Vauxhall at Ellesmere Port and Battery Manufacturing Strategy

Alison McGovern Excerpts

Monday 1st March 2021 Commons Chamber

[Kwasi Kwarteng]

The Government are committed to exploring opportunities that will support the next generations of clean technologies, and we are looking very much at the field of critical raw materials. My hon. Friend will remember that when I was Minister for Business, Energy, and Clean Growth, I was particularly committed to that form of technology. It is an exciting development, admittedly in its early stages, and I am always looking to drive innovation in that area.

[Alison McGovern (Wirral South) (Lab) [V]]

I support everything that my neighbour, my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders), said about this, and specifically about the impact of this issue on people in our area, and I support what he said about needing to move quickly. Whatever the strategy or plan, it must be about jobs and opportunities, particularly for young people who could be facing a serious unemployment situation. What discussion has the Secretary of State had with the metro Mayor for Merseyside about how we ensure that, whatever the plan is for automotive, it has the fortunes of young people at its heart?

[Kwasi Kwarteng]

On the specific question, I have met Steve Rotheram a number of times in previous ministerial roles, and I believe I am setting up a meeting with him soon. He has great knowledge of the area, and is interested not only in Ellesmere Port but in the possibilities of the HyNet industrial cluster, and decarbonising that. I am sure I will speak to the Mayor very soon.

Oral Answers to Questions

Alison McGovern Excerpts

Tuesday 10th November 2020 Commons Chamber

[Mr Speaker]

Excellent.

[Alison McGovern (Wirral South) (Lab)]

We know that our economy is changing, supercharged by the impact of covid and new technologies that are facilitating the change; but does the Minister agree that it is desirable and possible for companies to change in a way that protects skilled jobs, whether that is Spotify’s responsibility to creative workers, or BT’s responsibility to our broadband engineers? Will the Minister do all it takes to ensure that our companies invest in people as well as digital infrastructure?

[Alok Sharma]

The hon. Lady raises an important point. Of course we want good jobs to be created and preserved, and I agree with her. I believe she is arguing that we need a greater level of productivity in the country, and that is precisely what we are working on as part of our strategies.

Leaving the EU: Workers’ Rights

Alison McGovern Excerpts

Tuesday 29th October 2019 Commons Chamber

[Mr Speaker]

I am going to call a Member who cannot be improved in any way: Alison McGovern.

[Alison McGovern (Wirral South) (Lab)]

I am not sure how much of a favour you have done me there, Mr Speaker. The truth is that the reality of our labour market is that lived by my constituents, not the picture being painted from the Dispatch Box. But never mind that: this is about Brexit and what it could do to our economy. The Secretary of State claims the mantle of the person who will defend family rights at work and people’s ability to defend themselves against poor bosses. Will she therefore clarify whether the TUC has recommended that we accept the Government’s deal—yes or no?

[Andrea Leadsom]

The hon. Lady will know better than I the TUC’s view of the Government’s deal. She says that the reality is not the same as what I am saying from the Dispatch Box, but she should recognise that almost 32.7 million people are in work, including a further 280,000 over the past year; that 80% of jobs created since 2010 are full-time jobs; and that we have experienced the fastest growth in real earnings since 2015. The hon. Lady should listen to the facts and not try to scaremonger. This Government are improving and protecting workers’ rights and enhancing enforcement of them.

Oral Answers to Questions

Alison McGovern Excerpts

Tuesday 11th June 2019 Commons Chamber

[Greg Clark]

My hon. Friend makes an excellent point. It is clear that if drivers are to have the confidence that they will be able to charge their vehicles, every part of the United Kingdom needs to be a part of that. My hon. Friends and I have regular discussions with the Welsh Government, and the roll-out of the charging network is in all parts of the United Kingdom.

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State knows that many of my constituents work in the automotive industry and how serious the situation is with Brexit. Constituents are writing to me to ask why there are so few charging points in the Wirral. This is a huge issue. Will he do something that this Government really have control over and take action now on the business rates impact on the automotive industry, so we can at last have some positive news for the automotive industry in Britain?

