protection post Brexit.

Speaking in the House, I argued that that everyone should have access to the financial services they need, whether that is saving schemes or insurance, and regardless of their income or circumstances. I made the point that all too often, the most vulnerable in our society are unable to afford or are denied access to financial products and services that meet their needs.

I made clear to the Government that if they are serious about building a strong future for our financial services outside the EU, they should recognise that the Bill is an opportunity to rethink how financial resilience, inclusion and wellbeing issues are tackled in the UK.

More widely, I am disappointed that the Bill does not do enough on financial exclusion. I believe we need to protect access to face-to-face banking services and address the extra costs that poorer people pay for essential services such as insurance or loans or credit cards.

As the Bill proceeds through Parliament, I will support efforts to push for bolder, more radical action in a number of areas including green finance, financial inclusion and economic crime. It is important that this legislation delivers not just for our financial services industry but for the wider economy as well.

You can read my speech here or watch the speech here.

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Abena speaks on the Windfall Tax Bill

The cost-of-living crisis remains the biggest issue facing the country right now. While the Tory leadership candidates trade insults and trash their own Government’s woeful record, I know that many families across Erith and Thamesmead are still struggling to make ends meet.

On the 11th July I closed the Second Reading debate of the Windfall Tax Bill on behalf of the Shadow Treasury Team.

In that debate, I spoke about the financial pressures that many people in Erith and Thamesmead and across the country are facing. Food, fuel and energy bills continue to rise, and I know many are already worrying about the winter that lies ahead.

So it was a relief that the Government finally followed Labour’s lead and u-turned on the windfall tax. However, since Labour first called for the windfall tax on oil and gas producers, energy bills for typical households have risen by a shocking £700, inflation has rocketed to its highest level in 40 years, and, of course, people’s taxes have gone up as the Government have pressed ahead with the national insurance increase. In that period, oil and gas producers’ profits have soared. Indeed, we estimate that between Labour first calling for the windfall tax in January and the former Chancellor and soon-to-be former Prime Minister finally accepting our arguments at the end of May, nearly £2 billion of tax revenue could have been raised to help people with the cost-of-living crisis.

In that time, Conservative MPs voted against our plans for a windfall tax not once, not twice, but three times. Ministers repeatedly claimed that such a plan would not work. Famously, the current Chancellor said that oil and gas producers were “already struggling”.

It is shameful that it took the Government so long to come to their senses and finally do the right thing. That is yet more evidence, if we needed it after the past couple of weeks, that this Tory Government is on its last legs: out of touch, out of ideas and now truly out of time. With the windfall tax and with so many other issues, it is Labour that leads and the Conservative party that follows.

You can watch my speech using the following link here, and you can read my speech here.

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Government must do more to support people to self-isolate

As part of my role in the Shadow Treasury Team, I have been pushing the Government to provide more support to people who need to self-isolate.

Labour has always said that health and economic measures must go hand-in-hand, but the Government’s failure has meant too many people have to choose between self-isolating and paying the bills.

At this weeks’ Treasury questions, I asked the Chancellor about reports that the Treasury had suppressed information about how the furlough scheme could be used to support self-isolating employees. This shocking revelation show’s how poor the Government’s approach to economic support during the pandemic has been.

I called on the Chancellor to appear before the joint parliamentary inquiry into the handling of the Covid crisis to explain why the Government has not listened to the experts and introduced a robust self-isolation support scheme.

 

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My response to the Queens’ Speech

The Queen’s Speech is a traditional part of the State Opening of Parliament. It is written by Ministers, but it is delivered by the Queen from the throne of the House of Lords. The Queen’s Speech on Tuesday (11 May 2021) set out the Government’s agenda for the new session of Parliament.

Even before the pandemic, we needed to transform Britain – we had 5.7 million people in low-paid or insecure work and 4.2 million children growing up in poverty, class sizes were at their highest for 20 years, one in seven adults were unable to get the social care that they need, and we had one of the worst levels of regional inequality in Europe. Shockingly, life expectancy had also stalled, for the first time in a century. Coronavirus has only further exposed the consequences of Government decisions over the last ten years.

