Rachel Reeves
Main Page: Rachel Reeves (Labour - Leeds West)Department Debates - View all Rachel Reeves's debates with the HM Treasury
(11 years, 2 months ago)
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Rachel Reeves (Leeds West) (Lab)
I beg to move,
That this House notes with concern the latest GDP figures from the Office for National Statistics, showing that the UK economy has now shrunk in four of the last five quarters; believes that investment in infrastructure is vital to the economy’s short term recovery and long term prosperity; further notes that, half way through the Government’s term of office, many of the major projects promised in the National Infrastructure Plan are yet to start work; further notes the admission of the Deputy Prime Minister, in the House Magazine of 24 January 2013, that the Government cut capital spending too deeply, and that figures from the Office for Budget Responsibility show that in the first three years of this Government’s term it has spent £12.8 billion less in capital investment than the last Government had planned; further believes that private sector investment has also been hit by weak demand and confidence in the UK’s flat-lining economy, and uncertainty resulting from the Treasury’s dithering, delay and lack of leadership; welcomes the independent review of long-term infrastructure planning undertaken by Sir John Armitt; and calls on the Government to act now to kick start the UK’s flat-lining economy by genuinely bringing forward infrastructure investment including building thousands more affordable homes.
We have secured the debate to urge the Government to take action to invest in infrastructure projects to create jobs and to boost confidence in our flagging economy, and to strengthen our productivity and competitiveness for the future. We all recognise the importance of infrastructure investment. The Prime Minister has said that
“getting construction projects off the ground is critical.”
The Chancellor agrees, saying that
“investing in Britain’s economic future is the priority of this Government”
and adding that infrastructure investment was critical in
“laying the foundations for future economic success.”
It should come as no surprise that the Government’s grand rhetoric has not been matched by grand actions. Dithering without a strategy for growth, they have cut too far and too fast, choking off demand and stifling the economic recovery.
Mr Rob Wilson (Reading East) (Con)
Will the hon. Lady join me in thanking the Chancellor and the Government for the £600 million Heathrow link investment that they will be making in my constituency?
Rachel Reeves
Maybe the hon. Gentleman would like to intervene again and tell me when that investment is going to happen. The reality is that so much of the investment is not happening right now when we need jobs and growth. We have lost more than 120,000 construction jobs since the Government came to power.
Rachel Reeves
That intervention says it all. It is all jam tomorrow from this Government.
The last set of GDP figures demonstrate the scale of the Government’s economic failure. The economy shrank by 0.3% in the fourth quarter of last year, demonstrating once again the desperate need for a strategy for growth. Since the Chancellor’s spending review two years ago, out of the G20 economies Britain has been 18th out of 20 when it comes to economic growth—worse than the USA, worse than Canada, worse than Germany, worse than France and worse than Turkey. So much for the Prime Minister’s global race.
Mrs Anne Main (St Albans) (Con)
In the previous Parliament, I was fortunate to serve on the Select Committee on Communities and Local Government. The Committee examined why houses were not being built under the previous Government, and 400,000 planning permissions not implemented. Surely the hon. Lady ought to be looking at what is stopping building. The permissions have not been stopping. The banks were not lending under the previous Government. This is a deeply entrenched position.
Rachel Reeves
House building was down 8% in 2012 and the think-tank Policy Exchange has warned that the Government could end up presiding over the lowest level of house building since the 1920s. That is the record of the hon. Lady’s Government—not one, I would imagine, that she is proud of.
The Prime Minister says that we are in a global race, but in reality we are hardly out of the starting blocks. The Chancellor has been told time and again—most recently by the International Monetary Fund—that if economic growth undershoots expectations, the Government should boost the economy with greater infrastructure spending. Well, growth has undershot and the economy is shrinking. Over two years, economic growth has been 15 times less than the Chancellor promised in 2010.
Neil Carmichael (Stroud) (Con)
Will the shadow Chief Secretary join me in thanking the Chancellor for the £45 million invested in the Stroud to Swindon railway line, work on which has just begun, and which will make a huge difference to my constituency?
Rachel Reeves
I wonder whether the next Government Member to intervene will congratulate the Chancellor on spending £12.8 billion less over three years than the plans he inherited from the previous Labour Government.
