Economy Update
Debate between Baroness Laing of Elderslie and Rachel Reeves(2 years, 6 months ago)
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Rachel Reeves (Leeds West) (Lab)
After today’s announcement, let there be no doubt about who is winning the battle of ideas in Britain—it is the Labour party. Today, it feels as though the Chancellor has finally realised the problems the country is facing. We first called for a windfall tax on oil and gas producers nearly five months ago, to help struggling families and pensioners. Today, he has announced that policy but he dare not say the words; it is a policy that dare not speak its name for this Chancellor. It was also Labour that first highlighted the unfairness of this Government’s buy now, pay later compulsory loan scheme. It should not have taken a rocket scientist to work out that this would not cut it, and we pointed that out at the time, but that is the mark of this Klarna Chancellor: announce now, ditch later. Here he is, once again, the Treasury’s one-man rebuttal unit, the Chancellor himself.
For months, it has been clear that more was necessary to help people bring their bills down, so what took this Government so long? Every day that they have refused to act, we have had £53 million added to Britain’s household bills during this cost of living crisis. This Government’s dither and delay has cost our country dearly. Labour welcomes the fact that the Government are finally acting on our calls to introduce a windfall tax, and it is good to see the SNP U-turning today and saying that they, too, are in favour of a windfall tax on oil and gas profits—well done to the SNP.
It was a painful journey to get the Government to this point. First, Conservative Ministers said that oil and gas producers were “struggling”—that was the Education Secretary, I think—but then the BP chief executive said that the energy crisis was a “cash machine” for his business, so the Government moved to the second defence. Ministers claimed that a windfall tax would put off vital investments, but the industry said that it would not even change its plans. Then the Government said that a windfall tax would be “un-Conservative”. It is so un-Conservative that Margaret Thatcher, George Osborne and now this Government are doing exactly that. Finally, the Chancellor said that it would be “silly” to offer help now, given that he did not know the full scale of the challenge. What nonsense! It should not take half a million pounds of publicly funded focus groups for the Chancellor to realise that helping families and pensioners is exactly the right thing to do.
Every day for five months, the Prime Minister sent Conservative MPs out to attack the windfall tax and yet defend an increase in taxes on working people. He has made them vote against the windfall tax not once, not twice, but three times. For months, he has sent his MPs to defend the litany of rule-breaking in No. 10 Downing Street that was set out in the Sue Gray report yesterday. There is a lesson here for Conservative MPs: you cannot believe a word this Prime Minister says, and as long as he is in office, he will continue making fools out of each and every one of you. If they keep him there, that is their choice. The problem is that you cannot fake fairness—you either believe in it or you don’t.
Labour called for a windfall tax because it is the right thing to do. The Conservatives are bringing it in because they needed a new headline. We see that, too, from all the other things that the Chancellor did not address today: the non-doms keeping their tax privileges while the Government increase taxes on working people; young working people paying more, but those who earn money buying and selling stocks and shares not paying a penny more; contracts handed out to Conservative friends and donors while British businesses miss out; global tech giants making billions in profits while smaller businesses and the energy-intensive industries struggle with higher bills and higher taxes from the Conservative party; and £11.8 billion lost in fraud because of a total lack of respect for taxpayers’ money. That is why we should have had an emergency Budget today that spikes the hike in national insurance, cuts business rates for high-street and small businesses, provides help for energy-intensive firms and ensures that every pound of taxpayers’ money is spent wisely.
We will look closely at the detail of today’s announcements. Of course, most of them seem to be written by us, but so far we have seen nothing to suggest that this Conservative Government have the ideas or the energy to tackle the challenges we face as a country. A Labour Government would have addressed the underlying weaknesses in our economy, so that we can stop this spiral of inflation, lift wages and provide greater security for families and for our country. The truth is that the Conservatives are running our economy, and people’s living standards, into the ground. We are forecast to have the slowest growth and the highest inflation in the G7. This Government have weakened the foundations of our economy, leaving us exposed to shocks as we lurch from crisis to crisis, and still they refuse to come forward with a real plan to fix our broken system and provide the security we need to face the future with confidence. That means boosting our energy security too. We need to do much more to reduce our reliance on imported oil and gas. That is why Labour’s energy security plan includes a programme of home insulation, to reduce bills not just for one year, but for years to come and to get us all the way to net zero. It is why we have urged the Government to double onshore wind capacity and to end the delay on nuclear power. [Interruption.] And while we are at it, why did this Tory Government get rid of our gas storage—[Interruption.]
