Economic Update

Wendy Chamberlain Excerpts

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

I am happy to confirm both those points to my hon. Friend.

[Wendy Chamberlain (North East Fife) (LD)]

I would like to return to a theme that I picked up at the plan for growth statement three weeks ago: carers, particularly unpaid carers. Because of the carers allowance, they either cannot work at all or are struggling to make ends meet. Will the Chancellor confirm whether we will see inflationary increases to benefits and, if not, will he consider expanding the means-tested cost of living payments to include those on carers allowance or, at the very least, will he allow people to work more before their carers allowance is impacted?

[Jeremy Hunt]

I have said, as the hon. Lady will have heard, that I am not announcing decisions in any individual areas because of the gravity of the situation we face. On carers allowance, I will happily write to her anyway as I think these are all things we keep under review.

Economic Situation

Wendy Chamberlain Excerpts

Wednesday 12th October 2022 Commons Chamber

[Chris Philp]

As I said, the Chancellor of the Exchequer is in regular contact with the Governor of the Bank of England and his officials. The Bank of England has responsibility for financial system stability and I have complete confidence in its ability to manage that.

[Wendy Chamberlain (North East Fife) (LD)]

The energy price guarantee still means increases in costs for consumers. We know that disabled people already face higher costs, and the only support that thousands of unpaid carers receive from the Government is carer’s allowance. In many cases, that means that they have been excluded from cost of living support. In addition, carer’s allowance is effectively means-tested due to the earnings cap, meaning that carers cannot seek work, as the Chief Secretary seems very keen for them to. Will he commit to ensuring that we review the carer’s allowance situation and, if not, that we provide further support to carers, who do such valuable work?

[Chris Philp]

The hon. Lady is right that despite the energy price guarantee—the decisive intervention that has protected our constituents from £5,000 or £6,000 bills—bills this year are higher still than they were last year. That is why we have made the £37 billion intervention, which, for people on lower incomes, amounts to £1,200 a year. There is more money on top of that for people with disabilities for the reason that she mentions. As for reviewing various components of disability and caring benefits, those will get reviewed in the normal way along with the other benefits. The Minister with responsibility for welfare and the Chancellor of the Exchequer will lay all that out in the coming weeks.

The Growth Plan

Wendy Chamberlain Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

I made an announcement on IR35 this morning. I would be very interested to hear my hon. Friend’s ideas on business rates, because that is an ongoing conversation. I used to hear that the whole time when I was Parliamentary Private Secretary to the Chancellor five years ago, and I have as Chancellor for, as she says, two and a half weeks.

[Wendy Chamberlain (North East Fife) (LD)]

I would like to know how this Conservative plan for growth will help unpaid carers, whom Carers UK estimates deliver £500 million-worth of care a day. From speaking to constituents about my Carer’s Leave Bill, it is clear that carer’s allowance prevents people from working. Given that the Chancellor has failed to clarify whether we will see inflationary increases to benefits, will he at least look to ensure that they do not impact on other benefits, or, at the very least, will he allow people to work more before their carer’s allowance is impacted?

[Kwasi Kwarteng]

We are always looking at ways in which we can encourage people who are helping the most vulnerable in society to do what is a critically important job. We are always looking at how we can improve that.

Tackling Short-term and Long-term Cost of Living Increases

Wendy Chamberlain Excerpts

Tuesday 17th May 2022 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

Thank you, Madam Deputy Speaker. It is a pleasure to be back after Prorogation and the local elections, but less of a pleasure to be debating the Government’s legislative agenda as laid out in the Queen’s Speech.

The cost of living crisis is not just biting under this Government’s leadership, but gnawing away to the bone. What my constituents need is an emergency Budget. Conservative Members were crowing earlier about the low unemployment rate, but they failed to mention that we now see economically inactive data of more than 21%. How do we expect to see productivity grow when one fifth of the country is not working?