Mr Brian H. Donohoe (Central Ayrshire) (Lab)
I hope that I do not excite the shadow Minister so much that she delivers her baby early. What does she think about the fact that once again the Government have kicked into the long grass the problems of congestion in air traffic in the south-east? Money could be invested in that without the need to spend any public money. Why are they kicking that into the long grass?
Rachel Reeves
It is being kicked into the long grass because of weak leadership. It is desperately disappointing for businesses wanting to invest today that no decision will be made and no report published from the man charged with conducting the review until the next Parliament.
The Chancellor should take the IMF’s advice and use the March Budget to rethink the Government’s failed economic plan. We told the Government that to cut too far and too fast would hurt the economic recovery and that the country needed leadership, not warm words. That is why since the Government choked off the economic recovery we have been calling for a boost to jobs and growth by bringing forward infrastructure investment, as the last Labour Government did in the aftermath of the financial crisis.
Jack Dromey (Birmingham, Erdington) (Lab)
With the Government presiding over the biggest housing crisis in a generation, was it not a mistake to cut £4 billion in affordable housing investment, leading to a 68% collapse in affordable house building, and to reject out of hand the proposal for the 4G licence money to be used to build 100,000 affordable homes, which would have added 1% to GDP and created hundreds of thousands of jobs and which was hailed by the CBI as just what the economy needed?
Rachel Reeves
That is why we urged the Government, before the autumn statement, to use the money from the 4G auction to start building 100,000 new affordable homes and why we urged the Chancellor to use a tax on bank bonuses for a programme for jobs and growth, with further house building and a job guarantee for young people. But the Chancellor did not listen—[Interruption.] Clearly, the Liberal Democrats do not want to listen either. With every project delay, every investor put off and every job lost in the construction sector, we lose ground to our global competitors. With the economy flatlining and no growth over the past year, the case for action is irrefutable. We need to bring forward public investment, create hundreds of thousands of jobs, kick-start the flatlining economy and get the construction industry moving again.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Does my hon. Friend agree that the flatlining of our economy and our failure to invest is having a major impact on young people? In my constituency, there are more people out of work than there were six months ago, and long-term youth unemployment is rising.
Rachel Reeves
Close to 1 million young people are out of work, and one third of them are now long-term unemployed—a waste of their potential and a waste to our economy, as we are losing out on their skills. We so desperately need that economic recovery.
There is still no sign of the Government sharing the country’s sense of urgency. Only 14% of the 576 projects listed in the Government’s infrastructure pipeline have started and just 1% of those are said to be operational. The Government’s record on infrastructure is a complete and utter shambles. Wherever we look, the strategy is failing to deliver—a perfect storm of uncertainty, incompetence and delay.
Kelvin Hopkins (Luton North) (Lab)
My hon. Friend is making an excellent speech. She is talking about projects. One project that might be considered seriously is the GB freight route—the building of a dedicated rail freight line from the channel tunnel to Glasgow, linking all the industrial areas of Britain and able to take lorries on trains. Will she give that serious consideration?
Rachel Reeves
I know that that is something that my hon. Friend has worked on carefully and is discussing with Ministers and shadow Ministers. It is worth looking at such a scheme.
The Government’s national infrastructure plan is well worth reading. [Interruption.] Given that even the Deputy Prime Minister says that the Government have got it wrong on infrastructure investment, one would think that the Minister of State, Home Department, the hon. Member for Taunton Deane (Mr Browne), might listen to the debate, rather than just chuntering from a sedentary position. The national infrastructure plan exemplifies the vacuum of leadership from this Government, with more projects being kicked into the long grass. Let us take the A14, which was described by the former Transport Secretary as “a crucial strategic route” and
“a lifeline to international markets.”
Now the Treasury says that construction might just begin in 2018. The Mersey gateway, which has been highlighted as one of the world’s most important infrastructure projects, has still not had a preferred bidder announced. Today we found out that 45 winning bids for the regional growth fund—the Deputy Prime Minister’s pride and joy—have already walked away from the process, which is taking so long, with millions of pounds of public money gathering dust in Whitehall. Delay, delay, delay.
