Tackling Short-term and Long-term Cost of Living Increases
Edward Miliband Excerpts(1 year, 11 months ago)
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Edward Miliband (Doncaster North) (Lab)
I beg to move an amendment, at the end of the Question to add:
“but respectfully regret that the Gracious Speech fails to announce a windfall tax on the profits of oil and gas producers, in order to provide much-needed relief from energy price increases for households.”
The cost of living crisis is the biggest issue facing our country, which is why we have chosen it as the subject of today’s debate, and I welcome the Chancellor’s participation. We should start by being sober about the unprecedented social emergency our country faces. According to a report that has just been published by the Food Foundation, 2 million of our fellow citizens went without food for a whole day in the past month because they could not afford to eat; 7 million families had to skip a meal, and that was true of nearly half of those on universal credit. This is not just about families out of work; it is about families in work too. This is a social emergency and it is also a looming economic threat, depriving our economy of the spending power it needs. The question at the heart of this debate is whether this Gracious Speech, this Government and, yes, this Chancellor are up to the challenge this emergency represents.
The Chancellor wants us to believe that his measures in response are the best we can do, but they are not—not by a long shot. The cost of living crisis is driven most of all by what is happening to energy bills, so let us look at the three chances he has had in the past seven months to act on energy bills. Last August, nine months ago, the first energy price rise was announced—this was a £139 increase in the price cap. So way back then he knew what was happening. Then in October he delivered the Budget. Wholesale energy prices were rocketing and the warning signals were flashing, but the Chancellor did nothing. He should re-read that Budget speech, because I think it would make even him wince. It is a model of complacency. He had drunk his own Kool-Aid. He told the country back then that “wages are rising”, that we have “growth up” and that on inflation we have
“a Government...ready and willing to act”—[Official Report, 27 October 2021; Vol. 702, c. 275.]
He said that the “plan is working”.
Where are we now? On wages, the Office for Budget Responsibility is this year forecasting the biggest fall in living standards for 45 years. Growth turned negative in March, with the Bank of England suggesting that the economy is going to shrink through the winter. We are now set for the highest level of inflation for 40 years. The plan is not working; it is failing.
Several hon. Members rose—
Edward Miliband
I will make some progress but then give way later.
The Chancellor did not act when he could have done. In February he had another chance, as the largest energy price rise in our history, at 52%, was announced. He could have responded in a way commensurate with the crisis—[Interruption.] Members say that he did, but let us look at this. What was his grand offer to the country? It was a £150 council tax discount based on outdated property values, which missed out hundreds of thousands of the poorest families, and of course there was his £200 “buy now, pay later” loan scheme. This is a loan scheme that he risibly claims is not a loan, although it has to be paid back, and it does not even come in until October. What are families supposed to do in the meantime while they wait for his loan? It is almost as though the Chancellor is so out of touch that he does not realise that 10 million families in our country have no savings at all.
Aaron Bell (Newcastle-under-Lyme) (Con)
The £150 that was given out by Newcastle-under-Lyme Borough Council was gratefully received on the doorsteps, as was the money given out by Westminster City Council. Perhaps the right hon. Gentleman should speak to his council leaders in Barrow, Hyndburn, South Derbyshire and Bassetlaw, all councils that failed to get that £150 out into people’s bank accounts. If he is so concerned about the cost of living, why are his council leaders holding that money in their bank accounts instead of returning it to the people?
Edward Miliband
The hon. Gentleman anticipates a later part of my speech. That is the Conservative party today: it will blame anyone else and never take responsibility. The hon. Gentleman should have been supporting our measures, because in his constituency 11,353 people would get our combination of a VAT cut and the warm home discount of £600. If he votes against us tonight, he will have to explain to them why he is denying them the help they need.
Caroline Lucas (Brighton, Pavilion) (Green)
The right hon. Gentleman is making a powerful speech. I wonder whether he shares my anger at the news this week that the Government have underspent their net zero budget by a staggering quarter of a billion pounds, at exactly the same time as our constituents are struggling to keep their homes warm and deal with accelerating fuel poverty.
