The Economy and Work

Geraint Davies Excerpts

Thursday 26th May 2016 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

I beg to move amendment (e), at the end of the Question to add:

“but respectfully regret that the Gracious Speech fails to deliver for working people, to protect public services and to address the black hole in the public finances; further regret that the Government’s economic policy has unfairness at its core and includes tax cuts for the wealthy while failing to deal with inequality; regret the refusal of the Scottish Government to use its new tax powers to put an end to austerity in Scotland; regret that the Government is presiding over the worst decade for pay growth in nearly a century; call on the Government to adopt Labour’s Fiscal Credibility Rule to invest in a sustainable economy for the future and to adopt Labour’s Tax Transparency Enforcement Programme to tackle tax avoidance; regret that the Government has failed to defend the UK steel industry, believe the Government should reform the lesser duty rule and call on the Government to give Parliament a vote on giving China market economy status and to adopt Labour’s 4 Point Plan to save the steel industry as a part of a long-term industrial strategy; further call on the Government to reverse the cuts to Universal Credit work allowances; and call on the Government to abandon its misguided proposals to repeal the Human Rights Act 1998.”.

I rise to speak to the amendment in the name of the Leader of the Opposition, myself and several colleagues.

Last week was the first time I had actually visited the other place to listen to Her Majesty read the Queen’s Speech. Usually, I avoid the crush and stay here to have a chat with my hon. Friend the Member for Bolsover (Mr Skinner). I have to say that my admiration for the Queen was immensely increased by her ability to keep a straight face while reading the fictional drivel that is called the Queen’s Speech.

The Queen’s Speech before us demonstrates conclusively the massive distance between the Chancellor and the real world. It opened with an extraordinary piece of doublespeak. The Government apparently think we live in a “strengthening economy”. They are seemingly not paying attention to their own statistics and their own forecasts. After precipitating the slowest recovery in modern British history, the Chancellor is now presiding over a recovery built on sand. Business investment has slumped again—by 0.5% in the first quarter, according to this morning’s figures—and the Office for Budget Responsibility’s most recent forecasts are for downward revisions in business investment across the life of this Parliament. Consumer debt is rising at record rates, and is forecast to remain at unprecedented levels. The current account deficit has reached record highs. We are borrowing more than ever before from the rest of the world as a result. We are not, as the Queen’s Speech claimed “living within our means”—far from it, on the Government’s own figures.

Productivity has slumped under this Government. The gap between what the average hour worked in Britain produces and what the average hour worked in the US, France or Germany produces is bigger than it has been for a generation. Every hour worked in Germany produces one third more, on average, than it does here. Low productivity is the sign of a weakened, damaged economy. It means lower wages and more insecurity. The slump that has occurred in productivity has been far worse in this country under this Chancellor than in any comparable G7 economy. It is what has caused the Office for Budget Responsibility to revise its future forecasts downwards.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does my hon. Friend accept that in the 10 years of the Labour Government to 2008—pre-crash—the economy grew by 40% and that, after the banking crash, we left debt at 55% of the economy in 2010, a figure that is now 83%? Does that not show a failure to grow the economy effectively or to manage productivity?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. May I just say to the hon. Gentleman that he has already tested the patience of the House and should not continue to do so? I care about colleagues on both sides of this House and will make sure that everybody gets in, so—unfortunately—interventions must be very short. The list of speakers is very long, and I do not want any Members to miss out.

--- Later in debate ---

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

On the last day of debate on the Queen’s Speech I rise to support our plan, which offers security and opportunity to working people in this country. That is what the British people entrusted us to deliver in the general election almost exactly a year ago, and that is what we commit to providing in the programme for the coming year.

There is, of course, a bold programme of social reform. We offer the biggest reform of the prison service since the Victorian era, so that we protect the public, and punish wrongdoers while also giving them a chance to rehabilitate themselves and contribute to society. We will overhaul social care and adoption to improve the life chances of some of the most vulnerable young people in our country, and we will continue to improve our education system, raising standards in schools so that our children are equipped with the skills they will need to lead fulfilling lives. We will reform our universities so that they remain the best in the world, and are agents for social mobility at the forefront of expanding human knowledge. We will address the crisis of childhood obesity that is damaging our children’s health and threatens to overwhelm our health service unless we act with a new sugar tax on soft drinks. None of those reforms to improve our healthcare, security and social care would be possible without the bedrock of financial stability and prosperity that our long-term economic plan is delivering.

[Geraint Davies]

Does the Chancellor accept that if the best universities raise their prices, the poorest will be deterred from going? Instead of getting the best students, we will get the richest, which is simply wrong.

[Mr Osborne]

I do not agree with that. Evidence shows that as a result of university reforms introduced by the Labour Government—which the hon. Gentleman used to support—and by the coalition Government and now this Conservative Government, not only are a record number of students going to our universities, but a record number of students from disadvantaged backgrounds are going. I find it extraordinary that a Labour party that introduced tuition fees is now promising to scrap them and create a £10 billion hole that will presumably be filled by taxes that are paid by those who did not go to university and have lower incomes. That is the so-called progressive policy of the so-called progressive Labour party.

--- Later in debate ---

[Mr Osborne]

A record number of people are in work and we have created almost 2.5 million jobs in this economy. Yesterday at the end of my remarks I referred to a report that the Labour party has produced on its future. This independent inquiry is chaired by the hon. Member for Dagenham and Rainham (Jon Cruddas). Let us see what Labour says about Labour:

“A tsunami of aspirant voters sank Labour…Voters abandoned Labour because they believed Labour lacked economic credibility…the perception was that it would be profligate in government… Labour is losing its working-class support… Labour has marched away from the views of voters… Labour is becoming a toxic brand.”

That is the Labour party’s own verdict on the Labour party. It concludes by saying—

[Geraint Davies]

On a point of order, Madam Deputy Speaker. Surely this is meant to be a debate about the Queen’s Speech, not the Labour party?

[Madam Deputy Speaker (Natascha Engel)]

How the Chancellor chooses to use his speech is up to him. I would have thought that, since it is his Queen’s Speech, his focus would be on that, but it is up to him.