Pat McFadden
Main Page: Pat McFadden (Labour - Wolverhampton South East)Department Debates - View all Pat McFadden's debates with the HM Treasury
Climate Goals: Wellbeing Economy
Pat McFadden Excerpts(2 years, 5 months ago)
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Mr Pat McFadden (Wolverhampton South East) (Lab)
Thank you for your chairmanship today, Mr Betts. I begin by congratulating the hon. Member for Brighton, Pavilion (Caroline Lucas) on securing the debate and thank all the hon. Members who have taken part over the past hour or so.
The debate on the relationship between wellbeing and the traditional economic growth measure of GDP has been going on for a long time. We welcome an emphasis on wellbeing and on not measuring everything purely by traditional economic statistics. As we have heard, there are deficiencies in GDP. For example, it tells us nothing about equality or the level of social inclusion in a society. That is what it does not include, but it does include things we might not want to include, such as measures of waste or of throwaway goods that are bad for our environment.
As a material measure of output, GDP is certainly not the same as general happiness. That is why in my party, for example, my hon. Friend the Member for Wirral South (Alison McGovern) has argued that the Office for National Statistics should measure health and happiness through a healthy living index. We have heard about what the Welsh Labour Government are doing, putting wellbeing at the heart of their thinking.
As we transition to a cleaner and greener economy, we will want to take into account other things, most obviously the sources of our energy and how renewable they are. We will want to ask different questions—not just, “What did you produce?” but, “How did you produce that?” All that will have to be a greater part of our economic thinking. We do, after all, have only one planet, and we have a duty to cherish and preserve it for future generations.
This debate also forces a discussion on not only the costs of acting, but the costs of not acting. The Office for Budget Responsibility report earlier this year was very clear on that point. If we delay taking the necessary action on the transition to net zero, it will not make the costs disappear. Instead, it will increase them in the longer run, adding to our debt and our deficit, and loading further costs on the taxpayer. That is why Labour announced at our recent conference a commitment to investing in this transition year on year for a decade.
That commitment will help to ensure that the homes we live in are heated in a sustainable way. In so doing, it will create many jobs, reduce people’s heating bills and make a material contribution to the wellbeing we have heard about today. We will also want to invest in the charging infrastructure for low-carbon transport, and many of the other changes we need. That is what we want to do.
Let us not be entirely dismissive of GDP and the importance of economic growth. For the past decade, we have had, as it were, a real-world experiment in what it is like to live through low growth. We have high taxes now because economic growth has been low. That anaemic growth over the past decade means that we are a less prosperous country than we would have been had we had higher growth rates—for example, the kind of growth rates that we had in the first decade of this century. That has borne down on real incomes and on public services and their capacity to improve wellbeing.
Low economic growth over the past decade has adversely impacted on the quality of life in places such as Wolverhampton, which I represent, the Black Country and many other parts of the country. It has left the public square impoverished and degraded. In arguing for a broader view, we should not make the mistake of thinking that low growth or no growth is a good thing. The experience of low growth over the past decade suggests that that is very much not the case. I am all for a broader definition, I am all for greener growth, but I also want to see prosperity in every part of the country.
Mr Clive Betts (in the Chair)
Minister, you have 10 minutes, which will leave a couple of minutes for the mover of the motion to wind up at the end.