Edward Miliband
I completely agree with the hon. Lady. At every step of the way, the Government have had the chance to act, and they have not done so.
Jim Shannon (Strangford) (DUP)
The figures for Northern Ireland are very interesting: 241,000 people—13% of people—in Northern Ireland are in poverty. Some 17% of all children, 14% of all pensioners and 11% of the whole working-age population are in poverty. Those figures scare me; do they scare the right hon. Gentleman?
Edward Miliband
The hon. Gentleman is absolutely right. I have been around politics for a long time, as the House knows, but I cannot remember—nobody in the House can remember—facing the kind of emergency that we do currently.
The spring statement was the most recent chance for the Chancellor to redeem himself; it was just days before the April energy price rise came into effect. It was apparent to everyone across this House and in the country that what he had offered was woefully inadequate. People were literally pleading with him to do more on energy bills, but he just doubled down on his failure. He has had three chances in the past seven months, and none of his responses has been equal to the emergency. The truth about this Chancellor is that at every step of the way he has been in denial, slow to act and wholly out of touch in his response.
Laura Trott (Sevenoaks) (Con)
It is right that we debate what more we can do, but does the right hon. Gentleman accept that the measures that we have put forward on the national living wage and universal credit, and the national insurance threshold changes, add up to more than he is suggesting?
Edward Miliband
No, I do not accept that, and I can tell the hon. Lady that 8,014 families in her constituency will benefit from the changes we are suggesting if she votes for them tonight. Let me tell her and the House what the Chancellor’s failure means in reality. This year, the basic level of universal credit for a single person aged over 25 is £334 a month. The Chancellor’s measures this April were so feeble that someone on that benefit will be expected to find as much as £50 or more a month simply to cover the increase in their energy bills. That is leaving aside the soaring costs of food and other goods. That £50 is around 15% of their income, so what are they going to do? They will not be able to afford to pay their bills, they will get deeply into debt and they will go without food. It is already happening to millions.
On Friday, in the citizens advice bureau in my constituency, I met someone who is in circumstances similar to those I described. Let me be honest: I have no idea how I would cope in those circumstances. Does any Member of this House? Maybe the Chancellor can tell us what somebody in those circumstances is supposed to do. If he cannot answer that question, it should tell him something—that he is failing in his duty to the people of this country who most need his help.
What makes the Chancellor even more culpable is that something that could help is staring him right in the face. It is something on which the case has become unanswerable, and on which the Government have run out of excuses, while oil and gas producers are making billions: a windfall tax. It is so hard to keep track of the Government’s position on a windfall tax that I have given up, but I think the Chancellor has said he is prepared to look at the idea. Honestly, the British people cannot afford to wait for him and his dithering anymore, or for his hopeless excuses.
I want to go through the hopeless excuses, because this is an important argument that this House and this country need to have. What are the Government’s excuses for not applying a windfall tax? First, they said in January that the oil and gas companies were, in the words of the Education Secretary, “struggling”. BP has its highest profits for a decade, Shell has its highest profits ever, and the boss of BP, Bernard Looney, describes the price hike as a “cash machine”—and these people say the companies are struggling. Perhaps we can have a show of hands: does anyone on the Government Benches still believe that those companies are struggling? What is the Government’s next excuse? They argue that a windfall tax will hurt investment—
Edward Miliband
Oh, it will, says the hon. Gentleman from a sedentary position. Right, here we go. The problem is that the companies themselves say that is nonsense. BP’s chief executive officer, Bernard Looney—whom I take as more of an authority than the hon. Gentleman—was asked two weeks ago which investments he would not proceed with if a windfall tax was levied. What was his answer?
“There are none that we wouldn’t do.”
Even BP does not buy the Tory arguments against a windfall tax on BP.