That inaction is costing jobs. The construction sector has lost 129,000 jobs since this Tory-led Government came to power. What a waste. No wonder that John Cridland, director general of the CBI, is asking the Government where the diggers on the ground are.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
It was reported in The Guardian recently that total PFI liabilities are likely to be more than £300 billion. Will the hon. Lady confirm that, should the Labour party form the next UK Government, it will not return to PFI?
Rachel Reeves
PFI in my constituency built three new secondary schools and helped to rebuild primary schools, as well as building Sure Start centres. I would not have wanted any of those projects not to go ahead, so I do not share the hon. Gentleman’s criticism.
It is not just independent outsiders attempting to urge the Chancellor to change course and take action or saying that change is needed. Even the Deputy Prime Minister, in what he described as a “self-critical” mood, has stated:
“I think we’ve…realised that you actually need, in order to foster a recovery, to try and mobilise as much public and private capital into infrastructure as possible.”
He did not quite get round to saying sorry for a second time, but at least he has finally stumbled upon the problem. We said that cutting infrastructure spending too far and too fast would stifle the recovery, but the Deputy Prime Minister’s brief lapse of regret came two and a half years too late. That moment of self-realisation will not help the construction worker who has already lost his job, the children waiting for their new school or the new business waiting for improved roads. We do not need mea culpas; we need the Prime Minister, the Chancellor and the Deputy Prime Minister to change course.
Rachel Reeves
I will give way to the hon. Gentleman. Perhaps he would like to explain why the Government have cut infrastructure spending by £12.8 billion over three years.
Henry Smith
I am grateful to the hon. Lady for allowing me to intervene. Does she welcome the thousands of new houses being built in the Kilnwood Vale neighbourhood in my constituency, in addition to the £26 million upgrade of Three Bridges rail station and the £53 million upgrade of Gatwick rail station, and so on?
Rachel Reeves
The problem is that this is just a wish list. Those things are not happening—as John Cridland says, the diggers are not on the ground. As I have said, housing investment is down 8% in just one year, and 129,000 jobs have been lost in the construction sector. I look forward to hearing Government Members explaining why they are supporting those policies.
Geraint Davies (Swansea West) (Lab/Co-op)
My hon. Friend will be aware that the Chinese have a five-year plan involving $1.5 trillion of investment in strategic new industry and infrastructure, and that their economy has been growing at 10% a year for 10 years. Is it not time that we took some lessons from growth economies such as China, and indeed Brazil, which is investing some $66 billion in its fiscal stimulus? Let us get on with it.
Rachel Reeves
The economic and political system in China is a bit different from that of the UK, but what we must learn from other countries is that we need a proper industrial strategy if we are going to create the jobs and growth that we need, and if we are going to excel and win the global race that the Prime Minister has talked about.
Two weeks ago, at Treasury questions, the Chancellor said that I was being “creative” with the facts when I said that he was spending less than Labour planned to on infrastructure investment. He said that I was being misleading on his record on investment. He had to withdraw that slur. Channel 4’s “FactCheck” has looked into his claims. The verdict is in, and I quote from its conclusion:
“Latest figures from the ONS show that Mr Osborne’s claim to have spent more on infrastructure than what Labour had planned is wrong.”
The Chancellor has refused to come to the House to put the record straight, so let us do that now. According to the Office for Budget Responsibility—which the Government set up—the Government are spending £12.8 billion less in capital investment compared with the plans they inherited from the last Labour Government. They are cutting too far and too fast. I am happy to take an intervention on that point.
Rachel Reeves
Yes, I would like to hear why the Government are spending £12.8 billion less.
Mrs Main
The Labour Administration had a target for rail freight interchanges, and the Howbury Park project was given the go-ahead in 2007. However, no work has yet been done. Should not the Labour Government have insisted on proper investment being put into the project, which would have benefited the local area?
Rachel Reeves
I have generously let the hon. Lady have another chance at intervening, but she did not explain why, in the first year of this Parliament, her Government spent £3.2 billion less than the last Labour Government planned to spend, or why, in their second year, her Government spent £2.9 billion less than the amount in the plans they inherited. Nor did she explain why, in the third year of this Parliament, they spent £6.7 billion less than we had planned. When the Chancellor says that he has matched the plans of the last Labour Government, he is just plain wrong.
