Electoral Integrity and Absent Votes

Lord Jackson of Peterborough Excerpts

Wednesday 9th December 2015 Westminster Hall

[Mr Stewart Jackson (Peterborough) (Con)]

I beg to move,

That this House has considered electoral integrity and absent votes.

It is a pleasure to serve under your chairmanship, Mrs Main, and to welcome the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Weston-super-Mare (John Penrose), to his place.

In this country, we pride ourselves on having free, fair, open and honest elections, but we are wrong. In too many parts of the UK, electoral fraud means that honest people’s votes are potentially invalidated by crooked votes. Our whole democratic system is being undermined and the votes of thousands of women of all ages are being regularly stolen by their menfolk. We are turning a blind eye, in effect, to regular breaches of section 115 of the Representation of the People Act 1983 in respect of undue influence.

In May’s general election, 9,372,449 postal votes were sent via Royal Mail. These issues are not new, and the Electoral Commission and Government know about them, but so far we have had very little by way of concerted action to tackle them. This subject has been raised in the media, most notably and compellingly by Radio 4’s “File on 4” investigation programme in March 2014, which focused on electoral fraud in Pendle, Woking and Derby. It was also brought up by my hon. Friend the Member for Pendle (Andrew Stephenson). With great courage and foresight, he raised the matter directly with Ministers on the Floor of the House three years ago during a debate on the Bill that became the Electoral Registration and Administration Act 2013.

Who can forget the words of the election commissioner and presiding judge Richard Mawrey, QC, after hearing the most well-known electoral fraud case in Birmingham in 2005—following events in 2004—which resulted in the conviction of five men? His written judgment referred to

“evidence of electoral fraud that would disgrace a banana republic”.

[Dr Julian Lewis (New Forest East) (Con)]

Is my hon. Friend aware that of course there are the open, overt, straight-down-the-line fraudsters at work, collecting ballots that are not their own, but even where that does not happen, within the individual household the privacy of the ballot is lost where voting slips are sent to the household and no one can keep their voting intentions to themselves?

[Mr Jackson]

My right hon. Friend makes a very apposite point, which I will elucidate on and develop later in my remarks. I thank him for his intervention.

Have things really changed in the past 11 years? Mr Justice Mawrey was quoted last year as saying that our present procedures are “wide open to fraud” and that

“serious fraud is inevitably going to continue”,

enabling the manufacture of votes on an industrial scale. He also stated just before this year’s general election:

“The law must be applied fairly and equally to everyone. Otherwise we are lost.”

We await the details of the review commissioned by my right hon. Friend the Prime Minister on electoral fraud in the light of the appalling scandals uncovered in Tower Hamlets following the failure particularly of the Metropolitan Police Service to take timely and robust action. That fell instead to a number of courageous and concerned citizens, including my old friend Councillor Peter Golds CBE, via a petition to the High Court. The long overdue review is being undertaken by my right hon. Friend the Member for Brentwood and Ongar (Sir Eric Pickles). It was announced in August and, as I understand it, will be published in the new year in order that we can look at what further options are available to address this continuing and, as I will make clear later, endemic and institutionalised abuse and illegality. I will touch on Tower Hamlets in particular.

For the record, I have not called this debate in the light of the Oldham West and Royton by-election result, nor even of the comments of the leader of the UK Independence party, but in his media comments in the wake of the by-election he did touch on some issues that I will raise today.

Of the 1,086 cases of electoral fraud reported to police in England between 2008 and 2013, 58% originated in just 10 of England’s 39 police areas. I speak as the Member of Parliament for Peterborough, a local authority that has featured for a number of years on the Electoral Commission’s watch list of local council areas with a high risk of electoral fraud. Regrettably, Peterborough has a recent history of criminal convictions as a result of electoral malpractice and fraud. Most recently, in 2008, there was the conviction of six men—three Labour activists and three Conservatives—for postal vote fraud arising out of the June 2004 local elections. My local authority has also had problems with personation and, to an extent, voter intimidation.

I accept that there are other serious areas of concern, which will most likely be the subject of my right hon. Friend’s review and report, that are of major import. One is the lack of a requirement for proper, valid voter identification when presenting oneself as a voter at a UK polling station. That is unprecedented and undoubtedly anomalous in a modern democracy, and there is clearly a major risk of personation. Another issue is the limit on the powers to challenge alleged personation in the confines of a polling place for presiding officers, even if they know that a person is not who they say they are. The other issue is the failure to put in place legislation to curtail voter intimidation in the environs of a polling station, which we have seen in many places across the country, including Peterborough, but which was systematic in Tower Hamlets.