We therefore needed a Queen’s Speech that rose to the scale of the challenge of rebuilding our economy and society. Unfortunately, I believe the one we got only papers over the cracks.

Instead of a plan for jobs and better work, for example, we see different parts of the country pitted against each other for limited funds, too little investment in infrastructure and no sign of the Employment Bill repeatedly promised by the Government.

The Queen’s Speech should also have included a clear long-term recovery plan for our NHS. But with waiting lists at a record high of 4.7 million, what we heard on Tuesday will come nowhere near the scale of the change needed. In addition, long after the Prime Minister said on the steps of Downing Street that he had a clear plan to fix the crisis in social care, there was still no such plan in the Government’s agenda for this session of Parliament.

I believe it is a similar story on skills and education, crime and policing and housing: I do not believe the rhetoric on these issues is being matched by funding, legislation or action. The Government has also failed to take this opportunity to help the thousands of people trapped in unsafe buildings, and hundreds of thousands of leaseholders are caught up in homes they cannot sell or afford.

On democracy, meanwhile, instead of rebuilding trust, the Government is introducing a Bill that will make it harder for people to vote, undermine civil liberties and disproportionately impact ethnic minorities.

Now is the time for a transformative agenda to rebuild Britain’s foundations after a decade of neglect and a year of national sacrifice. Unfortunately, I believe this Queen’s Speech has missed the opportunity to do this.

Summary of announcements in the Queens Speech

Levelling Up

 

  • Levelling up White Paper due later this year setting out next steps of Levelling Up – and expected to include new policy interventions.
  • There is also a commitment to continue with previously announced measures (Levelling Up fund, Shared Prosperity Fund, Towns Fund, Freeports).

 

 

Health and Social Care 

  • Measures to reform the operation of the social care system in England will be brought forward, however there was no confirmation about the introduction of a specific bill or legislation regarding how the sector is funded. Reports suggest that discussions are currently ongoing within Government about the potential cost of changes, which could run into the billions. 
  • Proposals for social care were instead announced alongside the broader changes under the Health and Care Bill aimed at shifting care away from hospitals and towards peoples’ homes and increasing integration through the delivery of an Integrated Care System in every part of the country. Other measures within the Health and Care Bill include:
    • Provisions to improve oversight over how social care is commissioned and delivered and will provide some direction on integrating health and social care by “putting Integrated Care Systems on a statutory footing across the UK”.
    • Tackling obesity with the introduction of measures including: 
      • The restriction of the promotions on high fat, salt and sugar food and 25 drinks in retailers from April 2022. The Health and Care Bill will also include measures to ban junk food adverts pre-9pm watershed on TV and for a total ban online.  
      • Introduction of secondary legislation to require large out-of-home sector businesses with 250 or more employees to calorie label the food they sell.  
      • Further support to GPs, so that anyone with obesity can get support from their GP and referrals to weight management services. 
  • Measures will also be brought forward to tackle the impact of the pandemic on mental health and wellbeing with reforms to the Mental Health Act to give greater control over their treatment and ensuring dignity and respect. 
  • The Government will continue with its COVID-19 vaccination programme, planning for a booster campaign in the autumn and will provide a further £29 billion to the NHS next year in COVID-19 funding.

 

Local government, Democracy and Elections

  • The repeal of the Fixed-term Parliaments Act and introduction of the Dissolution and Calling of Parliament Bill will allow the Prime Minister to call an early election as opposed to current arrangements where elections are on a five-year fixed term basis (unless two-thirds of MPs vote for a motion proposing an early general election).
  • The Electoral Integrity Bill will introduce the requirement for voters to prove their identity when they vote at general elections.
    • Campaigners and rights groups have warned that this would amount to voter suppression and would particularly impact on the electorate in deprived communities where the costs of driving licenses and passports may be more prohibitive.
  • The Judicial Review Bill will set out the Government’s plans to change how its decisions can be challenged in the courts.  This Bill will be subject to consultation.
  • The Procurement Bill aims to ensure public procurement is quicker, simpler and more transparent, while enshrining in law the principle of value for money.
  • Public Service Pensions and Judicial Offices Bill – changes across all main public service pension schemes in response to the Court of appeal judgement in the McCloud and Sargeant cases (which challenged protection of final salary pensions of those closest to retirement). Therefore implements changes already planned for.