Mr Brian Binley (Northampton South) (Con)
I thank the hon. Lady for giving way, and I wish her well with her impending delivery. What figure would she place on the capital expenditure budget for this year, if there were a Labour Government at this time?
Rachel Reeves
In the plan set out by the last Labour Government for 2012-13, the amount was £48.4 billion. In the plan set out by this Government, it is £41.7 billion. We had a plan to halve the deficit during the course of this Parliament. This Government wanted to go further and eliminate the structural deficit in that time. The reality is that they are borrowing more than the amounts set out in the plans left by the last Labour Government. They are not borrowing it to invest in infrastructure, either. They are spending £12.8 billion less on infrastructure than the last Labour Government, but they are spending £13 billion more on social security. Why is that? It is because there are more people out of work and more people claiming tax credits as a result of this Government’s failure to get the economy growing again. They are spending £13 billion more than they had planned to on social security. Is that really what they came into power to do? No, but the reality is that their decision to cut as far and as fast as they did has choked off the economic recovery. The result has been an economy that has flatlined for two years.
This Government are lethargic in the face of a flatlining economy, and inept in the face of long-term challenges. They came in and abandoned Labour projects, such as the plans for 715 schools, in a tranche of ideologically motivated cuts. Then, having at least partly recognised their mistake, they announced a new school building programme in 2012. Progress is painfully slow, however, with work planned to start only sometime in the spring. More delay. It is simply not good enough. This is a Government without a plan for the present and without a vision for the future—[Interruption.] If any Liberal Democrats would like to intervene, I look forward to hearing from them. [Interruption.] If someone just wants to mutter from a sedentary position and does not have the guts to intervene, that is their problem, not mine. Do we have an intervention from the Liberal Democrats?
Mr Deputy Speaker (Mr Nigel Evans)
That means me. Members should speak through the Chair.
Rachel Reeves
I do not know how the hon. Gentleman bought his house, but when I bought mine, I had a mortgage because I could not afford to buy it outright. That is why schemes such as PFI were introduced. I am not sure what school, hospital or children’s centre in the hon. Gentleman’s constituency he would prefer not to have opened during the last Labour Government. I bet a lot more of those things opened under the last Labour Government than have been opened under this Conservative and Liberal Democrat Government.
The reality is that what the Government are doing is hurting business confidence. The director general of the British Chambers of Commerce has described the Government’s plan for infrastructure as
“hot air, a complete fiction”.
Rachel Reeves
I will give way to the hon. Gentleman if he would like to explain why even the director general of the British Chambers of Commerce thinks that the Government’s plans are hot air.
Chris Heaton-Harris
I thank the hon. Lady for giving way; she is very much on broadcast rather than reception. On PFI, she mentioned her mortgage, so what would happen to her if she were unable to make the repayments on that mortgage?
Rachel Reeves
I hope the hon. Gentleman is not suggesting that the Government are not going to be able to make the repayments on their debt. We know that their triple A rating is under threat, so if this is a warning that the Government are planning on not paying their debts and the deficit back, it will be interesting news.
The CBI has warned the Government that
“businesses in Britain are looking for action and we haven’t seen any yet”.
Yesterday, the monthly index published by BDO showed that business confidence hit a 21-year low. That is the lowest level of business confidence since Norman Lamont was Chancellor and sterling was ejected from the exchange rate mechanism on Black Wednesday in 1992. I am sure that right hon. and hon. Gentlemen will remember that day. The Prime Minister certainly does—he was working for the Chancellor at the time. Confidence is now at those low levels again.
It is now clear: business has lost confidence in this Government, who do not have a plan for jobs or growth. It is hardly surprising, then, that the Government are failing to attract the private sector funds they need for their infrastructure investment. It is worth remembering how the Government’s plan to target £20 billion of pension funds for investment is going. Responding to a question from my hon. Friend the Member for Ochil and South Perthshire (Gordon Banks), the Chief Secretary to the Treasury had to tell us that the Government were on course for just a 10th of their original target: £2 billion out of £20 billion raised.
