Oral Answers to Questions

Edward Miliband Excerpts

Wednesday 12th September 2012 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

I join the Prime Minister in paying tribute to Guardsman Karl Whittle of 1st Battalion Grenadier Guards and Sergeant Lee Davidson of the Light Dragoons. Both showed the utmost courage and bravery and our thoughts are with all their family and friends.

I also join the Prime Minister in celebrating the renaming today of the Clock Tower as the Elizabeth Tower, which was done with all-party support and is a fitting tribute to the service Her Majesty the Queen has shown to our country.

The fall in unemployment today is welcome, but all of us will be concerned that the number of people out of work for more than a year stands at 904,000, the highest level for 17 years. Does the Prime Minister agree with me that that is a particularly troubling statistic, because the longer someone is out of work, the harder it is for them to get back into it and the more damage is done to them, their families and, indeed, our economy?

[The Prime Minister]

I absolutely agree with the right hon. Gentleman about the dangers and the threat of long-term unemployment. I think it is worth putting in front of the House the full figures today, because not everyone will have seen them: unemployment is down by 7,000 and employment is up by 236,000 over the quarter. I think this is significant because it is a real-time, live figure: the claimant count, the number of people claiming unemployment benefit, in August was down by 15,000. As I have just said, when we look at the number of private sector jobs, which is vital when we need to rebalance the economy, we see that there were over 1 million net new private sector jobs over the past two years. He is absolutely right that the long-term unemployment figure is disturbing. That is what the Work programme is designed to deal with. We have got the Work programme up and running within a year, it has already helped 690,000 people, and the key part of it is that for those who are hardest to help—people who are on the incapacity-style benefits and have also been long-term unemployed—we pay their training providers more to help them into work, and that is the key for dealing with this problem in the time ahead.

[Edward Miliband]

The right hon. Gentleman talks about the Work programme, but not only is long-term unemployment at its highest level for nearly two decades, but over the past 12 months we have seen a 247% rise in the number of young people who have been on the dole for over a year, and that is happening throughout the country. Is that not the clearest evidence so far that his Work programme is just not working?

[The Prime Minister]

I do not accept that. First of all, on the youth unemployment picture, it is disappointing that youth unemployment is up 7,000 over the quarter, but of course the youth unemployment figures include young people in full-time education. If we look at the picture for the number of young people in work—youth employment—we see that it is actually up 48,000 over the quarter, so that is a more encouraging picture. In terms of the youth contract itself, that is now up and running. Around 65,000 young people have taken part in work experience programmes, which were criticised by some people sitting opposite and some trade unions, but actually within 21 weeks half of them have been taken off the unemployment register and have proper work. That is very encouraging, because it actually means that it is about 20 times more cost-effective than the future jobs fund it replaced.

[Edward Miliband]

I have to say to the right hon. Gentleman that to all the young people across the country looking for work that sounds like a rather complacent answer. The reality is that, because of his failure on long-term unemployment, borrowing—the key test he set himself—was up 25% in the first four months of this year. He borrowed £9.3 billion more in the first four months of this year than last year. That is £1.6 million in the hour of Prime Minister’s questions. We gather today that the Government might miss the overriding economic test he set himself, which is that debt will be falling at the time of the next election. Is it not a fact that he is failing the very test he set himself, and is that not the surest sign yet that his plan is just not working?

[The Prime Minister]

First of all, there is absolutely no complacency in this Government over either the issue of youth employment or the issue of long-term unemployment. That is why we are putting so much energy and effort into the apprenticeship programme. We have seen 457,000 apprenticeship starts in the last year, which is a record figure and something we want to build on in the years ahead, with £1.5 billion invested. The right hon. Gentleman raises the issue of borrowing. This Government in the last two years have cut the deficit by a quarter. I have to say that, if he is concerned about borrowing, why does he have plans to put it up? There are many ways to reduce borrowing, but the one way it cannot be done is by increasing spending and increasing borrowing, which is what he tells us to do.

[Edward Miliband]

The reality that this Prime Minister cannot get away from after two and a half years is that borrowing is rising on his watch. That is the reality: borrowing is up 25%—£9.3 billion—in the first four months of this year. When the Prime Minister gets up to reply, perhaps he can tell us whether this morning’s reports—that the Government will not meet their target to have debt falling by the end of this Parliament—are correct, or whether he will stick to the promise. The reality is that he is failing the tests he set himself, and it shows that plan A is not working.

[The Prime Minister]

It is this Government who have cut the deficit we inherited by a quarter. That is what we have done in two years. Normally, at this stage in the proceedings, I say that the Labour party has no plans, but on this occasion I can reassure the House that it has, and the new plan is called predistribution. What I think that means is that we spend the money before we actually get it, which I think the right hon. Gentleman will find is why we are in the mess we are in right now.

[Edward Miliband]

I will tell the Prime Minister what this is about. It is about having an economy that works not just for a few at the top, but for everyone else. It is not about a Prime Minister who cuts taxes for millionaires while raising taxes for everyone else. When he gets up to reply, perhaps he can answer the question that he has not answered so far—is he going to be a beneficiary of the 50p tax cut?

--- Later in debate ---

[The Prime Minister]

I am surprised that Labour Members do not want to hear about their new guru. He is called Mr J Hacker, and Mr J Hacker’s recommendation is that we spend an extra £200 billion and borrow an extra £200 billion in this Parliament. From the work I have done, I have discovered his new book: it is published by Princeton University Press and it is called “The Road to Nowhere”. The right hon. Gentleman does not need to read it; he is there already.

[Edward Miliband]

Let me compliment the Prime Minister on such a butch answer. What a week it has been for Mr Butch: he has briefed against the new International Development Secretary, the former Transport Secretary; he was knocking back the claret while sacking the Welsh Secretary; and the Environment Secretary was sacked because she was too old—and replaced by a man who was older! That was very butch. The reality is this: between now and April the Prime Minister is going to have to answer the question—he has not answered it yet—whether he is going to get the top-rate tax cut, which is a tax cut for millionaires by millionaires. The reality is that the Government’s plan is failing, they stand up for the wrong people, and plan A is not working—he should change course.

[The Prime Minister]

On a day when we hear that this economy has created 1 million net new private sector jobs, all we have learnt from the Labour party is that it has learnt nothing. Labour is still committed to the spending, the borrowing and the debt that got us into this mess in the first place. That is the truth, and it cannot hide it from the British public.