Economic Growth Debate

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Department: HM Treasury

Economic Growth

Preet Kaur Gill Excerpts
Tuesday 14th November 2023

(5 months, 3 weeks ago)

Commons Chamber
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Preet Kaur Gill Portrait Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)
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It is a pleasure to speak in this debate on His Majesty’s first King’s Speech.

The news last week that the UK economy flatlined in the third quarter of this year was hardly a shock. It is the result of 13 years of Conservative choices that have delivered low growth, skyrocketing mortgages, soaring prices, crumbling public services and house building at its lowest rate since the second world war. Every family and business in Britain has paid the price of the Conservatives’ failed energy policy, leaving Britain the worst hit country in western Europe.

Listening to the King’s Speech last week, I was disappointed by the absence of a serious agenda on planning, infrastructure and growth, with no housing targets or planning reform, weakened proposals for leasehold and renters’ reform, and the binning of the Government’s manifesto promise to deliver 300,000 homes a year.

Meanwhile, my constituents are left spending nearly two fifths of their income on rent, even before tax; living in housing that is cold, damp, mouldy and expensive to heat; and with a Tory mortgage penalty that is estimated to take £2,600 out of the pockets of families in Birmingham, Edgbaston this year. To his credit, the Secretary of State for Levelling Up, Housing and Communities admitted that the UK’s housing system is broken, but it is hard to see what this King’s Speech does to change that.

That brings me to my first point about the length of time it takes for anything to get built under this Government. HS2 is a great example. The previous Labour Government completed HS1 on time and under budget. This Government had 13 years and they failed, which meant that the biggest infrastructure project in Europe was cancelled. My constituents understand that modern public transport is not just about journey times to London, but about freeing up capacity and connectivity to all the other major cities and towns, so that people can travel for work, leisure, education and training. It can widen the horizon of their ambitions and bring the whole of the region closer together. What are they left with now? They are left with a gaping great building site in the centre of Birmingham for years to come; all the disruption and delay of the works at Curzon Street for a high-speed rail to nowhere; more delays to the east Birmingham metro, which, under Mayor Andy Street, will cost taxpayers £150,000 per metre of track; and, to top it all, no alternative to Avanti on the west coast main line. Having achieved the dubious distinction of having the most complaints of any operator, and consistently ranking as one of the worst performing on the entire rail network, this Government decided to hand Avanti a lucrative new contract. What did Avanti do? It announced swathes of cuts to services on the west coast main line before the ink had dried.

At the root of so many of the problems besetting British infrastructure and our housing crisis is the planning system. Surely no one in the House would agree that the current regime is fit for purpose. When we have millions locked out of the dream of home ownership, bills soaring and huge national infrastructure challenges such as the race for net zero, we cannot go on like this.

There are currently £200 billion of clean energy projects stuck in the queue for connections to the national grid. This country once built the national grid in less time than it now takes to get a connection to it. Labour has set out a plan for Great British Energy, which will procure the grid supply chain that Britain needs and bring down bills. The Government’s flagship King’s Speech energy policy will not take a single penny off energy bills, and even the Energy Secretary has admitted that.

The UK has some of the least energy-efficient homes in Europe, and Birmingham has some of the worst rates of mould and damp in the country. As we face another cold winter, with energy bills as high as they have been in living memory, my constituents are seriously worried about the toll on their finances and their health. What was in the King’s Speech for them? A primary school teacher contacted me about a pupil in year 3, just seven years old, who told her that she could not sleep at night because the mould exacerbated her asthma and she could barely breathe. My constituent Agnes, a junior doctor living in privately rented accommodation riddled with mould and damp, told me she felt helpless, as she could not end her contract and her landlord would not help. Birmingham has nearly 22,000 rental homes with category 1 hazards such as excessive cold, mould and damp.

The council is now getting on with taking rogue landlords to task and has launched the 3 Cities Retrofit scheme with Coventry and Wolverhampton, to help to shape the local retrofit market using their combined 116,000 social homes—but where are the Government supporting them? Where is the Government’s version of Labour’s warm home plan to upgrade 19 million homes, cut energy bills and create thousands of good jobs for electricians, engineers and construction workers across our country?

My constituents cannot afford a Government that will not grasp the difficult issues or take the long-term decisions the country needs. Whether on house building, national infrastructure or the cost of living, this King’s Speech does nothing to measure up to the scale of the challenges that the economy or my constituents face. Labour, meanwhile, will build 1.5 million homes over five years, with a planning reform blitz, planning passports for urban brownfield development and a devolution package to spread power out of Westminster and into communities on housing, transport, energy and more.

That is the ambition we need—a national mission to get Britain building again and grow our country from the grassroots, a plan to expand the country’s productive capabilities and at the same time to change who benefits. Does it not say it all that after 13 years of the last Labour Government, disposable income had risen by more than 40%—that is £11,000 per person back in people’s pockets—yet disposable incomes are now forecast to grow by just £42 between 2010 and 2025? Last week we should have had a King’s Speech that put working people first and a plan to get Britain building again, securing high, sustained economic growth in every part of the country. Only Labour will get Britain’s future back.