Fiscal Responsibility and Fairness

Andrew Gwynne Excerpts
Thursday 19th March 2015

(9 years, 1 month ago)

Commons Chamber
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Danny Alexander Portrait Danny Alexander
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Labour Members may not like it, Mr Speaker, but I am setting out the numbers in the Treasury document published today, which is an entirely legitimate thing to do.

This will also allow us to reward the hard-working public servants whose pay restraint has helped so much to balance the books. Public servants have made big sacrifices, and we need to repay that.

No Chief Secretary has ever had to control public spending in the way that I have, and no Chief Secretary should ever have to do so again. But this scenario proves that there is no need to shrink the state in the way that some in this House propose. The recovery secured, the fiscal mandate met, national debt down, public finances that have turned the corner, a stronger economy and a fairer society, and a better future for the United Kingdom: that is what these plans deliver.

However, fairness is not simply embodied by the numbers on a spreadsheet; it is also about the actions that we take. Nothing makes people more angry than the sight of some refusing to pay the tax that they owe. Last month I committed to ensuring that any individual or company that facilitates tax evasion would face stronger criminal penalties and financial sanctions. Today we deliver on that commitment by publishing a substantial package of next steps in the clampdown on these immoral and illegal practices. We inherited—[Interruption.] If the hon. Member for Denton and Reddish (Andrew Gwynne) would simply listen to what is being said instead of ranting like a lunatic, he would hear the measures that the Government are taking to clamp down on tax evasion.

We inherited from the previous Government a tax system that had more holes than a Swiss cheese and was more complex than a Rubik’s cube. The opportunities for those who wish to get away without paying were many and varied.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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Which page of the Budget is this on?

John Bercow Portrait Mr Speaker
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Order. The hon. Gentleman should not keep shrieking from a sedentary position, “Which page?” If the Chief Secretary wishes to go through page numbers, that is his prerogative, but if he does not, excessive gesticulation is rather unseemly. I have high aspirations for the hon. Gentleman’s future as a statesman, but I am not sure he is aiding his objective of becoming a statesman by this rather shrill shrieking, which in any case, as I am sure Mrs Gwynne will confirm, will be injurious to his health.

Oral Answers to Questions

Andrew Gwynne Excerpts
Tuesday 10th March 2015

(9 years, 2 months ago)

Commons Chamber
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Danny Alexander Portrait Danny Alexander
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I know that discussions have been ongoing, and that the issue has been the subject of a protracted dispute. I have no further updates, but I will ensure that my ministerial colleague who is responsible for the scheme writes to the hon. Lady.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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5. What recent representations he has received on fiscal steps to address funding pressures in the NHS.

Danny Alexander Portrait Danny Alexander
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The Government have protected the health budget in real terms throughout the current Parliament. Of course a strong national health service needs a strong economy, and the Government plan to deliver that strong economy, along with a fairer society. The NHS budget has already increased by £12.7 billion during this Parliament, and in the autumn statement we announced an additional £2 billion for front-line NHS services. That money is intended to meet demand pressures in the next financial year, and also to help to start the process of transformation that was outlined in the “Five Year Forward View”, which is probably the most important representation that I have received on NHS funding in the last year or so.

Andrew Gwynne Portrait Andrew Gwynne
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Hospitals have struggled to cope with the pressures during the winter. Labour has made a fully funded commitment to provide the extra doctors, nurses, home care workers and midwives who are needed through a “time to care” fund. Analysis of Conservative party spending plans shows that more than 260,000 elderly people risk losing their social care packages during the next Parliament. Is it not time for the Government to commit themselves to taxing hedge funds and tobacco companies in order to raise the extra resources that our NHS so desperately needs?

Danny Alexander Portrait Danny Alexander
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Let me gently say to the hon. Gentleman that he ought to be a wee bit cautious about believing too many of his Front Benchers’ spending plans. They say that they want to deal with the deficit but have set out no plans to do so, and they have made multiple spending commitments without any sense of how those commitments will accord with their fiscal strategy.

The hon. Gentleman is, of course, right to suggest that going too far and reducing the deficit reduction by more than is necessary in the next Parliament would have a damaging effect on public services. I would say that his party has got it wrong and the Conservative party has got it wrong, but the Liberal Democrats have got it right.