The right hon. Member for East Ham (Stephen Timms) mentioned Lloyd George, and it would be remiss of me as a Liberal not to do the same. The right hon. Gentleman said that as a proportion of earnings, benefits are now lower than when Lloyd George introduced unemployment benefit in 1911. Based on my calculation of unemployment benefits of seven shillings a week and median earnings then of about 30 shillings, that makes it about 22.5% of earnings. Currently, universal credit is £334 per month for a single person over 25, and median earnings are £2,061 per month. That equates to 16%. The Government’s choice not to uplift benefits in line with inflation has only exacerbated that divide.

Perhaps it is timely that the all-party parliamentary group on ending the need for food banks, which I co-chair, launched a new inquiry last week. We kicked off with a visit to a food bank in Hackney, and I can tell the Minister with certainty that telling families to take more shifts is not a viable or appropriate policy solution.

In my constituency, families are turning to charities such as Fife Gingerbread, which provides a tea-time club so that ovens and microwaves do not have to be put on, and help in the school holidays so that parents can work or just avoid extra energy costs. This year, a new fundraising campaign is helping to provide families with a day out over the summer holidays, because all children deserve to learn, to play and to laugh.

This goes from the very young right up to the elderly. Others have mentioned the WASPI women. Why are the Government still refusing to follow expert advice on the LEAP—legal entitlements and administrative practices—state pension exercise and continuing to exclude divorced women? Why do they think that the DWP made continued errors over several decades in relation to married and widowed women but do not think that it did so for divorced women? I urge the Government to look at that.

Increasingly, older people are being left to rely on the voluntary sector for support. Cosy Kingdom in North East Fife provides home assessments and advice on energy savings, a handyman service for those who would otherwise struggle with jobs such as installing draught protection, and help in dealing with benefits and debts—and, increasingly, with priority creditors such as energy providers. All these issues are exacerbated for people who live in rural constituencies such as mine. The Government are yet again falling far short on their commitments.

National Insurance Contributions (Increase of Thresholds) Bill

Wendy Chamberlain Excerpts

2nd reading
Thursday 24th March 2022 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

No one opposes this Bill, but it gives us an opportunity to reflect on yesterday’s spring statement, as a package of support to help families who are being pushed into poverty.

The hon. Member for Peterborough (Paul Bristow) talks about engaging with his constituents. It is not as easy for me to go up to North East Fife for politics and a pint on a Wednesday night, but my constituents want to know whether this is it. The spring statement has, frankly, let down the country as it faces a cost of living crisis, and the House does not have to take my word for it—after all, it is my job as an Opposition Member to oppose the Government. Other Members mentioned the Institute for Fiscal Studies, which says the Chancellor’s measures

“will make the tax system both less equitable and less efficient.”

That does not make for a stronger or more secure economy. Instead, the belief is that the Chancellor is setting us up for a return of absolute poverty where people have to choose between heating and eating or, even more devastating, neither. That is not strong or secure.

Conservative Members need to look at today’s front pages and YouGov’s snap poll, which says that 69% of those polled believe the Government have not gone far enough to support them, and that 66% do not feel the spring statement helps people like them. The Chancellor told us yesterday that his changes are significant, but saying that does not make it so. We have heard statistics from both sides of the House showing people’s reflections on the Bill, and I tabled an amendment with my hon. Friend the Member for Bath (Wera Hobhouse), which she will address in Committee, that would require the Government to report on the effect on disposable incomes.

Cutting fuel duty by 5p a litre only helps people who drive and, even then, it brings down fuel prices only to the level at which they were last week. I represent a rural Scottish constituency that has much higher fuel prices than in other parts of the UK.

[Jacob Young]

Does the hon. Lady accept this measure helps not only people who drive but hauliers, who move important products across the country, which obviously has an impact on food prices? This measure will help not only our constituents but the wider economy.

[Wendy Chamberlain]

I accept the measure helps other people, but the reality is that we have seen an increase, on average, of 40p a litre. As other hon. Members have said, there has been a 5p a litre increase in the last week. A 5p reduction is helpful, but it does not go far enough to support those who really need it.

Frankly, lowering the basic rate of income tax is the biggest wheeze of all. Paul Johnson of the IFS said in The Times this morning that we are experiencing “fiscal drag.” The freezing of income tax, which the Chancellor previously announced, means that, even as people’s wages increase, they will pay more tax, and the reduction is not happening yet. All the Chancellor has said is that he will do it at an unspecified time before the next election.