[Greg Clark]

I think the hon. Lady knows that I have regular discussions with Vauxhall and its owner PSA. In fact, PSA has invested very substantially. One of its most recent major investments in Europe was to strengthen the Luton plant with the next generation of technology. We talked to it about investment in Ellesmere Port, which she knows is important.

In terms of charging points, we have one of the best charging networks in Europe, but we need to expand it further. As the hon. Lady knows, through the automotive sector deal we have a very close relationship with the industry and work jointly with it.

Trade Union Access to Workplaces

Alison McGovern Excerpts

Tuesday 4th June 2019 Westminster Hall

[Justin Madders]

I absolutely agree. We have had a number of debates on blacklisting, particularly in construction, but it applies in other areas. Whistleblowers often find that, once they have blown the whistle, they are unable to gain employment. It is a disgraceful activity that needs outlawing.

[Alison McGovern (Wirral South) (Lab)]

My hon. Friend was just coming on to health and safety. Our area has a lot of heavy industry manufacturing. Does he agree that all the evidence demonstrates that where there is an active trade union branch, there is a much better safety culture than where trade unions are not welcome or, in some cases, prevented from organising?

[Justin Madders]

Yes. We have a lot of potentially dangerous industries in our area. The ones I tend to deal with have been around for a long time. They all have long-standing recognition agreements with trade unions, and excellent safety records as a result. It is a learning process, not an adversarial process, particularly in health and safety.

Some companies ought to take a leaf out of those employers’ books and learn how to treat and to deal with employee representatives in a much more reasonable and engaging way. A number of employers behave despicably, adding to employees’ fears about victimisation, which leaves many individuals not wanting their employers to know that they belong to a trade union. How sad is that? How damning is it that some companies are so vindictive to their staff that their employees will not tell them that they belong to a trade union?

Only last week I met a constituent who told me what it was like in his workplace, where unions are not welcome, where arbitrary decisions are made about who is retained and who is let go, and where all the workers are too worried to put their head above the parapet. I hope to discuss my concerns with the company in due course, but does it really need a Member of Parliament to remind an employer of how to treat its staff? If a trade union official was allowed access to the site, they would be able to do that, and in the end everybody would benefit—the workers and the company. At the moment they are locked out, which is simply not good enough. It is shocking that these kinds of things still take place in the 21st century.

What is the point of someone having the right to join a trade union if they cannot exercise that right because an employer refuses to engage? What is the point of their being a trade union member if they cannot be represented? I have lost count of the number of times companies have lied to employees about their right to be accompanied by trade union reps at disciplinary or grievance hearings by saying that, because the company does not recognise a particular trade union, those unions do not have the right to attend the hearings. The Government should clamp down on that.

We have a culture of weak employment rights, greedy corporations and a Government that obstruct trade unions. We need to get away from that and towards a period of renewal and rebuilding of one of the pillars of a decent society: job security. Without job security, people have no security. How can they plan for their future, for a home or for their family if the labour market is so cut-throat, so insecure and so parasitic that they are always just one step away from disaster? The stabilising force of trade unions is a vital component of a decent society.

“Rights” is not a dirty word. Rights are not only about individual dignity and respect in the workplace; they give people a stake in society, when they know that if they do a good job and their employer runs the business well, they will be rewarded. We need an economy —and a country—where everyone has a stake in its prosperity, but to do that we must have a system that values the security and sustainability of a job itself as much as the principle of job creation. Good employers want to work with unions, and in an ideal world all employers would be able to do so without the need for the legislation that we have talked about.

--- Later in debate ---

[Ruth George (High Peak) (Lab)]

It is a great pleasure to follow the previous speakers in this important debate. Having worked for the Union of Shop, Distributive and Allied Workers—USDAW, the shop workers’ union—for 18 years before coming to this place, I have seen an enormous amount of good practice in a trade union. I am sad to say that, since being elected as a Member of Parliament, I have seen the opposite side of the coin. Constituents come to me with employment cases, some of them really serious, and my first question is always whether they are a member of a trade union. I am really sorry to say that the vast majority are not; if they were, they would not end up in these situations with their employers.