Future Government Spending

Andrew Gwynne Excerpts
Wednesday 4th March 2015

(9 years, 2 months ago)

Commons Chamber
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Chris Leslie Portrait Chris Leslie
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If we had a Government who understood that a connection exists between living standards, the health of our economy and the health of our public finances, perhaps we could make some progress on deficit reduction and tackle some of those issues. Instead, recent figures show that the gap between what the Government spend and their income is perpetuating at a very high level. I think it came down from £80 billion in the first nine months of last year to £74 billion in the first nine months of this year. The deficit reduction strategy is a thing of the past for this Government, because they do not realise how stagnant wages have pulled the rug from underneath it.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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Of course, the inconvenient truth for the Conservative party is that it cannot whitewash history. [Interruption.] A BBC news online article on Monday 3 September 2007, under the headline, “Tories ‘to match Labour spending’”, said:

“A Conservative government would match Labour’s projected public spending totals for the next three years, shadow chancellor George Osborne has said.”

Chris Leslie Portrait Chris Leslie
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The reason Conservative Members are getting so irritated is that they do not like being reminded that it was a global banking crisis. They like to airbrush that entirely from the record. That has been their strategy throughout, but we will not let them forget that there was a banking crisis across the globe. We needed to take greater action to regulate it, but I did not hear Conservative Members calling for stronger regulation of financial services; the truth was quite the opposite.

If we had a rational debate, we would see the connection between living standards, growth and the health of the public finances.

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Brooks Newmark Portrait Mr Newmark
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My hon. Friend is absolutely right. That is why we had an emergency Budget which laid out clearly our long-term economic plan.

Let us consider our record in government since we picked up the pieces that were left by the last Government. As my hon. Friend has just said, we have halved the deficit. That is important, because it has kept interest rates low for mortgage holders and for business. Income tax has been cut for 25 million people, by about £705 per person. The personal allowance has been raised from £6,500 to £10,600, and some 3.4 million people have been taken out of tax altogether. Benefits have been capped to reward hard-working people. Employment is up, and youth unemployment is down. The Million Jobs campaign, which I put together, managed to persuade the Chancellor to abolish national insurance payments for those who hired people under 21. That has paid dividends, because it has accelerated the decline in youth unemployment. The state pension is also up by £800. Fuel duty has been frozen. Energy costs are down. Overall, wages now are rising higher than inflation; on the latest statistics, total pay is up by 2.1%, whereas inflation is only up by 0.9%.

Andrew Gwynne Portrait Andrew Gwynne
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Perhaps the hon. Gentleman will add to his list of successes the fact that the welfare bill is up by £25 billion, as a result of increases in housing benefit costs to the Exchequer and the failure of low pay.

Brooks Newmark Portrait Mr Newmark
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It is interesting that the hon. Gentleman should talk about our welfare policies as his side wants to increase spending, whereas we are trying to cap it at a reasonable state—£26,000, which is £35,000 pre-tax, which is higher than the average wage of most people.

Labour was financially reckless in government and, it seems, is even more financially reckless in opposition. Already it has £20.7 billion of unfunded spending commitments for 2015-16, which is £1,200 per household. HM Treasury estimates Labour now has £32 billion of borrowing for 2020-21 and £166 billion over the next Parliament—the next five years—or £10,000 extra per household. I hope voters are listening to that. That is £10,000 extra per household; they should remember that before they go into the ballot box. We have learned today that Labour’s new great tax policy is to increase the cost of a gun licence. So Labour’s policy going forward is, as always, tax more and borrow more.

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Gemma Doyle Portrait Gemma Doyle
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I have already told the hon. Gentleman that I will not give him and his broad shoulders any more time.

The Government’s plan has hurt my constituents. It has hurt the poorest, the people who have to count every penny to pay the bills every month. What have the Government achieved? Nothing but pain. The Prime Minister promised that he would balance the books by 2015, but he has failed. Instead, borrowing for 2015-16 is set to be £75 billion and the Government will have borrowed more than £200 billion more than they planned in 2010. Their failure to balance the books is fundamentally linked to their failure to tackle the cost of living crisis in this country. How can we expect public finances to improve when Ministers have trapped families all over the UK in working poverty? Low pay, rising housing costs, disastrous benefit reforms, sky-high unemployment and spiralling energy costs are the marks of this five years in office and they are all driving up the cost of social security and driving down living standards.

