Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Monday 18th March 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Alison McGovern (Wirral South) (Lab)]

Arguably, the biggest barrier to growth in the UK and to turning around the Prime Minister’s recession is the supply of labour. Following the Chancellor’s “Back to work Budget” in the autumn and all the measures unveiled since then, some of which the Secretary of State has just reeled off, did the Office for Budget Responsibility upgrade or downgrade its forecast on employment growth in the Budget 12 days ago?

[Mel Stride]

One of the most important figures in the spring Budget economic and fiscal outlook was a recognition by the OBR that there will be a net 200,000 more people in employment as a consequence of that fiscal event and the one that preceded it in the autumn. What the hon. Lady cannot get away from is that economic inactivity in our country is at a lower level than in every year under the last Labour Government.

[Alison McGovern]

What the Secretary of State cannot get away from is the fact that, as has already been said, our employment rate has not returned to the post-pandemic level. He cannot answer the question because the truth is that the OBR downgraded its forecast: the unemployment forecast is worse. The reason for that is a truth that the British people have known for a long time now: these Ministers sitting on the Treasury Bench have no idea, no plan for jobs, no plan for growth. They are done; it is time for a general election.

[Mel Stride]

I have already referred to the 200,000 additional jobs that the OBR suggests in its forecast, but the hon. Lady cannot get away from the fact that we have record levels of payroll employment in our country, and near record low unemployment. Let us contrast that with Labour’s record: it always leaves unemployment higher than when it comes into office. Economic inactivity was higher than it is now in each year of the previous Labour Government, and we had more people in absolute poverty after housing costs under Labour as a direct consequence.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Monday 18th December 2023 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

All we hear from the Secretary of State on employment is smoke and mirrors, but thankfully the OBR has published the numbers. We have just heard what he believes is happening with employment because of his policies, but when the OBR looked at his policies, did its forecast show the employment rate, compared with today, to be going up or down in 2024-25?

[Mel Stride]

I have already shared the figures with the House, which are that payroll employment is at a near historic high and unemployment is at a near historic low. As the hon. Lady will know, we have never had a Labour Government leave office with unemployment lower at the end of their term than when they started. Youth unemployment went up 45% under the Labour party, whereas under this Conservative Government it has reduced by 45%.

[Alison McGovern]

You can always tell the Conservatives are struggling to answer the questions, Mr Speaker, because they go back to those same old things about what happened under the last Labour Government. After 13 years, they have nothing to be proud of. If what the Secretary of State said was true, we might expect that after a little time some of his policies would work, but is it not true that it is not just next year that the OBR forecasts the employment rate to be down, but the year after that, too?

[Mel Stride]

We will continue to bear down on the level of unemployment. As the hon. Lady knows, economic inactivity has reduced, and we have 300,000 fewer people in economic inactivity than at the peak during the pandemic. We have a plan. Is it not the reality that the Opposition have no plan and no ideas as to how to get those numbers down? We do, and it is working.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Monday 4th September 2023 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Alison McGovern (Wirral South) (Lab)]

I thought the Secretary of State understood that, while unemployment is at a historic low, economic activity is the big challenge before us, particularly when it comes to regional economic inactivity and the huge, near 10-point gap across the regions. The east midlands, London, the north-east, the north-west and the west midlands all have higher inactivity rates than the south-east. The Tories have had 13 years to close that gap, so can I ask the Secretary of State: is his plan really to make levelling up a reality by leaving it to Labour?

[Mel Stride]

Given that there has never been a Labour Government who have left office with unemployment anything other than higher than they found it in the first place, I do not think I would leave employment to Labour. On the hon. Lady’s point, economic inactivity is important and it is a major focus for my Department. It has of course reduced substantially since its peak during the pandemic, having fallen by around 350,000.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Monday 6th March 2023 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Alison McGovern (Wirral South) (Lab)]

It is always a joy at Question Time to hear Labour MPs supporting Labour policy, but even more so to hear Conservative MPs supporting Labour’s policy of localising our efforts to get people back to work. On that, may I ask the Secretary of State something? I have been listening to what he has said, and I know that he will not pre-empt the details of the inactivity review, but can he just confirm that one of its objectives will be to rebalance our economy, particularly in this connection between health and labour supply?