Only 14% of workers in the private sector are in trade unions, so it is a very rare breed who have the benefit of trade union protection at work. While working with USDAW and the retail sector over many years, I often heard from skilled and experienced reps; they had been trained and had done training courses on employment rights, and were far better at negotiating under their companies’ grievance and disciplinary procedures than the managers, who were often straight out of business school, or were moved around shops in different areas and so were never able to build up the expertise that the reps had.

Employers are missing a trick by not seeing trade union representatives as an asset to their workplaces and workforces. Having helped to put together presentations for employers on the value of a trade union in the workplace, I know that a trade union can absolutely bring value for money and productivity to a company. A union can also ensure that a company is doing everything by the book, and can certify that at national level; at local level, the presence of a trade union rep can give people confidence in the management in the company—confidence that things are being done right.

My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) mentioned health and safety. I am honoured to have the laboratory for the Health and Safety Executive in my constituency. It is really useful to be able to talk to people there about how best to implement health and safety at work, particularly given the decline in the resources that the Government give to the Health and Safety Executive. We have seen inspections decline—they are now done on a risk-assessed basis—but where a workplace has trade union representatives who are trained in health and safety, those health and safety reps do risk assessments and take soundings from their work colleagues, who often feel more able to raise problems with their trade union representatives than with their management, particularly if they are concerned about their safety. That is even more the case where there are people in the workplace with a disability or some other form of impairment. It is so important that they feel that they have that support.

We have some basic rights at work, but in the UK they are particularly basic, and we often see that even those are not provided. We have a system of employment tribunals whereby individuals have to put their head above the parapet, as has been mentioned; they have to show that they are able to make a complaint in order to access an employment tribunal. That does not help the rest of the workforce, who are probably suffering in exactly the same conditions, particularly where the issue has to do with the minimum wage, holiday pay, sick pay, parental leave or flexible working. Those are basic rights at work that we expect to be in place, but too often they are not, and individual employees have to put themselves forward in order to be able to access a particular right. Many feel that it is not worth it; many feel that it is better to move on to a different place of work. That does not help the other people there.

To access the protection from unfair dismissal, a person now has to have been in a workplace for two years. We have an increasingly mobile workforce, so a growing number of people are not able to access the right to claim unfair dismissal, and do not feel that they can access any of the other rights that enable them to take a case to their employer or to a tribunal, especially where they cannot get the support of a trade union representative in that. That is why, as I have said, it is so important that trade union representatives are able to come in and support individual members in a workplace. Even where the union is not the recognised trade union, the trade union reps need to be able to support their members, who are paying for the privilege of membership. If they are paying for that service, it is not right that their employer should be able to deny it to them.

[Alison McGovern]

My hon. Friend is making an excellent speech. Does she agree, at this moment, when we are trying to deal with cultures of bullying or sexual harassment, that it is very important that when people take complaints forward, they have somebody with them to give them confidence and comfort in what can be a stressful and sometimes distressing situation?

[Ruth George]

Absolutely. My hon. Friend makes an excellent point. People often spend the majority of their waking lives at work, and the relationships in the workplace are some of the most important to them. If they are subject to bullying or harassment, that affects their whole life and their confidence in taking the issue forward, so having a trade union representative, or a trade union office that they know they can phone for expert support and advice—having someone on their side—is so important, particularly when they are taking forward a case against a manager or another colleague with whom they work closely. That creates very difficult situations for individuals.

It is not just individuals who benefit from trade union membership. The state also benefits from higher productivity and from better pay and conditions, which reduce the reliance on in-work benefits that comes from low pay and low hours at work. Universal credit is being rolled out, and the only thing that employers have been told by the Department for Work and Pensions is that they no longer have to give people set hours of work. With tax credits, people used to need to have a contract to work 16, 24 or 30 hours a week, for access at different points. Employers knew that and were prepared to give those contracts to ensure that people could afford to live on the contract of work. Under universal credit, yes, people can access mini jobs, with fewer hours of work, but that will encourage employers to provide more flexibility within contracts; I am afraid that the Department for Work and Pensions is actively encouraging them in that. They may not be zero-hours contracts—those are bad enough—but they are short-hour contracts, sometimes for as little as four or eight hours a week. People simply cannot afford to live on them, but employers are happy to give those sorts of contracts and to ask people to flex up when they are busy. It gives employers maximum flexibility, but it does not mean that people who are in work can get by.