Andrew Gwynne Portrait Andrew Gwynne
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My hon. Friend is making a powerful point. Is not future Government spending a question of priorities? This Government introduced the cruel and pernicious bedroom tax; a Labour Government will scrap it.

Gemma Doyle Portrait Gemma Doyle
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My hon. Friend is absolutely right. It would be naive of us to think that the Government were making life harder for everyone. As he points out, that is simply not the case. The rich are getting richer, bankers’ bonuses are buoyant once again and corporations are lining their pockets at the expense of families in the UK. That is absolutely unacceptable, because when big companies do not pay their taxes, the working man and woman have to pay more. It is clear that five more years of the Tories means a continuation of an economy that rewards only the most privileged while piling on the pressure for millions of families. That unbalanced and extreme approach is only going to lead to deeper spending cuts—cuts that my constituents cannot afford to live with.

The Government want us to return to public spending levels last seen in the 1930s, a time before the NHS even existed.

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David Anderson Portrait Mr David Anderson (Blaydon) (Lab)
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I am glad that the hon. Member for Wolverhampton South West (Paul Uppal) finished his speech by saying that this is Labour’s final Opposition day—hopefully it will be the last for a very long time. Is anyone else sick of hearing the term “long-term economic plan”? Government Members are not; they seem to think it is a catchy phrase. What have we had for the past four years? We have had a short-term economic scam.

The Government promised to cut the deficit in four years, but they have completely and utterly failed. They promised not to borrow, but they have borrowed £219 billion more that they said they would—enough to run the health service for two years. They have decimated public services, destroying hundreds of thousands of good-quality jobs done by people who were delivering vital public services to the people we represent. They were working hard, contributing and paying income tax and national insurance contributions.

The Government have hammered every man, woman and child in this country with a 2.5% VAT rise, and the Liberal Democrats supported it, despite saying they would not. The Government have made life desperate for those people who rely on benefits, so those who were already poor have been made poorer. They have penalised people for having the temerity to be in poverty by bringing in things like the poverty tax—I meant the bedroom tax, but actually I was right first time.

The Government have given away successful public assets such as Royal Mail. They privatised the successful side and nationalised the deficit, which was the pensions. Now even the chief executive worries that it will not be able to keep the universal service obligation. This week they privatised East Coast, the best performing railway line in the country, and now they are talking about privatising Eurostar. We all know, despite their promises, that if they are re-elected the NHS will be moving rapidly towards privatisation, whether via a transatlantic trade and investment partnership or some other route.

My council has been hammered. It now has 45% less money than it did four years ago, meaning that every man, woman and child has been robbed of £328. We have lost 1,700 high-quality people who were delivering services to the people of my town. We have lost a fire engine, and another has been lost in a different part of the constituency, and 130 firefighters had to go across Tyne and Wear. The fire chief’s advice is, “I am being forced to make 35% cuts, and if I do that lives will be lost.” Lives will be lost not only in fires, but on the A1 motorway, which goes through my constituency, the third most congested road in Britain, because firefighters will no longer be available to get people out of damaged vehicles.

There really is a long-term economic plan, and we know what it is: to continue making rich people richer—the same as it has always been with the Tories. They will not stop their friends having dodgy tax deals, because they use the dodgy tax funding for their election campaigns. They will not cut taxes for the poor, but they will for the rich—£7 billion of unfunded tax promises.

Andrew Gwynne Portrait Andrew Gwynne
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My hon. Friend, as an avid watcher of politics, will have seen that at last year’s Conservative party conference the Prime Minister and the Chancellor promised £7 billion of unfunded tax cuts. Is he as worried as I am that they would fund those by making more cuts to the public services that our constituents rely on?

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Andy Sawford Portrait Andy Sawford
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My hon. Friend is right. Conservative Members were calling for less regulation of banking in this country. Not only did they back Labour’s spending plans right up to the time of the global financial crash, but I remember that in my area they paraded around during the 2005 election calling for more spending and criticising the then Labour Government because we had not built enough hospitals, rebuilt enough schools, created enough Sure Start centres, or put more police on the beat. They had the cheek to call for more public spending in 2005, and now 10 years later they pretend that they were counselling caution at that time when they plainly were not.

The notion that the Labour party—the powerful Labour party that created a global financial crash that hit a Conservative-led Government in Germany and right-wing Governments in France and America—did so because we were investing in schools and hospitals is completely absurd. The public have found the Government out and they will be exposed for it at the election.