The reduction will help those on low incomes the least. It is a tiny reduction and, overall, the tax cuts announced yesterday are worth only a quarter of what is being increased. Arguably, it is not workers who benefit from the cut but people, such as landlords, with unearned income from investments. People who are wealthy enough to get their income from savings and property will pay less tax, while the least well off continue to pay more and more. This is driving another wedge between unearned and earned incomes. I tabled a further amendment with my hon. Friend the Member for Bath to require reporting on the impact.

The Chancellor repeatedly spoke about hard-working families—that was his catchphrase of choice—but those hard-working families are not being helped. They are seeing their energy bills go up and the price of food to feed their children skyrocket, and working parents are being pushed into higher tax brackets by the choice to freeze the thresholds. They pay ever more tax. My final amendment addresses unearned income.

This spring statement is a huge missed opportunity. I would have liked to see a packed Chamber debating legislation that actually makes a difference to people, but I think we would all accept that this is not that Chamber and not that Bill. There are so many steps the Government could have taken today but did not. We had an Opposition day debate at the start of this week on pensioner poverty, which we know is increasing year on year. The Minister in that debate said he was sure the Chancellor would have been listening to Opposition Members calling for more support for pensioners and suggesting some of the ways in which that could be done—you were in the Chair at the time, Madam Deputy Speaker. Clearly, the Chancellor was not listening, because pensioners were not mentioned at all yesterday. There was very little for pensioners who do not drive or own their house—or for those who do own their house but are not planning any energy-efficient home improvements.

[Gareth Davies]

I point out to the hon. Lady that 200,000 fewer pensioners are in absolute poverty now than were in 2010. I just put that on the record.

[Wendy Chamberlain]

I thank the hon. Gentleman for putting that on the record, but we are looking at 1.3 million additional people, some of whom I am sure will be pensioners, going into absolute poverty in the next year. Our state pension is set to have a real-terms cut. Inflation is at 6.2% and is expected to go up to 8% in April, yet pensions are going up by only 3.1%. That was what the triple lock was designed to deal with; it was there to keep pensions in line with and up to the cost of living. As I have said many times in this Chamber, the state pension is not just about pensioners now; it is about ensuring that people in the longer term know that they have a state pension that they can look forward to, and that matters for younger generations, too.

This Government say that they oppose loneliness, but, as always, actions speak louder than words and the measures are leaving older people on their own, in the dark and the cold. There are very good reasons why some people cannot work. There is nothing at all for those receiving social security, who are also suffering the real-terms cut to incomes and are also struggling to pay their rent, because of the freeze to housing allowance—even the National Residential Landlords Association has called that out as being catastrophic. Frankly, it is more expensive to be poor. People on benefits are being unfairly punished by a system that is set up to make them fail. They are worrying about money, making ends meet and debts, and living in unsuitable housing that costs more to heat. These are not the conditions that set someone up to apply for jobs, to succeed in interviews or to move on to a better place in their lives. We know, as we have heard the evidence, that the benefits system can cause serious harm, damaging people’s mental health, sometimes to the extent that they take their own lives. This is not a system that helps people—often it harms them. We know that our economy is stronger when those who are able to work do so, but our system does not help people do that and it must be more compassionate. It must also receive sufficient funding so that those receiving benefits are not pushed further and further towards the edge.

Do the Government want this country to be one where destitution becomes normal? As I have said, the estimate is that 1.3 million people will move into absolute poverty as a result of the current cost of living crisis. The only support offered yesterday for those on the lowest incomes was the boost to the household support fund, via local authorities. That is no substitution for having a proper support system that stops people falling into poverty in the first place. As happens with pension credit, people do not always come forward for the support they need, so I echo the suggestion that anyone facing hardship contacts their local authority so that they can get support that may be available to them.

The Government could have cut VAT to 17.25%, which is what my party would propose to do. That measure would help everyone. Cutting VAT will shield our constituents from the worst of the increased costs, put money back in their pocket, and help those on middle and low incomes the most. With an economy that is struggling, because of a variety of factors, we need people to be out in our economy; we need people on our high streets, buying things that are made in our factories and marketed on our streets. A cut to VAT would give an immediate boost to every household, but it also helps us in the long term. That is what a meaningful policy would look like.