Rachel Reeves
While we are at it, why did this Tory Government get rid of our gas storage, which would have left us better protected from wild fluctuations in prices? When will this Government provide the strong leadership that this country needs?
There are a number of questions for the Chancellor about his announcement today. How many people are still waiting for the support they were promised in March? A third of his constituents are still waiting for their council tax discounts. Are households still being asked to pay the supplier of last resort costs for those energy suppliers that have gone bust as a result of a decade of failed energy market regulation? How is this package being funded, outside of the proceeds of a windfall tax? If someone has more than one home, do they get multiple discounts on their energy bills? I know that the Chancellor has adopted two of our ideas today, but may I ask why he has not adopted a third: a cut in VAT on energy bills? It was once touted as the big Brexit bonus, but he has ditched that too. This is a discredited, chaotic and rudderless Conservative Government, whose policies rarely last more than a few months. We pushed for a windfall tax and they adopted it. We said the buy now, pay later scheme was wrong and now they have ditched it. This Government are out of ideas, out of touch and out of time. When it comes to the big issues facing this country, the position is now clear: we lead, they follow. [Hon. Members: “More!”]
Madam Deputy Speaker
Order. We are not going any further unless you are quiet. I call the Chairman of the Select Committee, Mel Stride. [Interruption.] I beg your pardon. It would be best if I allowed the Chancellor first to reply to the shadow Chancellor. I am not trying to change the rules; I am just trying to go a bit faster. I call the Chancellor of the Exchequer.
Household Energy Bills: VAT
Debate between Baroness Laing of Elderslie and Rachel Reeves(2 years, 10 months ago)
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Madam Deputy Speaker (Dame Eleanor Laing)
Order. Let us just take the temperature down a little. I did not want to interrupt the hon. Lady when she was in full flow, but she must not call the hon. Gentleman “you”, because that might confuse him with me, and we would not want that.
Rachel Reeves
Literally no one would want that, Madam Deputy Speaker. I look forward to seeing the leaflets in Stoke-on-Trent at the next election and seeing how the hon. Member will justify not voting to keep VAT down on gas and electricity bills for his constituents.
In April we will see a national insurance hike and a council tax hike, and gas and electricity bills are going up too. Together we can today force the action that would reduce those bills for all our constituents—for people across our country—and ease the burden of a cost-of-living crisis that is spiralling out of control.
The Prime Minister seems to think that a cost-of-living crisis is when he cannot find a friend to pay for the luxury refurbishment of his flat, but for working people in our country it means struggling to pay gas and electricity bills. When it comes to the energy crisis, as with so much else, the Conservatives have been asleep at the wheel, and now it is ordinary people who are picking up the bill for their failures.
There is a clear choice with today’s vote: MPs can either vote for this motion, allowing us to bring forward legislation to cut VAT on household energy bills from 5% to 0% for one year, or they can vote against it and block bringing in the practical, automatic and immediate support that would give security to all our constituents. People will soon be hit by yet more rising bills, rising prices and rising taxes. These are the everyday worries that politics must address. People want a Chancellor who understands this and has a practical plan to help. The Chancellor might not care about turning up the heating, but the very least he could do is turn up for this debate and take the action needed to help our constituents.
Several hon. Members rose—
Budget Resolutions
Debate between Baroness Laing of Elderslie and Rachel Reeves(3 years ago)
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Rachel Reeves (Leeds West) (Lab)
Thank you, Madam Deputy Speaker.
Families struggling with the cost of living crisis; businesses hit by a supply chain crisis; those who rely on our schools, our hospitals and our police—they will not recognise the world that the Chancellor described. They will think that he is living in a parallel universe.