Andrew Gwynne Portrait Andrew Gwynne
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Let me take my hon. Friend back to what he said about low pay and its impact on the economy. Low pay is not just a tragedy for our constituents who are forced to accept low wages; it is a disaster for the economy of Britain. We have seen tax receipts drop by £68 billion, and national insurance contributions by £27.3 billion—money that could be invested in public services.

Andy Sawford Portrait Andy Sawford
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My hon. Friend is right. The effect of low and stagnant pay means that tax receipts have been much lower than expected. The Government have failed on the deficit and the cost of living crisis. Low pay is combining with higher housing costs and the failure to deliver benefit reform to drive down social security costs, which are rising under this Government. The Tory-led Government are set to spend £25 billion more on social security than they planned in 2010. We need action on the issues that our constituents are facing.

In my area it is not just zero-hours exploitation that causes insecurity, and many people are working through agencies. They come off the books of the jobcentre to work for an agency. That work might last days, weeks, or a few months if they are lucky, and sometimes they get exploited working year in, year out through an agency without holiday pay or proper terms and conditions—desperately insecure employment. Although a few agencies follow the law, when HMRC investigated agencies in my constituency they found more than 70 breaches of the law, and £120,000 owing to local workers in non-payment of the minimum wage. People were being made to pay to get their own pay through payroll companies, or they had to pay illegally for their own protective equipment. That is the real world that many people face in my constituency and across the country.

Bankers’ Bonuses and the Banking Industry

Andrew Gwynne Excerpts
Wednesday 25th February 2015

(9 years, 2 months ago)

Commons Chamber
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Cathy Jamieson Portrait Cathy Jamieson
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I will always give credit where it is due, but we also have to look at what has happened on this Government’s watch. As the hon. Gentleman knows, what we have seen with HSBC over the past few weeks shows that it can take a considerable time for some of those issues to come to light and be dealt with. The important point is to have a regulatory environment in place that allows those issues to be dealt with quickly, rather than just put to one side. We also need a change in culture to ensure that those things do not happen again.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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My hon. Friend is making a very important point. She will remember that after the LIBOR scandal the Parliamentary Commission on Banking Standards set out a programme of reform for the banking sector. Is she as concerned as I am that those reforms have not gone nearly far enough in their implementation? We need a proper investment bank and proper competition in banking, and we must also ensure lending to businesses.

Cathy Jamieson Portrait Cathy Jamieson
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My hon. Friend makes a useful point. I am confident that he has read the paper we published on that, which highlights the need to ensure that finance gets to small and medium-sized enterprises, in particular, and the important role that a proper British investment bank can play.

Earlier this month we saw a new and startling example of impropriety, with the allegations that HSBC’s Swiss subsidiary actively advised customers on how to avoid, and indeed evade, tax. I want to emphasis again that all those activities are symptoms of a wider culture that has seeped from investment to retail banking. That culture has been characterised by short-termism and the pursuit of profit at the expense of all else—in many cases, at the expense of the banks’ own customers and the wider economy. That culture led to banks exploiting their consumers and ripping off the taxpayer.

That culture has also caused banks to lose sight of what should be their core function. The role of our high street banks is, or should be, twofold: they must serve the needs of consumers, providing basic borrowing and saving facilities and loans for mortgages to buy homes; and they must provide finance to businesses, as my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) suggested, enabling them to start up, grow and create well-paid and secure jobs. However, lending to business has fallen by over £55 billion since 2010, despite an array of Government schemes, such as Project Merlin and the funding for lending scheme, all of which have to varying degrees failed to deliver. Despite that, however, and despite all the scandals, the banks have continued to pay lavish bonuses to a small cohort of senior employees.

Tax Avoidance

Andrew Gwynne Excerpts
Wednesday 11th February 2015

(9 years, 3 months ago)

Commons Chamber
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Shabana Mahmood Portrait Shabana Mahmood
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The hon. and learned Gentleman should look at last week’s Financial Times report on tax avoidance and tax collection. It compared the Government’s anti-avoidance measures for companies with the measures Labour put in place to tackle corporate tax avoidance during its time in office. It found that the tax collected by the Government’s measures was going to be 90% lower than under measures introduced by the previous Labour Government:

“Measures put in place by Labour during its 13 years in power to counter corporate tax avoidance are projected to raise ten times as much over the next four years as those introduced by the current coalition government.”