The Government lack the policy framework to attract the long-term investment we need. Changes such as cuts to feed-in tariffs have had a detrimental impact on low-carbon investment. The CBI warned the Government that such measures have been
“damaging to business confidence, with implications not just for immediate investment decisions but for longer-term trust in government policy”.
It is no wonder that, last year, 50 companies, investors and industry bodies wrote to the Chancellor asking him to set a firm decarbonisation target for 2030 to give investors the confidence they needed. On energy policy, the Institution of Engineering and Technology has been clear in saying:
“Short-term uncertainty around UK energy policy…is very unhelpful and has the potential to… delay much-needed investment in all forms of energy infrastructure.”
According to the findings of a poll by KPMG, two thirds of businesses believe that the UK’s energy and water infrastructure is unlikely to get any better because of uncertainty about the policy framework.
From the business community, we hear resounding frustration when it comes to the Government’s infrastructure policy. The Government do not seem to understand that businesses long for certainty when attempting to grow, employ more people and build for the future. Those are the people and businesses that we need to encourage, not put off, and infrastructure is vital to that, but the Government’s ideological decision to cut infrastructure investment further and faster is hampering confidence rather than nurturing it.
Small businesses, the engines of growth, are still waiting for the Government to roll out universal broadband. The Government abandoned the commitment from the last Labour Government to provide broadband for virtually every household by 2012. When business needs this Government, they are nowhere to be found.
Fundamentally, the Government fail to understand the need for a comprehensive and long-term plan to build Britain’s infrastructure for the 21st century. That is why the Labour party has commissioned Sir John Armitt, chair of the Olympic Delivery Authority, to consider how long-term infrastructure decision making, planning, delivery and finance can be radically improved. The Olympics taught us what we could achieve together as one nation. With the right leadership and the right investment, and by building consensus around the long-term projects that are essential for our energy, transport and housing needs, we can compete globally, with a national infrastructure that is fit for the 21st century. Labour is therefore making the case for a British investment bank, which would help to support long-term finance for British businesses so that they could take risks and grow. That is especially urgent given that net lending to businesses has fallen by a staggering £13.5 billion over the last year.
Investing in infrastructure is about more than the tarmac on our roads or the bricks that make up our schools. It is about creating skilled jobs for our youngsters. It is about supporting the entrepreneurs who want to export and grow their businesses. It is about ensuring we can grow and operate across the globe. It is about attracting investment from abroad. It is about being ambitious in the face of challenges, and attempting to build a better country for the next generation.
The Prime Minister said in his new year address:
“This is, quite simply, a government in a hurry. And there’s a reason for that. Britain is in a global race to succeed today.”
Whichever way we look at it, however, this Government do not seem to be in a hurry to invest in our country’s infrastructure. Indeed, as I said earlier, they are spending £12.8 billion less on capital investment than the amount specified in the plans that they inherited from the last Government, which amounts to an 8% cut. A Government in a hurry? Hardly. Inertia is the watchword of this Government, at a time when what we need is action.
When other countries are investing in their infrastructure, aware of the benefits, this Government dither. On infrastructure, as on so much else, the country needs decisive leadership. Instead, we get incompetence, delay and cuts. It is time that we changed course.
Mr Deputy Speaker (Mr Nigel Evans)
Before I call the Financial Secretary to the Treasury, I should inform the House that a speaking time limit for Back Benchers will be announced when he has sat down. I advise Members not to think much beyond eight minutes for the moment.
The Financial Secretary to the Treasury (Greg Clark)
I beg to move an amendment, to leave out from “House” to the end of the Question and add:
“notes that the previous administration’s final Budget planned to cut capital investment by 6 per cent more than this Government’s latest plans, in the period 2010 to 2014; further notes that this Government has increased capital plans by £20 billion at the Spending Review and at the last two Autumn Statements, by taking tough but necessary decisions to cut current spending, with a result that public investment as a share of GDP will be higher on average over this Parliament than it was under the previous administration; further notes that this Government announced £5.5 billion of extra infrastructure investment in the last Autumn Statement, including £1.5 billion for roads, £1 billion for new schools, £900 million for science and £1.8 billion for housing and local infrastructure; further notes that it has supported the largest investment in the railways since Victorian times under the High Level Output Specification; further notes that no national infrastructure plan existed under the previous administration whereas this Government has set out for the first time a multi-year long-term strategy for the UK’s infrastructure, with over 50 per cent of the Government’s top 40 projects and programmes due to be in construction, procurement or completed by the end of 2014-15; and believes that sweeping away red tape and developing new finance initiatives such as the UK Guarantees Scheme will also support up to £40 billion of extra important projects”.