The Chancellor decided in this Budget to cut taxes for banks, so at least the bankers on short-haul flights sipping champagne will be cheering it. And he had the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, of expecting them to cheer today for £2 billion given to compensate. In the long story of this Parliament, never has a Chancellor asked the British people to pay so much for so little. Time and again today, he compared the investments that he is making to the last decade, but who was in charge in that lost decade? They were.
Let us just reflect on the choices that the Chancellor has made today. We have the highest sustained tax burden in peacetime—and who is going to pay for it? It is not international giants such as Amazon; no, the Chancellor has found a tax deduction for them. It is not property speculators; they have already pocketed a stamp duty cut. And it is clearly not the banks, even though bankers’ bonuses are set to reach a record high this year. Instead, the Chancellor is loading the burden on working people, with a national insurance tax rise on working people, a council tax hike on working people, and no support today for working people with VAT on their gas and electricity bills.
And what are working people getting in return? There is a record NHS waiting list with no plan to clear it, no way to see a GP, and people are still having to sell their home to pay for social care. We have community policing nowhere to be seen, a court backlog leaving victims without justice, and almost every rape going unprosecuted. There is a growing gap in results and opportunities between children at private and state schools, a soaring number of pupils in super-size classes, and no serious plan to catch up on learning stolen by the virus. The £2 billion announced today is a pale imitation of the £15 billion catch-up fund that the Prime Minister’s own education tsar said was needed. No wonder he resigned.
The Chancellor talks about world-class public services. Tell that to a pensioner waiting for a hip operation. Tell that to a young woman waiting to go to court to get justice. Tell that to a mum and dad waiting for their child to get the mental health support that they need. The Chancellor says today that he has realised what a difference early years spending makes. Has he ever heard of the Sure Start programme that this Tory Government cut?
Why are we in this position? Why are British businesses being stifled by debt while Amazon gets tax deductions? Why are working people being asked to pay more tax and put up with worse services? Why is billions of pounds in taxpayers’ money being funnelled to friends and donors of the Conservative party while millions of families are having £20 a week taken off them? Why can’t Britain do better than this?
The Government will always blame others: “It’s businesses’ fault”; “It’s the EU’s fault”; “It’s the public’s fault”; “They’re global problems”—the same old excuses. But the blunt reality is this. Working people are being asked to pay more for less, for three simple reasons: economic mismanagement, an unfair tax system, and wasteful spending. Each of those problems is down to 11 years of Conservative failure. Government Members shake their heads, but the cuts to our public services have cut them to the bone. While the Chancellor and the Prime Minister like to pretend that they are different, this Budget will only make things worse.
The solution starts with growth. The Government are caught in a bind of their own making, because low growth inexorably leads to less money for our public services unless taxes rise, and under the Conservatives Britain has become a low-growth economy. Let us look at the last decade. The Tories have grown the economy at just 1.8% a year. If we had grown at the same rate as other advanced economies, we could have had an additional £30 billion to invest in public services without raising the taxes that the Tories are raising on working people today.
Let us compare growth under the last 11 years of Conservative government to that under the last Labour Government. Even taking into account the global financial crisis, Labour grew the economy much faster—by 2.3% a year. If the Tories matched that record, we would have £30 billion more a year to spend on public services.
It could not be clearer: the Conservatives are now the party of high taxation, because the Conservatives are the party of low growth. The Office for Budget Responsibility confirmed that today. We will be back to anaemic growth—[Interruption.] Conservative Members might not like this, but the Office for Budget Responsibility said that by the end of this Parliament, the UK economy will be growing by just 1.3%. That is hardly the plan for growth that the Chancellor boasted about today; it is hardly a ringing endorsement of his announcements. Under the Tory decade, we have had low growth, and there is not much growth to look forward to.
The economy has been weakened by the pandemic, but also by the Government’s mishandling of it. Responding to the virus has been a huge challenge. Governments around the world have taken on more debt, but our situation is worse than in other countries. It is worse because our economy was already fragile going into the crisis, with too much inequality, too much insecure work and too little resilience in our public services. And it is worse because the Prime Minister dithered and delayed against scientific advice, egged on by the Chancellor, and we ended up facing harsher and longer restrictions than other countries. So as well as having the highest death toll in Europe, Britain suffered—[Interruption.]