[Jacob Young]

I am very interested in the hon. Lady’s arguments on a VAT cut, which is something I would consider, as it is sensible. However, how would the Liberal Democrats propose paying for such a cut?

--- Later in debate ---

[Wendy Chamberlain]

The purpose of the VAT cut is to increase the economy and increase productivity, and therefore see increased tax receipts, which would cover it.

Instead of raising taxes on working people, the Government could implement a windfall tax on the super-profits of oil and gas companies. I say “super-profits” because this is about the additional profits that those companies are making as a result of the increase in energy prices, and it is not the same as the policy proposed by Labour. However, this Government are allowing those companies to make and keep those massive gains. That is true to form; we have seen them give banks a £7 billion tax cut and we know about the high levels of wastage that we have seen, for example, in relation to personal protective equipment. A measure such as this would help support our most vulnerable families.

[Helen Morgan (North Shropshire) (LD)]

Does my hon. Friend agree that the proposed changes to the national insurance thresholds are disappointing, because they just do not go far enough to help people cope with the shocking scale of this cost of living crisis? A disabled family in my constituency do not pay national insurance so they do not get any benefit from the proposed cut; one member is too ill to work and his wife has to stay at home to care for him, so they get nothing from this, but they are struggling to heat their house and pay their food bills. This does not do anything for them. For those who are in work, the NI rate is still increasing by 10% and so they will not benefit enough to be able to heat their homes. Does she also agree that those who live off-grid and heat their homes with heating oil are not protected by anything that happened yesterday?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Interventions have to be quite short.

[Wendy Chamberlain]

Thank you, Madam Deputy Speaker. I also thank my hon. Friend for her intervention. We know that the price cap does not support those who are off-grid. That was a point Members made in Monday’s Opposition day debate in relation to pensioners, and in other places. I hope that the Government will consider that and if they do not do something about it now, I hope they will do so in future.

Yesterday’s statement was all smoke and mirrors. It increases the disparities between unearned and earned income.

[Anthony Browne]

I was intrigued by the hon. Lady’s comments that a VAT cut would increase economic activity, leading to more tax receipts and therefore it would pay for itself. I very much welcome the idea that tax cuts help to promote economic activity, but if she believes that VAT cuts pay for themselves, does she believe we should always have VAT cuts? How low would she bring VAT? I have to say that that analysis is not shared by Treasury economists.

[Wendy Chamberlain]

I find it interesting, given the criticism always given to those on this side in relation to the European Union and VAT, and what we could not and could not do, that I am experiencing criticism from Conservative Members about proposing cutting VAT. I am proposing a temporary measure to help boost the economy in the short term, and I am happy to have a further discussion with the hon. Gentleman about what levels of VAT might look like.

We are seeing an increase in the disparity between unearned and earned income. We are ignoring those who are being pushed into poverty, and we are not addressing the cost of living, which the Chancellor’s statement was supposed to deal with yesterday. Today’s Bill does too little, too late. The measures announced in it will come into effect only in July this year. Payments at the higher rates will remain in place for the next three months. The NI hike will cost employees £2.1 billion in that time. The cost of living crisis is biting right now, today, and the Chancellor must look to implement the changes earlier than outlined. I am not fooled by this Government, and neither is the country. If this is the best the Chancellor can do, they know, as I do, that they deserve another Chancellor.

Prime Minister’s Chief of Staff Appointment

Wendy Chamberlain Excerpts

Monday 7th February 2022 Commons Chamber

[Michael Ellis]

My hon. Friend is absolutely right.

[Wendy Chamberlain (North East Fife) (LD)]

My constituents are rightly concerned to see the Prime Minister pursue a departmental merger, the cost of which is likely to surpass £10 million in taxpayers’ money, at a time when we are facing a cost of living crisis. It is well documented that No. 10 is used for living and working, with porous boundaries, and we are all well aware of the Prime Minister’s well documented frustrations with his flat. Will the Minister rule out any public money being spent on any additional refurbishment of the Downing Street flat, in the context of this merger?