I listened attentively to the hon. Member for Leeds West (Rachel Reeves), but there is little that can be said by Labour Members that should not start with an apology. Infrastructure, more than most issues, is an area of policy in which the present is haunted by the decisions of the past. By their very nature, major infrastructure projects must be planned years in advance, capital spending budgets must be allocated years in advance and private sector investment must be secured years in advance. All those things require a Government who can look ahead, anticipate the needs of the future, and make the necessary decisions in a timely fashion.
Rachel Reeves
Plans do need to be made for the future, so why did the Government cancel the building of 715 schools under the Building Schools for the Future scheme when they came to power?
Greg Clark
I should have thought that in two and a half years the hon. Lady would have learned the lesson from that. The deficit that Labour was running was greater than the deficit in any other G7 country. We needed to sort that out, and to create confidence in our economy. If Labour Members have not learned the lesson after two and a half years, what hope is there for the future?
The economic arguments advanced from the Opposition Benches sometimes purport to draw on the wisdom of John Maynard Keynes, but Keynes recommended that Governments should run a surplus in the good times, enabling spending, especially on infrastructure, to take place in the lean years.
Mrs Anne Main (St Albans) (Con)
I profoundly disagree with the motion, particularly what it says about “dithering” and “delay”. I am all for a bit of dithering and delay, but I would call it caution and sensible planning. I am speaking up for the environment because I want us to take a considered approach to planning as well as kick-starting our economy. Carpenters have the old adage, “Measure twice and cut once.” We should be very careful that we get our infrastructure right rather than just dashing forward and building on any old place.
The motion stresses the need to get Britain building, but we need to have a cohesive approach, not a mad dash for growth without considering local communities or what is actually needed. I am concerned that we are intrinsically entwining planning and the Treasury. I want to make sure that we are giving these matters due consideration and are not trampling over communities, historic landscapes, and, importantly, the green belt, but getting our infrastructure right and getting it in the right place.
I want the infrastructure debate to be associated with economic benefit, local regeneration and jobs, but never to lose sight of the environment. The two are intrinsically linked. Local communities need to ensure that plans are not granted in a hasty fashion just to join the ranks of unimplemented or badly located permissions. The absence of a joined-up approach to getting our infrastructure right and ensuring that there are full appraisals of alternative sites for large, private-funded proposals, such as those for rail freight interchanges, is likely to result in a developer-led scramble to see who can get their project through first, and it will often not end up on the best site for the local area or for national economic growth. That can also affect investment in other sites that may be more suitable, but which are starved of potential investment as investors hold fire in case another rival site gets permission through the planning system.
I want to make sure that we ask where we need to deliver such infrastructure in Britain. It is obvious that large infrastructure projects can create jobs and they should, if possible, be based in those areas where there is a need for those jobs, while at the same time doing minimum harm to the environment. That would be a win-win situation for everyone.
There has been a “minded to grant” decision on a rail freight terminal in my constituency. According to the developer of the site, it will create more than 3,000 jobs, the vast majority of which will be blue collar. Such a development could—I agree with the Labour party on this—provide a considerable boost for a struggling local area if it had the work force. It would be a shot in the arm for an area that needed those jobs. In St Albans, however, we are fortunate to have an unemployment rate of just 2.5% and the vast majority of those 1,155 people are white-collar workers. In fact, we have a deficit of blue-collar workers. Beyond that, neither my constituents—some of whom would be situated 100 metres from the development—nor Hertfordshire county council want the site, we are not a regeneration area, and the site will depress our local house prices, concrete over 10% of our green belt and compromise commuter routes into London.