Madam Deputy Speaker (Dame Eleanor Laing)
Order. We have to be able to hear the hon. Lady. Rachel Reeves.
Rachel Reeves
So as well as having the highest death toll in Europe, Britain has suffered the worst economic hit of any major economy. The Chancellor now boasts that we are growing faster than others, but that is because we fell the furthest. While the US and others have already seen their economy bounce back to levels seen before the pandemic, the UK has not. Our economy is set to be permanently weaker.
On top of all that, the Government are now lurching from crisis to crisis: people avoiding journeys because they cannot fill up their petrol tank is not good for the economy; people spending less because the cost of the weekly shop has exploded is not good for the economy; and British exporters facing more barriers than their European competitors because of the deal the Government did is not good for our economy. If this were a plan, it would be economic sabotage. When the Prime Minister is not blagging that this chaos is part of his cunning plan, he is saying he is not worried about inflation. Well, tell that to families struggling with rising gas and electricity bills, rising petrol prices at the pump and rising food prices. He is out of touch, he is out of ideas and he has left working people out of pocket.
Conservative mismanagement has made the fiscal situation tight. When times are tight, it is even more important to ensure that taxes are fair and that taxpayers get value for money. The Government fail on both fronts. We have a grossly unfair tax system, with the burden being heaped on working people. Successive Budgets have raised council tax and income tax. Now they have raised national insurance, too. But taxes on those with the broadest shoulders, those who earn their income from stocks and shares and dividends and property portfolios, have been left nearly untouched. Businesses based on the high street are the lifeblood of our communities and are often the first venture for entrepreneurs, but despite what the Chancellor said today, businesses will still be held back by punitive and unfair business rates. The Government have failed to tax the online giants and watered down global efforts to create a level playing field.
Just when we needed every penny of public money to make a difference, we have a Government who are a byword for waste, cronyism and vanity projects. We have had £37 billion for a test and trace system that the spending watchdog says treats taxpayers like an ATM cash machine, a yacht for Ministers, a fancy paint job for the Prime Minister’s plane, a TV studio for Conservative party broadcasts that seems to have morphed into the world’s most expensive home cinema, £3.5 billion of Government contracts awarded to friends and donors of the Conservative party, a £190 million loan to a company employing the Prime Minister’s former chief of staff, and £30 million to the former Health Secretary’s pub landlord—and every single one of those cheques signed by the Chancellor. Now the Chancellor comes to ordinary working people and asks them to pay more than they have ever been asked to pay before, and, at the same time, to put up with worse public services, all because of his economic mismanagement, his unfair tax system and his wasteful spending.
Of course, there are some welcome measures in the Budget today, as there are in any Budget. Labour welcomes the increase in the national minimum wage, but the Government need to go further and faster. If they had backed Labour’s position of an immediate rise to at least £10 an hour, a full-time worker on the national minimum wage would be in line for an extra £1,000 a year. Ending the punitive public sector pay freeze is welcome, but we know how much this Chancellor likes his smoke and mirrors, so we will be checking the books to make sure that the money is there for a real-terms pay rise. Labour also welcomes the Government’s decision to reduce the universal credit taper rate, as we have consistently called for, but the system has got so out of whack that even after that reduction working people on universal credit still face a higher marginal tax rate than the Prime Minister. Those unable to work through no fault of their own still face losing more than £1,000 a year. For families who go out to work every day but do not get Government benefits, who are on an average wage, who have to fill up their car with petrol to get to work, who do that weekly shop, and who see their gas and electricity prices go up, the Budget today does absolutely nothing.
We have a cost-of-living crisis. The Government have no coherent plan to help families cope with rising energy prices. Although we welcome the action taken today on universal credit, millions will still struggle to pay the bills this winter. The Government have done nothing to help people with their gas and electricity bills through the cut in VAT receipts that Labour has called for—a cut that is possible because we are outside the European Union and could be funded by the extra VAT receipts of the last few months. Working people are left out in the cold while the Government hammer them with tax rises. National insurance is a regressive tax on working people: a tax on jobs. Under the Chancellor’s plans, a landlord renting out dozens of properties will not pay a penny more in tax, but their tenants, in work, will face tax rises of hundreds of pounds a year.
