Economic Responsibility and a Plan for Growth
Justin Tomlinson Excerpts(1 year, 6 months ago)
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Rachel Reeves (Leeds West) (Lab)
I beg to move,
That this House regrets the long-term damage to the economy as a direct result of the mini budget, where mortgage rates for households have risen and the stability of pension funds has come under threat; notes that despite substantial U-turns in policy since the mini budget, the Government’s funding position has deteriorated, the cost of borrowing is expected to be higher for many years and the UK’s fiscal credibility has been undermined, all while many energy producers continue to make record windfall profits; therefore calls on the Government to take all necessary steps to stabilise the economy and make it work for ordinary working people and business through a plan for growth that puts them at its heart; and further calls on the Government to publish the Office for Budget Responsibility forecasts immediately alongside Government estimates of windfall profits for the next two years from energy producers in the UK.
We are here because of a Tory crisis made in Downing Street but paid for by ordinary working people. The Conservative mini-Budget of 23 September will go down in history as the day that the British Government chose to sabotage their own economy. We saw the Conservatives hurl unfunded tax cuts towards the wealthiest, with excessive borrowing and yet more Government debt. The Government set our economy ablaze and, as a direct result, in the past four weeks we have experienced chaos in financial markets, repeated emergency interventions from the Bank of England, warnings from the ratings agencies and rebukes from the International Monetary Fund. Those costs are passed directly on to working people.
Justin Tomlinson (North Swindon) (Con)
I thank the hon. Member for being generous in giving way so early. Does she join me in welcoming last week’s employment statistics, with the highest rate since 1974? In my constituency alone, 920 extra people were in work compared with 12 months ago.
Rachel Reeves
The truth is that a million people are missing from the labour market and half of those have long-term health conditions. We need to do much more to get those people back to work. One reason why unemployment is low is that so many people are not even looking for work because they are waiting for NHS operations, with waiting times at an all-time high.
Today, we learn that inflation has gone above 10% again; food inflation is at more than 14%; and in the last year alone, electricity prices are up 45% and gas prices have doubled. Despite all the extraordinary and unprecedented U-turns in recent days, the damage has been done. This Conservative Government have wrecked people’s finances and snuffed out the dream of home ownership for millions. Some 1.8 million people across the UK will pay higher mortgage bills by the end of next year—on average, they will pay £580 extra every single month—because of the reckless actions of the Government. In my Yorkshire constituency, the cost will be £360 extra a month. In the constituency of the Financial Secretary to the Treasury, the hon. Member for Arundel and South Downs (Andrew Griffith)—who is about to respond to me—it will cost people £640 extra every single month in higher mortgage payments. Families cannot afford to pay those higher mortgage costs, and they certainly cannot pay them with apologies from the Prime Minister. The public will not accept that the arsonists who inflicted this damage can put out the fire. The Tories can never be trusted with our economy again.
Economy and Jobs
Justin Tomlinson Excerpts(4 years, 3 months ago)
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Marsha De Cordova (Battersea) (Lab)
May I congratulate you on your re-election, Madam Deputy Speaker? It is a pleasure to follow the hon. Member for North West Leicestershire (Andrew Bridgen) and to speak on the final day of this Queen’s Speech debate.
After a decade of austerity, damaging cuts to public services, continual underinvestment in our NHS and the dismantling of our social security system, I am afraid to say that the Queen’s Speech offers nothing new. There is nothing more pressing than the impending climate crisis facing our country, a crisis that could have been averted by policies that the Conservative Government opposed over the last decade. Instead, investment in clean energy has plummeted since 2015 and, after a decade of inaction and broken promises, the UK will fail to meet vital EU targets on air pollution, which will have a devastating effect on my constituents.
It is time for radical action. That means listening to our young people over big business. It means a more ambitious zero emissions target than the one outlined in the Queen’s Speech. And it means following the Mayor of London’s lead on tackling air pollution by introducing a new clean air Act. So I hope the Secretary of State will tell us something new and impressive today about what the Government are going to do to tackle the climate crisis we are facing.
Everybody in this country deserves a safe, decent and affordable home to live in, but successive Conservative Governments’ housing records are shaped by broken promises and missed targets. This winter, there are more than 3,000 homeless children in Wandsworth, a reality overlooked by this Government, as there is not even a mention of the word “homelessness” in this Queen’s Speech. We cannot trust this Government to deliver on their promises on housing, as the Tories have failed to build a single one of the 200,000 starter homes they promised in 2015. Not only that, but this Queen’s Speech does not include any measures to improve building and fire safety. Today we heard a statement from the Housing Secretary, but yet again no fixed deadlines have been put in place to compel local authorities, developers and the owners of those private blocks to ensure that they remove flammable cladding from people’s homes? Again, it is time for action on this issue, because my constituents who are living in homes wrapped in cladding are still unsafe. Perhaps the Minister will be able to say whether or not the Government can set out a deadline by which to ensure that flammable cladding is removed from those homes.
