The Economy and Living Standards

Debate between Baroness Morgan of Cotes and Chris Leslie

Thursday 12th June 2014 Commons Chamber

[Nicky Morgan]

The right hon. Member for Oldham West and Royton showed in his opening paragraph that he understands the Government’s economic policy perfectly. It is a shame that he did not stop there, because he summed up so beautifully all the Government’s achievements over the past four years.

My hon. Friend the Member for Montgomeryshire (Glyn Davies) talked about the dairy industry in his constituency, and I heard what he had to say.

The hon. Member for Eastleigh (Mike Thornton) talked about the increase in the personal allowance. His kind offer to advise the Treasury on the reform of stamp duty has been noted and I am sure that we will take note of what he has to say in the run-up to the next fiscal event.

The hon. Member for Huddersfield (Mr Sheerman) offered to write the Labour party manifesto for the next election. I wonder whether those on the Labour Front Bench were listening.

My hon. Friend the Member for Richmond Park (Zac Goldsmith) talked about recall, about which he is passionate. I suspect that there will be many debates on that issue in this House before the recall Bill is passed.

My hon. Friends the Members for Rugby (Mark Pawsey) and for Stroud (Neil Carmichael) talked about how the Government are delivering for manufacturing and rebalancing manufacturing. It is worth noting that manufacturing is expanding faster in the UK than in any other country in the G7.

The hon. Member for Birmingham, Erdington (Jack Dromey), whom I cannot see in his place, spoke of an era of discontent and disconnection. I agree with him. There is an era of discontent and disconnection in the Labour party—discontent with the leadership and disconnection from what this country needs to rebuild the economy.

My hon. Friend the Member for Halesowen and Rowley Regis (James Morris) talked about the Labour party’s promise to end boom and bust. He was right to say that it delivered only one half of that promise.

My hon. Friend the Member for Bury St Edmunds (Mr Ruffley) talked about trusting people with their pension savings.

The hon. Member for Redcar (Ian Swales) talked about the successes and investment in his constituency, and mentioned the Tees valley city deal. I am sure that all Members wish him and everybody who will sign it next week the best of luck.

The hon. Member for Coventry South (Mr Cunningham) talked about the 10p tax rate. He laid claim to the fact that the last Government introduced it. The last Government also got rid of it, which caused great unfairness to those who were being taxed at that rate.

The hon. Member for Bolton South East (Yasmin Qureshi) made a spending commitment of £1.9 billion, which only reminds us that the amendment would cost £14 billion.

The hon. Member for Liverpool, Wavertree (Luciana Berger) talked about zero-hours contracts. I think she said that 1.4 million people are on zero-hours contracts. In fact, the ONS estimates that there are 1.4 million zero-hours contracts and that 583,000 people are on them. She should be careful, because the ONS recently warned the shadow Business Secretary about his interpretation of those figures.

The hon. Member for Hartlepool (Mr Wright) gave an eloquent speech and demonstrated to all of us the dangers of someone turning up at a local party meeting and saying, “I want to get involved.” Many years later, they find themselves here on the green Benches—we have all been there.

Many hon. Members made points about the cost of living. Of course the Government want to see rising living standards for households up and down the country, and we have helped households by freezing fuel duty and council tax, taking money off energy bills, capping rail fares and introducing free school meals. However, the best way to improve living standards is to stick to our long-term economic plan to improve productivity, get as many people in work as possible and ensure that they take home as much of their pay as possible.

As the House will know, we have already made real progress on that front, but this Queen’s Speech introduces measures that will further increase employment. It offers tax-free child care, which will make a return to work more financially viable for thousands of mothers and fathers and, for the first time, help those who are self-employed or setting up businesses. It offers a small business Bill, which will make it easier to establish and grow small businesses, and an Infrastructure Bill that will help businesses both large and small by creating the transport and digital networks that they will need to thrive in the long term. All those steps will help our businesses get more people into work, which will support our households and grow our economy.

[Chris Leslie]

Will the Minister give way?

[Nicky Morgan]

I cannot take any more interventions. [Interruption.] The hon. Gentleman has had plenty of time to make his arguments, but let us see how we get on. First, I want to respond to the points that hon. Members made about housing.

Of course we recognise that in some parts of the country, people are worried about house price rises over the past year. However, I point out, first, that real house prices are still below their pre-crisis peak; secondly, that the Government are committed to a number of new building schemes to increase housing supply, including the new garden city at Ebbsfleet; and thirdly, that through the Help to Buy scheme we are helping thousands of people who earn enough for a mortgage but are struggling to raise a deposit. The official statistics released last week show that Help to Buy is opening up home ownership to thousands across the country, with more than 94% of all completions outside London and more than 85% by first-time buyers. To the Opposition Member who dismissed the “stupid” Help to Buy scheme, I say that that is an attack on aspiration and on everybody who wants to own their own home.

Fourthly, I point out that the Financial Policy Committee is in a position to step in if it thinks we are seeing a return to unsustainable lending levels. We are monitoring the situation and taking action, and we are ready to take further action if we believe it has become necessary.

