Queen’s Speech

Baroness Jones of Whitchurch Excerpts

Monday 26th June 2017 Lords Chamber

[Baroness Jones of Whitchurch (Lab)]

My Lords, it is a great pleasure to follow the Minister’s contribution to the debate on the gracious Speech this afternoon and to welcome him to his new role. He has done the best he can, but it is a shame that the Government’s legislative programme appears to have the same vision and authority as the PM herself—very little. This is not surprising, because it is drawn from a disastrous Conservative manifesto that offered no hope and no change to a British public tired of falling living standards and failing public services. This is why it is widely acknowledged that Labour won the battle of ideas in the election, with policies that can deliver stronger growth, better living standards and greater equality and justice.

Although it is a debate for another day, the huge challenge posed by Brexit stalks through all strands of our lives, and we have heard nothing today that will reassure the public, markets, small businesses and the global community that our economy will be stronger once we exit the EU. The Chancellor’s position may be safe for now, but he still seems incapable of setting out a confident and bold strategic vision following the public’s rejection of his less than impressive economic record and his leader’s plans for a hard and uncompromising Brexit. The wrong mix of monetary and fiscal policy has left the economy weak and unstable—weak because investment and productivity have been so poor, and unstable because growth has been so heavily reliant on debt-driven consumer spending. Meanwhile, under this Government, the national debt is set to hit almost £2 trillion. They have missed every debt and deficit target that they have set themselves and their answer is simply to move the target date even more remotely into the future.

This Queen’s Speech represents a missed opportunity to really get to grips with the root causes of our economic woes and to reassure us over the economic impact of Brexit. Even Mark Carney, in his Mansion House speech last week, recognised the urgent need to escape the low-inflation, low-wage, low-growth trap that has driven down household incomes in the last decade. Confronted by strong evidence that economic policy since 2010 has been a failure, this Government’s response has been to offer more of the same. Yet, as we know, the first May-Hammond Budget quickly fell apart and the subsequent Finance Act failed to address the economic crisis or provide a clear direction to those in the finance and pensions sector who were crying out for clarity on this. Meanwhile, Labour has set out a clear alternative. We will set up a national investment bank that will deliver the finance needed by our small businesses, co-operatives and start-ups, getting the economy moving again by filling the gaps in lending by private banks and by providing dedicated long-term finance to R&D-intensive investments.

The UK also has the worst performance in terms of real wages, which have fallen by an average of 1% per year. To our shame, we have punished the young most of all, with 18 to 21 year-olds facing a fall in real wages of over 15%. Is it any wonder that many young people who I have met have lost faith in the idea that they will succeed in life? It is only by building on the creativity and talent of the next generation that Britain will succeed in the 21st century, yet I see little hope for young people in this Queen’s Speech. I am proud of the fact that it is the Labour Party that is the strongest advocate for young people. We showed that we cared about their finances and their future. Our plan to create a fertile ground for businesses to thrive places young people at its very heart by focusing on skills, including quality apprenticeships, research and development, and infrastructure.

Tackling low pay has to be part of the solution. Despite what the Minister has outlined, nearly 6 million people earn below a living wage. Nearly a million workers are on zero-hours contracts, and there are far too many people without the certainty of employment that they need to live a debt-free life. Meanwhile, boardroom bonuses continue to rise, and the widening gap between the highest and lowest earners creates further injustice. This is why we are committed to introducing a real living wage of £10 an hour, giving all workers full and equal rights from day one, introducing an excessive pay levy and rolling out maximum pay ratios of 20 to 1 in the public sector and public contracts. Perhaps when the Minister responds he can explain what this Government plan to do about tackling excessive boardroom pay, ending low pay and intervening in the gig economy to give workers back some control over their lives.

The upgrade needed to the way our economy works includes an industrial strategy that meets the challenges of our times. Sadly, the Government’s much-heralded Green Paper on their industrial strategy has come in for considerable criticism. As the Lords’ Science and Technology Select Committee said recently:

“The Green Paper … resembles a portfolio of tactics rather than a coherent strategy”.


It went on to emphasise the need for a more coherent approach to tax and regulation for science and industry, combined with greater investment in skills and the availability of patient finance to strengthen,

“the relationship between government, businesses and universities”.

We very much hope that work is going on behind the scenes to provide a more coherent strategy, but this Queen’s Speech gives little clue as to what that thinking might be. The issues that are flagged up—electric cars, space rockets, high-speed rail and smart meters—are all laudable in themselves but do not add up to an industrial strategy. Nor do they address the importance of good industrial relations and how to build on the proven link between employee engagement and productivity growth.

