National Minimum Wage Debate

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Department: HM Treasury

National Minimum Wage

David Burrowes Excerpts
Wednesday 15th January 2014

(10 years, 4 months ago)

Commons Chamber
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Steve McCabe Portrait Steve McCabe (Birmingham, Selly Oak) (Lab)
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I was one of those in 1998 who spent the night here as Conservative Members did everything in their power to try to stop the national minimum wage legislation. Today, they are still warning about employment risk. Only last week the Chancellor talked about his fear that a rise in the minimum wage would jeopardise jobs and risk the recovery. I am afraid that is all too familiar.

We are supposed to believe that there is a new-found enthusiasm for the minimum wage on the Conservative Benches. They are leaking stories to the press that suggest there is a Conservative-Liberal Democrat battle over who will promise a hike in the minimum wage in their 2015 manifestos. Well, they are the coalition. If we are all in it together, give us something on account: give us some of it now.

David Burrowes Portrait Mr David Burrowes (Enfield, Southgate) (Con)
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On support for the living wage, does the hon. Gentleman agree that leading by example is important in the private and public sector, including in Government Departments? Does he recognise that Conservatives have been on the case for a number of years? Boris Johnson, the Mayor of London, has introduced the London living wage in city hall.

Steve McCabe Portrait Steve McCabe
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I am a fan of the living wage and I will mention it before I finish.

Forgive me, Mr Deputy Speaker, if I am a little cynical, but there is a consistent thread to Tory opposition. In 1983, they abolished the fair wage resolution. In 1993, they abolished wages councils. It took them until 2005 to give a manifesto commitment to retain the minimum wage. Of course, nobody told the hon. Member for Christchurch (Mr Chope), who has made successive efforts to sabotage it. All of that is probably why only 14% of people think the Tory party best represents low-paid, private sector workers. The sad truth is that the minimum wage has not kept pace with inflation and the early gains have been wiped out. In October, those on the minimum wage got a 12p rise while the Government were busy giving millionaire bankers a tax cut worth £100 million. It is funny how that poses so little threat to the economy. In fact, it apparently poses no threat at all, because they are about to give them another one.