The Tories remain in denial about the living standards crisis

Next week’s Autumn Statement provides Cameron and Osborne with the perfect opportunity to act - but will it be more of the same for the privileged few?

Last month, I visited a primary care centre in my constituency to hear more about the challenges facing those working in general practice. In the face of ever increasing demands for their services, stretched budgets and the ongoing upheaval within the NHS, these challenges are many and growing. But while well aware that food banks across the north east are giving out seven times more in emergency food parcels than this time last year, I was still disturbed to learn on my visit that, on an almost daily basis, the GPs and their support staff are giving patients the bus fare to get to the nearest food bank, from their own pockets.

No doubt the Prime Minister would welcome this as the perfect example of the 'Big Society' in action. He would possibly go so far to suggest that it’s saving the taxpayer money in the long-term as patients able to obtain a decent square meal are less likely to need to see their doctor so often. But I believe this appalling state of affairs is a sad reflection of the cost of living crisis facing millions of hard-pressed families and individuals up and down the country under David Cameron.

While out-of-touch Tory ministers might like to kid themselves that the threefold national increase in food bank usage in the last 12 months is a result of posters in local job centres – or because "they are not best able to manage their finances" – those of us in the real world know that increasing numbers of people now turning to food banks for help are in work but still unable to meet the basic cost of living.

And is it any wonder, when for 40 out of the 41 months that David Cameron has been in Downing Street, the cost of living has risen faster than wages? The stark reality is that average earnings have fallen in real terms in every region and nation of the country on this government’s watch, while the cost of family essentials continues to go up and up. Gas and electricity bills have risen by an average of £300 a year, and the cost of nursery places by 30% under David Cameron.  Households are spending 12% more on food bills than in 2007, despite actually purchasing 4.2% less food.

The economic recovery which finally appears to be underway after three years of damaging flatlining is clearly yet to touch the lives of millions of households across Britain.  That’s why Labour has called an Opposition Day debate in the Commons this afternoon, focusing on the cost of living crisis and the government’s economic failure. We believe that any economic recovery should deliver rising living standards for all, and not just for the Prime Minister and Chancellor’s friends at the top. We need a recovery that is balanced, that is built to last and – absolutely critically – benefits every corner and community of this country.

Yet what we have is a government with ministers who continue to bury their heads in the sand and remain totally oblivious to the cost of living crisis that millions are experiencing. Or worse, deny what they hear, and see, with their own eyes and ears.

It’s time that our complacent Prime Minister and Chancellor got a grip of this issue, by finally taking action to tackle the cost of living crisis now facing too many – for a start by implementing our proposed energy price freeze that would benefit 27 million households and 2.4 million businesses, and by extending the previous Labour government’s 15 hours of free childcare for three and four-year-olds to 25 hours per week for working households to help make work pay.

Next week’s Autumn Statement provides Cameron and Osborne with the perfect opportunity to take heed and do something - but will they stand up for the many struggling to make ends meet, or will it be more of the same for the privileged few?

Catherine McKinnell is shadow economic secretary to the Treasury and MP for Newcastle upon Tyne

George Osborne inspects material during a visit to AW Hainsworth and Sons on October 25, 2013 in Leeds. Photograph: Getty Images.

Catherine McKinnell is shadow economic secretary to the Treasury and MP for Newcastle upon Tyne

Getty Images.
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Labour tensions boil over at fractious MPs' meeting

Corbyn supporters and critics clash over fiscal charter U-turn and new group Momentum. 

"A total fucking shambles". That was the verdict of the usually emollient Ben Bradshaw as he left tonight's Parliamentary Labour Party meeting. His words were echoed by MPs from all wings of the party. "I've never seen anything like it," one shadow minister told me. In commitee room 14 of the House of Commons, tensions within the party - over the U-turn on George Osborne's fiscal charter and new Corbynite group Momentum - erupted. 

After a short speech by Jeremy Corbyn, shadow chancellor John McDonnell sought to explain his decision to oppose Osborne's fiscal charter (having supported it just two weeks ago). He cited the change in global economic conditions and the refusal to allow Labour to table an amendment. McDonnell also vowed to assist colleagues in Scotland in challenging the SNP anti-austerity claims. But MPs were left unimpressed. "I don't think I've ever heard a weaker round of applause at the PLP than the one John McDonnell just got," one told me. MPs believe that McDonnell's U-turn was due to his failure to realise that the fiscal charter mandated an absolute budget surplus (leaving no room to borrow to invest), rather than merely a current budget surplus. "A huge joke" was how a furious John Mann described it. He and others were outraged by the lack of consultation over the move. "At 1:45pm he [McDonnell] said he was considering our position and would consult with the PLP and the shadow cabinet," one MP told me. "Then he announces it before 6pm PLP and tomorow's shadow cabinet." 

When former shadow cabinet minister Mary Creagh asked Corbyn about the new group Momentum, which some fear could be used as a vehicle to deselect critical MPs (receiving what was described as a weak response), Richard Burgon, one of the body's directors, offered a lengthy defence and was, one MP said, "just humiliated". He added: "It looked at one point like they weren't even going to let him finish. As the fractious exchanges were overheard by journalists outside, Emily Thornberry appealed to colleagues to stop texting hacks and keep their voices down (within earshot of all). 

After a calmer conference than most expected, tonight's meeting was evidence of how great the tensions within Labour remain. Veteran MPs described it as the worst PLP gathering for 30 years. The fear for all MPs is that they have the potential to get even worse. 

George Eaton is political editor of the New Statesman.