Labour today (Wednesday 18 May) forces a binding vote calling for
the government to bring forward an Emergency Budget to address
the cost of living crisis, and to urgently start tackling the low
growth leaving the UK economy exposed.
Labour has repeatedly highlighted how low growth and now
stagflation are leaving Britain more exposed to the cost of
living crisis rippling across the country.
With inflation figures released the same morning, the party is
urgently calling on the government to create a more pro-growth,
pro-business environment post-Brexit, where higher productivity
and more private investment is leveraged in to help Britain lead
the pack globally.
Labour has said its plan to buy, make and sell more in Britain;
to fix the holes in the government’s patchwork Brexit deal; and
its Climate Investment Pledge to decarbonise the economy and
create good jobs across the country is vital for creating more
certainty, boosting businesses and stimulating growth.
It comes after recent news that the Chancellor’s most expensive
business tax break of all time – the super deduction – costs more
than the investment it brings in.
Labour's amendment will be voted on during the Queen’s
Speech debate on Wednesday. Unlike how the government treats
opposition day debates, MPs are required to vote on
the amendment.
Labour’s amendment will be:
At end add “but respectfully regret that the Gracious
Speech fails to bring forward immediately an emergency
budget to tackle the cost-of-living crisis or to set out a new
approach to the economy that will end twelve years of slow growth
and high taxation under successive Conservative Governments.”
Opening the final day of the Queen’s Speech Debate for
Labour, Shadow Chancellor of the Exchequer, is expected to
say:
“Our country faces a cost of living crisis, and a growth crisis.
“Wages are being squeezed, our tax system is unfair and there is
no plan for the future of our economy.
“None of this is inevitable but a consequence of government
policies and Conservative choices.
“Where is the urgency and the action to remedy this?
“Labour has a new vision for a fairer and more prosperous
economy.
“That’s why the Conservatives must back our motion today, not
just for them to come forward with an Emergency Budget to tackle
the cost of living crisis, but to set out the plan Britain
deserves to get our economy firing on all cylinders.”
ENDS
Notes to editors:
1. Labour’s amendment will be: At end
add “but respectfully regret that the Gracious Speech
fails to bring forward immediately an emergency budget
to tackle the cost-of-living crisis or to set out a new approach
to the economy that will end twelve years of slow growth and high
taxation under successive Conservative Governments.”
2. Why is the superdeduction costing more than
it brings in?
3. In October - a year after the
super-deduction it was announced, paragraph A.46 of the OBR
Economic and Fiscal Outlook said it will only boost business
investment by 5% - around £10 billion per year.
4. But now, that cost has been revised down by
the OBR to £0.4 billion. That means the measure which previously
cost £25bn for £40bn of investment now costs £24.6bn for £20bn
investment.