[Mel Stride]

That is at the heart of our manifesto, Madam Deputy Speaker—[Interruption.] Sorry, Mr Speaker! Where did I get that from? It is a sign of the times. Right at the heart of our manifesto, and of the Government’s raison d’être, is the need to make sure that we level up communities across the United Kingdom. Of course, our action will take many forms, but one of them is most certainly the support that we will provide to make sure that, up and down the country, there is equality among those seeking work, and those who are economically inactive, and that they have the same opportunities.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Monday 23rd January 2023 Commons Chamber

[Mel Stride]

I would be very happy to write to the hon. Lady on exactly how many people are waiting for access to that scheme. We should not in any way play down the importance of the Access to Work scheme, which is highly successful and provides up to nine months of support for those who badly need it. On recent announcements being made on the hoof, as the hon. Lady seemed to suggest, we have been supporting those in such situations for many years and have made much progress over so many years to get those with mental health issues and wider disabilities into employment.

[Alison McGovern]

The Secretary of State says that we should not play down the importance of Access to Work, but he does not even know how many people are waiting for a decision. The charity Scope says that the number of disabled people waiting for a decision on their award in March 2022 was nearly 21,000. That is an increase of 327% on the same point the previous year. That is dreadful. Nothing works in this country. When will the Secretary of State sort it out?

[Mel Stride]

I stand by, and make no apology for, our record on encouraging disabled people back into work. We were set a target for dramatically increasing the employment level for disabled people by 2027. We met that target of 1 million new disabled people in work a full five years early. I think that record speaks for itself.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Monday 5th December 2022 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Alison McGovern (Wirral South) (Lab)]

I am glad that the Secretary of State has expressed concern for my hon. Friends’ constituents. He is keen to explain just how much money the Government are spending, but let us look at what the results of 12 years of Conservative Government mean for the money in people’s pockets, especially those on low incomes. We have double-digit inflation and 2.5 million working-age adults out of work, and more than 2 million emergency food parcels were handed out in this country last year. Could that be the reason that the public in Chester looked at the Government’s record and gave the Tories their worst result in that seat since 1832?

[Mel Stride]

I am rather surprised that the hon. Lady raises unemployment, in particular. Under Labour, we saw unemployment rise by nearly half a million; female unemployment go up by a quarter; youth unemployment rise by 44%; the number of households with no one working in them double; and 1.4 million people spending most of their last decade on out-of-work benefits. That is not a record to be proud of.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Monday 31st October 2022 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

I welcome the new Secretary of State and all the new Ministers to their positions. We have heard Conservative Ministers, not least the many Prime Ministers we have had in recent months, crowing about low unemployment, but the new Secretary of State will know from his time chairing the Treasury Committee that sometimes it is important to look at the figures yourself. There are 1.2 million people unemployed in our country, but also 1.8 million inactive people who say they want a job. Taken together, that is a disaster for our country. I want to know what it is about years and years of Tory misrule that always leaves 3 million people on the scrapheap.

[Mel Stride]

I have taken a personal vow not to engage in too much Punch and Judy politics with the hon. Lady during Question Time, so I will not talk about what happens to unemployment when different parties get into power; I will leave that for another day. She is absolutely right about the key challenge around economic inactivity. That is why the Department doubled the number of new work coaches in the last two years; there are an additional 13,500 people working to support the exact people whom she rightly identified as needing that assistance to get into work. As I said, I intend to put considerably more energy into the whole issue of economic inactivity, and to bring announcements on the subject to the House in due course.

Health and Care Bill

Debate between Mel Stride and Alison McGovern

Report stage
Monday 22nd November 2021 Commons Chamber

[Mel Stride]

I rise to speak to new clause 49. In doing so, and whatever its merits or otherwise, it is worth reflecting on the comments made by the Minister that we are at least here this evening looking at a part of a process that will lead to some progress in meeting social care costs going forward and removing the catastrophic risk that has hung above the heads of all our constituents up and down the country: that their healthcare costs may end up costing them all of their assets. We are also here having taken the tough decisions around having raised taxes to fund those arrangements.

I have problems with new clause 49. It seems to me that to make good law in this place, first, we need time to consider the matters put before us and secondly, we need the appropriate information upon which to take those decisions. On both those points, I have real concerns about how new clause 49 has been brought forward. The first we heard of it was not in Committee or in September when the general measures were put forward, including the taxation measures on which we all divided and voted, but on Wednesday evening, when the amendment was tabled.

