Oral Answers to Questions

Jeremy Corbyn Excerpts

Wednesday 29th June 2016 Commons Chamber

[The Prime Minister]

I certainly join my hon. Friend in commending all those who are organising these important events, particularly the event he mentions in his constituency, but also the events up and down the country. It is important, not only because of the appalling slaughter—57,000 people were killed or wounded on the first day of this battle—but because so many people are learning so much about their own family’s involvement. In many ways, there is a link between the current events we are discussing and what happened 100 years ago: the importance of keeping peace, security and stability on our continent. It was noticeable at last night’s European Council dinner that the French President mentioned the Somme commemorations and how proud he was that we would be standing together to remember those sacrifices all those years ago.

[Jeremy Corbyn (Islington North) (Lab)]

I echo the words of the Prime Minister concerning the 36 who died and the 100 injured in the vile terrorist attack at Ataturk airport. I am sure that our consular services will be doing everything they can to assist those affected. I thank him for referring to the memorial service in the Somme on Friday; I look forward to being with him for the memorial service for those who died in that dreadful battle.

I think it would be appropriate to pay tribute to Lord Patrick Mayhew, who died last weekend. As Northern Ireland Secretary, he was the driving force behind the Downing Street declaration in 1993, which led to the first ceasefire. I think the relative peace we have now in Northern Ireland is in part thanks to him and of course his successor Mo Mowlam, who achieved so much.

What people in the country are worried about is the extra insecurity for their living standards, jobs, wages and pensions following the EU referendum. In recent days, we have heard uncertain words about the future of some of the major companies in Britain, such as Siemens, which has been here for a very long time. What meetings has the Chancellor had with major companies—Siemens, Visa, Vodafone and others—to try to stabilise the situation?

[The Prime Minister]

The right hon. Gentleman is absolutely right to mention Patrick Mayhew, who played a huge role in the delivery of the peace process, and he was also a brilliant Attorney General. He exuded a belief in public service in the national interest, and he was a kind and goodly man. I was very sad to hear of his passing. I sent a message to him via his wife shortly before he died, and I know that many people in the House will want to send their good wishes to his family.

The Leader of the Opposition rightly asked what conversations we are having with business and what preparations we are making to deal with the economic challenges we face. We are in a strong position to meet these challenges, because we have paid down so much of our deficit and we have had strong growth and job creation, but I do not at all belittle the fact that the consequences will be difficult. There are going to be very choppy waters ahead—I do not resile from any of the warnings I gave during the referendum campaign—but we have to find the best way through them.

One of the things we must do is to talk to businesses and reassure them about the stability that there is today and the strength of the British economy. The Business Secretary has met a whole range of businesses already. I have a meeting of my business advisory group tomorrow, and I am inviting other companies to it, including Siemens, which plays a huge role in the British economy. We need to discuss the reassurances about stability that we can give now and the fact that our circumstances do not change until we leave the European Union, and then I will want to hear from them—as we draw up possible blueprints for Britain’s future position with Europe—what they think will be the right answer.

[Jeremy Corbyn]

The credit rating agencies have cut the UK credit rating to double A from double A plus. The Chancellor pledged to keep the triple A rating. What estimate have the Government made of the cost to the Exchequer of this downgrade in borrowing costs and risks to pension funds?

[The Prime Minister]

The Leader of the Opposition is absolutely right that the credit rating of one agency has been taken down by several points and another has put us on watch. To answer his question directly, the cost to the Exchequer and to the taxpayer will depend on what happens to the interest rates in the market at which Britain can borrow, and it is absolutely right to draw attention to that.

As I have said—Mario Draghi, head of the European Central Bank, confirmed this last night—all the warnings were that if we voted to leave the EU there would be difficulties in our own economy, growth rates and instability in markets. We are seeing those things, and we are well prepared for them in the reaction of the Bank of England and the Treasury, but there is no doubt in my mind that these are going to be difficult economic times. We must make sure we maintain our strong economy so we can cope with them, but we should not belittle the challenges: they are going to be difficult and we are going to have to meet them.