 

Education and Skills

 

  • A Skills and Post-16 Education Bill (due for publication on 18 May) will introduce a number of reform to the adult further education system:
    • Lifetime skills guarantee that will allow anyone without equivalent A-level qualifications to be retrained.
    • Every adult to have access to a flexible loan for education and training (levels 4-6) at university or college, useable at any point in their lives. Adults will be able to access the equivalent of four years of student loans. They can be used flexibly for full-time or part-time education, technical qualifications or individual course modules.
    • Employers will have a statutory role in planning publicly-funded training programmes with education providers, through a “Skills Accelerator” programme.
    • The Secretary of State for Education will be given enhanced powers to ‘intervene’ in colleges that do not meet local need and guidance improvement.
  • Implements some aspects originally set out in the Skills for Jobs White paper published in Jan 2021.
  • Lifetime skills guarantee originally announced by the PM in Sep 2020 under ‘COVID-recovery’ plans.
  • Loan system has been a longstanding barrier since first introduced to uptake of adult further education (specifically disadvantaged groups) – not clear if this new ‘flexible’ loan will actually boost confidence for learners to take out the loan – will depend on the loan conditions.
  • Whilst no new measures were announced today regarding school education and Early Years, the Government have re-affirmed their commitment to roll out Family Hubs which will be driven by an investment of £14 million. Additional measures also include the recently-announced Early Years Healthy Development Review, which encourages all local authorities to publish a Start for Life offer which sets out support that parents can expect to receive in the 1,001 ‘critical days’.

 

 

Housing and infrastructure

 

  • Planning Bill (expected in autumn 2021) will introduce changes to the planning system previously set out and consulted on in the planning white paper.
    • Exact details of what will be included from the white paper not fully known until full publication or more details emerge.
    • Proposals in the white paper were expected to mean significant changes to Local Plans
    • Councils will be required to use a zoning system to assign ‘growth’, ‘protection’ or ‘renewal’ zones in local plans. Automatic outline approval issued for development in ‘growth areas’.
    • A new “Single Infrastructure Levy” would replace the existing developer contributions system of Section 106 agreements and the Community Infrastructure Levy.
    • Housing numbers would be determined nationally, with locally determined five year supply requirement scrapped.
    • Reforms are designed to help government achieve their own national housebuilding targets.
  • Building Safety Bill  – a new system for regulating the safety of high-rise buildings, and inspecting construction sites – Building Safety Regulator to be established alongside updates to existing building safety regulations.
  • Leasehold Reform (Ground Rent) Bill – will restrict the charging of ground rents on new long residential leases – some exemptions such as for community-led housing.
  • Not contained in a Bill, but Government will later this year publish a White Paper, and legislation on reforms to improve standards and conditions in the private rented sector.
  • National Insurance Contributions Bill – will allow tax breaks for employers based in the eight freeports to be set up later this year (including in the LCR).
  • High Speed Rail (Crewe-Manchester) Bill – introduces the new powers to build and operate the stage of the HS2 high-speed rail line that will link with the LCR.

 

 

Crime and Community Safety

  • New powers for the police over protests, and new sentences for serious crimes were announced as part of the Police, Crime, Sentencing and Courts Bill.
    • The Bill also places a duty on local authorities and its partners to work together to prevent and reduce serious violence, and the introduction of Serious Violence Reduction Orders.
  • A draft Victims Bill will create new rights for the victims of crime, including new standards on support offered to sexual and domestic victims.
  • Addressing violence against women and girls and supporting victims through the publication of a new Violence Against Women and Girls Strategy.
    • This follows the passing of the Domestic Abuse Act 2021 which will see the introduction of a new duty on Local Authorities to assess the need for accommodation-based domestic abuse support in their area for all victims (and their children) and prohibited charges for the provision of domestic abuse legal aid letters by health professionals in general practice.
    • A Domestic Abuse Strategy will also be published focusing on prevention, accompanied by £25million of investment to work with perpetrators.
  • Measures will also be brought forward to establish a fairer immigration system that “strengthens the United Kingdom’s borders and deters criminals who facilitate dangerous and illegal journeys” although there was no reference to the implementation of an actual bill at this stage.
  • The Online Safety Bill will contain new requirements and place a duty of care on companies and social networks to improve the safety of their users online and tackle harmful and illegal content and clearly define what content is not acceptable.
  • The Judicial Review Bill will set out the Government’s plans to change how its decisions can be challenged in the courts. This Bill will be subject to consultation.