It was fortuitous that the Treasury Committee happened to have Sir Andrew Dilnot before us the very next day. We were able to discuss many of the issues inherent in new clause 49. A number of issues were raised, to which only the Government have the answers. One of them has been put forward powerfully by speaker after speaker tonight, which is: what are the impact assessments associated with these measures? I wrote to the Chancellor immediately after that session and asked him for some impact assessments, including geographical impact assessments, of which we have had none.

It seems that the only information we have had was released by the Department of Health and Social Care on Friday night, in a document called “Adult social care charging reform: analysis”. I am very short of time, which is a shame, but there is, for example, a chart of a 10-year care journey that looks at individuals with different asset levels. While it is true, as my hon. Friend the Minister said, that these arrangements, even with new clause 49, are better for almost every level of wealth than under the status quo, it is not the case that everybody is better off compared with the measures brought forward in September.

[Alison McGovern]

The right hon. Gentleman gets to the heart of the matter, which is what people will get, compared with what they were promised. Is that not the heart of this matter?

[Mel Stride]

I think the heart of the matter is that we have to be clear and wide-eyed about what this change will do. Yes, it is true that it will leave us in a better position than the status quo, but it is not the case that it will leave those who are less well-off in a better position than if new clause 49 were not passed by the House. For those with assets of about £106,000, by my read of this graph, about 59% of their assets would be lost on average under the original proposals. Under the amended proposals, that figure would rise to 70%. When it comes to those who would be better off as a consequence of new clause 49, many are the better off, because they benefit from the changes being made to daily living costs, to which my hon. Friend the Minister referred.

I am out of time, but I believe that these measures should have been better ventilated in this House—certainly in Committee, if not earlier. We would then have had better information and more time in which to make these important judgments.

Cultural Objects (Protection from Seizure) Bill

Debate between Mel Stride and Alison McGovern

Wednesday 17th November 2021 Public Bill Committees

[Mel Stride]

I thank my hon. Friend very much for that intervention. She is entirely right that what lies at the heart of the Bill is providing that comfort—that reassurance—to lenders to make sure that these wonderful artefacts, such as those in the “Tutankhamun” exhibition, come to our shores. If I may say so, I think it is particularly important that we bring this measure forward now, given that covid and lockdown have affected a lot of important museums and galleries. Anything we can do to encourage and improve things for them is particularly important at this time.

Applications for approval are still being considered as museums look to increase their capacity to host international exhibitions. For example, the Wallace Collection was approved for immunity from seizure in May this year, in advance of its Frans Hals exhibition, which features the artist’s widely recognised painting, the Laughing Cavalier. Since it entered the Wallace Collection in 1865, that iconic image has never been seen together with other works by the artist. Immunity from seizure has enabled many works by Frans Hals to come together for that exhibition and to be enjoyed alongside that wonderful work, with their owners knowing that their artworks will be protected from seizure.

As I set out on Second Reading, despite the careful planning of exhibition schedules, unforeseen delays do occur, including to transport. I gave the example of the Icelandic volcano that erupted in 2010. More recently, of course, the covid-19 pandemic closed museums and cancelled flights. That meant that even where exhibitions had concluded, it was not always possible to return loaned items within the 12-month limit.

The Bill will allow the period of protection to be extended beyond 12 months at the discretion of the Secretary of State for Digital, Culture, Media and Sport for institutions in England, or the relevant authority in the devolved nations. The circumstances under which an extension may be considered will be set out in guidance to be developed in discussion with the devolved nations. The guidance will assist museums in applying for an extension, which would be for a further three months initially, with a possibility of a further extension if considered necessary. The measure is strongly supported by the museums sector and by Arts Council England, the Government’s development agency for museums.

This is a short and simple Bill. Clause 1, which deals with the protection of cultural objects on loan, amends section 134 in part 6 of the Tribunals, Courts and Enforcement Act 2007. New subsection (4A) provides that the relevant authority has the power to extend the existing maximum period of protection for a further period of three months. New subsection (4B) clarifies that the Secretary of State will have the power to extend the period of protection where the object is in the UK for the purpose of public display in England. Whichever relevant authority uses its power, the protection of the Bill will continue to apply UK-wide. New subsection (4C) clarifies that the power can be exercised more than once in relation to the same object. New subsection (4D) clarifies that an extension granted is in addition to the maximum protection period. Clause 2 sets out the territorial extent and commencement arrangements and provides the short title of the Bill.