I will not try the patience of the House, but Tower Hamlets was but the most egregious example of many troubling themes around abuses in our electoral system. They merely coalesced in one London borough as the most extreme and shocking example. In Tower Hamlets, supervision of the corrupt 2014 elections was led by Commander Graham McNulty, who previously had been the investigating officer on the Levy and Blair cash-for-peerages allegations and was later the officer harassed—that is the word—by the hon. Member for West Bromwich East (Mr Watson) to investigate, erroneously, the late Lord Brittan. Despite Lutfur Rahman and his agent being found guilty of seven different counts of corrupt practice after the longest election petition before a court in more than a century, nobody has been charged, including supporters of Rahman named and shamed for multiple election fraud. Why is that? Perhaps the Minister will touch on that.

For the avoidance of doubt, I think that it is incumbent on Ministers to respond in a timely way to the specific recommendations made recently by the Electoral Commission on the need for photo ID at polling stations on the Northern Ireland model—I see the hon. Member for Strangford (Jim Shannon) in his place. To be fair, the Electoral Commission has raised these issues over a number of years and progress has been made, albeit slowly and by increment, on issues such as register stuffing with “ghost” voters, which individual electoral registration will mostly deal with, and the most egregious postal vote fraud methods, via the need for a signature and date of birth, but that will only half deal with the substantive issue to which I will refer later. I accept that there will always be a trade-off between accessibility to the voting system and electoral integrity. It will never be easy or simple to get that balance right.

The Electoral Commission has at least monitored trends and collected data on electoral fraud and has commissioned specialist academic research—more of that later—with an issues paper being published in 2013 and a further comprehensive and detailed report being issued in January 2014. It is a matter of regret and disappointment that the previous, coalition Government—I absolve the Minister of responsibility for this—failed adequately to address the recommendations in that report.

Where I part company with the Electoral Commission and, to an extent, Ministers is on what I see as a degree of complacency in their responses. Of course I commend the extra money for fraud prevention in high-risk areas, but I am disappointed by the blanket rejection of at least considering returning to the pre-2001 regime for postal votes and by the rather anodyne revised code of conduct for campaigners, which is frankly superfluous and lacks any real sanction in law for miscreants and those inclined to unethical or criminal behaviour—a point raised in the “File on 4” documentary.

There is much to be done to tackle electoral fraud in all its forms, but for the purposes of our debate, I will focus on absent or postal votes. It might be worth examining, by way of background, how we came to be where we are now. Postal voting was first used in 1918 for armed forces personnel serving overseas. It was reintroduced in 1945 in similar circumstances, and 1948 saw postal voting extended to certain groups of civilians including those who were physically incapacitated, those unable to vote without making a journey by sea or air or because of the nature of their occupation, and those who were no longer residing at their qualifying address.

Following recommendations made by the Select Committee on Home Affairs in 1983, the Government extended the right to apply for an absent vote in 1985, and the rules were further refined in 1989. The exception was Northern Ireland, where there was already widespread concern about electoral abuse. In 1999, a parliamentary working group chaired by the then Home Office Minister, the right hon. Member for Knowsley (Mr Howarth), recommended that postal voting applications should be simplified and allowed on demand to all voters. The Government legislated in 2000 to implement those changes, which came into effect in 2001.

In its reports on the all-postal vote elections, the Electoral Commission drew back from its earlier recommendation for all-postal voting as standard. Its research showed that a large minority of people wanted to retain the option of voting at a polling station. The Commission, therefore—thankfully—recommended the development of a new model that involved multiple voting methods, including postal voting, rather than proceeding with elections run entirely by all-postal voting.

Suffice it to say that the process for exercising one’s right to vote by post or proxy is no less complex now than it was in 1999, and turnout for general elections has fallen from 71% in 1997 to 59%—a post-war low—in 2001, rising to 66% earlier this year. That serves to refute the idea, held by those who are worried about voter disengagement, of absent voting as a panacea. Our collective obsession with electoral turnout has, surely, for too long obscured the focus on clean, honest and fair elections as the absolute priority, and that is unacceptable.

The Electoral Commission’s response to the Pickles review is detailed, thought-provoking and helpful. It will allow Ministers to access important academic research supporting a key question—perhaps the most controversial aspect of my remarks—at the heart of this debate: the reasons for the growing evidence of criminal electoral malpractice, centred on postal vote fraud, in the British Bangladeshi and British Pakistani communities and diaspora. The debate is not party political; no party has a monopoly on virtue, and all major parties have been party to fraudulent electoral activities over the last 15 years or so. We are talking not about stigmatising a particular group or community, but about protecting our democracy and the precious faith and trust that people have in the voting system.

I am grateful for the work of academics such as Stuart Wilks-Heeg, who published a paper in 2008, on behalf of the Joseph Rowntree Reform Trust, on “Purity of Elections in the UK: Causes for Concern”; and Eleanor Hill, of the Bradford University school of historical studies, who published a paper in 2012 entitled “Ethnicity and Democracy: A Study into Biraderi”, which has laid the groundwork for more recent empirical studies.