[Jeremy Corbyn]

All Members of the House should be concerned about indications from business and investors that suggest they see the UK as less attractive, thus putting current and future jobs at risk. In those circumstances, will the Prime Minister consider suspending the Chancellor’s fiscal rule, which is in effect preventing investment?

[The Prime Minister]

I do not believe that would be the right approach. Business, consumers, investors, and those concerned about our economy want to hear that we have taken huge steps over the past six years to get the budget deficit down, to make the British economy more competitive, and to make us an attractive destination for investment. They want those things to continue, and one way to react to economic difficulties is to ensure that our public finances and economy remain strong. We should not have taken all the steps of the last six years to get the deficit down just to get us on to a more difficult path. I do not think it would be right to suspend fiscal rules and, as I have said, there are three phases: first, volatility, which the Bank of England and Treasury must cope with; secondly, uncertainty about Britain’s future status, which we must bring to an end as fast as possible by examining alternative models and by my successors choosing which one we should go for; and, thirdly, we should bear in mind that long-term damage to the British economy will be based on how good our trading relationship is with the European Union. For my part, I think we want the closest possible trading relationship with the European Union, and that can be discussed and debated in this House as well as by the next Government.

[Jeremy Corbyn]

This week, sadly, there has been more evidence that racist incidents are increasing. Evidence collated by monitoring groups shows that in the past three or four days alone there have been attacks and abuse from Stoke to Stockton, and from Dorset to the Clyde. What monitoring systems have the Prime Minister and the Home Secretary put in place, what reports have they received from the police, and what extra resources will go to communities that have been targeted in those vile racist attacks?

[The Prime Minister]

I agree that those attacks are appalling. They need to stop, and it is right that all Members of the House, and on both sides of the referendum debate, utterly condemn them. That is not what we do in Britain, and at last night’s meeting I reassured the Prime Ministers of countries such as Romania, Poland and the Czech Republic, who were concerned about the issue. We do monitor these attacks. The Home Secretary receives regular reports, and we will soon publish a new action plan on tackling hate crime to step up our response. We want new steps to boost the reporting of hate crime and to support victims, new CPS guidance to prosecutors on racially aggravated crime, a new fund for protective security measures in potentially vulnerable institutions, and additional funding for community organisations so that they can tackle hate crime. Whatever we can do we will do to drive those appalling hate crimes out of our country.

[Jeremy Corbyn]

I thank the Prime Minister for that answer. The vote last Thursday was a rejection of the status quo—a status quo that clearly is not delivering. There are now 13.5 million people living in poverty in Britain, which is up by 300,000 over the last year. Some 4.5 million people in England and Wales are in insecure work, and two thirds of children in poverty are living in households where at least one adult is in work. The Prime Minister has two months left. Will he leave a one nation legacy that includes the scrapping of the bedroom tax, banning zero-hours contracts, and cancelling cuts to universal credit?

[The Prime Minister]

I agree with the right hon. Gentleman that of course we need to do more to tackle poverty and to spread wealth and opportunity. However, to try to pretend that last Thursday’s vote was a result of the state of the British economy is complete nonsense. The British economy is incomparably stronger than it was six years ago. We must all reflect on our role in the referendum campaign. The right hon. Gentleman says that he put his back into it; all I say is that I would hate to see him when he is not trying.

[Jeremy Corbyn]

Government figures released yesterday show that the number of children in this country who are living in poverty has jumped by 200,000 in a year to a disgraceful total of 3.9 million. Should the Prime Minister at the very least apologise to them and to parents who have been failed by his Government, and do something about it so that we reduce child poverty in this country?

[The Prime Minister]

If the right hon. Gentleman wants to deal with the figures, let me give them to him. Income and inequality have gone down. Average incomes have grown at their fastest rate since 2001. He asks about poverty. There are 300,000 fewer people in relative poverty since 2010 and half a million fewer people in absolute poverty since 2010. If he is looking for excuses about the referendum and the side that he and I were on, frankly he should look somewhere else. I have to say to him—he talks about job insecurity and my two months to go—it might be in my party’s interests for him to sit there; it is not in the national interest. I would say: for heaven’s sake man, go!