I hope the Committee agrees that the Bill will provide our museums and galleries with a greater degree of certainty in planning international exhibitions, which are crucial and a major part of their income, and give the UK public the opportunity to enjoy cultural treasures from other countries. The Bill will also build the confidence of international lenders, who will understand that where difficulties arise, immunity from seizure can continue to be in place until the loans can be safely returned to them. I commend the Bill to the Committee.

[Alison McGovern (Wirral South) (Lab)]

It is, as others have said, a pleasure to serve under your chairship, Mr Hosie. I commend the right hon. Member for Central Devon for bringing the Bill forward. It is limited in scope and effect. It extends existing powers, and we had a good discussion on Second Reading about the principles that sit behind it. As such, at this point, we have nothing further to add.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Tuesday 9th April 2019 Commons Chamber

[Mel Stride]

The year-on-year changes to the level of receipts from SDLT have reduced recently, but that is due largely to the fact that we have put a great deal of relief into first-time buyers’ relief, which is already helping 240,000 first-time buyers get on to the housing ladder.

[Alison McGovern (Wirral South) (Lab)]

However the Minister dresses it up on stamp duty land tax and other issues where the wealthy have seen their taxes cut, the impact on our economy is clear. Will he explain why stamp duty land tax reform is a priority rather than addressing the fact that in our country today one third of all families with a child under five are in poverty?

[Mel Stride]

It is most certainly not our priority to reduce SDLT for the very wealthy. In fact, the current levels—12% plus 3% if it is an additional dwelling—are high. I can also inform the hon. Lady that the amount we raised through stamp duty land tax in 2017-18 was twice the amount raised back in 2010-11.

Leaving the EU: Economic Analysis

Debate between Mel Stride and Alison McGovern

Wednesday 28th November 2018 Commons Chamber

[Mel Stride]

I think my right hon. Friend the Member for Loughborough (Nicky Morgan) is entirely right in her exhortation to the House about the importance of making sure that we fully digest the two documents that are being brought forward—and indeed, as she suggests, the announcement that will be made by the Bank of England at 4.30 this afternoon—and that we in turn review very closely the evidence that the Chancellor and others give to the Treasury Committee. We do not want to make the kind of mistake that the Leader of the Opposition made when he dismissed our deal without even having read a word of it.

[Alison McGovern (Wirral South) (Lab)]

I cannot help feeling sorry for Government economists today, because not only have they had people in the House disparaging their work, but what is more, they seem to have been asked by the Government to do what appears to be a spin job. May I ask the Minister whether the Chancellor of the Exchequer even asked the Government Economic Service what model could appropriately be produced based on the political declaration about the future that we are going to have to vote on?

[Mel Stride]

What I can tell the hon. Lady is that this analysis has been carried out, for example, not solely by the Chancellor or the Treasury, but right across Whitehall. Every Government Department has been involved in that. No direction as to the detail or what the outcome of the analysis should be has been made by Ministers, and it is important that I go on the record in this urgent question to defend those officials who are not able to speak for themselves in these circumstances and say that the Government have absolute confidence in them and their integrity.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Tuesday 6th November 2018 Commons Chamber

[Mel Stride]

As I say, we will come forward with a full and appropriate analysis. Of course, prior to the meaningful vote, the Government will ensure that there is appropriate time to fully debate all these matters.

[Alison McGovern (Wirral South) (Lab)]

Our country already suffers from brutal inequality, so will the Minister say whether that analysis will be broken down by region and sub-region so we can see exactly what the impact of Brexit will be on the communities we represent?

[Mel Stride]

As the hon. Lady will know, under this Government income inequality is far lower than it was under Labour. I am not going to start getting involved in a running commentary on the negotiations and the various impacts thereof, as that would not be helpful, other than to restate that a full and appropriate analysis will be provided to the House prior to the meaningful vote.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Tuesday 17th April 2018 Commons Chamber

[Mel Stride]

My hon. Friend uses the expression “play by the rules”. I should make it very clear to the House that those that do not play by the rules will be clamped down on by Her Majesty’s Revenue and Customs. We have brought in £175 billion in respect of clamping down on avoidance, evasion and non-compliance since 2010. We have, as my right hon. Friend the Chancellor has outlined, the lowest tax gap in our history, at 6%. Those who play by the rules will benefit from our pro-business policies: bringing taxes down, providing relief on business rates, and other measures such as the employment allowance, worth £3,000 for the first employee as a relief on national insurance contributions.