The site has had three refusals, but on the Friday before Christmas, there was a volte-face and the “minded to grant” decision was made. Residents were stunned, because, if we compare and contrast the situation with that of a nearby site in Upper Sundon, just a few miles north of St Albans, we will see—this may be coincidental —that it has all the supposed national benefits that I believe we should be looking for and none of the drawbacks, or very few of them. The site is located in an old quarry—it is not on the green belt—and a ready, accessible work force, who would not need to travel in an unsustainable fashion, want it. It is also on the M1, which I am pleased to say is being upgraded, as we have heard from the Government today.
The site is in the central Bedfordshire development plan and has the support of the council, which would make the planning process simple and, I hope, amicable. Luton airport is also nearby, which is also looking to expand. The site will have easy accessibility to roads and road freight. From the economic point of view, the site is located near Luton, where the most recent figures show that 5.6% of the population are unemployed, most of them blue-collar workers.
I want to marry up those two happy coincidences, but I am concerned that the prevailing mood—driven by the Opposition in particular—is that, in the name of economic necessity, we must give permission to build at whatever cost. [Interruption.] The hon. Member for Leeds West (Rachel Reeves) would not let me intervene when I wanted to ask her whether she agreed—
Rachel Reeves
Of course infrastructure investment should be in the right place, but there is no risk of any infrastructure under this Government. That is the problem that we have been trying to highlight today, and the hon. Lady seems to welcome that lack of investment.
Mrs Main
I point out to the hon. Lady that in 2007, under her Government, the Infrastructure Planning Commission granted the decision to build Howbery park, against much opposition from local residents, on the green belt, on the basis that the Strategic Rail Authority said that it should be situated just about there. However, not a shovel has been turned on that development —the previous Government did nothing about it. I do not see why we should not have a strict rule that infrastructure must be placed exactly where it is needed, not where a developer happens to want it, which may lead to a situation such as that in Alconbury, which ended up with the Trojan horse of a business development park because it never got the rail links it was promised. That is not what we should be doing with our infrastructure. It should be in the right place and linked to the right work force.
If we are going to allow the development of much-needed housing, we should also look at why we have 142,000 unimplemented planning permissions that have already been granted. Across England, the figure is up to 400,000. Our priority should be to look at what has already been granted and ask why it was not built in the first place or why it was not built according to the planning permission that was granted to it, as in the case of Alconbury. If we do not make sure that infrastructure is correctly located, future generations will judge whether we had proper stewardship of our countryside.
We should examine historical permissions, both for large-scale infrastructure developments and large housing developments, that have not come to fruition. We must not just speed up the planning process and churn out more permissions that can be banked for five years, because that does not help the economy by ensuring that development happens where there is economic need and where there are people who can take up the job opportunities that are created.
A clear-sighted strategic decision-making process that was more “steady as she goes” would give investors confidence that they would not end up with permissions granted but never see the developments delivered properly in the way that was envisaged. If people want to get involved in strategic rail, there are many spin-offs such as people working on the site and promises of additional infrastructure upgrades to support the development. However, all those things fail if the developer never puts a spade in the ground and does not deliver the site as it was envisaged. All the potential jobs that are linked to such planning permissions never actually happen.
That has happened under previous Governments, and not only the last Government. However, the Opposition are now arguing that we should rush through more planning permissions and accuse this Government of dithering. I ask the Treasury to please be a bit more cautious and not to do what the previous Government did in allowing loads of permissions to be granted that never delivered what they should have delivered. We should consider applications slowly, cautiously and carefully to ensure that instead of a developer pushing the area where he would like to build, developments are built where we want them to be built and where communities want them to be built. That would be in the best interests of this country as a whole.
To return to the site in St Albans, it will not benefit my constituency one jot to have a rail freight interchange. It would probably benefit Sundon quarry and the surrounding area because of the jobs that it would create, but it would not benefit my constituency if it happened in Radlett. I hope sincerely that the “minded to grant” decision is suddenly reversed to match the original three refusals, because those refusals were sensible. Two of them came under the previous Government, so I hope that Labour Members would approve of them as well. The harm that will be done by that development certainly does not justify its going ahead, especially where an authority slightly further up the road would like to have such development, very much as the hon. Member for Swansea West (Geraint Davies) said his area would.
We should encourage development to go where communities would welcome it, and where it fits in with our with our bigger, broader strategic plan for the economy of this country.