Chris Leslie
Main Page: Chris Leslie (The Independent Group for Change - Nottingham East)Department Debates - View all Chris Leslie's debates with the HM Treasury
The Economy and Living Standards
Chris Leslie Excerpts(9 years, 10 months ago)
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Chris Leslie (Nottingham East) (Lab/Co-op)
After six days of debate on the Queen’s Speech, what have we learned? I have learned that my hon. Friends on the Opposition Benches have been determined to make the points on behalf of their constituents, while Government Members consistently ran out of time.
My hon. Friends have been diligent in pointing out all the items that have been conspicuous by their absence from the Queen’s Speech. My hon. Friend the Member for Edinburgh East (Sheila Gilmore), my right hon. Friend the Member for Blackburn (Mr Straw) and my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) made this point, as did my hon. Friend the Member for Coventry South (Mr Cunningham), my right hon. Friend the Member for Derby South (Margaret Beckett), my hon. Friends the Members for Huddersfield (Mr Sheerman), for Birmingham, Erdington (Jack Dromey), for Glasgow North (Ann McKechin), for Preston (Mark Hendrick), for Bolton South East (Yasmin Qureshi) and for Hartlepool (Mr Wright), my right hon. Friend the Member for Oldham West and Royton (Mr Meacher), my hon. Friend the Member for Denton and Reddish—I have listed him already; that is how good his speech was—my hon. Friends the Members for Liverpool, Wavertree (Luciana Berger), for Livingston (Graeme Morrice), and for Wrexham (Ian Lucas) and many more. I apologise to the hon. Friends I have been unable to mention.
We did not get the measures we wanted in the Queen’s Speech. Many hon. Friends mentioned cigarette packaging and smoking in cars, which were not included. There was nothing on border controls and no mention of the national health service. My hon. Friends should not be surprised by the paucity of the Government’s legislative programme, because it is not by accident; it is by design. It is a deliberate strategy to avoid time-consuming legislation that would be difficult for this House to deal with. They want to scrape the barnacles off the bottom of the boat, as Lynton Crosby famously put it, because they do not want anything to get in the way of the image they want to craft ahead of the general election.
This Queen’s Speech is not about rising to the challenges that the public want the Government to confront; it is all about giving the appearance of activity, but not real activity itself. It is about image, not substance. It is about the theatrics of government, not getting on with real reforms. It is also about repeating more and more promises, rather than fulfilling the ones they made in the first place. Look at what they promised on making work pay, again in the Queen’s Speech. Strangely, they made that promise in the 2010 Queen’s Speech. This time they made a promise about cutting red tape, which they also promised to do in 2010. They made a promise this time, as they did in 2010, about balancing the books and eradicating the deficit. We know that the Chancellor’s failure to generate growth for three years after the general election means that they have failed to meet that promise.
Of course, we must not forget one of the most foolhardy promises of all: to bring immigration down to the tens of thousands. In his solemn pledge on that, the Prime Minister said, “no ifs, no buts”. That was what they guaranteed. It is amazing that there was no mention of that pledge in the Queen’s Speech. But promises are difficult. These are tough times and, because of the Chancellor’s failure to get a grip and generate growth early enough, public finances are in a difficult state.
We are going to find times tough in the next Parliament and lower priorities will have to get less funding. What is the reaction of Government Members to these difficult circumstances? Do they knuckle down? Do they redouble their efforts, roll up their sleeves and try to do something about the challenges facing this country? Absolutely not. They switch on to autopilot mode and go into “coasting”, and we end with a legislative programme, such as the one we have, that does not confront the problems that the country faces.
Yes, we hear in the Queen’s Speech that the Government want to help small and medium-sized enterprises with late payments, but what about helping businesses with real lending support and the banks that should be helping those businesses get the equity in and get the growth that we need in our economy? We hear in the Queen’s Speech that the Government want to help with penalties where the minimum wage is not paid, but what about the real reform strengthening the minimum wage and ensuring that we link it to average earnings to make an appreciable difference? The Government want pensions flexibility. We welcome that, but what about the advice and guidance that those retirees will need in order to avoid problems further down the line? The Government even talk about child care tax relief eventually, but what about 25 hours of free child care for three and four-year-olds? That would be possible if the Government only pulled their finger out and collected the bank levy as they are supposed to do.
We do not see these measures because the Government do not understand the challenges that the public face. They do not offer a long-term economic plan. This is a Government obsessed with short-term political calculations—the phony concern of those who are focused more on the appearance of introducing reform than on the reality of undertaking reform.
Robert Flello
On pensions, the £5 billion or whatever figure will go into the Treasury from the Government’s proposals will be more than offset when, no doubt under a future Labour Government, the chickens come home to roost and mis-selling scandals hit. It will be a Labour Government who have to pick up the mess.
Chris Leslie
That is why we want to see the full detail of the advice and guidance that need to be put in place. The Government do not like hearing it, but these are the questions that have to be answered. Those answers were not in the Queen’s Speech.
