Rights of EU Nationals

Debate between Kwasi Kwarteng and Paul Blomfield

Wednesday 19th October 2016 Commons Chamber

[Paul Blomfield (Sheffield Central) (Lab)]

The Minister is now well established in his new role, but let me take this opportunity to welcome the Under-Secretary of State for Exiting the European Union, the hon. Member for Worcester (Mr Walker). I look forward to working with him and the rest of the team in the years ahead.

I am grateful to the SNP for bringing this issue back to the House. For the avoidance of any doubt—if the hon. Member for Kettering (Mr Hollobone) were still in the Chamber, I would say that this applies particularly to him—I should make it clear that Opposition Members accept the result of the referendum. We simply want to ensure that our departure from the EU takes place on the best possible terms for the UK. As one of my colleagues said during last week’s Opposition day debate, the British people voted to come out; they did not vote to lose out. Providing guarantees for EU nationals now is part of securing the best deal for the UK. That is why we made it the topic of an Opposition day debate just two weeks after the referendum, and why we support the motion moved so ably today by the hon. and learned Member for Edinburgh South West (Joanna Cherry).

Back in July, as now, it was clear that the Government did not have a plan. They had no plan for what Leave would look like, and no plan for the 3 million EU nationals who are living, working and studying in our country. During that debate, however, one of the leading leave campaigners rightly pushed for certainty on the issue. He said:

“I would like to put on record what I think has been said already—that countless times the Vote Leave campaign gave exactly this reassurance to everybody from EU countries living and working here, and it is very, very disappointing that that should be called into question. I think it is absolutely right to issue the strongest possible reassurance to EU nationals in this country, not just for moral or humanitarian reasons, but for very, very sound economic reasons as well. They are welcome, they are necessary, they are a vital part of our society, and I will passionately support this motion tonight.”—[Official Report, 6 July 2016; Vol. 612, c. 939.]

Let us give credit where it is due. After making that contribution, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) not only talked the talk but walked the walk, as did the overwhelming number of Members who voted for the motion to guarantee EU nationals the right to remain here. I hope that now that he is Foreign Secretary he is making the case even more strongly, because I guess in his new role at the Foreign Office he is learning the art of diplomacy. [Interruption.] Yes, he may have some way to go; I appreciate the Prime Minister is not yet entirely convinced. What he will know by now is that the way in which the Government have turned EU nationals living here into bargaining chips for the Brexit negotiations, or, as the Secretary of State for International Trade put it,

“one of our main cards”,

is not only deeply unfair to those concerned, but severely undermining our reputation with the very people with whom we want to be entering into negotiations next spring, not to mention the damage it does to our economy. Put simply, it is not in our national interest.

It is absolutely wrong for the Government to suggest that we cannot guarantee the status of EU nationals here—many of whom have been here for decades—without a reciprocal arrangement for UK nationals abroad. The Government are effectively asking people—doctors in our NHS, business owners and entrepreneurs, teachers in our schools—to put their lives on hold and wait until March 2019 to find out what their future holds. But many will want certainty for themselves and their families.

[Kwasi Kwarteng (Spelthorne) (Con)]

The following question then arises: if he were in the Government, what guarantees would the hon. Gentleman give to British citizens living in the EU regarding their rights? What possible guarantees or safeguards could he give them?

[Paul Blomfield]

By giving those guarantees to EU nationals living in this country, we set the marker, and we give the best guarantees to our citizens living in the rest of the EU by making that stand now.

Budget Resolutions and Economic Situation

Debate between Kwasi Kwarteng and Paul Blomfield

Tuesday 14th July 2015 Commons Chamber

[Paul Blomfield]

I will tell the hon. Gentleman that too many people are employed on zero-hours contracts, and I could cite countless examples of people in my constituency whose lives have been destroyed by them and who have raised the issue with me.

It was interesting last week to hear Ministers, almost in the same breath, expressing their concern about low pay and then condemning tube staff for their industrial action.

[Kwasi Kwarteng]

Will the hon. Gentleman give way?

[Paul Blomfield]

I will not at this stage, simply because other Members want to speak and I am conscious of time.

Over a generation, we have seen a shift of between 5% and 7% of GDP from wages to profits, and from profits to shareholders’ dividends. That has widened inequality and reversed a century of progress towards a more equal society, and it started with deliberate decisions in the 1980s to weaken the bargaining power of working people and the trade unions that represent them. A sensible policy response to low pay would be to strengthen the negotiating hand of working people, but instead the Government made it clear in the Queen’s Speech that they want to weaken their position further with more attacks on the trade union movement.

[Paul Blomfield]

It is absolutely true that when people go on strike, everybody gets hit, including those on strike. Trade unionists go on strike only with enormous reluctance, because of the impact on services and their wages. The uncomfortable truth for Conservative Members is that improvements in living conditions, health and safety and other workplace situations have been won through the struggle by trade unions.

The campaign for a living wage was a great response to the challenge of low pay. Members on both sides of the House have rightly praised the work of the Living Wage Foundation, but that work has been made more difficult by the Chancellor’s attempt to steal its clothes. We need to be clear. The increase that he proposes to take the wage floor up to £9 for many workers is welcome, but let us not pretend that it is a living wage. Let us call it the over-25s rate or the national minimum wage supplement, or we could just call it the national minimum wage, but he should not damage the brand of the living wage by associating his proposal with it.

We should continue to work to encourage employers to adopt the living wage and to incentivise them to do so. We need to recognise, as the Living Wage Foundation has pointed out, that the rate will need to rise to take account of the cut in tax credits. Here is the rub: although the new rate of the national minimum wage might benefit up to 5 million workers, more than half of them will be worse off—an estimated 3 million families, according to the Institute for Fiscal Studies—by an average of £1,000 a year because of the changes in tax credits. It could not be any other way: an estimated wage uplift of £4 billion is being offset by welfare cuts of £12 billion.

The Chancellor will argue that raising the tax threshold will benefit low-paid workers by taking them out of tax, but he knows that that is not true. He knows that lifting the tax threshold is a regressive tax measure, because it benefits everybody equally except the lowest paid. Six million workers who are already paid too little to pay tax in the first place will not benefit at all from raising the threshold, whereas Members of Parliament will get a tax break. Frankly, in comparison with low-paid workers, we do not deserve one.

[Kwasi Kwarteng]

Don’t take it then.

[Paul Blomfield]

Perhaps the hon. Gentleman can explain how people can choose not to take a tax break.

The hon. Member for Braintree (James Cleverly) rightly spoke forcefully about small businesses. I do a lot of work with small businesses in my constituency. They are a driver of growth. When there is any increase in pay, they face a challenge, as does the voluntary sector. They need support, but the Government and the Budget have got it wrong. Support should not have been provided through a greater cut to corporation tax; it should have been provided to small businesses by further cuts to business rates.

The Prime Minister is right that company profits should not be subsidised by the public purse. If he is serious, why not tax listed companies that fail to pay the real living wage to recoup the cost? If he is serious about tackling poverty pay, what about strengthening labour market enforcement? We know, for example, that thousands of workers do not even get the national minimum wage in the care sector because employers refuse to pay for travelling time. We debated that in the last Parliament. Ministers admitted that the practice was widespread and said it was illegal, but nothing is happening to chase down those rogue employers and bring them to book.