We face the housing crisis that I have talked about, with high rents and unaffordable homes. It is all fuelled by a jobs crisis and low pay. It is a national scandal that there are 14 million people living in poverty and 9 million of them are in families in which at least one adult works. After a decade of austerity, our economy is not working for working people. The Government are celebrating high employment rates at every opportunity, but the figures mask high levels of people in insecure work, under-employment and low pay. The recent announcement on the national living wage that will come into force this April will apply only to workers aged 21 years and above. That means there will still be 5 million workers in the UK who will be earning less than the real living wage. Why will the Government not choose to pay everyone a real living wage, regardless of their age? I hope the Minister can respond to that.
Not only that, but 3.7 million people are in insecure work or on zero-hours contracts. Again, this is something the Government need to address. If they are genuine about calling themselves the party of the workers, it is time they started treating our workers with respect and paying them a decent wage.
The Government have no plan to address the crisis of the race, gender and disability pay gap. The current disability pay gap for all employees stands at 15.5%, meaning that disabled people effectively work for free for 57 days—or eight weeks—of the year. That is scandalous and unacceptable. Analysis also found that disabled workers earn on average £1.65 per hour less than non-disabled workers, which is a gap of around £3,000 a year, based on a 35-hour week. So what action are the Government taking to address the disability pay gap?
I now come to a subject close to my heart: the Government’s national strategy for disability outlined in the Queen’s Speech, with a whole page and a half dedicated to it. I have to say that it is a little too late and does not address the real impact of cuts to public services and social security. Disabled people will not forget that the Government have promised such strategies before and failed to deliver, including on the national accessible housing consultation that was promised to us last year. I hope that consultation will commence this year.
In 2016, the chair of the UN Committee on the Rights of Persons with Disabilities labelled austerity as being responsible for “grave and systematic” violations of the human rights of disabled people, but the Government, despite the body of evidence to demonstrate the impact of their austerity on disabled people, continue to choose to bury their heads in the sand. The evidence is there.
The strategy offers little detail on the Government’s plans to reduce the disability employment gap—
Marsha De Cordova
Yes, that is the truth. Under the Tories, the disability employment gap has stayed stagnant and the pay gap continues to widen. The Government have a real opportunity to rethink and reform employment support for disabled people. They have the Disability Confident scheme, but in its current format it lacks any credibility or accountability because it is possible to be a Disability Confident employer and not employ a single disabled person.
Marsha De Cordova
No, she won’t.
When will the Government recognise that the Disability Confident scheme lacks any accountability? Will they follow Labour’s lead and place a requirement on all organisations with more than 250 employees to report annually on the number of disabled people they employ?
The Access to Work scheme is an essential form of employment support, but it remains one of the best-kept secrets, as only 43% of employers are aware of it. It is a good scheme from which I and many others have benefited, but the Government should try to promote it a bit more so that all employers are familiar with the scheme and can access it and benefit from it. The Access to Work scheme should be expanded to include disabled people who want to engage in work experience or volunteering opportunities. The Government could also follow Labour’s lead and introduce what is called a reasonable adjustment passport scheme, which would make it easier for disabled people to move from one job to another. It would be almost like portable support and would save money in the long run.
Let me move on to the assessment frameworks. The Government’s commitment to end the cruel reassessment for personal independence payments falls short of the systematic changes that are needed to social security assessments, which are failing too many disabled people. Indeed, 72% of PIP decisions that go to appeal are overturned in favour of the claimant. Disabled people are being forced to wait up to nine months before their case goes to an appeal tribunal. It is the same for employment and support allowance claimants, too. It is shameful.
The consequences of the failing system are devastating. Just last year, the Government released figures showing that 5,690 people had died within six months of being found fit for work under the work capability assessment. That is why Labour and many others were proud to support the Justice for Jodey Whiting petition that called for an investigation into social security-related deaths. The petition was signed by more than 50,000 people. Will the Government, as part of their national strategy for disabled people, finally agree to carry out an urgent inquiry into social security-related deaths?
In conclusion, the Government have an opportunity to address the misery they have caused over the past decade. On jobs, housing, the climate and disabled people’s rights, the Queen’s Speech has fallen short, which is why I will vote for the amendment tabled by the Leader of the Opposition, my right hon. Friend the Member for Islington North (Jeremy Corbyn). I urge the Government to think about what I have spoken about. This country and the people of my constituency of Battersea cannot afford any more missed targets or broken promises.