The Chancellor is failing to tackle another huge issue of the day: adapting to climate change. Adapting to climate change presents opportunities—more jobs, lower bills and cleaner air—but only if we act now and at scale. According to the Office for Budget Responsibility, failure to act will mean public sector debt explodes later to nearly 300% of GDP. The only way to be a prudent and responsible Chancellor is to be a green Chancellor: to invest in the transition to a zero-carbon economy and give British businesses a head start in the industries of the future. But with no mention of climate in his conference speech and the most passing of references today, we are burdened with a Chancellor unwilling to meet the scale of the challenges we face. Homeowners are left to face the costs of insulation on their own. Industries like steel and hydrogen are in a global race, but without the support they need. In the week before COP26, the Chancellor has promoted domestic flights over high-speed rail. It is because of this Chancellor that in the week when we are trying to persuade other countries to reduce their emissions, the Government cannot even confirm that they will meet their 2035 climate reduction target.
Everywhere working people look at the moment, they see prices going up and they see shortages on the shelves, but this Budget did nothing to address their fears. Household budgets are being stretched thinner than ever, but the Budget did nothing to deal with the spiralling cost of living. It is a shocking missed opportunity by a Government who are completely out of touch.
There is an alternative. Rather than just tweak the system, Labour would scrap business rates and replace them with something much better by ensuring online giants pay their fair share. That is what being pro-business looks like. We would not put up national insurance for working people. We would ensure that those with the broadest shoulders pay their fair share. That is what being on the side of working people looks like. We would end the £1.7 billion subsidy that the Government give to private schools and put it straight into our local state schools. That is what being on the side of working families looks like. We would deliver a climate investment pledge of £28 billion every year for the rest of this decade: gigafactories to build batteries for electric vehicles; a thriving hydrogen industry creating jobs in all parts of our country; and retrofitting so that we keep homes warm and get our energy bills down. That is what real action on climate change looks like.
This country deserves better, but it will never get it under this Chancellor, who gives with one hand but takes so much more with the other. What you get with these two is a classic con game, like one of those pickpocketing operations you see in crowded places: the Prime Minister is the front man distracting people with his wild promises, and all the while his Chancellor is dipping his hand in their pockets. It all seems like fun and games until you walk away and find that your purse has been lifted.
But people are getting wise to them. Every month, they feel the pinch. They are tired of the smoke and mirrors. They are tired of the bluster, of the false dawns and of the promises of jam tomorrow. Labour would put working people first, and would use the power of government and the skill of business to ensure that the next generation of quality jobs are created right here in Britain. We would tax fairly, spend wisely and, after a decade of faltering growth, get Britain’s economy firing on all cylinders. That is what a Labour Budget would have done today.
Local Contact Tracing
Debate between Baroness Laing of Elderslie and Rachel Reeves(4 years, 1 month ago)
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Rachel Reeves
I will make some progress and conclude to give others time to speak.
Ten years of austerity, fragmentation and privatisation have left our country less resilient to face a pandemic like this. Public health budgets have been slashed by cuts from central Government. Sustained new investment is needed to rebuild our public services during this crisis and beyond. The Government have squandered enormous sums of money on a centrally dictated outsourcing model, and Ministers should hang their heads in shame because it has failed.
The consequence of this failure means we are not getting the virus under control after months of sacrifice by the British people, so my message today is simple: sack Serco and give those resources to local councils, save lives, protect livelihoods and learn these lessons before it is too late.
Madam Deputy Speaker (Dame Eleanor Laing)
Before I call the Minister to respond, I give notice that we will start with a time limit of five minutes for Back-Bench speeches, and it is likely to be reduced quite soon.
Covid-19
Debate between Baroness Laing of Elderslie and Rachel Reeves(4 years, 6 months ago)
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Rachel Reeves (Leeds West) (Lab)
I thank the Minister for that thoughtful opening speech. We all need the Government to get this right. Labour has been clear: we will always put the national interest first. We will support the Government when they get it right but challenge them to do more when that is needed.