[Alison McGovern (Wirral South) (Lab)]

When it comes to employment and wages, and the impact that corporation tax cuts have had, we have heard a lot of crowing from Ministers this morning, but we all know that our economy is wildly different, depending on where people live. Has the Minister asked for a distributional analysis of the impacts that he has just been talking about?

[Mel Stride]

We have debated at great length the issue of distributional analysis, in this Chamber and around the Finance Bill and other measures. The hon. Lady will know that all tax measures are subject to TINs and to various assessments. We are also bound by the Equality Act 2010 when we take decisions in respect of taxation. As a Minister, I can assure her that I take my duties in that respect extremely seriously.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Tuesday 27th February 2018 Commons Chamber

[Mel Stride]

I thank my right hon. Friend very much indeed for that question. I can of course confirm that we remain entirely committed to the strength of our economy and to supporting businesses up and down the country, not least in our negotiations with the European Union. I have some responsibility for the customs part of the negotiations, and we are committed to making sure that goods and services move as frictionlessly as possible across the boundaries with the EU27 following our departure.

[Alison McGovern (Wirral South) (Lab)]

Mr Speaker,

“I believe that the best way forward is for Britain to renegotiate a new relationship with the European Union—one based on an economic partnership involving a customs union and a single market in goods and services.”

Those are not my words, but the words of the Secretary of State for International Trade and President of the Board of Trade on his website. What representations has the Minister had from the Secretary of State in support of our membership of the customs union and single market?

Taxation (Cross-border Trade) Bill

Debate between Mel Stride and Alison McGovern

2nd reading: House of Commons
Monday 8th January 2018 Commons Chamber

[Mel Stride]

The hon. Gentleman raises an important point, and it is one that I largely agree with. It is important that we maintain the existing arrangements that we have been brought into by virtue of our membership of the European customs union, which is exactly why we are in discussions with those countries to ensure that we have appropriate arrangements in place once we leave the EU and its customs union. Over and above that, there will be opportunities to forge trading relationships with other countries around the world, which we are prohibited from doing at present because of our membership of the EU customs union.

[Alison McGovern (Wirral South) (Lab)]

My constituents are today dealing with the news of yet more job losses at Vauxhall in Ellesmere Port. We are a place that manufactures, and we want to keep manufacturing, so can the Minister tell me and my constituents exactly what these opportunities are?

[Mel Stride]

The opportunities will be very significant indeed—[Interruption.] If the hon. Lady will allow me, I will attempt to answer her question. Of course our trading relationship with Europe is extremely important, which is why we are having negotiations with our European partners. It is important to us and to them to ensure that we maintain those relationships to the highest degree. However, a growing percentage of our trade is now taking place outside the European Union—certainly more than was the case five or 10 years ago—and the expanding markets of the future are not necessarily going to be the countries that constitute the membership of the European Union. To answer the hon. Lady’s question directly, the opportunities lie out there in China, India, the United States and other countries around the world with which we will be able to forge a freer set of trade agreements than we have been able to contemplate during our membership of the European Union.

Finance (No. 2) Bill

Debate between Mel Stride and Alison McGovern

Committee: 1st sitting: House of Commons
Monday 18th December 2017 Commons Chamber

[Mel Stride]

As the hon. Gentleman may know, the figure of 0.3% takes a static view of this policy and its effect on house prices. It does not take into account the supply side changes that I have mentioned. As we increase supply, prices will inevitably begin to fall. There is no single solution to this challenge and no magic bullet.

[Alison McGovern]

Will the Minister give way?

[Gareth Snell]

Will the Minister give way?

--- Later in debate ---

[Mel Stride]

The figures the hon. Gentleman chose to use were, I think, a range between £250,000 and £300,000, and he says there are 15 properties in that category. Of course, stamp duty kicks in at £125,000, so it is the range from £125,000 to £300,000 that we would actually be considering in that example.

First-time buyers are typically more cash-constrained than other buyers, and stamp duty requires cash up front, on top of a deposit and conveyancing fees, for purchases over £125,000. The Government think it is right to reduce the up-front costs that first-time buyers need to pay, giving them an advantage over the rest of the market.

[Alison McGovern]

I thank the Minister for giving way, but he simply did not answer the question from my right hon. Friend the Member for Warley (John Spellar), who quite legitimately asked him where the money from this cut is going. The Minister talked about the average gain that will be made. Will he tell us the average benefit to a first-time buyer in the west midlands?