 

Environment

 

  • Continued Government commitment to net zero greenhouse gas emissions by 2050
  • The Environment Bill has been carried over from the previous Parliament following many delays – indicates a continued commitment from Government to eventually enact.
  • Will set legally binding targets – which may be cascaded down to LAs.
  • A new, independent body will hold all public authorities to account on environmental law. A long-term environmental improvement plan will be produced and the independent Office for Environmental Protection will be set up.

Recycling reform measures will include introducing a consistent approach to recycling across LAs – consultation on Consistency in Household and Business Recycling in England currently live.

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Speaking up in Parliament for businesses and individuals struggling during the pandemic

On Wednesday 24 February I rose to the Opposition despatch box to give the closing statement for the Shadow Treasury’s Opposition Day Debate on ‘Supporting Businesses and Individuals Through the Coronavirus Crisis’.

As your local MP and as Labour’s Shadow Exchequer Secretary I am determined to speak truth to power and provide a voice for the despair so many people are feeling.

Although the Chancellor didn’t show up to defend his failings during this crisis, several Labour colleagues gave powerful speeches about how the pandemic has affected businesses and individuals in their constituencies. Their passion, in the face of Tory callousness, is an inspiration. Not everyone can wait for the Chancellor to come to Parliament.

People across our country are facing the very real prospect of their job disappearing, or their businesses failing, and we must continue to push the Government to set out clear measures that will support businesses and families over the coming months.

As it stands, the Government’s support schemes have left gaps that leave millions forgotten, unsupported, and excluded. It’s not good enough.

You can watch my speech below:

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8,710 jobs at risk in Erith and Thamesmead unless Chancellor delivers “smart” furlough scheme

Rishi Sunak’s “Plan for Jobs” has been a disaster.  Seven months after its launch, we’ve got record redundancies, soaring unemployment and the worst economic crisis of any major economy.

Analysis by the Labour Party shows that as of late January 6845 people are claiming out of work benefits and 8,710 people are still on furlough in Erith and Thamesmead.

The Chancellor’s initially triggered a one-size-fits-all wind down of the Coronavirus Job Retention Scheme (CJRS) in his Plan for Jobs last July. After several last-minute changes over the autumn and winter, the scheme is now set to expire at the end of April.

As well as being your local MP, I’m also Labour’s Shadow Exchequer Secretary to the Treasury. With 4.6 million people still on furlough nationally, I’m calling for the Chancellor not to repeat the mistakes of last year. The scheme must not be wound down while public health restrictions are in place and demand is still suffering.

Sunak must immediately announce an extension to the furlough scheme. Local businesses and workers need that certainty. We are also calling for urgent reform to make furlough smarter, with new training to help furloughed workers improve their skills and tough conditions on employers to stop abuse.

Labour is also demanding immediate action to recover jobs by overhauling the failing Kickstart scheme and to help create new jobs in the technologies of the future by reforming the shambolic Green Homes Grant.

Our figures show that 5800 people in Erith and Thamesmead had made claims under the Coronavirus Self-Employed Income Support Scheme (SEISS) by the end of July. It is appalling that the Chancellor has left the millions of self-employed people relying on the Self-Employed Income Support Scheme (SEISS) scheme in the dark about future support.

Labour is calling on the Chancellor to set the fourth grant of the Self-Employed Income Support Scheme (SEISS) at 80% of pre-crisis profits – and to do it now, not at the Budget.

