MP newsletter - the Budget, Commissioners, and new leadership in Birmingham - 03 November 2024
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Good evening. As the Budget was published on Wednesday, I think it makes sense to start with national news this week.
The contents of this week’s newsletter are perhaps more ‘political’ than normal, but I do appreciate the fact that people who hold different political views subscribe to it.
In Parliament
The Budget
The main business in Parliament this week was the Budget – the first Labour Budget in 15 years.
The financial context is very different to that which faced the start of the last Labour Government, in 1997. The pressures of adjusting to an aging society are imposing new costs, and the challenges facing public services are, in some ways, greater today (this is particularly true of local government).
At the same time, people voted overwhelmingly in July for better public services. This week, the Budget set out to balance the need for serious investment in services with the pledge, after nearly a generation of austerity and the cost-of-living crisis, to not raise taxes on working people.
Certain measures have dominated the headlines – from the additional £26 billion for the NHS,* to the tax increases which fall primarily on employers’ National Insurance Contributions and increases to the Capital Gains Tax rates.
(* It is worth reflecting that, as a result of changes made in this Budget, that the NHS will receive the largest real-terms funding increase since the 2005-2010 Parliament.)
The Budget marks a break, in my view, from the failed approach of attempting to ‘manage decline.’
The scale of the tax increases are significant but they reflect the scale of the challenge (a view which found surprising support from former Conservative Chancellor, Kwasi Kwarteng, who acknowledged that taxes needed to go up).
For me, some of the most significant, and welcome, measures in the Budget were:
The decision to put substantial money (an additional £550 million) into the Schools Rebuilding Programme. Two local schools – Green Meadows Primary, and King Edward VI Balaam Wood Academy – were due to be rebuilt under the programme.
However, a rise in construction costs has cast doubts on the affordability of individual projects, and the timetable for their delivery. This money should increase confidence that the rebuilds will now go ahead.
The decision to give the West Midlands Combined Authority a new, long-term ‘consolidated’ budget.
Over the last decade or so, local government has become dependent on ‘bidding’ for pots of money that are ringfenced for specific purposes.
These funds are often short-term in nature and they can prevent long-term planning. The cost of bidding to local authorities is also high and there is no guarantee of success (as was shown when the much-advertised bid to rejuvenate Northfield high street was denied).
It is welcome that the West Midlands has been marked out as one of just two combined authorities that will benefit from the new approach).
More than £2 billion for local government, with some money allocated specifically for SEND, roads maintenance, and adult social care.
It is important that we know what Birmingham City Council’s allocation is soon so that these new funds can be included in next year’s local budget planning.
Raising the National Minimum Wage by 6.7 per cent to £12.21 an hour. This is acting on the recommendations of the independent Low Pay Commission, which for the first time is taking the cost of living into account.
It has been estimated that 1 in 10 people in work in Birmingham Northfield constituency are on the minimum wage – this is a significant increase for around 3,000 people in work locally.
Raising the Carer’s Allowance earnings threshold from £151 per week to £196 per week (the highest increase since the benefit was introduced in 1976).
Extending the Household Support Fund by a further six months (about which – more local details below).
Compensation for the victims of the infected blood and Post Office Horizon scandals.
Business rates reform: permanently lower rates are being introduced for retail, hospitality, and leisure businesses, to be funded by higher rates for much larger premises (such as out-of-town warehouses).
This is a longstanding problem which means that internet retail giants like Amazon pay a much lower effective rate of local taxation than ‘brick and mortar’ high street shops. I am delighted that the unfairness is finally being address.
One measure, which I had hoped could be avoided, is the increase in the bus fare cap to £3 next year.
For all the attention that trains get (and I am a rail enthusiast), buses account for the great majority of public transport journeys.
The cap was always due to come to an end in 2024, and no money had been put aside before July to extend it, so this change can – to an extent – be viewed as a mitigation.
In Birmingham, a National Express single fare will rise to £2.90 (while this is marginally lower, in today’s money, than the cost five years ago, it is still a significant increase). I will be looking to raise the issue, including if possible through the Transport Select Committee.
Birmingham news
Commissioners
I met the Birmingham Commissioners earlier this week along with some of the other Birmingham MPs. You can watch some of the fallout from last week’s decision to block the ‘call-in’ of the day centre closure decision here.
Without revealing the details of a private meeting, I raised the decision and the question of how realistic Birmingham’s current timetable is for balancing its books.
Out and about
Last weekend, I attended the opening of the new Gilgal charity shop in Rednal, along with Police and Crime Commissioner Simon Foster. Gilgal provides a women and children’s refuge which serves the whole city of Birmingham.
The quality of the products is very high and all proceeds go towards funding the refuge. Please visit if you can: the address is: 1688 Bristol Road South, B45 9TZ.
On Friday I met with Birmingham City Council’s impressive new Managing Director, Joanne Roney, who has just joined the authority, along with the Leader and Deputy Leader of the Council. Joanne was previously the Chief Executive of Manchester City Council, and she brings real credibility and personal to the efforts to improve local services.
I also met the Friends of the Fairway Day Centre with Councillor Carmel Corrigan to discuss next steps for the campaign following the closure decision, and the Council’s plans to draw up plans for individual service users.
I share the families’ concern that there may not be enough social worker capacity to draw up meaningful plans in the time available. I was grateful for their time and I will be contacting the Council this week off the back of the meeting.
As regular readers will know, I knock on doors at least once a week to pick up on issues and discuss political issues.
This week, I spoke to residents in the Great Stone Road area of Northfield, along with councillors Esther Rai and Carmel Corrigan. We picked up a number of items of casework, which are being actioned, including on housing, winter fuel payments, and crime and anti-social behaviour.
Date for the diary
The Christmas Kings Norton Farmers Market will be held from 09:00 to 13:30 on 14 December.
SEND
I have secured a question in Parliament tomorrow on SEND services.
I intend to raise local issues, and I am particularly interested in cases of different public agencies that aren’t working together as they should. I will report back on any progress.
Wider politics
I try not to include too much ‘party political’ material in these newsletters, but there are two other events which could have a profound impact on the UK, and the wider world.
First, Kemi Badenoch has been elected as leader of the Conservative Party. Personally, I do not think that someone who believes that the Downing Street Partygate scandal was ‘overblown,’ that statutory maternity pay is ‘excessive,’ and who wrongly says that autism is a mental health condition (while speaking out against the reasonable adjustments framework that has existed for disabled people for thirty years) is fit to lead our country. But it is down to those of who us do not share those beliefs to make the case in public and in the community.
The United States of America also goes to the polls on Tuesday. The results could immediately change – and lead to greater bloodshed - in the war against Ukraine, and in the conflicts in the Middle East. I am sure that we all be watching with hope, and trepidation.
What do you think?
What was your view of the Budget? Some of the complications in Budgets are often not spotted on the day but are better understood as the small print is scoured in the days that follow. Are there any measures that will affect you which you think haven’t had the attention that they should?
Let me know and I am always happy to press the government for more clarity on how these announcements will affect people and businesses in practice.
Best wishes
Laurence Turner
MP for Birmingham Northfield
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These newsletters are mostly written at the weekend alongside domestic duties so please excuse any typos.