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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Does this not come down to a question of priorities? In the current economic climate, money for public services is very tight. We need to really clamp down on tax avoidance measures that have been abused for far too long—for example, by closing the tax loopholes that allow hedge funds to avoid paying stamp duty. That money, which we have identified, will go towards paying Labour’s £2.5 billion time to care fund to save our national health service.

Shabana Mahmood Portrait Shabana Mahmood
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My hon. Friend makes a powerful point. I entirely agree with him, and it is something I shall come to later.

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David Gauke Portrait Mr Gauke
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Let me address the point about decisions to make a prosecution. First, HMRC determines whether to bring a prosecution and build up a criminal case, and then it is a matter for the Crown Prosecution Service to make a judgment as to whether it is confident that a conviction can be achieved. Rightly—I would hope there is consensus on this point—those decisions are made by HMRC and the CPS, not by politicians. It is very important that that independence be maintained. I do not believe it would be right for politicians to decide how many prosecutions are made, and that has not happened in this particular case.

Andrew Gwynne Portrait Andrew Gwynne
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The Minister continues to insist that Lord Green had neither knowledge of nor involvement in these matters while he was chairman of HSBC, having said that during Monday’s urgent question. That still suggests that the Government must have asked those questions, given that they are so certain in their answers. This is not just a matter for Lord Green; it is simply a matter for Ministers and the Prime Minister. The easiest way to resolve it is for the Prime Minister to place all the information in the House of Commons Library, so that Members of this House can be the judge.

David Gauke Portrait Mr Gauke
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I make the point that I have made before: there is no suggestion and no evidence that Lord Green was complicit in any wrongdoing—that remains the case. Opposition Members can stand up to make allegations and suggestions, but there is no evidence that he was engaged in that type of behaviour and certainly no information was available to Ministers to suggest that he was.

Tax Avoidance (HSBC)

Andrew Gwynne Excerpts
Monday 9th February 2015

(9 years, 3 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

David Gauke Portrait Mr Gauke
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Tax evasion is a criminal offence, and action will be taken in that regard. I should add that we also take firm action against aggressive, contrived, artificial avoidance. Having an ISA does not fall into that category, which is consistent with what Parliament intended, but when people try to abuse the rules, we will take action.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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The Minister cannot have it both ways. He has asserted several times today that Lord Green had no knowledge of, or involvement in, these issues as chairman of HSBC. That suggests to me that the Government asked those questions of Lord Green. In the interests of transparency, will the Minister now commit himself to placing in the Library all the information surrounding the questions that I assume have been asked, given his certainty in answering, so that we can be the judge?

David Gauke Portrait Mr Gauke
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I repeat that, as far as I am aware, no one has come forward with any evidence suggesting that Lord Green was involved in the activities of the Swiss subsidiary about which we have been talking today.

Charter for Budget Responsibility

Andrew Gwynne Excerpts
Tuesday 13th January 2015

(9 years, 4 months ago)

Commons Chamber
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Ed Balls Portrait Ed Balls
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I will explain that in my speech. What we have before us—this so-called trap—is not a trap at all, as I will explain. I will discuss the new fiscal charter in detail in a moment, but let us first be clear about the background to today’s motion and the new charter before us. This is not the first fiscal charter before us in this Parliament, but the second. The first was presented at the beginning of the current Parliament when the Chancellor lay before the House a charter committing the coalition to balance the books in this Parliament, to get the cyclically-adjusted current budget back into balance and the national debt falling by the coming financial year 2015-16.

As I reminded the House on the day of the autumn statement, the Prime Minister actually went further in 2010. He said that he would balance the Budget in 2015. However, just a few weeks ago, in the autumn statement, independent forecasts from the Office for Budget Responsibility confirmed that this Chancellor was not going to balance the books in 2015, or in 2015-16. In fact, public sector net borrowing in 2015-16 is now forecast to be £76 billion, £7.7 billion higher than was forecast even as recently as the Budget.