Labour has also called for the scheme to be opened to the 200,000 people who only have a 2019/20 tax return, and for the Chancellor to urgently fix the holes its support schemes that have left millions of others excluded from support.

People can’t afford to wait for the Chancellor to get his act together. They need emergency action today, not more dither and delay until the Budget.

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European Union (Future Relationship) Bill

I want to set out my thoughts about the Deal and explain my reasons for reluctantly voting in favour of it.

It is clear for all to see that the deal has serious flaws:

  • UK firms will lose automatic access to EU financial services markets, which form a significant and vitally important component of the UK economy. We have already seen jobs moving out of the City and into Europe – the deal as it stands will do nothing to protect those jobs and may even turn a trickle of job losses into a flood.
  • This deal adds new burdens and red tape onto British business, with some businesses facing new customs checks on their products in order to prove their point of origin. In practice, UK firms will now need to get two sets of approval certification if they want to sell their products in both the UK and Europe. This is especially galling, given that during the referendum campaign businesses were sold the lie that Brexit would mean freedom from EU regulation.
  • The Government seem to have completely forgotten about the Arts and Creative Sectors when negotiating this deal. In practice, this will mean that actors and musicians will now face country-to-country restrictions, meaning multiple Visa applications and logistical red tape. This is both needless and unacceptable – this issue was specifically raised by Sir Keir Starmer in his formal response to Boris Johnson at the start of the Parliamentary debate today. Labour also proposed an amendment that would require urgent action from the Secretary of State to negotiate a specific agreement to rectify these problems.
  • Boris Johnson has negotiated for a divergence of employment and environmental rights legislation. Clearly, he has not done so because he wants to strengthen your rights at work or to improve environmental protection standards. I have deep concerns that the government has a desire for a race to the bottom that may impact both your rights at work – such as health and sickness protections, maternity and paternity rights – but also vitally important standards, such as the use of pesticides, the need for clean air and of course practices such as fracking.

These are by no means all of the problems with the Government’s Deal, but they do give a flavour of the mess that Boris Johnson has made of his negotiation.

The idea that this deal settles the issue of our relationship with the EU is deeply flawed. As laws change within the EU, we will have to either align our standards to match these changes, or risk a financial penalty, most likely in the form of new tariffs on trade. Rather than free our businesses of what some saw as the burden of EU rules and regulations, we have simply given up our influence over the making of those rules. Something that in the long run I believe we will come to regret.

Despite the deep flaws with this deal, it is my view that I have no choice but to vote in favour of it. At this stage of the process, this is not about whether or not Brexit can be stopped, or whether or not we can add more time for a new negotiation – the chance for either of those outcomes ended with the result of the last General Election. The only choice at this stage is between this bad deal, or a no deal exit.

Exiting on January 1st without a deal would mean chaos, with the potential of food and medicine shortages as well as substantial regulatory barriers and tariffs placed on trade. I do not believe it is morally right for me to vote against a deal – which at this very late stage would be to effectively vote for a no deal exit – unless I am prepared for that eventually to occur. Therefore, I feel that I had no choice but to support this Bill.

This is by no means the end of the Brexit process. The deal that the Government has negotiated must be the minimum agreement that we reach, not the final agreement. As we move into the New Year, the Government must urgently look to plug the gaping holes in the agreement it has negotiated before too much economic damage is done. Needless to say, I will be pushing the government hard on our future relationship and holding them to account to do all that can to ensure this deal is significantly improved.

I campaigned hard for Remain during the referendum and I stood on a manifesto that would have given the British people a confirmatory referendum. I spoke to many people during the General Election who were furious at what they saw as their vote during the Referendum being ignored. Whether we agree with their view of Brexit or not, I believe that we must acknowledge the deeply felt anger that people feel over the way that Parliament has handled the issue of Brexit since the referendum.

This is not the outcome that I pounded the streets and spoke at meetings for, nor is it one that I know many of you will have hoped for. I know that some constituents will not agree with my decision to vote for this deal, but I have done so in good faith and for the reasons set out above.

I hope that you have a healthy and happy New Year.