Fairness and Inequality

Debate between Baroness Burt of Solihull and Russell Brown

Tuesday 11th February 2014 Commons Chamber

[Mr Brown]

I have a copy of the report of the debate, so I am well aware of its content and of which Members contributed to it.

We may find little common ground today, but we can at least agree with the nationalist parties on the need for an inquiry into the impact of the coalition’s cuts on poverty throughout the United Kingdom.

The motion opens with the words:

“That this House notes that the United Kingdom is one of the most unequal states in the OECD, ranked 28 out of 34 countries for income inequality and the fourth most unequal country in the developed world according to some analyses”.

It is those last four words—“according to some analyses”—that present the problem. If we look at the OECD figures, we can see that the most recent ones are out of date. Definitions are provided for these figures, and statistics are also provided, but because different surveys and methodologies have been used, it is a real problem to get fully behind the figures and to determine what they are saying. In other words, statistics can prove one thing to one individual but tell a different story to another.

The coalition’s austerity measures have undoubtedly resulted in the greatest burden falling on low and middle-income families, while the richest have been given significant tax cuts to ensure that they do not feel the cold draught of the current economic climate. That is why Labour Members have consistently called for action to tackle the cost of living crisis caused by this Government. Such action would include freezing energy prices, taking real action to end exploitative zero-hours contracts, and strengthening the minimum wage now.

My right hon. Friend the Member for Morley and Outwood (Ed Balls) recently said that if Labour forms the next Government,

“we will restore the 50p top rate of tax”.

I know that that causes anxiety for Government Members, but we believe that, in tough times like these, those with the broadest shoulders should bear the greatest burden.

[Lorely Burt]

Will the hon. Gentleman tell the House for how many days the 50p rate of tax was in force during the 13 years Labour was in power?

[Mr Brown]

The hon. Lady knows as well as I do that it was a matter of days, but this also relates to the comments made by the hon. Member for Aberconwy about the impact of taxation on individuals. For most of that time, there was never a need for that higher rate of tax to be imposed. The hon. Lady knows that it was a Budget decision to raise the rate from 40p in the pound to 50p. Yes, that rate applied only for a matter of days, but the Labour Government had not felt the need to increase it at any other time.

Postal Services Bill

Debate between Baroness Burt of Solihull and Russell Brown

Wednesday 12th January 2011 Commons Chamber

[Lorely Burt]

I am struggling to answer the hon. Gentleman’s point, because it is a bit technical. I am looking over towards my hon. Friend the Minister, and I am sure that he will make a better fist of giving an answer.

[Mr Russell Brown]

I hear what the hon. Lady is saying about the UK gold-plating EU legislation, but when the liberalisation first started, and in fact beforehand, a number of Labour Members—we were then in government—spoke to Ministers and met the regulator. The liberalisation that the regulator was committed to carrying out in a five-year period was driven through far too quickly, and it actually happened in 18 months. There was great concern, but the problem was that if we had been seen to be interfering with the job of the regulator, we would have been severely criticised.

[Lorely Burt]

I take the hon. Gentleman’s point, and I have a great deal of sympathy with it. It is a great shame that that happened, but now we have to pave the way for a change in how the rules operate, and the Bill will empower Ofcom to examine how the regulations in question apply.

As far as I understand it—I am sure the Minister will comment on this—current EU rules do not allow specific periods to be imposed on inter-business agreements. Donald Brydon pledged in his evidence to the Public Bill Committee that before any privatisation of Royal Mail, a continued long-term commercial contract would be in place between the two businesses for the longest duration that was legally possible. I do not know whether 10 years is the right period, but that decision has to be made between the two organisations. I know that there is a great will in Royal Mail to ensure that there is an inter-business agreement between the two parties that guarantees a safe, secure and productive future together.