Edward Miliband
No; I will make some progress. The final excuse—[Interruption.] I want to come to this because it is important, and I am perhaps anticipating the Chancellor. The final excuse is that it is somehow anti-business to levy a windfall tax. Let us dispose of that argument, too. I strongly recommend that Members who believe that argument read an article that I have with me—I am happy to put a copy in the Library of the House—by Mr Irwin Stelzer, a long-time confidant of Rupert Murdoch. This is the first time I have quoted him in the House. A few days ago, in an article entitled, “Now is the time for a windfall profits tax”, he wrote:
“People who believe in capitalism believe that private sector companies should be rewarded for taking risks…not be rewarded for happening to be around when some disruption drives up prices, producing windfalls.”
That is the point: these profits are unearned and unexpected, and the British people are paying for that windfall. These companies are profiting not from decisions they have made, risks they have taken or wealth they have created, but from a global spike in prices to which Britain is badly exposed—a spike exacerbated by Putin’s invasion of Ukraine.
What is the principle that the Government are defending here? What is their hill to die on? Is the principle that they really wish to defend that oil and gas companies should pocket any profits, however bad the geopolitical instability? Is that however large the crisis and however gigantic the windfall, taxation must not change? That proposition was rejected by Margaret Thatcher, Geoffrey Howe and George Osborne—remember him?—all of whom levied windfall taxes. Who else do we see supporting a windfall tax today? I have to say, it is a pretty big tent: John Allan, the guy who runs Tesco; Sharon White, the woman who runs John Lewis; Lord Browne, the guy who used to run BP; and Lord Hague, the guy who used to run the Conservative party—the usual leftie suspects.
The truth is that the Government have run out of excuses and, amid the chaos and confusion about their position, I think a massive U-turn is lumbering slowly over the hill. I say this to the Chancellor: “Swallow your pride and get on with it.” Every day he delays is another day when the British people are denied the help they need. Millions of families are having sleepless nights because the Chancellor will not act. What is he waiting for? As proposed by the shadow Chancellor, my hon. Friend the Member for Leeds West (Rachel Reeves), the Chancellor should come to the House with an emergency Budget that has a windfall tax, gets rid of VAT on energy bills, increases the warm home discount to £400, includes an emergency plan to insulate 2 million homes this year, and cuts business rates.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Will the right hon. Gentleman give way on that point?
Edward Miliband
I will not for the moment. The Government’s position on the windfall tax is part of a wider problem with this Chancellor and this Government. Just look at the political choices he is making: he leaves non-doms shielding their millions while millions of families and pensioners face a cut in their incomes; he whacks up taxes on tenants and lets landlords off the hook; and he makes young people at work pay more, but those getting money from capital gains pay not a penny extra. Wrong, unfair, unjust, out of touch—that is who he is.
Several hon. Members rose—
Edward Miliband
I will not give way. Of course, being this Government, they always try to blame someone else, as we heard earlier. It is hard to keep track, but this is the roll call of people who the Conservative party have tried to frame in just the past few days: the Bank of England; civil servants working from home; and, shamefully, the British people for being unable to cook properly. That, apparently, is the cause of food banks. Yesterday, there was also the ludicrous suggestion from a Minister that people were not working enough hours. The Chancellor, of all people, is also at it. Who does he blame for the massive cut to benefits? He blames the IT system—the dude from Silicon Valley. Who is he trying to kid? If he had got his act together early enough, of course he could have raised benefits properly. The thing I do not get is this: he found it perfectly possible to cut universal credit by £20 in the middle of the year—in September. It is not a case of “Computer says no”; it is “Chancellor says no.” It is not that a computer system is not up to it; the Chancellor is not up to it.
The story of the past few months is this: crypto has crashed, and so has the Chancellor—and how similar they are. The Chancellor and cryptocurrency came out of nowhere. The value surged, and it looked like the future, but it has all turned out to be one giant Ponzi scheme. The Chancellor has just been found out. He has been rumbled. Let us be honest, his colleagues all know it. He is out of touch with what is happening in the country. He is out of ideas when it comes to doing the right thing. He is out of his depth when it comes to the challenges that this country faces.