[Mel Stride]

As I say, the average across the piece will be £1,700 per average first-time buyer. I also stated quite clearly that, in every region of the country, there will be those who benefit from this measure.

Oral Answers to Questions

Debate between Mel Stride and Alison McGovern

Tuesday 24th October 2017 Commons Chamber

[Mel Stride]

My hon. Friend raises an important point about complexity, which is why we continue to work with the Office for Tax Simplification to ensure that our tax code is as simple as it can be. But there is no doubt that, in upholding our exemplary record of clamping down on avoidance, evasion and non-compliance— £160 billion of revenue from 2010 to 2015—we make no apologies for having a tax code that works to support our public services.

[Alison McGovern (Wirral South) (Lab)]

Some 130,000 small and medium-sized businesses that export to Europe currently do not have to deal with any bureaucracy at our border to do so, but they could face such bureaucracy if the Minister’s colleagues have their way. Does the Minister think that that will be good or less good for British business?

[Mel Stride]

As the hon. Lady knows, we are in the middle of negotiations with our European partners. I am confident that, as the Prime Minister has expressed at every turn, we will secure a good deal for this country. In the context of our borders, that will mean that the situation will be as frictionless as possible, which will be good for trade, our country and our economy.

Finance Bill

Debate between Mel Stride and Alison McGovern

Tuesday 3rd July 2012 Commons Chamber

[Alison McGovern]

I thank my hon. Friend and neighbour in Merseyside for his intervention. He is quite right. The return to things such as the youth training scheme has been one of the most unfortunate aspects of the Government’s work in this area.

[Mel Stride]

The hon. Lady makes the important point that youth unemployment is deeply regrettable and has been rising recently, but she skips over the fact that youth unemployment has been rising since 2004, so most of the period of that rise actually occurred on her watch when the kinds of policies she is advocating were clearly not working.

[Alison McGovern]

The hon. Gentleman needs to be careful about apportioning blame, because although we have seen an extreme rise in youth unemployment over the past couple of years because of the recession—I will move on to the problem of demand in the economy later—under the Labour Government there was successful action to prevent levels of youth unemployment from rising to those we saw in the ’90s. If he wishes to, we can talk at length in the Chamber on another occasion about some of the structural reasons for young people’s unemployment, such as how skills are transferred in different ways, how small businesses recruit differently, which hits younger people more than it does those with experience in the economy, and why those patterns were starting to emerge from 2005. However, in new clause 13 we are trying to establish the urgency of getting money from a particular source and prioritising the needs of young people in my constituency and in his.

The Association of Chief Executives of Voluntary Organisations has done an important piece of work to calculate the cost to the Exchequer of young people being out of work, and, although I hope that Treasury Ministers will have already heard the figures that my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) cited, I want to alight on this one. If youth unemployment continues at current rates, by 2022 the cost to the Exchequer and to the economy in lost output is estimated to be £28 billion—on top of the human and social costs. That is a huge figure, and we as a country cannot afford to see this crisis continue.

I shall take a few moments, however, to consider not only the financial cost, huge and important though that is, but the impact of the crisis on individuals, on their pride and on their self-worth. I mentioned earlier the Government’s own research, carried out by the Department for Work and Pensions, into the future jobs fund, and if Ministers have not read it they would do well to do so. The research, first, considered the impact on young people who took part in the future jobs fund programme, and it is a shame that the hon. Member for Dover (Charlie Elphicke) has left his place, because I wanted to ask him—I tried to intervene on him to do so—whether he had met, spoken to or asked the opinion of any young person who took part in the future jobs fund.

Just in case hon. Members have not had the opportunity to read the research, however, I shall quote a young person and how they were feeling prior to the introduction of the future jobs fund. They said that they were

“feeling a bit low. I was about four and half, five months, unemployed and I thought ‘oh no, this isn’t good’. Most employers I spoke to, it was like if you’ve been unemployed for more than 2 months, it really puts people off. I knew how to do a job; it’s just the fact that I’d been unemployed for nearly 5 months. Almost half a year, which was quite embarrassing really. I know there was nothing out there, but it was still kind of embarrassing.”

Despite this person realising that aggregate demand and low job vacancy numbers had caused their problem, they blamed themselves, so I ask hon. Members to consider the impact of low self-esteem and poor mental health on the extra 65,000 young people who have become unemployed since 2010.