That is why we are seeing such a huge increase in in-work poverty. Up to 8 million workers—more than one quarter of the workforce—are now in poverty. That is a crying shame for any decent economy, any decent society. If someone goes out to work, they should be able to support themselves; if there are two of them, they should be able to support a family. There are rising house prices, housing costs and rents, but there have been reduced real wages for almost a decade, and people simply cannot afford to live on the wages that they get.

The issue is not just pay but pension provision. Employers with trade unions provide far better pension entitlements than employers who do not recognise a trade union. Again, the state benefits, because it does not then have to provide a top-up where pensioners are falling into poverty. Trade unions that I saw in the workplace helped to keep better pension schemes going for their members. We have seen innovative schemes, such as the Communication Workers Union and Royal Mail scheme, that will help far more workers continue to have a decent standard of living when they retire, and will save the state from having to step in where people fall into poverty because they have an inadequate pension scheme.

Trade unions can bring benefits across the whole range of rights at work, pay and conditions, and pensions. That is why it is inexcusable that no Conservative Back-Bench MPs have bothered to turn up to this debate to, at the very least, discuss the value of trade unions in the workplace and have a robust discussion about their merits and what they can bring to working people who particularly need that support.

We certainly need trade unions in the workplace at a time when employers are possibly facing a lack of labour. Workers from the European Union are returning to their own countries, or countries of origin, and many workplaces are desperate to recruit. They are seeing a recruitment shortage, and they need to ensure that they can provide the best standards and conditions of employment. Trade unions will help them to do that. They help them to stamp out cultures of bullying, which unfortunately can exist in the workplace. They ensure that there is always a trusted third party. They ensure that people have a friend at work whom they can turn to—and everybody needs one of those at times. I really hope that the Minister will reflect on those points and respond to them.

Leaving the EU: Protection for Workers

Alison McGovern Excerpts

Wednesday 6th March 2019 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

This is obviously an extremely important statement, but there is quite a lot of other business to get through this afternoon, so shorter questions and shorter answers might be in order.

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State speaks well and everybody wishes to listen to him. However, not all his colleagues are of the same mind. Before Christmas, the Attorney General stood at the Dispatch Box and boasted that the non-regression clauses in the deal are

“not enforceable either by the EU institutions or by the arbitration arrangements under the withdrawal agreement.”—[Official Report, 3 December 2018; Vol. 650, c. 559.]

So why on earth should we trust these clauses?

[Greg Clark]

The Attorney General was making a statement of fact that the provisions in that agreement are not covered by that arbitration mechanism. That is a statement that accurately reflects the reality, which is one of the reasons why availing ourselves of the opportunity to have a parliamentary mechanism to act on and see implemented that non-regression commitment—putting it in the hands of this House—is especially valuable.

Leaving the EU: Airbus Risk Assessment

Alison McGovern Excerpts

Monday 25th June 2018 Commons Chamber

[Greg Clark]

My right hon. Friend takes too pessimistic a view. We do not want Airbus to be located in this country because it is too difficult for the company to go elsewhere; we want it to be here with enthusiasm because this is a good and profitable place to invest. I am determined that the deal we secure and the investment we make through our industrial strategy will add to our strengths and make us even more attractive. We should have a counsel of optimism rather than defensive pessimism.

[Alison McGovern (Wirral South) (Lab)]

Unlike the right hon. Member for Rayleigh and Wickford (Mr Francois), my constituent Kyle Robinson, a Unite shop steward, works at Broughton every day. He wrote to me this weekend to say that the current situation for him and the families I represent is potentially catastrophic. Will the Secretary of State ensure that when he takes up the invitation from my hon. Friend the Member for Alyn and Deeside (Mark Tami) to meet him and the company, the unions get an invite as well?