The problem, of course, is that today’s cost of living crisis does not stand alone; it comes on top of a decade of failure. That is why families and our economy are so vulnerable. Over the past 12 years, growth has averaged just 1.4%—the worst record of any Government since the second world war. This is the worst decade for living standards since the 1920s, according to the Institute for Fiscal Studies. Indeed, wages would be £7,000 higher on average if wage growth under this Government had matched the rate of growth under the last Labour Government. Taxes are at their highest level since the 1950s. Public services are struggling. Never have so many paid so much for so little. Twelve years of Tory economics have failed, and what does the Chancellor offer in the future? More of the same: anaemic growth at just 1.7%, and squeezed wages as far as the eye can see.
This is the plan for growth that we need: we should tackle the cost of living crisis, so that people have more money in their pockets. We need to put in place an industrial strategy, so that we have good jobs in the industries of the future; that is what Governments all around the world are doing. We need a plan to give people proper rights, to boost wages at work, and to make our economy fair. Where is the employment Bill? It was promised in 2019, but it is still not here. When it comes to being on the side of the workers, Conservatives may mouth the words, but their actions tell the real story.
Mr Mark Harper (Forest of Dean) (Con)
I am glad that the right hon. Gentleman mentioned jobs, particularly as today unemployment has fallen to its lowest level. The number of people out of work is now lower than the number of vacancies in the economy. He has just made an extraordinary number of unfunded spending commitments at the Dispatch Box. I want to highlight the big difference between the Labour party and the Chancellor. I remember the spring statement; the shadow Chancellor made a commitment to raising benefits early, because, she said, it would cost no money. It would actually have cost £24 billion across the spending period. There was no sense of how to pay for it. That is Labour from start to finish.
Edward Miliband
It is good to see that the right hon. Gentleman has clambered back onto the career bandwagon. I thought that he was no longer a loyalist. The truth is that it was the Resolution Foundation that pointed that out, and I can give him the reference.
I will wind up now. I have mentioned the basics of a modern economy, and this Government are failing on all of them; they have no cost of living plan, no growth plan, and no plan for rights at work. They have not learned from the mistakes of the past decade, and they are condemned to repeat them. The truth is that this Gracious Speech does not remotely rise to the short or long-term challenges that the British people face, but this House can make a difference tonight. I say this to Conservative MPs directly: we have all heard from our constituencies what families are facing. This is an emergency for millions of people. A windfall tax could make a difference.
Edward Miliband
No, I will not. Conservative Members should use this opportunity to tell the Chancellor to act. It is the right and fair thing to do. The case is unanswerable. If they do not act, they will have to explain to their constituents why they refused to support help that could make a difference now. I urge Members to vote for our amendment tonight to help tackle the social emergency that our country is facing.
Rishi Sunak
I thank my right hon. Friend for his advice and support, and I will come on to both of his points momentarily. He is right to remind the House that so far we have provided £22 billion of direct support. That is not a trivial figure; it is £22 billion of support to help families up and down our country at a time of challenge. We have taken action, as we heard, to cut people’s bills, starting with fuel duty—I commend him for his campaigns on that. It has been cut by 5p a litre, which is worth £100 this year together with the freeze, and council tax, cut by £150.
What the right hon. Member for Doncaster North did not mention was that that £150 of support, which, as we heard from my right hon. Friend the Member for Harlow (Robert Halfon), has made a huge difference to families, came faster than any support the Labour party was offering in its proposal, and it went to a far broader group of people than their proposal, because we wanted to support those on middle incomes as well.
Rishi Sunak
VAT would have been worth about, I think, £8 a month at the time. This is £150 in people’s bank accounts in April.
We also cut the taper rate on universal credit, giving an extra £1,000 to the average household. The warm home discount increased to £150, the national living wage increased, giving low-paid workers a pay rise of £1,000, and we will go further.
