Economy and Jobs

Debate between Baroness Morgan of Cotes and John McDonnell

Thursday 29th June 2017 Commons Chamber

[John McDonnell]

I will tell the hon. Gentleman what I think is grubby—[Interruption.] Sorry—I thought he was sitting on the Government Benches; I didn’t realise. What is grubby is that if we were to abide by the rules of our system, and the Barnett formula in particular, England would get an additional £59 billion, Scotland £6 billion, and Wales £3 billion. After the miraculous discovery of funds for the DUP deal, in future I do not expect to hear much more about magic money trees from the Government Benches. One billion pounds was found for the DUP, but there is nothing to address the fundamentals of our weak and precarious economy, which as my hon. Friend the Member for Wirral South (Alison McGovern) said, is now faced with the challenges of Brexit.

Increasingly, people are waking up to the fact that a Government lacking—what can I call it?—a strong and stable leadership, are incapable of securing a deal that protects our jobs and economy. There are divisions at the top of Government, a Cabinet divided, and rows between members of the Government and their own negotiating team are breaking out on a daily basis as they position themselves for their own leadership challenges. As a result, we witness weekly changes of direction in the Government’s negotiating stance, including even by the Chancellor. Only weeks ago the Chancellor was threatening no deal, walking away to set up the UK as a tax haven off the coast of continental Europe. Now it is reported that he is potentially looking to the customs union, and a long and uncertain transitional period. Only months ago, he went along with the Government prioritisation of immigration control over the protection of jobs. Now he claims to want a jobs-first Brexit.

[Nicky Morgan (Loughborough) (Con)]

It has taken the right hon. Gentleman 33 minutes to get to this country leaving the European Union, which is the defining issue affecting our economy. He talks about divisions. He might want to think about the 100 Members of his own party who have been through the shadow Cabinet during the course of the previous Parliament. He might also want to ask questions about the lamentable performance of his leader, and his Back Benchers might want to ask him questions about his lamentable performance in the EU referendum last year. If they felt that strongly about Brexit, they would have defended our membership of the EU.

--- Later in debate ---

[John McDonnell]

George never gave it back to me.

[Nicky Morgan]

I am sorry that his copy has not been returned; somebody watching this might do him that favour.

It is worth remembering that the economy underpins everything that any Government or Ministers want to do. Job security is fundamental to overall security for individuals. The Chancellor mentioned in his remarks the part of the Queen’s Speech that talks about the Government strengthening the economy so that it supports the creation of jobs and generates the tax revenues needed to invest in the NHS, schools and other public services. The “so that” is important. I describe myself as a one nation Conservative—that is how most on the Government Benches would describe themselves, I think. That means policies that work for the whole nation, for people of all ages, all backgrounds and all educational experiences, including those working very much in the public sector. The Chancellor also rightly talked about the importance of making tough choices for the future, thinking about intergenerational unfairness but also about sustainable funding for our essential public services.

The challenge on the Government Benches is to explain—not just here, but to our constituents and the country—why we are intent on balancing our budget as a country, why it is not right to pile debt on the next generation and why we need to clear the deficit. Sometimes we are too ready to talk about numbers and throw millions and billions of pounds around, without remembering that there are people working hard to pay their taxes to allow Ministers to have money to spend on various things.

The Chancellor rightly talked about the progress made in the past seven years: 4 million people taken out of paying tax completely and 31 million paying less tax. The key distinction between the Conservative and Labour parties is that we believe that people should keep more of the money that they earn; the Government do not always spend money wisely, and people should be left to make their own decisions about how they spend and what they spend on. The Chancellor also rightly highlighted the jobs created in the past seven years—2.9 million jobs secured since 2010. He also mentioned that income inequality was at a 30-year low.

I turn to my second point. It took the shadow Chancellor 33 minutes to get on to the important topic of Brexit, which will be the defining issue for this House over the next few years. If we do not deliver a successful exit from the European Union, our constituents will have something pretty negative to say when we next knock on their doors. I agree with the Chancellor that people did not vote last year to become poorer. I am tempted by amendment (g), although I will not support it because I do not think the drafting is right. However, it is important that the Government know that Members on both sides of the House want to hear more, sooner rather than later, about proposed transitional arrangements. If we are not to be a member of the single market or the customs union, how do we get the same access or benefits? How do we avoid a negative impact on our GDP as a result of our departure?

I welcome Government moves to address issues raised in amendment (d) this afternoon, about the access of women from Northern Ireland to abortions. That reflects what the right hon. Member for Doncaster North was talking about: building a broad consensus in this House on issues that we all care about and that our constituents tell us they care about. Frankly, there needs to be a lot more of that in this Parliament.

The next thing I welcome in the Queen’s Speech is the emphasis that the Prime Minister has rightly put, from the first days of her premiership, on tackling the mental health challenges in this country. Poor mental health is estimated to cost our economy £100 billion per year. We have to do better than that.

This is going to be an unusual Parliament. My party is in an unusual and unexpected position. We can provide the stability and certainty for the country, but we will need to build a consensus on the issues affecting this country. The challenges are continuing to grow a successful economy; leaving the European Union; tackling extremism; and addressing the issue of housing—and that is only a brief selection.