[Greg Clark]

The company has good relations with the trade unions and meets them regularly, as indeed do I. The hon. Lady should reflect that when the country took the decision to leave the European Union, there was always going to be a period before the negotiations were concluded when anxieties would be felt. Our purpose and determination is that those negotiations should be concluded so that there will be confidence to invest in the future and we can create many more jobs for her constituents.

UK Automotive Industry: Job Losses

Alison McGovern Excerpts

Tuesday 22nd May 2018 Westminster Hall

[Matt Western (Warwick and Leamington) (Lab)]

I beg to move,

That this House has considered job losses in the UK automotive industry.

I thank Mr Speaker for granting this debate. I also thank you in advance for your chairmanship, Mr Bone.

“Precipitous” is not a word used very often; when it is said by the chief executive of a major global automotive manufacturer, it is time to listen. Why? Because such utterances from major industrialists are rare; such people prefer to keep out of the headlines and to get on with the day-to-day of running multibillion-pound organisations that employ hundreds of thousands of people.

In the UK, the automotive industry has been one of the great success stories since the financial crash of 2007-08. In the two decades before that crisis, the industry’s economic output was broadly flat, before it dropped sharply in 2009. Since then, we have been fortunate to witness a renaissance in this major industry, which was seriously damaged by the crash, but which managed to sustain itself, with some Government intervention, through that difficult period. In 2017, in real terms, the motor manufacturing industry was worth 25% more than in 2007, although growth appears to have levelled off in the last year. In 2007 motor vehicle manufacturing accounted for 5.4% of total UK manufacturing, but in 2017 it accounted for 8.1%—a 50% increase in its overall importance. That was the result of significant inward investment from all resident vehicle manufacturers and component suppliers. The industry has contributed to almost 10 consecutive years of steady growth. Just as importantly, that has translated into a 29% increase in direct manufacturing employment in the sector.

The headwinds are strong and many. As the industry meets the challenges of transitioning to cleaner fuels and to a super-low-carbon future, it has been disrupted by the uncertainty of Brexit and a Government policy that penalises the cleaner diesel-powered vehicles. It is one of the great paradoxes in business that, in seeking to improve air quality, the Government have managed the reverse the progress achieved over many years to reduce carbon dioxide emissions.

In my maiden speech last year, I stated that there were rising pressures on the industry and that action was needed to maintain its recent success. I warned of the slowdown, with falling sales, and that the industry represented an economic bellwether. It has become increasingly clear that, from trucks to cars, sales are falling as people decide not to replace their vehicles.

I have repeated those calls in many subsequent debates, and there have been many in recent months, including those held by my hon. Friends the Members for Dagenham and Rainham (Jon Cruddas) and for Ellesmere Port and Neston (Justin Madders). Both of their debates reflected the rising concern about the real, clear and present danger to the sector, and sought the attention of the Government so that they would act.

That danger has become very real since the autumn, with the announcement of job losses all over the UK. To date, 2,000 jobs have been lost among car manufacturers, and planned increases in staff recruitment have been put on hold. More widely, when the component suppliers and related sectors are taken into account, it is estimated that between 8,000 and 12,000 jobs at least have been lost in just eight months.

[Alison McGovern (Wirral South) (Lab)]

I congratulate my hon. Friend on getting this crucial debate. Given the numbers that he mentions, does he think we ought to return to the subject of the last debate we had here—business rates? The car industry needs a shot in the arm; is it not time that the Government gave it one?

[Matt Western]

I totally agree with my hon. Friend. The business rates situation handicaps the industry in this country and puts it at a significant disadvantage to competitors on the continent. Added to that are the energy costs that it faces: on average, there is a 74% premium on the energy costs on the continent.