We all know how hard lockdown has been, especially for those who fear for their jobs and their businesses; the elderly; the lonely; and those living with an abusive partner or carer. At the moment, most grandparents want nothing more than to be able to hug their grandchildren. Thousands of people are missing out on the chance to say goodbye or even to hold the hand of the person they love in a care home. The same applies to the ambiguous situation relating to funerals and cremations, which is causing enormous pain and distress to so many families. It is in depriving us of these poignant moments—opportunities to hug, to hold and to say goodbye—that the impact of the virus causes the most distress.
There are so many profound social costs, and it all has to be balanced with the huge challenges and risks faced by people working in health and social care. We all want the Government to get this right, but, frankly, the Government’s response in the past 24 hours has been a shambles. Last Thursday, the Government’s briefings to newspapers led to headlines proclaiming that we could look forward to “Happy Monday” and “Lockdown Freedom”, the day before a sunny bank holiday weekend. When I saw those headlines, I recalled the world war two poster in my history class at secondary school that said, “Careless talk costs lives”. I wonder sometimes whether the Government pause to contemplate the health impacts of some of their briefings and statements.
Last night’s statement by the Prime Minister was a chance to provide some clarity about the situation, but it obscured as much as it revealed. This morning, the Foreign Secretary told “Today” programme listeners that they were free to see both their parents at the same time. Almost immediately afterwards, it was clarified that people may see only one parent at a time. The Foreign Secretary then told Sky News that people should return to work from Wednesday, but the press release issued by Downing Street alongside the Prime Minister’s statement clearly stated that people should be encouraged to return to work from Monday. If senior members of the Cabinet struggle to follow the advice, what are the rest of us meant to do?
A four-nation strategy is essential to ensure a coherent and consistent message. It has served us well so far, so why is England now pursuing a different strategy from Northern Ireland, Scotland and Wales? If someone lives in Bristol but works in Cardiff, should they be going to work? What about if someone lives in Berwick but works in Edinburgh?
When it comes to Northern Ireland, the Government must also consider cross-border co-operation. Northern Ireland is unique in that it shares a land border with the Republic, so close co-operation with the Irish Government and the Northern Ireland Assembly is vital to ensure a joined-up approach to effectively combating the virus, particularly with regard to contact tracing. The UK has the highest death toll in Europe. That calls for greater care, not greater risks.
The most substantive change in Government advice today is that workers who cannot work from home should return to work. We want workers to earn an income and businesses to thrive, but for that to happen, workers need to know that they and their families will be safe. Businesses want that knowledge and security as well.
Let us be clear that the biggest risk to our economic security and recovery would be decisions that led to a second peak of the virus, so it is deeply worrying that workers were asked last night to return to work today with no guidelines published with regard to safety in the workplace. If someone has been told to return to work, but lives with a partner with a pre-existing condition or an elderly parent, what are they meant to do?
What if someone has a school-age child but is now expected by the Government and their employer to return to work without the childcare to be able to do that? Can people still be furloughed? Is that at their employer’s discretion? If people cannot work through no fault of their own, will they be required to go on to statutory sick pay?
Who will assess whether a workplace is sufficiently safe? Is it up to the individual employee? I refer the Minister to section 44 of the Employment Rights Act 1996, which permits an individual employee not to return to work without risk of detriment if they reasonably believe that adequate safety measures are not in place. I hope that employers and Ministers will protect those rights.
Meanwhile, workers are told to avoid public transport if possible, but for millions of people in the UK, it is not possible to get to work any other way but by public transport. We have already seen bus drivers in London lose their lives to covid-19. People need to know that they can go to work without endangering themselves, or indeed others. If we are to balance concern for the economy with concern for public health, the Government should bring unions, business leaders and scientists together to develop a national safety standard. The safety of workers and their families is not, and can never be, an optional extra.
It is vital that the furlough scheme continues to support workers, including enabling people to work part time, particularly if businesses are unable to operate at full capacity. We need to hear more from Ministers about ongoing support until the time is right to operate at full capacity for some of the hardest-hit sectors, such as hospitality and travel. We need to support areas such as our coastal communities, which are so dependent on tourism.