The figures on page 15 of the OBR’s “Economic and fiscal outlook” show that this Chancellor, in this Parliament, is borrowing—staggeringly—over £200 billion more than he proposed to spend in the 2010 plans. As a consequence, the national debt, compared to the 2010 forecasts, will be much higher in 2015-16 than he suggested. Back in 2010, he said that in 2015-16 the national debt would be 67.2% of GDP. According to the latest figures, it is now forecast to be not 67.2% but 81.1% of GDP, 14 percentage points higher than the Chancellor’s 2010 figure. Worse than that, according to the 2010 fiscal mandate the national debt would be falling, but the OBR figures show that in 2015-16 it will be rising again, from 80.4% to 81.1%. On the deficit, on the current deficit and on the national debt, the Chancellor made promises in 2010, in a clear fiscal charter, and he has broken every one of them.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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Was my right hon. Friend as surprised as I was that, in all his political bluster, the Chancellor of the Exchequer did not mention once that, while he used to say that he wanted to balance the overall budget, he now wants to commit himself to Labour’s policy of balancing the current budget, excluding capital investment? Moreover, he did not mention the fact that the fiscal mandate had been downgraded from a target to an aim.

Ed Balls Portrait Ed Balls
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I shall provide an analysis of the new charter and why it is different from the old charter in a moment, but my hon. Friend is quite right. The Chancellor did not explain either that he had failed to meet the requirements of his charter in the current Parliament, or that he has now changed it for the next Parliament for reasons that are surprising and a bit confusing.

The Economy

Andrew Gwynne Excerpts
Wednesday 26th November 2014

(9 years, 5 months ago)

Commons Chamber
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Priti Patel Portrait Priti Patel
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My hon. Friend is absolutely right. In his constituency and his region, the motor manufacturing sector is doing incredibly well and demand is incredibly high. Long may that continue. That is all about creating the right economic conditions to allow that to happen.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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I appreciate that we are entering the pantomime season and that this kind of political knockabout over whose spending plans stack up might play well to those in the gallery or to people outside, but the real way for the Minister to give confidence to the electorate that her £7 billion tax giveaway will stack up financially would be to allow her spending plans to be judged by the Office for Budget Responsibility. Labour has said that its spending plans will be put before the OBR; why does she not do the same?

Priti Patel Portrait Priti Patel
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We are confident about our plans; it is the Opposition who should be worried about theirs.

The second way to recovery is by securing jobs and employment, and supporting businesses and the private sector. There is no better route to opportunity and success in our economy than being able to get a job; it is perhaps the closest thing we have to a silver economic bullet. Someone in work brings home money and is contributing to the economy, as we have all seen across our constituencies, and this makes an enormous difference to all our constituents. The 2 million private sector jobs created since 2010 have transformed people’s lives, while offsetting the reduction in public sector jobs many times over. This is what it is about: creating the conditions of growth so that the under-25s at the beginning of their careers get the right start in their working and professional lives, as many hon. Members have said. That is why the number of young people claiming benefits has fallen by more than half.

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Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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We could spend a lot of time trading statistics about the economic recovery, the debt, the deficit and how much more the Chancellor is borrowing at this point in the economic cycle than he said he would. Those things are important but, frankly, they mean little to my constituents, who are tired of the blame game and of hearing the Government constantly saying that everything is the previous Government’s fault, given that they have been in charge for four and a half years. What matters to my constituents is their own jobs and living standards, and economic security for them and their families. It is about whether they can heat their homes, put food on the table, keep their cars running or afford the bus into the town centre to get to work, and keep a roof over their heads. The limited recovery that we have seen, which is barely bouncing along the bottom, is not being felt in east Bristol. That is why I asked the Minister, when she is in east Bristol tomorrow, whether she would be prepared to come and see some of that reality on the ground.

The unemployment figures seem to be moving in the right direction, which is good news. Labour has always had the ambition to move people from welfare into work as a route out of poverty. The right is fond of trying to caricature and misrepresent Labour and our voters as being wedded to welfare dependency. That is simply not the case. Labour has always been the party for workers; welfare for those who need it as an essential safety net and a support for those making the transition to work, and work for those who can and who, despite the misrepresentation, in 99% of cases desperately want to work. But under this Government we have seen a rising phenomenon of in-work poverty; a problem that is masked by the superficially encouraging trend in employment figures, but is undeniably there and is a feature of many people’s lives.

The Joseph Rowntree Foundation has just published a report on this year’s statistics. It says that it

“shows a real change in UK society over a relatively short period of time. We are concerned that the economic recovery we face will still have so many people living in poverty.”