Major manufacturers have told me that their greatest concern is that there seems to be little concern from the Government. It is disheartening that this apparent lack of interest flies in the face of the industry’s importance to our overall economy. The financial services sector is held up as the great driver of UK national wealth, but it is worth remembering the increasingly important contribution of the UK motor vehicle manufacturing industry. According to the Library, it generated £15.2 billion of value to the economy in 2017, which is 0.8% of total output. More relevantly, it represents 8% of manufacturing output. Likewise, it employed 162,000 people across the UK in 2016, equating to 1% of all UK employees.

In UK manufacturing, the automotive industry is the second most investment-intensive sector for total investment as a proportion of gross value added, although it is top in value terms, investing £3.6 billion in 2015. The west midlands has the largest number of people employed in the manufacture of vehicles in any UK region or country—perhaps that is why this subject is so close to my heart. The 54,000 employees in our region represent around a third of all motor industry employees in the UK.

Vauxhall Factory, Ellesmere Port

Alison McGovern Excerpts

Tuesday 20th March 2018 Westminster Hall

[Justin Madders]

That is certainly a huge concern locally. We do not want to get into a game of pointing fingers; we want action, certainty and investment in the plant, but it will be a challenge. A report by the Business, Energy and Industrial Strategy Committee recently concluded that

“leaving the EU without a deal would undoubtedly be hugely damaging to the UK automotive sector, more so than to other European countries… Overall, no-one has argued there are advantages to be gained from Brexit for the automotive industry for the foreseeable future.”

Now that we are leaving the EU, it is important to recognise that there is no upside for one of our most vulnerable and important sectors. We must do everything possible to safeguard jobs and investment, because history shows us that once manufacturing jobs are lost, they very rarely come back.

So far, the Government’s response has been denial. We need them to work tirelessly to reassure major international companies that their future competitiveness will not be fatally undermined by tariffs or regulatory divergence, and that they can invest with confidence. I want us to get into a position in which Brexit cannot be used as an excuse not to invest in UK manufacturing. A clear and unequivocal commitment to a customs union would help, so that the many parts that travel back and forth across the continent can do so without impediment and without the final product becoming uncompetitive. The Society of Motor Manufacturers and Traders has estimated that failure to properly cater for such issues in the negotiations could result in an increase of more than £1,500 in the average cost of a vehicle. What business can absorb that without a massive impact?

There is a school of thought that says that some sort of customs union will prevent us from striking up trade deals on our own, but as the BEIS Committee said, the reality is that there are no advantages for the automotive sector from Brexit. If asked to choose between preserving trade with up to 80% of existing customers or knowingly jeopardising existing trade in exchange for the chance of some new business with unspecified countries at an unspecified future time, I believe most people would go for the former and protect existing jobs.

All I have seen from Cabinet Ministers who have been pressed on the issue is bluffing, complacency and dangerous fantasies about a green and pleasant land. The automotive industry will survive and flourish only if we protect it now. I do not expect the Minister’s reply to provide the laser-like clarity that has been missing so far, so I will focus instead on matters that are wholly within the Government’s gift, that are not down to negotiations, that can make a real difference now, and that would still be key to securing the plant’s future even if a new model were announced tomorrow.

The first such matter is business rates, which can have a deterrent effect on investment and can mean that efficiencies have to be sought in alternative areas. Some 60% of the total property tax bill of the former Opel group came from the UK, even though the UK accounted for only 8% of the group’s total footprint. In Germany, significant rate reductions are provided to large companies that are intensive energy users.

[Alison McGovern (Wirral South) (Lab)]

rose—

[Andrew Rosindell (in the Chair)]

I call Angela Rayner.

[Alison McGovern]

All red-headed women are actually the same, Mr Rosindell, so do not worry.

Is my hon. Friend aware that I went to see Treasury Ministers well over a year ago about the business rates problem in car manufacturing, but they were simply unable to do anything? Does he agree that when it comes to meeting the challenge of Brexit and keeping manufacturing jobs in this country, that sort of approach is just not going to work?

--- Later in debate ---

[Richard Harrington]

The hon. Lady has been in government herself, so she knows that sometimes seven minutes is not enough to deal with these matters.