The impact of the virus exposes deep inequalities in our society. The poorest areas of the country have been hardest hit. Lower earners are most exposed while the better-off are insulated from the biggest threats. Of the bottom 50% of earners, just one in 10 can work from home. At the top, it is five times that.
This crisis has shown who the real key workers are, from NHS staff to care workers, supermarket workers, cleaners, delivery drivers and bus drivers. They are often underpaid, under-appreciated and undervalued, and they have been asked to put their lives at risk while keeping others safe. Now, more working people who do manual jobs in manufacturing, food processing and construction are being asked to risk their health, and that of their family, while those doing office jobs, which are often better paid, can work from home and face fewer risks.
Black and minority ethnic Britons are disproportionately at risk. We know that black Britons are four times more likely to die from this virus compared with white people. We need a public inquiry into that, which Baroness Lawrence called for today, and we need urgent action to protect the most vulnerable from this virus. Coronavirus did not cause those inequalities, but it has thrown a sharp light on them. We must not let them deepen even further.
In our care homes the spread of the virus continues and the death toll is still too high. Half of workers in care homes earn less than a real living wage, and a quarter are on zero-hours contracts. Many have died. Last Wednesday, the Prime Minister reported that 29 care workers have died since the start of this crisis, but data from the Office for National Statistics show that there were 131 coronavirus-related deaths among social care workers up to 20 April. According to the National Care Forum, just one in five care workers with symptoms have been tested, and they still lack priority testing for coronavirus. Those who dedicate their lives to caring for others, and who care for the sick and the dying whose relatives cannot be with them, are being left without adequate protection, and we are only beginning to know the real cost.
One reason why the lockdown rules are causing so much worry is that new infections and deaths are still at higher levels than when we went into lockdown. The test and trace strategy is still a mess. MPs from across the House will have constituents who have been waiting for well over 48 hours to get their results, and some who have been waiting for more than a week. We see reports of tests having to be flown to the United States because we lack the capacity here. How did we get into that position? Without a test, trace, and isolate strategy it is almost impossible to identify a new spike in infections, or to do anything about it. The Government need to sort that out. Relaxing lockdown will work only if it is sorted out.
At some point we will come through to the other side of this virus, and we will go about rebuilding our lives, our communities, and our economy. The recovery will not be easy, and it will require boldness and imagination to build something better. The contribution of the British public and all our key workers has been immense, but the crisis has revealed huge injustices and inequalities. We deserve a fairer country—that will be Labour’s mission, and I hope it will be the Government’s mission too.
Madam Deputy Speaker (Dame Eleanor Laing)
Thank you. There will now be a four-minute time limit on Back-Bench speeches. As ever, I advise Members who are speaking from home and do not have the benefit of the clock in the Chamber to have some other method of ensuring that they do not exceed four minutes. It is amazing how many people cannot add on four, but I know that does not apply to Mr Mel Stride.
Points of Order
Debate between Baroness Laing of Elderslie and Rachel Reeves(4 years, 9 months ago)
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Madam Deputy Speaker (Dame Eleanor Laing)
I thank the hon. Lady for her point of order. She knows, as the House knows, that the Chair has no responsibility for Ministers nor authority to tell Ministers when they should answer questions, but Mr Speaker will be concerned that the hon. Lady put down a named day question and that no answer has been forthcoming after such a long time. I am sure that the hon. Lady’s purpose is to draw general attention to this matter, and I think she has successfully done so. I am sure that the Treasury Bench will note what she has asked.
Rachel Reeves (Leeds West) (Lab)
On a point of order, Madam Deputy Speaker. One hundred years ago today, a woman made a speech in this Chamber for the first time—[Hon. Members: “Hear, hear.”] While I do not agree with everything that Nancy Astor said or did, her maiden speech on the dangers and perils of alcohol paved the way for many more of us to speak in this House. I wonder whether you had heard of any way to celebrate that centenary.