Investing in our future also means investing in our environment. Sadly, on this issue as on so many others, the Queen’s Speech represents a missed opportunity. Of course we welcome the reiteration of support for the Paris agreement, although it would have been good to hear something about a serious plan to bring Donald Trump back into line on this. But apart from the brief note on affordable energy and electric cars, why was this the only mention of anything relating to climate change? Despite dangerous air pollution levels across the UK and crucial environmental laws that need to be translated into British legislation as we leave the EU, the environment was notably missing as a policy priority.

The UK is poorly prepared for the inevitable impacts of global warming in coming decades, including deadly annual heatwaves, water shortages and difficulties producing food, yet it seems that the Government will not address any of these problems over the next two years. By ignoring the biggest problem facing us globally and the urgency of this problem, and by putting their head in the sand, the Government are leaving future generations a legacy of problems, including coastal erosion, flood damage, water shortages and food price shocks. We need to begin the process of future-proofing today—a point emphasised by the Committee on Climate Change’s latest report on its risk assessment of the environment. If the Government are happy to ignore the human costs of climate change, it is staggering that they are also ignoring the Bank of England, which only last month published an investigation into the risks of climate change to financial services. It is often said that money talks. Alas, this Queen’s Speech reveals that no one is listening.

The lack of a coherent plan to tackle climate change is symptomatic of a wider failure to embrace renewable energy. The UK energy system is outdated, expensive and polluting. The Government have failed to harness the huge potential of emerging technologies and renewable energy projects. They have placed a disproportionate emphasis on nuclear energy, yet the latest NAO report on Hinkley Point, published last week, is damning. It reports that costs have already risen from £6 billion to £30 billion and says that the deal has,

“locked consumers into a risky and expensive project with uncertain strategic and economic benefits”.

It raises the spectre that the project will be delayed or cancelled. Could the Minister clarify whether this Government are heeding the NAO’s advice and developing a plan B to fill our energy gap if this project fails?

Nothing has worried environmentalists more, recently, than the news that Michael Gove has been appointed Defra Secretary of State. His track record speaks for itself and has a depressing constancy. Time and again, he has voted against measures to reduce carbon emissions and to increase energy from renewable resources. In the leave campaign he spoke with some enthusiasm about the prospects of scrapping environmental regulations, and he has subsequently suggested to the CBI that it should start drawing up a list of social and environmental regulations that it would like to see abolished or reformed. It is true that since his unexpected appointment he has made more conciliatory noises, but we should remain quite rightly suspicious of his ultimate motives. Environmentalists most want the certainty that the existing EU environmental protections will be safeguarded in full and for a long time.

When Mr Gove looks at his in-tray, he could also finalise the publication of both the environment and the food and farming 25-year plans, which were meant to set out a long-term strategy for these sectors but which have been embarrassingly delayed for some time. Can the Minister shed some light on their latest publication date, or confirm rumours that they have both been shredded?

We look forward to debating the agriculture and fisheries Bills, which were included in the Queen’s Speech. Both these sectors need urgent reassurance that jobs, livelihoods and markets will be protected. Their continuing success is fundamental to our country’s economic resilience in the future. We will continue to work closely with all those who work and live in these communities to safeguard jobs and deliver a sustainable long-term future for our farming, fishing and food industries.

Finally, we welcome many of the Government’s transport proposals, looking forward to the future with new rail infrastructure and embracing automated and electric vehicles. We will continue to push for a greater role for the Office for Low Emission Vehicles in driving the uptake of ultra-low emission vehicles. We also applaud the attempt to secure growth in the UK space sector, although since the Government cannot currently manage our rail franchises I have huge concerns about the implementation of any spaceflight Bill, and fear that it might be more of a flight of fancy than reality. My own rail network is run by Southern, so I understand at first hand the chaos, disruption and impact on family life that this has been inflicting on commuters and travellers over the last two years and that seems set to continue. So while spaceflight and high-speed rail are exciting prospects, I hope the Minister will hear our pleas that the Government will tackle the deep flaws in our current rail network as a priority.

I look forward to hearing the remaining debate today, in particular the maiden speeches of several noble Lords who I am sure will add greatly to the quality of the discussion.

This is a wounded Government and a threadbare set of proposals. For as long as the Government remain in office, we will play our full role in scrutinising the Bills in detail. But should this Government fall, as many predict they will, rest assured that Labour will bring forward a Queen’s Speech that truly addresses the challenges facing Britain, offers hope and represents the real centre ground of British politics.