[Michael Ellis]

I do not think the Downing Street flat has the smallest thing to do with this matter. It is and has always been the case that the 10 Downing Street operation is an integral part of the Cabinet Office. They are already interconnected physically, metaphorically, literally and in every other way. This change recognises that and creates a new avenue of increased democratic accountability by having a chief of staff at No. 10 who, for the first time, can come to this House and speak from this Dispatch Box.

Coronavirus Grant Schemes: Fraud

Wendy Chamberlain Excerpts

Tuesday 18th January 2022 Commons Chamber

[John Glen]

I am of course very concerned about businesses that are struggling and have been in difficulty, but I am pleased that the economy has recovered far quicker than many anticipated it would this time two years ago, and I am pleased that unemployment is at about 4.1%, rather than the 12% that was anticipated at the start of this crisis. There is no complacency from this Government, and there is an absolute determination to support businesses in getting back on their feet and trading. That is why we put in place so many interventions, which were designed in different ways to maximise the support to businesses and individuals across this country.

[Wendy Chamberlain (North East Fife) (LD)]

The Government say time and again that support during the pandemic for the people who fell through the gap between the job retention scheme and the self-employed scheme would be too difficult to administer because of the risk of fraud. We now know that, simultaneously, companies that were defrauding taxpayers were being supported. We are left to conclude that the decision not to help those 3 million people was simply political. Those small businesses, sole traders and entrepreneurs should be the driving force of the UK’s economic recovery in the months and years ahead. What impact has this lack of support had on those sectors, and what will the Government do to support them going forward?

[John Glen]

The hon. Lady points to the fact that none of these schemes was perfect. She recognises implicitly that checks against data to verify people’s identity were necessary to ensure that they were suitable recipients of taxpayers’ funds. Unfortunately that meant that some were not able to secure the support that they sought. Where we can, we have moved forward and iterated these schemes, focusing and targeting them on the sectors of the economy that were most hit at different stages in this crisis, but I concede that unfortunately we were not able to help everyone, as we would have liked.

Downing Street Garden Event

Wendy Chamberlain Excerpts

Tuesday 11th January 2022 Commons Chamber

[Michael Ellis]

The advice that I would always offer as a Law Officer, as I did as a barrister in practice, is to be fair to all sides. That includes listening to evidence, collating evidence properly and acting judiciously at all times. That is what we expect in this country, rather than prejudging matters and jumping to unwarranted and unfair conclusions. That applies to justice to all in this country.

[Wendy Chamberlain (North East Fife) (LD)]

Assaults on police officers in 2020-21 in England and Wales saw a 20% increase to over 25,000. I personally know of police officers who have been spat at, pushed, shoved and punched while doing their job, which includes enforcing the covid regulations, so I think police officers up and down the country will be appalled to hear that the Prime Minister and Downing Street staff were allegedly partying while they were doing their job during the worst of the pandemic. Given that all the evidence suggests that the party took place and that the Prime Minister was present, does the Paymaster General agree that the Prime Minister should write a letter of apology to every one of the police officers assaulted while enforcing covid regulations?

[Michael Ellis]

As the hon. Lady knows, this Prime Minister has always been a very strong supporter of the police. As Mayor of London, unlike the present incumbent of that office, he oversaw a reduction of crime in London. As Prime Minister, he has increased the number of police officers serving on the streets. This Prime Minister believes in law and order, and he supports the police—they know that. In fact, he visited a police station in my Northampton constituency only last week. The Prime Minister is very supportive of our police service and will continue to be.

Covid-19: Government Support for Business

Wendy Chamberlain Excerpts

Thursday 16th December 2021 Commons Chamber

[John Glen]

I have been very clear that we should get boosted, encourage our constituents to get boosted, take the lateral flow tests, wear masks and engage in normal activity as far as we can. There will not be a legal definition of what every individual should do on an individual basis, but most people will use common sense, and that is really important. I recognise the core point that my hon. Friend makes. The sector will need engagement from Government, and that is why Ministers—not advisers— will be engaging with that sector this afternoon.

