Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 12th October 2011 Commons Chamber

[The Prime Minister]

My right hon. Friend is right to identify that it is of course right to equalise men and women’s state pension ages. That has been a long-term goal shared across the House of Commons. I also think that it is right to raise the retirement age to 66, as we have done. We know that a large group of people are affected by this transition and that some people will potentially have to work for an extra two years. We are looking at what transitional help we can give to this group of people and will make an announcement shortly.

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in paying tribute to Lance Corporal Jonathan McKinlay from 1st Battalion the Rifles and Marine David Fairbrother from Kilo Company 42 Commando Royal Marines. They were exceptionally courageous men who died serving their country and our deepest condolences go to their family and friends.

A year ago, during our exchanges, the Prime Minister justified his economic policy by saying that unemployment would fall this year, next year and the year after. Given that unemployment has risen by 114,000, is it not time he admitted that his plan is not working?

[The Prime Minister]

First of all, these are very disappointing figures that have been announced today and every job that is lost is a tragedy for the person concerned and their family. That is why this Government will do everything we possibly can to help get people into work. That is why we have the Work programme, the biggest back-to-work programme since the 1930s, which will help 2.5 million people. That is why we have welfare reform to make sure that it always pays for people to be in work. That is why we are reforming our schools, including raising the participation age to 18 so that we end the scandal of 16 and 17-year-olds left on the dole, and that is why we have a record number of apprenticeships—360,000 this year. I accept that we have to do more to get our economy moving and get jobs for our people, but we must not abandon the plan that has given us record low interest rates.

[Edward Miliband]

We hear the same script month after month. It is not working. Does the Prime Minister not realise that today’s figures show that it is not working? It is his failure that means today in Britain we have nearly 1 million young people out of work. Why does he not accept some responsibility for doing something about it?

[The Prime Minister]

I accept responsibility for everything that happens in our economy, but I just sometimes wish that people who were in government for 13 years accepted some responsibility for the mess they made. This Government have pledged to do everything we can to get our economy moving. That is why we have cut petrol tax and corporation tax, why we are reforming the planning system, why we introduced the regional growth fund, why we are forcing the banks to lend money and why we have created 22 enterprise zones. I know what the right hon. Gentleman wants: he wants us to change course on reducing our deficit. If we changed course on reducing our deficit, we would end up with interest rates like those in Portugal, Spain, Italy and Greece and we would send our economy into a tailspin.

[Edward Miliband]

I want the Prime Minister to change course so that he has a credible plan to get people back to work in this country. What he does not seem to understand is that month after month, as unemployment goes up and the number of people claiming benefit goes up, the costs go up and fewer people are in work and paying taxes. To have a credible plan on the deficit, you need a credible plan for growth, and he does not have one. It is not just young people who are suffering. Can the Prime Minister tell us when was the last time that unemployment among women reached the levels it has today?

[The Prime Minister]

The right hon. Gentleman is wrong on his figures. There are 50,000 more women in work than there were at the time of the election, there are 239,000 more people in work than at the time of the election, and there are 500,000 more private sector jobs. He specifically asks about a credible growth plan. I would ask, where is his credible growth plan? Why is it that the former Chancellor of the Exchequer said this:

“If you don’t have a credible economic policy, you are simply not at the races”?

Why is it—[Interruption.]

[The Prime Minister]

The fact is that our plan is supported by the CBI, by the Institute of Directors, by the business organisations, by the IMF, and by the OECD. The right hon. Gentleman cannot even get support from his own former Cabinet Ministers. The former Home Secretary says this:

“I think the economic proposition that Labour puts at the moment is unconvincing.”

If the right hon. Gentleman cannot convince his own party, how can he convince the country?

[Edward Miliband]

The Conservative Chair of the Prime Minister’s Select Committee says that his policies on growth are “inconsistent” and “incoherent”. He obviously cannot convince him, can he?

Of course, typically, the Prime Minister did not answer the question on women’s unemployment, so let me tell him: women’s unemployment is at its highest since 1988—the last time there was a Conservative Government in power. I have to say that instead of apologising four months late to my hon. Friend the Member for Wallasey (Ms Eagle) for saying, “Calm down, dear”, he should be apologising to the women of this country for what he is doing to our economy.

Let me ask the Prime Minister another question that maybe this time he will answer. Last year, in his Budget, the Chancellor announced a flagship policy on growth. He said that the national insurance holiday for start-up firms would help 400,000 businesses. Can the Prime Minister tell the House how many businesses have actually taken part?

[The Prime Minister]

Seven thousand.

On the issue of women in work, of course I want to see more women in work, and there are 50,000 more women in work than at the time of the last election. It is this Government who have introduced free child care for all vulnerable two-year-olds, who have extended child care for three and four-year-olds, who have increased the child tax credit by £290, and who, for the first time, have announced that we will be giving child care to all people working fewer than 16 hours, helping hundreds of thousands of women and families out of poverty into work and into a better life. That is what we are doing.

The question the right hon. Gentleman must address is the big picture, which is this: he cannot convince the former Home Secretary, the former Trade Minister or the former Chancellor that he has got any idea of what to do with the economy. The reason is that if we adopted his plan, we would not be working with the IMF to sort out the eurozone—we would be going to the IMF to ask for a loan.

[Edward Miliband]

In case the Prime Minister has not realised, when the Chancellor says that 400,000 firms will benefit and only 7,000 are, that should tell him something: it should tell him that his policies are not working. That policy is not working; his plan is not working. Why does he not, just for once, agree with us: cut VAT and put more money into people’s pockets, help the construction industry to get moving, and invest in getting young people back to work by having a bankers’ bonus tax?

[The Prime Minister]

When is the Labour party going to learn that one cannot borrow one’s way out of a debt crisis? It left us the biggest deficit, the most leveraged banks and the most indebted households, and what is its answer? It is to borrow more money. Is it any wonder that the former Trade and Investment Minister, Digby Jones, described the Labour leader’s conference speech as

“divisive and a kick in the teeth for the only sector that generates wealth that pays the tax and creates the jobs this country needs.”?

That is what a former Labour Minister said about a Labour policy. That is why the Labour leader has no credibility whatsoever.

[Edward Miliband]

What a terrible answer. I will take on the companies in this country that are not doing the right thing, such as the energy companies. We are seeing change in the energy sector today because of what I said.

On the day of the worst unemployment figures in 17 years, the Prime Minister is fighting to save the job of the Defence Secretary, but doing nothing to save the jobs of hundreds of thousands of people up and down this country. There is one rule for the Cabinet and another rule for everyone else.

[The Prime Minister]

The previous Labour leader thought that he had saved the world; after that answer, I think that this Labour leader is Walter Mitty. The Labour party has to accept some responsibility for the mess it made of the economy. It is the party that borrowed too much, spent too much, left us with unregulated banks and left us with the mess that we have to clear up. When one sees those two sitting on the Front Bench who worked for so long in the Treasury, one has to ask, one would not bring back Fred Goodwin to sort out the banks, so why would one bring them back to sort out the economy?