Madam Deputy Speaker
I congratulate the hon. Lady on bringing forward the best point of order I have ever heard in the Chamber. It is good to note this important anniversary. It was a wonderful occasion when Lady Astor made her maiden speech in this Chamber, as the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) knows so well given his work to arrange celebrations for this great centenary. The hon. Member for Leeds West (Rachel Reeves) tempts me to give a personal answer to her question. I am with her in my disagreement with Lady Astor’s strange ideas about alcohol. There are many ways in which the centenary ought to be celebrated, and perhaps some of us will to be able to do so this evening by proving Lady Astor wrong—[Laughter.]
DWP: Performance
Debate between Baroness Laing of Elderslie and Rachel Reeves(10 years, 4 months ago)
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Rachel Reeves
Well, I will send the Secretary of State all the letters I have had from his correspondence unit, not one of them signed by him. [Interruption.] Well, letters that I have written to the Department about the challenges facing—[Interruption.] The right hon. Gentleman says he replies to these letters; he has not written a single letter to me about—[Interruption.]
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. The House is discussing an important point.
Rachel Reeves
If the Secretary of State now claims that he signs his letters “The correspondence unit”, perhaps he has replied, but I would have expected the Secretary of State to sign the letters and I will be very happy to forward all the letters to him. [Interruption.] He carries on chuntering from a sedentary position; I have not had a single letter about my casework from him. I will send them all to him, and perhaps he can write to me and my constituents explaining why they have been treated so abysmally by him and his Government.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Interventions must be short because a great many Members are waiting to speak and it is simply unfair if people make speeches instead of interventions.
Rachel Reeves
Eight months is far too long for anyone to have to wait and, clearly, any further delay is totally unacceptable.
On the work capability assessment, the Government spend £100 million a year on the contracted assessors, as well as tens of millions more on decisions that are appealed. Now, the process has almost reached “virtual collapse”, according to the senior judge overseeing the trials, with Atos walking away from the contract, the Government yet to identify a replacement and a backlog of more than 700,000 assessments in a queue. As a result of the disarray, we are seeing spiralling costs to the taxpayer, with the latest report from the Office for Budget Responsibility showing an £800 million increase in projected spending and leaked documents revealing that the Government now see this as one of the biggest fiscal risks, with spending on course to breach their own welfare cap.
Rachel Reeves
That links in with what I was saying earlier. If the Government do not learn from their mistakes, how can they make improvements?
Universal credit is widely off track; the work capability assessment has almost completely broken down; personal independence payments are a fiasco; the Work programme is not working; the Youth Contract is a flop; support for families with multiple problems are falling far short of its target; the jobmatch website is an absurd embarrassment; the unfair and vindictive bedroom tax is costing more money than it saves; and the Government cannot even agree on a definition of child poverty let alone take action to deal with it.
To paraphrase Oscar Wilde: to fail to deliver on one policy might be considered unfortunate; to miss one’s targets on two has to be judged careless; but to make such a complete mess of every single initiative the Secretary of State has attempted requires a special gift. It is something like a Midas touch: everything he touches turns into a total shambles.
Meanwhile, the Secretary of State will spew out dodgy statistics, rant and rave about Labour’s record, say “on time and on budget” until he is blue in the face and, in typical Tory style, blame the staff for everything that goes wrong. We have all long given up hope on the Secretary of State ever getting a grip on his Department. The real question today is when will the Prime Minister learn and take responsibility for the slow-motion car crash he has allowed to unfold? The DWP has the highest spending of any Government Department, and the responsibility for handling some of the most sensitive situations and some of the most vulnerable people in our country. We will all be paying a price for a long time to come for this Government’s failure to get a grip, and the lives of too many people, such as Malcolm Graham who is still waiting for his personal independence payment, have been irreparably damaged. It is clear that this Government will never take their responsibilities in this area with the seriousness that is needed. Let me pledge today that a Labour Government will. They will help those thousands of families who have been let down by the system and the millions of taxpayers who are seeing their money wasted. That change cannot come soon enough.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Before I call the Secretary of State, let me say that Members know perfectly well that making a long intervention instead of waiting to make a speech is simply rude and it is unacceptable. Interventions must be short. As there are so many Members waiting to speak, I will have to impose a time limit of six minutes on Back-Bench speeches, after the Secretary of State has spoken.