--- Later in debate ---

[Chris Leslie]

rose—

[Nicky Morgan]

I give way to the hon. Gentleman.

[Chris Leslie]

I thank the Minister; we do have a little bit of time left. Does the Minister believe that people in this country will be better off at the time of the general election in 2015 than they were at the time of the last general election? Does she agree with the IFS that they will not be?

[Nicky Morgan]

The whole country will be better off, because we are fixing the economy, getting more people into work and seeing wage levels going up and the inflation rate falling. If the hon. Gentleman was waiting to ask that question, he could have asked it during many other speeches this afternoon. He will have to do better than that next time.

It is worth noting that the hon. Gentleman gave a speech recently on efficiency savings, but no savings were identified. He listed a lot of ways to spend money, instead—£21,000 on keeping a police station open; the restoration of the spare room subsidy; the jobs guarantee for young people, which as we have heard today is a £1.4 billion commitment; a house building programme; and a British investment bank. The Government will not take lectures on how to run the economy.

This Queen’s Speech proves that this Government are just as radical in our fifth year as we were in our first. There were more Bills in this year’s Gracious Speech than there were in the last Government’s final Session, and they are serious Bills tackling serious issues—pensions, infrastructure, small business, child care payments, serious crime, modern slavery, the armed forces, social action and heroism, national insurance contributions and the recall of Members of Parliament.

This Queen’s Speech will be one further crucial step in the Government’s long-term economic plan. It will help those who want to work but are put off by child care costs, and those who are forced to work by the despicable practice of traffickers and slave masters. It will help small businesses access finance and savers access their pensions, and most importantly, it will keep employment rising and the deficit falling. That is why we reject the Opposition’s amendments and why I commend the Gracious Speech wholeheartedly to the House.

Question put, That the amendment be made.

Oral Answers to Questions

Debate between Baroness Morgan of Cotes and Chris Leslie

Tuesday 10th December 2013 Commons Chamber

[Nicky Morgan]

My hon. Friend is right. As I said, Paul Johnson of the Institute for Fiscal Studies said:

“We’ve have had the biggest recession we’ve had in 100 years”.

It is hardly surprising that household incomes and wages have fallen. We recognise that times have been very tough for households and for businesses, but as my right hon. Friend the Chancellor’s autumn statement showed last week, we are on the right path to a responsible recovery now.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Does the Minister expect that after the autumn statement average earnings will keep pace with rising energy bills this winter?

[Nicky Morgan]

What we have done in the autumn statement is to give £50 off energy bills. We are putting money in people’s pockets with the personal allowance, through capping rail fares, through the council tax freeze and with the fuel duty freeze. The hon. Gentleman has a cheek to talk about putting money in people’s pockets when the Government whom he supported left behind the economic crisis from which we are having to pick up the pieces.

[Chris Leslie]

I guess we have to take that as confirmation that the Minister does not expect average earnings to keep pace with rising energy bills this year. Is it not true that, despite the autumn statement, all we have seen is a policy that tinkers around the edges and means that energy companies will still see their profits rising as households continue to see their bills rising? When will she be on the side of households who are worried about heating their homes, and when will she support an energy price freeze and stop always defending the excessive profits of the big six energy companies?

[Nicky Morgan]

The hon. Gentleman has clearly learned nothing. Does he realise that his energy policy is a complete con, that energy companies have already said that they would have to freeze investment, and that they would put prices up beforehand and afterwards? The Government are absolutely on the side of hard-working families and their household budgets, and we are putting £50 in their pockets now.

Midland Main Line

Debate between Baroness Morgan of Cotes and Chris Leslie

Monday 16th April 2012 Commons Chamber

[Nicky Morgan (Loughborough) (Con)]

Thank you, Mr Deputy Speaker, for allowing time for this debate. The issue of the upgrade and electrification of the midland main line has rumbled on for a number of years, and I am delighted to have an opportunity to raise it with my right hon. Friend the Minister of State in a little more detail than is usually possible in departmental questions. The subject is particularly topical, given that the Prime Minister travelled on an East Midlands train via the midland main line up to the east midlands today.

As can be seen from the number of MPs from both sides of the House who are still here at this late hour, although it is perhaps not as late as some of us had anticipated, and as is demonstrated by those such as my hon. Friend the Member for Mid Derbyshire (Pauline Latham) who cannot be here tonight but who have sent messages of support, this subject is of interest to MPs across the midlands. The Minister will be aware of the letter from Members representing 20 seats in the midlands that I recently sent her, outlining our support for the upgrade and electrification of the midland main line. I am sure that I speak for a number of hon. Members when I say that we all know this train line extremely well.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

I am delighted that the hon. Lady has secured this debate, as many hon. Members feel strongly about this subject. Does she agree that this is about not only cutting journey times, but saving money in the running of the railway each year? I believe that the relevant figure is about £60 million.

[Nicky Morgan]

I thank the hon. Gentleman very much for his intervention. He rightly says that there are many benefits to this—I shall set out five key ones later in my speech—and that cutting the running costs of the railway on an annual basis is one of the main benefits that the upgrade and electrification would bring.