It was not a long-term economic plan that we got in the Queen’s Speech, but a set of short-term obsessions focused on political calculations. The Queen took less than 10 minutes to read out the speech that she was given, yet for most of our constituents it offers zero progress on their concerns. The parties in government think that all is fine with the economy—everything is going perfectly well—but how detached from reality can they get?
The Financial Secretary will no doubt speak shortly and she can quote all the economic data she likes, but I have to tell her that for many people this is an economy that is about low pay, zero hours and, for those who are struggling, food banks. She can quote GDP statistics in recent months, but we are seeing an economy where the very wealthiest 1% in society are doing particularly well and seeing their share of the cake grow while the rest of the population are seeing their share shrink further and further. The Government may be satisfied with this state of affairs, but the Opposition are not.
In the remaining 11 months before the general election, we should have a substantial and meaningful legislative programme which tackles some of these problems, rather than the set of headlines and press releases that have been strung together for effect.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Will my hon. Friend give way?
Chris Leslie
No. I have only a few more minutes.
I wanted also to focus on the Infrastructure Bill that the Chancellor has brought forward—the so-called Infrastructure Bill. Third time lucky. The last two infrastructure Bills certainly did not do the trick, nor did the 11 infrastructure plans and strategies that the Government have published since the last general election, or the 79 press releases that we have had on infrastructure since then. We know that this Chancellor is obsessed with presentation, not with getting diggers in the ground.
Let us look at the problems that this country is facing. There are 5 million people on low pay in our country today, yet there is nothing in the Queen’s Speech to incentivise the living wage, which would make a real difference. Bank lending to small businesses that need real help is falling, but banking reform has been inadequate and is not the action that we need. There is a cost of living crisis, with prices yet again exceeding wages, according to the latest economic data. Yet no action has been taken on the big six energy companies, which continue to fail to pass on to their customers even reductions in wholesale energy prices.
The state of affairs in housing is one in which demand goes higher and higher, but house building is at its lowest since the 1920s. I must say to the Chancellor that if he thinks that a new town in Ebbsfleet adds up to a housing strategy, he is sorely mistaken. Yes, we have Help to Buy, but we need “Help to Build” alongside it if we are to tackle that particular problem. Tenants in insecure accommodation are being ripped off by letting agents.
On child poverty, it is predicted that 3.5 million children will be in poverty over the next few years, which is five times the Government’s original estimate, but that does not even get a reference in the Queen’s Speech. As my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) pointed out, 20 million meals have been served in food banks in the past year, which is a badge of shame for the Government, but there is no reference to that in the Queen’s Speech. The national health service is, of course, under more strain than ever before, but there was not a single word about it in the Queen’s Speech.
With all those problems, what have the Government been doing for the past week? They have been feuding among themselves, with Cabinet Ministers briefing against one another and not just two parties in coalition but at least four factions vying for political control. Somebody somewhere has got to get a grip and to show some real leadership and good government, rather than allowing this appalling state of affairs and factionalisation to continue.
I must tell Government Members that, day by day, we are seeing a coalition that is less a coalition than a conspiracy for inaction. [Interruption.] I will give way to the Chancellor if he wants to talk about food banks, child poverty or housing strategy. They are not interested in those matters, however, because the Queen’s Speech is an artifice—it is all about presentation and the spin that they want to put on these issues.
Where is the Government’s ambition and sense of urgency about the problems in the country today? The legislative torpor in the Queen’s Speech is absolutely appalling. They have turned the House of Commons into the most expensive waiting room in history. In this Queen’s Speech, they are treading water for another year. We know that their legacy will be the slowest economic recovery for 100 years. This will not do, and our constituents will not stand for it. The fact that we have to wait a further year for the general election is a tragedy for the millions of people who need real help now. The Government are squandering the chance for change in this country and, with it, the potential that our country should have, which is why Opposition Members believe that Britain deserves much better than this.
Nicky Morgan
The right hon. Member for Oldham West and Royton showed in his opening paragraph that he understands the Government’s economic policy perfectly. It is a shame that he did not stop there, because he summed up so beautifully all the Government’s achievements over the past four years.
My hon. Friend the Member for Montgomeryshire (Glyn Davies) talked about the dairy industry in his constituency, and I heard what he had to say.
The hon. Member for Eastleigh (Mike Thornton) talked about the increase in the personal allowance. His kind offer to advise the Treasury on the reform of stamp duty has been noted and I am sure that we will take note of what he has to say in the run-up to the next fiscal event.
The hon. Member for Huddersfield (Mr Sheerman) offered to write the Labour party manifesto for the next election. I wonder whether those on the Labour Front Bench were listening.
My hon. Friend the Member for Richmond Park (Zac Goldsmith) talked about recall, about which he is passionate. I suspect that there will be many debates on that issue in this House before the recall Bill is passed.
My hon. Friends the Members for Rugby (Mark Pawsey) and for Stroud (Neil Carmichael) talked about how the Government are delivering for manufacturing and rebalancing manufacturing. It is worth noting that manufacturing is expanding faster in the UK than in any other country in the G7.
