Parliamentary News 1st – 5th July 2019
NHS Long Term Plan: Implementation
On Monday (1 July 2019), the Health Secretary made a statement on the implementation of the NHS Long Term Plan, which was published in January. The plan sets out key ambitions to improve services over the next ten years and identifies several clinical priorities where outcomes often lag behind those of similar advanced health systems, including cancer and mental health.
On cancer, I welcome the Government’s ambition that from 2028 55,000 more people will survive cancer for five years. However, I remain concerned that nine years of underfunding and understaffing has left services unable to keep pace with demand. There are 100,000 vacancies across the NHS and the Government has repeatedly missed the national cancer waiting time target.
On mental health, the Health Secretary talked of a “fundamental shift” in services. Yet there are currently 100,000 children being denied treatment each year because their problems are not designated as serious enough, and over 500 children and young people wait more than a year for specialist mental health treatment. I believe the Government should mandate local authorities to increase the money they spend on mental health and ring-fence budgets to ensure funding reaches the frontline.
More widely, I am disappointed that the statement did not focus on health inequalities, not least because public health services are being cut by £700 million. There was also no mention of when the Government’s plan for social care will be published and this has now been repeatedly delayed for two years. Meanwhile, adult social care has been cut by £7.7 billion since 2010 and there are 400,000 fewer older people receiving publicly funded care.
While there are many welcome ambitions in the NHS Long Term Plan, I believe a credible strategy to support and recruit the NHS workforce for the future must be at its heart. I will urge Ministers to fully fund the NHS and bring forward a comprehensive and lasting settlement for our social care sector.
Education Spending
On Monday (1 July) the second estimates day debate focused on the Department for Education.
The Schools Minister stated that in 2019, the department's resource budget is around £68.5 billion. Of that, £54 billion is for early years and schools, £14 billion primarily for post-16 and skills, and £0.4 billion is for social care, mobility and disadvantage.
While these are large figures, cuts to education are very concerning. The Government has cut funding in every area of education from early years, to schools, to further and adult education, with billions of pounds lost since 2010.
Early years support can transform lives for the better. Yet across the country, children’s centres are closing, nurseries are under threat, childcare is underfunded and the chaotic roll-out of tax-free childcare left an underspend of around £1 billion.
The Institute for Fiscal Studies has found that total school spending per pupil fell by 8% in real terms between 2009–10 and 2017–18. In the October Budget the Government pledged “a few little extras” for schools, which was very disappointing given the scale of cuts to school budgets. These substantial cuts, alongside the impact of the public sector pay freeze, have produced an unprecedented crisis in teacher recruitment and retention.
Since 2010–11, funding per student aged 16–18 in further education has fallen by 8% in real terms. Funding for adult education has been cut by 45% since 2009–10.
I was pleased that the Schools Minister was pressed on Monday to give our education system the funding it deserves. I will continue to support these calls at every opportunity.
Problem Gambling
On Tuesday (2 July) the Culture Secretary made a statement on support for those affected by problem gambling.
The statement followed an agreement between five of the biggest gambling companies to increase their financial contribution to fund support and treatment. They have committed to increase the voluntary levy they pay from 0.1% of annual UK revenue to 1% within five years. The companies will report publicly on progress, alongside their annual assurance statements to the Gambling Commission.
The Culture Secretary told MPs that the companies had also pledged to make sure that their online advertising is used responsibly and to give greater prominence to services and campaigns that support those in need of help.
I am glad that the gambling industry has sat up and listened to what MPs and campaigners are saying on this issue.
Gambling addiction costs the economy an estimated £1.2 billion a year, yet the amount that the industry currently contributes to treating addiction is paltry. The industry turns over £14.5 billion a year, yet contributes less than £10 million a year to GambleAware.
The big five companies have shown leadership and responsibility. However, I believe that a mandatory levy is the only way to provide the structure and consistent funding that a proper system of research, education and treatment needs, and with the NHS at the heart of the process.
Some companies have contributed £100 or less to problem gambling treatment. The Culture Secretary was rightly pressed on Tuesday to reveal how he will make such companies take more responsibility, if not through a mandatory levy.
We do not need a voluntary patch, but a full overhaul of rules and regulations.
Sale of Diesel Cars
On Thursday (4 July), a Backbench Business motion was debated which called on the Government to bring forward a date by which the sale of new petrol and diesel cars and vans will end.
The Committee on Climate Change has stated that the UK is “way off track” on meeting its own carbon emissions targets in the 2020s and 2030s. In addition, the Government is even further off track on their Paris climate change agreement commitments, to which we must adhere to if we are to have a chance of avoiding the catastrophic impacts of climate change. Transport is the worst performing sector of the economy, as it accounts for a third of all carbon dioxide emissions and is the UK’s largest source of greenhouse gas.
The Government’s current phase-out date for new petrol and diesel cars and vans is unambitious by international standards and its current commitment that all new cars and vans will be effectively zero emissions is vague.
I believe we must decarbonise road transport by transitioning to electric vehicles and decarbonising the production of electricity on which these vehicles rely. Reducing vehicle miles travelled on roads and switching to electric would also address poor air quality, which is the largest environmental risk to public health in the UK.
The Government should understand that its failure to invest now will have damaging long-term economic, social and environmental costs. I firmly believe that the climate crisis and air pollution crisis requires bold and immediate action, which is not forthcoming from the Government.
HM Treasury - a new tax relief for business investment in non-residential structures and buildings
On Thursday (4 July 2019), the House of Commons considered the draft Capital Allowances (Structures and Building Allowances) Regulations 2019.
These regulations make provisions for a new tax relief for business investment in non-residential structures and buildings. The measure was announced at the 2018 Budget.
I believe it is unfortunate that the Government has introduced another corporate tax relief measure, when so little has been done to sort out the scope of tax reliefs already in operation. Indeed, at the last count the Government was responsible for managing 115 principal tax reliefs totalling £430 billion, alongside 80 minor tax reliefs totalling an estimated £690 million. However, alongside these, there are up to 235 tax reliefs in operation for which we have no cost data at all. In addition, the convoluted system of capital allowances is incredibly complex, with no mechanism for review or sunset clauses.
I believe these regulations will only complicate the current reliefs system. The administration of the new allowance will be substantial and burdensome for businesses, and therefore contradicts the Government’s initial intention to simplify the tax system. Rather than continuing this piecemeal approach, I believe we need to carry out a review of tax reliefs to evaluate individual reliefs against their effectiveness and value for money.
Although I am sceptical about the introduction of these regulations, I did not vote against them. I think it will be important to scrutinise the HMRC guidance on this when it is published.