Household Energy Bills: VAT
Edward Miliband Excerpts(2 years, 3 months ago)
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Edward Miliband (Doncaster North) (Lab)
I want to thank all hon. Members who have spoken in this debate. I particularly thank my hon. Friend the shadow Chancellor, my hon. Friends the Members for Tooting (Dr Allin-Khan), for Sheffield, Brightside and Hillsborough (Gill Furniss), for Merthyr Tydfil and Rhymney (Gerald Jones), for Batley and Spen (Kim Leadbeater), for Bradford West (Naz Shah), for Brighton, Kemptown (Lloyd Russell-Moyle), for Newport West (Ruth Jones), for Bedford (Mohammad Yasin), for City of Durham (Mary Kelly Foy), for Salford and Eccles (Rebecca Long Bailey), for Warwick and Leamington (Matt Western) and for Birkenhead (Mick Whitley), and my hon. Friend the Member for Easington (Grahame Morris) for his just-a-minute speech, which was excellent.
There are three questions at the heart of this debate. How did we get here? What short-term action should we take? And, what is the long-term plan to stop it happening again? First, on the crisis, there is no question but that there is a global dimension to this crisis. Many countries are facing strains as a result of what has happened to wholesale energy prices, but there are some undeniable facts about how badly we have been hit. No other country has seen 28 energy companies go under. They are failures that we already know will cost consumers £100 on bills. No other major European country has gas storage equivalent to just 2% of its energy demand. No other country in western Europe performs as badly on fuel poverty and insulation as the UK. These undeniable facts are symptoms of Government failure over the past decade. There were failures of regulation. They were warned repeatedly about the regulation of the sector, and did not act—in fact they loosened regulations. As the recent Citizens Advice report said:
“From 2010 onwards, dozens of companies entered the market with limited checks. Some offered good services to consumers, but others were poorly prepared.”
It went on to say that the regulatory system
“allowed unfit and unsustainable energy companies to trade with little penalty.”
It is consumers and businesses that are paying the price. There were failures of strategic decision-making, too, such as the closure of the Rough storage facility, which my hon. Friend the Member for Leeds West (Rachel Reeves) warned about when she was Chair of the Business, Energy and Industrial Strategy Committee.
Let me get to the heart of this debate, and I say this to the anti-net zero tendency in the Conservative party. We can reach two different views. Some Conservative Members say that it is because we have gone too fast on the green transition. I say that they are dead wrong; it is because we have gone too slowly. It is continued dependence on fossil fuels that makes us more vulnerable and less resilient. Let us take energy efficiency. A 2014 study showed that a comprehensive programme of energy efficiency could cut gas imports by a quarter, but what have we seen? We have seen the abolition of the zero carbon home standard, the fiasco of the green deal and the fiasco of the green homes grant. That is why emissions from buildings are now as high today as they were in 2015, and it is not just about energy efficiency. Before this debate, I looked up the number of onshore wind turbines being constructed each year in the past four years—it is because I am a nerd. I will not do a guessing game in the House as I do not have the time. The answer is that just four turbines a year were granted planning permission in the past four years. It makes no sense, because onshore wind is the cheapest power at our disposal—so much for being the Saudi Arabia of wind power; it is just hot air.
I come now to what short-term action should be taken. There is a divide in this House between a party that has some proposals and a party that does not. Fundamentally, that is it. Conservative Members can talk all they like about the Order Paper and all that stuff, but they do not have an answer. We have come forward with an answer. What is the principle of the answer? It is this: we help all families, and we give most to those who need it most. I want to explain this to the House. We have said that we want to increase the warm home discount from £140—£150 from April—to £400. We want not just to increase it, but to extend it from 2.2 million households to 9 million households, or one third of families. That is the right decision to help the poorest people in our society who are going to be so badly hit. But we all face a dilemma, and we need to be honest about this. It is right to help the poorest, but it is not just the poorest who are facing tough times as a result of this crisis; it is those in the middle as well, and the swiftest, most direct way of helping those families is to get rid of VAT on energy bills.
Perhaps I am a bit naive in thinking it surprising that this idea is controversial, because this is a Government whose Prime Minister and Home Secretary, along with 26 Conservative MPs, used to think that it was the bee’s knees. They thought it was a great idea. It was not some random, chance remark made by the Prime Minister; it was a promise made over and over. Given the Prime Minister’s long and distinguished record of integrity, demonstrated again today, surely the British people were entitled to take him at his word when he said that
“we will be able to scrap this unfair and damaging tax”,
and again, just two years ago, when he said:
“Not only will we be able to reduce VAT in the UK, but we will be able to do it in Northern Ireland as well.”