The automotive industry is very important for the industrial strategy, which is our cornerstone policy. We have announced quite significant sums of money— £80 million—for battery scale-up facilities in the west midlands, and I believe that the automotive industry, with the advanced propulsion centre and everything else, is absolutely critical to us. I hope that can help the situation at Ellesmere Port, because it will provide a framework for a modern industry of the future.

As far as Brexit is concerned, I recognise exactly the uncertainty that has been mentioned by the hon. Member for Ellesmere Port and Neston, and others. It is very important; we are not in “denial” about it. However, what I would say is that the automotive industry has been used as a model by my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy. For example, it was well publicised that at Chequers the automotive industry and its interlink with all of the companies in the supply chain, and everything in Europe, was used as an example; what my right hon. Friend would call, quite rightly, an “exemplar”.

Yesterday’s conclusion of the negotiations between the Brexit Secretary and Michel Barnier, with the transition period, showed that exactly the sort of thinking that we need for the automotive industry is recognised by our own Government and by the European Union. I am confident that that is largely the result of successful Government lobbying by the automotive industry—in which, of course, Vauxhall has taken part.

[Alison McGovern]

I thank the Minister for giving way. Is he saying that, given that the automotive industry was used as such an “exemplar”, the kind of arrangements agreed for the period of transition are those that we can expect to help the automotive sector in perpetuity?

[Richard Harrington]

Yes, I would hope so. I accept the fact that we are leaving the European Union, but I believe that common sense will prevail about the frictionless and free movement of trade between ourselves and the European Union. I think the hon. Lady is quite aware of my views on that.

Yesterday’s milestone on the implementation period will help in the short term to alleviate some of the fears mentioned by Mr Tavares and others.

Budget Resolutions

Alison McGovern Excerpts

1st reading: House of Commons
Tuesday 28th November 2017 Commons Chamber

[Rebecca Long Bailey]

The hon. Gentleman should refer to comments made by the shadow Chancellor. It is not as straightforward as putting a figure on interest repayments. Each investment is dealt with on the basis of the level of return to the Government, so each infrastructure project, for example, needs to be assessed on its own merits. The hon. Gentleman should know that. He is a clever young man, and I would have expected him to know a little more about this subject.

[Alison McGovern (Wirral South) (Lab)]

I have been in this House slightly longer than my hon. Friend, so I saw the former Chancellor, George Osborne, having to U-turn on his deficit reduction plan. He failed to meet every one of his debt targets. Labour kept debt at 40% of GDP, and now it is 80% of GDP. Does my hon. Friend agree that the carping from Conservative Members is in total ignorance of the facts?

[Rebecca Long Bailey]

I could not agree more. That is very articulately put.

It is not as if the Government were not warned of the problems of austerity by my right hon. Friend the shadow Chancellor. Indeed, the International Monetary Fund warned the Government that

“episodes of fiscal consolidation have been followed, on average, by drops rather than by expansions in output… The increase in inequality engendered by financial openness and austerity might itself undercut growth, the very thing that the neoliberal agenda is intent on boosting.

Refusing to heed that advice was a deeply reckless act.

The current Chancellor may well turn around and lament post-crisis productivity, but let us remember that he was in the Cabinet while this economic mess was being created. He is not absolved of responsibility, but he has the opportunity to admit that that approach was wrong and to change course.

Unfortunately, although the Chancellor admitted in his Budget speech last week that there is a big productivity problem—a big gold star for Phil there—there was very little to give our economy the upgrade it desperately needs, nor was there any attempt meaningfully to level up regional investment spend.

Indeed, despite the Chancellor’s jovial attempts at talking up our ability to harness the fourth industrial revolution, the Office for Budget Responsibility looked at his future investment plans and cut its forecast for growth in productivity, but he still had one last chance—the industrial strategy. I waited with bated breath yesterday, desperately hoping that the action would match the rhetoric. It started well enough with the strategy’s stated goal to create an economy that boosts productivity and earning power throughout the UK. “That’s spot on,” I thought. But sadly, having looked into the strategy in a little more detail, it seems little more than a repackaging of existing policies.

