The Economy and Work

Debate between John McDonnell and Julian Knight

Thursday 26th May 2016 Commons Chamber

[John McDonnell]

I will press on, Mr Deputy Speaker, as I know we are under time pressure.

All this is the direct result of a failure to invest. Too many businesses have substituted cheap labour for expensive investment. To be frank, they cannot be blamed for that, as the Government have set the lead, cutting their own investment spending. Low investment and weak productivity have real-world consequences. They mean talent wasted and opportunities lost. Some people are stretched to breaking point, working long hours just to make ends meet. Others are left to languish, desperately searching for extra hours. Even the Government’s own forecasters do not expect wages to recover before 2020.

[Julian Knight (Solihull) (Con)]

Will the hon. Gentleman give way?

[John McDonnell]

I will in a second. Millions of people are now self-employed, but their average earnings have fallen by 22% since the right hon. Member for Tatton (Mr Osborne) became Chancellor. The Queen’s Speech tells us that the Government plan to create an economy

“where work is rewarded.”

Nothing could be further from the truth. Those who work hardest are being punished with cuts to tax credits, but tax dodgers and the super-rich are rewarded with tax cuts.