As Conservative Members consider how they will vote in a few minutes’ time, instead of making arguments about the Order Paper, why do they not look at the substance of the motion? Labour Members say, “Let us take action”; their Government have nothing to say. That is the difference, and they should join with us. The problem is not just that the Government have nothing to say. I think we got to the heart of where they really stand on Sunday when we heard what the Education Secretary said when he was sent out to comment. It is not great being a Government Minister going out there at the moment, to be honest; I remember times like that in the Labour Government too. The Education Secretary—I had to double and triple-check this quote—said:
“A windfall tax on oil and gas companies, who are already struggling in the North Sea, is never going to cut it.”
“Already struggling”? As my hon. Friend the Member for Leeds West said, the chief executive of BP, Bernard Looney, said that the price rises were a “cash machine” for his business. It is not putting that money into investment; it is putting it into dividend share buy-backs from its shareholders. Who is filling up that cash machine? It is working people. All we are suggesting is something quite simple, which is a one-off windfall tax for a year to get some of that money back and help families right across this country.
Short-term action is essential, but we need long-term action as well. There is a very big difference we could make to families, and that is a national mission to retrofit homes in this country. It is the closest thing there is to a no-brainer with regard to energy policy. We could cut bills by up to £400. We could make ourselves much less dependent on volatile fossil fuels. That is why we put forward a plan for a £6 billion a year retrofit and zero-carbon energy programme to insulate 19 million badly insulated homes. But the Government refuse to act. They offer piecemeal privatised programmes that do not work, and they are still short of their very inadequate manifesto promise on this. We can get a sense of where the Government stand. When they had the fiasco of the green homes grant—I do not blame them for thinking it was not going very well—they did not plough the money saved back into retrofit but simply cut £1.5 billion of investment. We need to go faster on energy efficiency. We need to invest in our ports and grid so that we can meet and exceed 40 GW of offshore wind. We need to end the effective moratorium on onshore wind, embrace tidal power and other forms of renewable energy, drive forward our nuclear programme and invest in clean energy storage.
There needs to be a proper inquiry into how we ended up with the disastrous regulation system under this Government and a root-and-branch reform of that system so that we never again have a situation where so many companies go bust and it is the British people who are left to pay the price, with such a dramatic impact on their bills. I am afraid to say that the culpability lies directly at the Government’s door: they were warned and they did not act.
This debate has been revealing in very many ways.
Edward Miliband
I will not.
We have a Government who got us into this mess and have no clue how to help the British people out of it. They are paralysed in the face of this cost-of-living crisis. They do not have any answers for the British people, either now or in the future. That is why we are acting. I urge Members from all parties to join us in a few minutes and vote for relief for hard-working families across this country.
Better Jobs and a Fair Deal at Work
Edward Miliband Excerpts(2 years, 11 months ago)
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Edward Miliband (Doncaster North) (Lab)
We have had an excellent debate with noteworthy contributions on all sides. I particularly want to congratulate my hon. Friend the new shadow Chancellor, who made an excellent speech and will do a brilliant job in her new role. I also want to commend the excellent speeches of my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) and my hon. Friends the Members for Harrow West (Gareth Thomas), for Barnsley Central (Dan Jarvis), for Easington (Grahame Morris), for Chesterfield (Mr Perkins), for Newport East (Jessica Morden), for City of Chester (Christian Matheson), for Aberavon (Stephen Kinnock), for Ellesmere Port and Neston (Justin Madders), for Kingston upon Hull West and Hessle (Emma Hardy), for Swansea West (Geraint Davies), for Bristol South (Karin Smyth), for Warrington North (Charlotte Nichols), for Cambridge (Daniel Zeichner), for Merthyr Tydfil and Rhymney (Gerald Jones), for Hornsey and Wood Green (Catherine West), for Liverpool, Wavertree (Paula Barker), for Luton South (Rachel Hopkins), for Liverpool, Riverside (Kim Johnson), for Jarrow (Kate Osborne) and for Birkenhead (Mick Whitley). I also congratulate all other hon. Members who spoke in this debate.