Unfortunately, the Conservatives have form on this. There has been a long line of PR gimmicks that simply do not deliver. Members may recall that, back in 2011, the previous Chancellor announced a march of the makers, but UK manufacturing has since grown at less than half the European average. Similarly, much was made of the northern powerhouse, which sounds great, but only two of the top 20 infrastructure and construction projects in the Government’s pipeline are in the north-east, north-west or Yorkshire and the Humber, leading my hon. Friend the Member for Bolsover (Mr Skinner) to call it the “northern poorhouse.”

No one can argue with the core principles outlined in the 255-page document we saw yesterday but, as the Financial Times summarised today,

“the judgment being passed…is that it amounts to a good start—but much still remains to be done to ensure success.”

Although the strategy certainly acknowledges many of the fundamental problems our economy faces, I fear that the level of detail and proposed investment simply do not match the surrounding rhetoric, falling far short of what is needed.

The White Paper gives us a handy one-page summary of the strategy’s key policies to strengthen the “foundations of productivity.” It is perhaps poignant to point out that even the previous Chancellor was trying to fix our foundations and outlined a productivity plan called “Fixing the foundations” two years ago. What happened to that? I digress slightly.

Let us look at the first foundation: ideas. The key policies are raising total R and D investment to 2.4% of GDP by 2027, increasing the R and D tax credit and allocating some of the increased spend to a second wave of the industrial strategy challenge fund. Although increasing R and D spend is, of course, a step in the right direction, it is an unambitious target.

--- Later in debate ---

[Alison McGovern (Wirral South) (Lab)]

Apart from failing to address the inequality for the WASPI women, last week’s Budget failed the central test; it should have taken this on. Our economy faces the incredible challenge of Brexit and last week, the Chancellor should have come to the Dispatch Box, been honest with the country and said, “This isn’t working. Let’s stay in the single market. Let’s stay in the customs union. Let’s build up our economy from there, and then we will be able to afford truly to invest in our economy.” I will come back to that point, but first I want to turn to housing, which is what the Chancellor said his Budget was all about. He will say that his stamp duty cut is a headline winning move that shows his commitment to a homeowning democracy. Actually, the policy is a failure. It took my two excellent members of staff here, Tom Railton and Ella Crine, precisely 14 minutes from receiving the Budget Book at the Vote Office to send a message alerting me to the OBR’s judgment on the central policy in the Budget. The OBR states that

“the main gainers from the policy are people who already own property, not the FTBs”—

first-time buyers—

“themselves.”

I cannot imagine that it took the Treasury’s fine team of talented economists any longer to tell the Chancellor, than it took Tom and Ella to tell me, what the OBR would make of his policy. The question, therefore, must be: was he told? Did he ignore advice? What estimate was made of the impact of the policy before the Budget was completed?

This is no small measure. It will cost £125 million this year, £560 million next year and £600 million in every other year of the Budget period. That is money forgone that could have been used to secure the future of our health service or to get us one step closer to ending child poverty in our generation.

While I am on the subject of child poverty, this Budget does precisely nothing to address the growing number of kids in poverty in our country. The Tories on the Front Bench should realise that if they do nothing, they will see 400,000 extra children in poverty by the end of the Budget forecast period. If they think that this subject will go away, they can think again. It is not just people on this side of the House who will not forgive them; every single one of their constituents will be asking them about child poverty at the time of the next election. Either they do something about it or we will.

Finally, I come to Brexit. This may be my final point, but it is the most important of all. As a country, we now know that we have lost one decade of growth and that we face another. We are at a fork in the road and face the biggest choice in our generation. The referendum may have been won for Brexit, but we in this House have to decide what that means. We have to make a deal. We have to find a deal that suits us and our partners in Europe. The answer is not to kowtow to those who would dog whistle on immigration. Our borders must be secure, yes, but that does not mean that freedom of movement has no place. We have to accept the world as it is, not as we would wish it to be. We need to make a deal, stay in the single market and protect our country’s future.