The research, secondly, asked young people how they felt about their work once they had taken part in a future jobs fund employment placement, and to me the following quotation says it all. On the question of what the most important gain was, one person said:

“Trust in my determination. Self belief, the belief from my employer that I am able to succeed”.

What more important thing could anybody have for success in life than self-belief? When people are left to languish on the dole, such self-esteem is undermined every single day.

Department for Business, Innovation and Skills (Performance)

Debate between Mel Stride and Alison McGovern

Wednesday 2nd February 2011 Commons Chamber

[Alison McGovern]

That is an interesting perspective, and I obviously have great respect for the learned people that the hon. Lady has mentioned—[Interruption.] Of course I have great respect for the Royal Society.

The Government cannot say that the corporation tax cut will enable investment. Ireland had one of the lowest corporation tax rates, and look what happened there.

[Mel Stride]

Will the hon. Lady give way?

[Alison McGovern]

I have given way twice; I will not give way again.

The corporation tax cut will help only companies with profits. We want to see strategic Government-led and business-led investment in the sectors that can most help us to progress out of the recession. I see no leadership from the Government on this issue. They constantly crow about tax cuts for business, but they have effectively handed profits back to the profitable bits of the banking sector and large companies, when they should be using that money to invest in high-technology manufacturing, such as that in my constituency. That message is coming to me loud and clear from the global corporations that invest in Merseyside, as well as from the small companies. They need investment now, not an across-the-board corporation tax cut.

I now turn to the impact of all this on young people and on employment. Everyone in this House is concerned about young people, as well we should be. People will know that in the protests that have been taking place around the world, the action has been most pronounced in countries with extremely high unemployment. We have to face the facts. The Government’s offer to young people in Britain has been massively diminished. We have seen an end to the September guarantee and an end to the future jobs fund, which I know was helping young people in my constituency to build their CVs, so that when the recession ended and growth returned, they would be able to apply for jobs. We have seen an end to the education maintenance allowance, which was helping young people in my constituency to travel to the best possible courses for them, and an end to the commitment of the previous Government to the level of funding for further and higher education.

I was so concerned about what might happen to young people’s employment prospects that I asked the Minister responsible for employment some parliamentary questions about his expectations for the number of 16 to 24-year-olds on the dole. By my calculation, once we have taken into account the population projection for the current cohort of 16 to 24-year-olds, the Government expect there to be a reduction in the number of 16 to 24-year-olds on the dole across the life of this Parliament of less than one percentage point. I must ask Government Members whether they think it is good enough that the Government’s ambition throughout this Parliament is to reduce the number of young people on the dole by one percentage point. I do not think that is good enough.

The only answer that the Government seem to have to the unemployment that young people are facing because of the global crash and the Government’s inaction is their spurious figure of 75,000 new apprenticeships. We have already heard evidence that, even during the recession, the Labour Government were supporting a greater year-on-year increase in the number of apprenticeships, so the present plan seems wholly unambitious.

There is a further problem for 16 to 18-year-olds, many of whom are the very people we want to get into industry and business. They might not want to stay in full-time education, for whatever reason. As far as I can ascertain—I stand to be corrected if the Minister wants to intervene—16 to 18-year-olds will not be eligible for the new adult apprenticeships that the Minister wants to fund.

Comprehensive Spending Review

Debate between Mel Stride and Alison McGovern

Thursday 28th October 2010 Commons Chamber

[Mel Stride]

My hon. Friend is entirely correct, and there is no doubt that if the Government had not taken prompt action as we did in the emergency Budget in June, we would have been that close to a Greek-style economic meltdown.

[Alison McGovern (Wirral South) (Lab)]

Will the hon. Gentleman explain to the House how our debt was similar to that of Greece, given that the Debt Management Office in this country has been far better and we have far better terms? The question of whether the debt is sustainable is what leads to crises, not the amount of deficit, given the size of our economy.

[Mel Stride]

The answer to that is that we came that close because the credit rating agencies, such as Standard & Poor’s, came that close to downgrading our triple A status. The consequence would have been that the Government, in funding their debt through their bonds and gilts, would have had trouble getting those debt requirements away, interest rates would have risen, mortgages would have gone up through the roof and the businesses on which we are counting to pull us out of the malaise that we are in would have been crippled by higher interest rates. That is the basic economics that Labour Members fail to understand—