Parliament breaks up for the summer recess this week. But in the last couple of days of term, there was no disappointment.
Tuesday’s announcement of planning policy is something that will take time to digest, but it was Monday’s announcement by the Chancellor that has left people stunned.
Rachel Reeves spoke about a so called £22 billion black hole in the nation’s finances. She told of how she was lied to by the previous government and how she had to make cuts to pay for it. There are a few things to say about this.
The first is there are choices she made that has created this void. Take illegal migration. The policy was to deter future illegal migrants by removing them to a safe, third country for processing. The outcome would be a significant drop in costs of housing migrants. But cancelling the policy was a choice made by the new government and so the extra cost of housing illegal migrants is Labour’s choice.
Similarly, awarding public sector workers higher than inflation pay rises is a choice made by the new government, not the old one. I think they deserve a good pay rise, but that is Labour’s choice. The same with junior doctors, the highest paid of which already get around £95,000 a year plus pension. The 22% pay rise they have been awarded will cost £1.1 billion.
Of course, we can argue about the semantics of all this. But what is more worrying is this approach.
Last week, the Treasury signed off what are known as Estimates. When the Chancellor and Permanent Secretary signed them off, she did so knowing they may be wrong, expecting her report on why they might be incorrect to land a day or two later. And by implication, she suggests the civil service have been in collusion with this alleged lie. We are waiting for a proper explanation of what is going on.
Labour have started to make cuts. That is their choice and fair enough. But they started by cutting winter fuel allowances for pensioners. Of course, some pensioners get gold plated pensions that are the envy of many hard workers. But pensioners just above the level of pension credits will be hit badly. What I am struggling with is why a Labour government would hit some people so hard. As the former chair of the Treasury Committee said: “This is chilling.”