[Wendy Chamberlain (North East Fife) (LD)]

As the Father of the House said, we will all be receiving emails from businesses in our constituencies. One has written to me saying:

“As with most businesses, a hospitality business is not run from one day to the next. Plans are in place for staff, events and orders.”

These are businesses that were struggling already with accrued debt and a staffing recruitment crisis before omicron hit. Does the Minister agree that, if businesses are facing the same set of circumstances they faced when they received support from the Government, it is reasonable for them to expect the same level of support again?

[John Glen]

We have put in a range of interventions, be that through loans, the furlough scheme, support through grants or support through reliefs from VAT and business rates. We will continue to look at what specific sectors are facing in these coming days and weeks, and we will act appropriately in light of those changed circumstances.

Conduct of the Right Hon. Member for Uxbridge and South Ruislip

Wendy Chamberlain Excerpts

Tuesday 30th November 2021 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

Several weeks ago, during the Standing Order No. 24 emergency debate on standards, Mr Speaker said that he wanted to see the House at its best. Sadly, I do not think we are seeing that today.

We have spent the afternoon listening to a list of instances of poor conduct committed by the Prime Minister, which is the focus of the debate, and I find that I have little to add to that list. Like many Members, I have had correspondence from people who just want this Government and this Prime Minister to behave properly on a variety of issues, and I agree with them. I know that campaigners in North Shropshire are hearing similar on the doorstep.

Previously, I have talked about my children, and the difference between saying sorry because you have been caught and actually apologising for wrongdoing. The fact that we are here yet again just shows that that message has not got through. It is not enough to change the subject when you have made an error of judgment; you must make it right, and not simply because it is politically opportune to do so. True contrition involves not doing the same thing again and taking the right actions.

What actions are those? Let us start with full support for the Standards Committee recommendations relating to the code of conduct, which were published yesterday. Let us talk about proper enforcement of the ministerial code. Let us talk about a willingness to support procedural changes to make this House modern, relevant and democratic in its workings.

Turning back to the motion, the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) said at the weekend that in bringing this debate forward, he would be acting as the “real opposition” to this Government, but this is not a formal motion of no confidence and it will, sadly, have no meaningful outcome. Real opposition means taking real action and demanding real answers. I point out that it was not the SNP but myself and Liberal Democrats who secured the debate on parliamentary standards—I acknowledge that that was welcomed by the right hon. Gentleman’s party—that took place immediately following the initial standards vote. That was what forced answers to be given to the House and actions to be taken in relation to those matters.

I think we could have debated this topic today in a manner more likely to bring those on the Government Benches who have expressed displeasure at recent events to a position where some kind of consensus could be reached. That would have been a way of chipping away at the Government majority, which I am sure will be in full force this evening. Digesting the Standards Committee report would be a clear way forward for this House on an issue that affects us all.

There are vital issues that the right hon. Member for Ross, Skye and Lochaber could have chosen to debate with his party today. His colleague in the Scottish Parliament, the Cabinet Secretary for Covid Recovery, was just this weekend arguing that his party is the only one that cares about devolution. If that is the case, why are we not discussing that, given how vital the right hon. Gentleman’s counterparts in Holyrood believe it to be? Is it partly because the reality is that the SNP is not really all that fussed about devolution at all, when what it wants to do is end it and cut Scotland asunder from the rest of the UK? Devolution means devolving powers to where they can be best utilised and to the maximum benefit of the public.

The current Scottish Government, led by the SNP in coalition with the Scottish Greens, like to centralise power just as much as those on the Conservative Benches in the UK Government. There is no evidence of any support for real devolution from the right hon. Member’s party. I am a Liberal Democrat, a Scottish Liberal Democrat—a party with a long history of supporting, in over 20 years of the Scottish Parliament, not just devolution but federalism. Powers and funding should be national, regional or local depending on the requirement. But perhaps I am wrong. I hope the right hon. Member and his party will explain why, if his party feels so strongly about devolution, it is not the issue in the motion we are debating.

As the MP for the town of St Andrews on St Andrew’s Day, I think we could have used this Opposition time more productively than what has been afforded to us this afternoon.