The Economy and Living Standards

Andrew Gwynne Excerpts

Thursday 12th June 2014 Commons Chamber

[Ed Balls]

I am afraid that the Queen’s Speech missed out the key elements of a long-term economic plan that would deliver rising prosperity for all. That is the problem. We know that there is a problem with housing—demand has run ahead of supply—so where was the action in the Queen’s Speech to deliver new towns, Treasury guarantees, planning reform, affordable homes, reform of Help to Buy and a new help to build scheme, which would deliver what we need? We have lower levels of house building than at any time since the 1920s, and the Chancellor is tinkering. It is about time that he showed some leadership on housing; otherwise, the aspirational majority will not get on the housing ladder. The danger is that interest rates will rise much earlier in the recovery than they should, choking off the living standards of people across our country.

The same point applies more widely to the Queen’s Speech. On skills, where was the action to deliver a gold standard for vocational qualifications? Where was the tax on bank bonuses to ensure that every young person who is out of work for a year is guaranteed a job? Where was the action to ensure that we incentivise a non-statutory living wage, improve the minimum wage and tackle the abuse of zero-hours contracts?

Although we welcome the extra investment in child care, that will not happen until the next Parliament. It will fail to help too many families who are struggling with the costs of child care, which have gone up so much. Why will the Chancellor not increase free child care for the under-fives from 15 hours to 25 hours a week for working parents? It is a Labour policy, but it is a good policy and should be in any sensible long-term economic plan.

[Andrew Gwynne (Denton and Reddish) (Lab)]

My right hon. Friend is absolutely right to seek to raise prosperity and ambition in this country. Is not the Government’s strategy utterly self-defeating? We now have record numbers of people in work but in poverty. Do we not need to ensure that those people have work that pays, and pays well?

--- Later in debate ---

[Andrew Gwynne (Denton and Reddish) (Lab)]

It is a pleasure to contribute briefly on the last day of the debate on the Gracious Speech.

The striking thing for me is that the last Queen’s Speech of a Parliament is usually stuffed full of Bills—the last few things that a Government want to get done before a general election—and then there are a load of draft Bills, which are an indication of where that Government want to go if they are lucky enough to secure another term in office.

[Robert Flello]

I recollect that before the 2010 general election, the Conservatives criticised the then Prime Minister for what they called a lightweight Queen’s Speech; by comparison with this one, it looks so heavy as to be unliftable.

[Andrew Gwynne]

I completely agree with my hon. Friend, and the real issue is that this Queen’s Speech is lacking in both those areas—Bills and draft Bills. Perhaps it is unfair to Her Majesty the Queen to say this, but the only memorable part of her Gracious Speech was her announcing a tax on plastic carrier bags. That is rather telling, because despite all the big issues facing my constituents in Denton and Reddish, there is very little in the Queen’s Speech about tackling the cost of living crisis, nothing to ease the pressure on housing which my constituents face, nothing on the NHS—perhaps that is a blessing in disguise—and no vision for a better Britain.

The complacency from Government Members was striking, because this recovery is unequal. Areas such as Denton and Reddish are struggling. I am not a merchant of doom; there are some good indicators. Unemployment is relatively low, at 3.7%. That is welcome but it is still higher than the 2.8% rate when I entered Parliament in 2005. There is an underlying story of low wages and long hours for people in full-time jobs, and many jobs are part-time, on zero-hours contracts and insecure. Of course, that is utterly self-defeating for the taxpayer, because it results in the working poor, whereby we are paying extra in-work benefits to subsidise low wages.

[Robert Flello]

I am enjoying my hon. Friend’s speech immensely. He has hit on that insecurity issue yet again. Last weekend, Stoke-on-Trent saw its 10th foodbank opening up, which surely points to the insecurity that exists.

[Andrew Gwynne]

It absolutely does, and it is a stain on our country’s reputation that so many people in work, as well as those who are out of work, have to rely on charity handouts.

Of course, in my constituency, an in-work benefit that has soared in recent years is housing benefit. I now have 1,000 extra claimants in Stockport and 870 extra claimants in Tameside. Those increases are surely a sign of that insecurity and those low wages. In my constituency, wages are 20% lower than the median for the UK. That is why we need Labour’s deal on the national minimum wage and why we need to put in place living wage agreements.

Youth unemployment is still stubbornly high. I commend Tameside council and, yes, I also commend Stockport council for their efforts to increase the number of apprenticeships, but what we need is a compulsory jobs guarantee, because what really worked for many young people in my constituency was the future jobs fund. It was criminal that this Government axed that very important scheme. We need to upskill the next generation and maximise the benefits of the jobs that have been created in the Manchester city region; in the city centre, in MediaCityUK at Salford Quays and at the airport city. We need to attract new jobs to Tameside and Stockport.

We need to invest in education. It was criminal that many of my schools missed out on Building Schools for the Future, even though my right hon. Friend the Member for Morley and Outwood (Ed Balls) signed off the BSF payments for St Thomas More college, Audenshaw school, All Saints school and Reddish Vale technology college. We need that investment, so that those schools have the same quality of educational facilities that we had in Denton community college.

Lastly, there is a chronic need to build more housing. It is good for jobs, but we need affordable housing both to buy and to rent. We need decent homes in the private rented sector, because far too many of them are squalid, frankly. We need more social housing. I commend New Charter Housing Trust Group for its new build—I was lucky enough to cut the first sod at its new site in Audenshaw—but it barely scratches the surface of what is needed.

This Queen’s Speech lacks ambition. I fear that we will have to wait 11 months for a Labour Government and a proper programme for action.