Labour ‘will scrap Universal Credit’
Shadow Chancellor in call for investment
POLITICS: Shadow chancellor John McDonnell has said Labour would scrap Universal Credit. Until now, the party’s policy had been that it would pause the controversial welfare reform and change the system.
SHADOW CHANCELLOR John McDonnell has said Labour would scrap Universal Credit.
Until now, the party’s policy had been that it would pause the controversial welfare reform and make changes to the system.
However, Mr McDonnell has said that the Government’s flagship benefits reform programme should be scrapped.
He said: “I think most people now are coming to the conclusion that it has got to be scrapped.
“I have been listening to people over the last few weeks about the roll-out in their particular areas, I’ve been looking at what the Government has said about how they are seeking to reform it. The reforms haven’t worked.” The news comes after The Yorkshire Post featured a week-long series highlighting a fresh wave of criticism as recipients across Yorkshire revealed how they have been plunged into hardship and members of frontline services voiced their fears about the imminent roll-out of the controversial overhaul.
Over the next couple of months, two of Yorkshire’s biggest cities – Leeds and Sheffield – face further roll-outs of the benefit, with frontline workers stressing that a “tsunami” of issues may arise in certain wards while local authority members remain nervous.
However, Tory party chairman Brandon Lewis said Mr McDonnell did not have an alternative to Universal Credit.
The Shadow Chancellor also accused the Conservative party of “dishonest politics” while visiting West Yorkshire as part of a national roadshow held this weekend.
Mr McDonnell was speaking in Leeds on Saturday during his nationwide tour, ‘Road to Rebuilding the Economy’ where, in front of a 200-strong audience made up of local politicians, community and business leaders, he set out specific plans from Labour to create jobs, boost wages and increase living standards in West Yorkshire.
The Labour party says the document is a stand against eight years of austerity cuts and comes after Prime Minister Theresa May pledged to end them in her Conservative party conference speech last week.
Mr McDonnell said Pudsey was like many similar towns across the country which had suffered but were formulating their own plans for change.
He said: “It is the third time it has been announced and lacks credibility. The Budget is coming up so, if they are really ending austerity that Budget will have to make sure the NHS is fully funded. The proposals don’t go anywhere near the needs of that.
“The Local Government Authority has a £41bn budget gap for local councils, £26bn for children’s services, social care is on its knees and we have cuts on police, fire and public services. If the Government is serious, that Budget has got to increase significantly in terms of investment. Where is the money coming from? It is dishonest politics.”
Mr McDonnell said that in addition to the usual call for more investment in health services there was a desire in Pudsey and constituencies of a similar makeup for better transport and rail links, better digital coverage and increased use of alternative energy.
In its challenge to the Conservative Party approach Labour is proposing to establish a National Investment Bank, which will be funded to the tune of £500bn over 10 years, with spending being allocated on a regional basis for causes relevant to that area.
Proposals also include “rewriting” the Green Book, the government criteria for deciding what money is spent where around the country, with a view to improving infrastructure and skills on a local basis which, in turn will enable communities to be more long-term thinking and self-sustainable.