It is estimated that about 13 million people in the UK are in poverty. Poverty among working age adults without children is at a record high, but about 40% of working age adults in poverty are working. So it is not simply an issue about moving people from welfare to work; it is about making work pay. Among children in poverty, most—more than 2 million—are in a working family.

Andrew Gwynne Portrait Andrew Gwynne
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My hon. Friend makes a powerful point. Is not this why we need a more concerted effort on the living wage? She will know that during this Government’s lifespan, the number of people paid less than the living wage has increased by 1.5 million, and that puts enormous pressure not just on those families and individuals but on the social security system.

Kerry McCarthy Portrait Kerry McCarthy
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I agree entirely with my hon. Friend. Nearly 20% of working people in Bristol East earn less than the living wage. According to the Joseph Rowntree Trust, two thirds of people who moved from employment into work in the last year are paid below the living wage. That is why in Bristol we have been running a living wage campaign. We have finally managed to persuade the mayor of Bristol to introduce that at the council level, and we want to encourage the organisations that do business with the council, with procurement contracts and so on, also to do that, and for the private sector to follow suit. That is incredibly important.

Oral Answers to Questions

Andrew Gwynne Excerpts
Thursday 3rd July 2014

(9 years, 10 months ago)

Commons Chamber
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Helen Grant Portrait Mrs Grant
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I am very happy to meet the hon. Gentleman to discuss his suggestion; I thank him.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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What discussions is the Minister having with her colleagues in the Foreign and Commonwealth Office and with football governing bodies to bring about an end to the abuse of the migrant workers who are facing very serious human rights abuses building stadiums in Qatar?

Helen Grant Portrait Mrs Grant
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The hon. Gentleman makes a very important point. We of course expect Qatar and FIFA to ensure that the rights of all migrant workers are upheld and respected.

--- Later in debate ---
Lord Vaizey of Didcot Portrait Mr Vaizey
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My hon. Friend has made an excellent case for MKFM—his excellent local community radio station. I am very pleased that the independent regulator, Ofcom, listened and included MKFM on its timetable for early consideration for an FM licence.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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T6. Ministers will know that cyber-bullying is a growing problem, particularly among teenagers, but the offences fall, confusingly, between five different Acts. Is it not time for Ministers to talk to their colleagues in other Departments to bring about a specific offence of cyber-bullying that mirrors the offence of harassment in the real world?

Lord Vaizey of Didcot Portrait Mr Vaizey
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I hear what the hon. Gentleman says. I work closely with the Minister for Policing, Criminal Justice and Victims and the Under-Secretary of State for Education, my hon. Friend the Member for Crewe and Nantwich (Mr Timpson), on the UK Council for Child Internet Safety. I am sure that the hon. Gentleman’s representations have been heard and they will be considered in the usual way.

Office for Budget Responsibility (Manifesto Audits)

Andrew Gwynne Excerpts
Wednesday 25th June 2014

(9 years, 10 months ago)

Commons Chamber
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Baroness Morgan of Cotes Portrait Nicky Morgan
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I am not aware that we have done any estimates, but my hon. Friend is absolutely right about the Dutch Central Planning Bureau—the figure I have is 170, but he says 350—and the American Congressional Budget Office has 250 members of staff. The point is that the Opposition are asking hard-working taxpayers to pay more money to staff up the OBR quickly so that it can certify and sign off their economic plan, such as it is.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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The Minister mentions the experience in the Netherlands, so I draw her attention to the comments of Peter Riddell, the director of the Institute for Government:

“As experience in the Netherlands shows, such a system has helped improve the quality of policies and encourages a more informed public debate as parties become more open about the costs of their proposals.”

What is wrong with that?

Baroness Morgan of Cotes Portrait Nicky Morgan
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I will come to the overall principle of having the OBR look at parties’ manifestos, but how long has it taken the Dutch Central Planning Bureau to get to that stage? If the hon. Gentleman has the answer, I would be interested to hear it.

Thirdly, there are genuine practical considerations that must be weighed in the balance. The Opposition do not seem to acknowledge that rather than producing costings of Government policies, the OBR certifies the costings already produced. The OBR, which currently employs only 19 members of staff, plus three members of the Budget Responsibility Committee, would need significant additional resources and a range of specialist skills in order to take on such a role. Have the Opposition considered where it would recruit from?