The central question facing this Gracious Speech is whether it can rise to the moment in which we find ourselves because, while life is starting to return to a semblance of normality, and we are all thankful that that is happening, we cannot just go back to business as usual. Exposed in this pandemic we see millions of workers in deeply insecure jobs, the key workers in our country underpaid and undervalued, public services under deep strain, and an economy not working for too many people in our country and characterised by deep inequalities of wealth, income, power and place. And on top of that we face the challenge of economic recovery from covid and the climate emergency.
I welcome the fact that after 10 years in power some of the issues I have mentioned are at least being recognised by the Conservative party finally; I am old enough to remember when it was controversial to do so. But acknowledging the problems is not the same as solving them, so the test of Government and this Gracious Speech is whether they can address them. Last October, the Prime Minister said they would. Indeed, he invoked the spirit of the post-war Labour Government:
“In the depths of the second world war…when just about everything had gone wrong, the Government sketched out a vision of the post-war new Jerusalem…And that is what we are doing”.
Let us be absolutely clear, therefore, about the scale of change that the Prime Minister is claiming he can deliver: a new economic and social settlement for our country. We agree this is necessary. The question is: will the Government deliver?
What would that mean as a start? It would mean five things: tackling insecurity at work with a new deal for workers; responding to the climate emergency with a genuine green industrial revolution; supporting our businesses to recover from the pandemic; rewriting the rules of our economy to shift wealth and power towards ordinary people and their communities; and rebuilding our public services. On those five issues, the British public deserved a Queen’s Speech that met the moment, but on each of those tests the Gracious Speech failed to deliver.
Let us start with the insecurity that millions of workers face. There is no greater symbol of this than the scourge of fire and rehire tactics—at British Airways, at British Gas and at many other employers—now spreading through our economy. We would never want this for ourselves or our families, so why should we ask the British people to put up with it? The Prime Minister says it is unacceptable, so where is the legislation to outlaw fire and rehire?
In the 2019 Queen’s Speech, we were promised an employment Bill. What about this Gracious Speech? No employment Bill. The Government have sufficient legislative time to seek to disenfranchise millions of voters with a voter ID system, but they do not have sufficient legislative time to tackle the insecurity that millions of workers face. It is shameful. Never mind a new economic and social settlement—a Government committed to basic rights at work would have brought forward this legislation. The obvious conclusion is this: the problem is not a lack of legislative time; it is that they have not changed their minds about how an economy succeeds. They still believe that insecurity masquerading as flexibility is the route to economic success: treat people worse, give them fewer rights and they will work harder. The rhetoric is changed, but the reality is more of the same.
Let us consider the climate emergency. There has been lots of talk about jobs and skills in this debate—lots of good rhetoric. What do we see in the United States? President Biden has a $1 trillion green stimulus over the next decade. We have called for a £30 billion stimulus over the next 18 months to create 400,000 green jobs. What do this Government offer? Investment that, even on their own dodgy analysis, is one 60th the level of Biden’s stimulus.
This has real consequences for our manufacturers. There was talk of the automotive sector, and that is the litmus test for any green recovery. Germany is investing billions and France the same, in a global race to build the new gigafactories of the future. We need to start financing three additional gigafactories in this Parliament, public and private together. Where are the resources from Government? Nowhere near the scale required. It is the same in aerospace and in steel. We have a new clean steel fund that is hopelessly inadequate and will not even come on stream until 2023.
This illustrates a wider truth about industrial policy. In the Gracious Speech, there are new measures on subsidies—what was called state aid—as part of our post-Brexit arrangements, and there are some sensible changes to the old EU regime, but let us understand the truth here. What was holding back Government from giving industry the support it needed was not the previous rules but their prevailing ideology. In 2019, under the old system, Denmark invested 1.5% of GDP in industrial support and Germany 1.4%. The UK invested 0.38%—among the lowest in Europe. The real fear is that this will not change.