The hon. Member for Birmingham, Erdington (Jack Dromey), whom I cannot see in his place, spoke of an era of discontent and disconnection. I agree with him. There is an era of discontent and disconnection in the Labour party—discontent with the leadership and disconnection from what this country needs to rebuild the economy.
My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) talked about the Labour party’s promise to end boom and bust. He was right to say that it delivered only one half of that promise.
My hon. Friend the Member for Bury St Edmunds (Mr Ruffley) talked about trusting people with their pension savings.
The hon. Member for Redcar (Ian Swales) talked about the successes and investment in his constituency, and mentioned the Tees valley city deal. I am sure that all Members wish him and everybody who will sign it next week the best of luck.
The hon. Member for Coventry South (Mr Cunningham) talked about the 10p tax rate. He laid claim to the fact that the last Government introduced it. The last Government also got rid of it, which caused great unfairness to those who were being taxed at that rate.
The hon. Member for Bolton South East (Yasmin Qureshi) made a spending commitment of £1.9 billion, which only reminds us that the amendment would cost £14 billion.
The hon. Member for Liverpool, Wavertree (Luciana Berger) talked about zero-hours contracts. I think she said that 1.4 million people are on zero-hours contracts. In fact, the ONS estimates that there are 1.4 million zero-hours contracts and that 583,000 people are on them. She should be careful, because the ONS recently warned the shadow Business Secretary about his interpretation of those figures.
The hon. Member for Hartlepool (Mr Wright) gave an eloquent speech and demonstrated to all of us the dangers of someone turning up at a local party meeting and saying, “I want to get involved.” Many years later, they find themselves here on the green Benches—we have all been there.
Many hon. Members made points about the cost of living. Of course the Government want to see rising living standards for households up and down the country, and we have helped households by freezing fuel duty and council tax, taking money off energy bills, capping rail fares and introducing free school meals. However, the best way to improve living standards is to stick to our long-term economic plan to improve productivity, get as many people in work as possible and ensure that they take home as much of their pay as possible.
As the House will know, we have already made real progress on that front, but this Queen’s Speech introduces measures that will further increase employment. It offers tax-free child care, which will make a return to work more financially viable for thousands of mothers and fathers and, for the first time, help those who are self-employed or setting up businesses. It offers a small business Bill, which will make it easier to establish and grow small businesses, and an Infrastructure Bill that will help businesses both large and small by creating the transport and digital networks that they will need to thrive in the long term. All those steps will help our businesses get more people into work, which will support our households and grow our economy.
Nicky Morgan
I cannot take any more interventions. [Interruption.] The hon. Gentleman has had plenty of time to make his arguments, but let us see how we get on. First, I want to respond to the points that hon. Members made about housing.
Of course we recognise that in some parts of the country, people are worried about house price rises over the past year. However, I point out, first, that real house prices are still below their pre-crisis peak; secondly, that the Government are committed to a number of new building schemes to increase housing supply, including the new garden city at Ebbsfleet; and thirdly, that through the Help to Buy scheme we are helping thousands of people who earn enough for a mortgage but are struggling to raise a deposit. The official statistics released last week show that Help to Buy is opening up home ownership to thousands across the country, with more than 94% of all completions outside London and more than 85% by first-time buyers. To the Opposition Member who dismissed the “stupid” Help to Buy scheme, I say that that is an attack on aspiration and on everybody who wants to own their own home.
Fourthly, I point out that the Financial Policy Committee is in a position to step in if it thinks we are seeing a return to unsustainable lending levels. We are monitoring the situation and taking action, and we are ready to take further action if we believe it has become necessary.
Chris Leslie
I thank the Minister; we do have a little bit of time left. Does the Minister believe that people in this country will be better off at the time of the general election in 2015 than they were at the time of the last general election? Does she agree with the IFS that they will not be?
Nicky Morgan
The whole country will be better off, because we are fixing the economy, getting more people into work and seeing wage levels going up and the inflation rate falling. If the hon. Gentleman was waiting to ask that question, he could have asked it during many other speeches this afternoon. He will have to do better than that next time.
It is worth noting that the hon. Gentleman gave a speech recently on efficiency savings, but no savings were identified. He listed a lot of ways to spend money, instead—£21,000 on keeping a police station open; the restoration of the spare room subsidy; the jobs guarantee for young people, which as we have heard today is a £1.4 billion commitment; a house building programme; and a British investment bank. The Government will not take lectures on how to run the economy.
This Queen’s Speech proves that this Government are just as radical in our fifth year as we were in our first. There were more Bills in this year’s Gracious Speech than there were in the last Government’s final Session, and they are serious Bills tackling serious issues—pensions, infrastructure, small business, child care payments, serious crime, modern slavery, the armed forces, social action and heroism, national insurance contributions and the recall of Members of Parliament.
This Queen’s Speech will be one further crucial step in the Government’s long-term economic plan. It will help those who want to work but are put off by child care costs, and those who are forced to work by the despicable practice of traffickers and slave masters. It will help small businesses access finance and savers access their pensions, and most importantly, it will keep employment rising and the deficit falling. That is why we reject the Opposition’s amendments and why I commend the Gracious Speech wholeheartedly to the House.
Question put, That the amendment be made.