What about our businesses? Businesses can breathe a sigh of relief as our society reopens, but many face a long road to recovery. The hon. Member for Strangford (Jim Shannon) raised the real issue of the unmanageable debt facing businesses. We have been calling for months for that debt to be restructured. I do not think that the Chancellor has done enough. At the end of June, the moratorium on evictions from commercial properties will be lifted, and I really worry about the issue of rent. It is often the largest cost for a small business, and commercial tenants in the UK have paid just a fifth of the rent they owe in the last quarter. We needed a comprehensive plan for British business, including meaningful debt restructuring. The Gracious Speech failed to deliver.
Rebuilding in a fairer way for business is not just about cash. Too many of our rules favour anti-competitive monopolies. Nowhere is that clearer—and I think there is agreement on this on both sides of the House—than in relation to big tech. It is good that a Digital Markets Unit has been established in the Competition and Markets Authority, but it needs new legislation; where is it? We need a new competition Act that establishes a statutory code of conduct for tech giants and gives the CMA real powers to act on behalf of consumers and small businesses. My hon. Friend the shadow Chancellor spoke very well on the issue of online retailers versus the high street. Again, there have been years of promises but no action. It is another missed opportunity to build a new economic and social settlement.
As we rewrite the rules of our economy, we also need to change our vision of what a successful economic future looks like. Industrial policy is about manufacturing, but it is also about what my hon. Friend has called the everyday economy in which so many people work. Nowhere is that more true than in relation to care. We need to get away from the idea that care is somehow a burden and understand that it is a crucial part of our economic infrastructure. That is true of care for the young —one of the best economic investments we can make and in which we still lag way behind other countries—and care for older generations. We are now two years on from the Prime Minister saying that he had a plan to fix social care “once and for all” and 10 years on from the Dilnot report on social care. It is shameful that the Government are still not making any concrete proposals in the Queen’s Speech and are letting down our care workers.
We cannot ignore the wider context of the Gracious Speech in terms of public spending. The Chancellor has acted in the pandemic to help businesses and individuals, as it is right to do, and we have welcomed the furlough, but let us be clear about the truth of the plans for public spending in future years. In the so-called unprotected Departments—in other words, the majority of Government Departments—there are cuts programmed in from April 2022. There will be further cuts to local government on top of the 50% cut that some parts of the country have already seen, cuts to the justice system, cuts to transport and cuts to the majority of Departments after 10 years of austerity. There can be no greater sign that they have not learned the lessons. We cannot build a new economic social settlement with these kinds of cuts after 10 years of austerity.
This Gracious Speech fails to meet the challenge of this moment. The Government claim to have changed and to want to offer something different. The truth is that it is a very thin Queen’s Speech from a Government in power for more than a decade. There are no measures on insecurity at work; they are not stepping up on the climate challenge; there is inadequate support for British businesses and industries; there is no plan for social care; and there is continued austerity in many areas. The country demands a Government who meet the moment, but the Gracious Speech does not remotely measure up. It has failed in the task at hand.
Economic Update
Edward Miliband Excerpts(4 years, 1 month ago)
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Rishi Sunak
My right hon. Friend knows better than most the value of making sure that people have the security of a good job, and I commend him for all his work in that regard. I agree with him wholeheartedly. My right hon. Friend the Communities Secretary is talking already to the voluntary sector and we stand ready to provide the support that may be required.
Edward Miliband (Doncaster North) (Lab)
I recognise, as I am sure the whole House does, the Chancellor’s wish to get any employment support scheme right, but he will recognise, as the shadow Chancellor said from the Front Bench, that people are facing redundancy right now. May I suggest two things that he can say tonight to help ward off those redundancies? The first is that he accepts the principle that Government should cover a substantial proportion of people’s wages, because it is in their interests and those of the economy and their businesses. The second is that he undertakes to come back not next week but by Friday of this week with a clear plan developed with unions and businesses.