The Electoral Commission commissioned research from the University of Liverpool and the Centre on Dynamics of Ethnicity at the University of Manchester, as well as from the social research centre NatCen. In January this year, they published two excellent, compelling and detailed qualitative studies entitled, respectively, “Understanding electoral fraud vulnerability in Pakistani and Bangladeshi origin communities in England” and “Elections, voting and electoral fraud: An exploratory study focusing on British Pakistanis and Bangladeshis”. The findings supported the Electoral Commission’s stated belief that, inter alia,

“electoral fraud is more likely to be committed by or in support of candidates standing for election in areas which are largely or predominately populated by…those with roots in parts of Pakistan or Bangladesh.”

The commissioned studies suggested that

“extended family and community networks may have been mobilised to secure the support of large numbers of electors in some areas, effectively constituting a ‘block vote’”

and that

“the wider availability of postal voting in Great Britain since 2001 may have increased the risk of electoral fraud associated with this approach, as the greater safeguards of secrecy provided by polling stations have been removed.”

The academic research focused on interviews with political activists and non-political local residents in those high-risk areas, and it pinpointed the following cultural and structural trends. The reciprocal, hierarchical and patriarchal nature of kinship networks may mean that pressure is put on people to vote for particular candidates or parties, especially within family groups, as my right hon. Friend the Member for New Forest East (Dr Lewis) has made clear. Individuals may be made to feel as though they have no choice in the matter, or they may, in fact, have no choice. That applies particularly to young women and older women, many of whom are economically disadvantaged. It their 2014 study, academics from Manchester University found that, for instance, Pakistani women are more likely to have their registration forms filled in by the male head of the household than to fill in the forms themselves.

Other problems in those communities are: low levels of public awareness about what is acceptable campaigning and what constitutes fraud; low levels of awareness about how to report electoral fraud; low levels of literacy and lack of English skills, which exacerbate those problems; and reduced political activity, or complete lack of activity, by mainstream parties in too many areas, which gives so-called community leaders free rein to claim propriety over large numbers of families, whose votes they can marshal and direct as they think fit. That is the regrettable flipside of an understandable collective need for ethnic mobilisation and solidarity, but it gives rise to practices that are inimical to our democratic values.

In too many communities, it is regarded as quite normal for political activists to engage in “farming” of postal votes on the doorstep, or even to fill in the ballots at home once signatures and dates of birth have been added, before transporting them to the town hall or polling station. That is regarded as part of the process; it is well understood and not seen as irregular. The University of Manchester reported that the biraderi networks

“may undermine the principle of voters’ individual and free choice through a range of social pressures such as respect for the decision of the elders at its mildest extreme, through to undue influence where in some instances access to individual ballots of women and adult children can be refused by the elders.”

Mainstream tolerance of such block voting is nothing new, although that makes it no less reprehensible. Lord Hattersley wrote in his 2003 biography of his polling day experience in the February 1974 general election:

“I won with an increased majority...the well organised and invariably loyal Kashmiris had cast their disciplined vote early in the day.”

The reports produced for the Electoral Commission highlighted the insufficiency of safeguards for voting procedures. One report found that respondents believed that there was a

“lack of law enforcement around fraudulent applications for postal votes…undue influence and intimidation both when filling out the vote at home with others present, and during the handling of the vote by party activists, community members and candidates themselves”.

Much more research must be done into those issues by the Electoral Commission and others. We cannot know for certain the scale of the problem and how it impacts on elections in our country at every level.

In the interim, I suggest the following measures. Ministers must, as a matter of urgency, consider and respond to the Electoral Commission’s 2014 report and to the findings of the Pickles review. Existing polling station voting vulnerabilities around ID, personation, intimidation and the flaws in the Representation of the People Act 1983 must be addressed soon. There must be a proper review of individual electoral registration to ensure its efficacy in respect of electoral register stuffing. Funds must be set aside for local authorities in high-risk areas to bid for money to work with their local police to investigate properly allegations of electoral fraud, which are often time consuming and costly to investigate. Guidance must be issued to the Crown Prosecution Service and the police to ensure that they take a much more proactive and robust approach to investigating electoral fraud, and that they are seen to be doing so. Finally, new legislative sanctions must be established by means of criminal law in respect of compulsion and intimidation of someone to apply for a postal or proxy vote, alteration of another person’s postal vote application form and the transit of another person’s postal vote documentation. It should be a criminal offence for anyone other than an authorised person to open or alter a completed postal ballot pack—either the ballot paper or the postal voting statement—before it has been received by the proper returning officer.

Ultimately, I believe that none of those measures alone will substantially reduce electoral fraud in our postal votes regime, and that serious thought must be given to returning to the tried and tested system of application in the case of illness, infirmity, military service or work commitments. That system gave us, with the universal franchise, a turnout of 84% in the 1950 general election, and 78% as recently as 1992. Our present system has been summed up perfectly: voting, once a “private act in public”, is now, owing to postal vote fraud, a “public act in private.”

We are currently condoning the theft of thousands of votes of our fellow citizens, many of whom are women—a situation that would shame Emmeline Pankhurst and make a third-world despot blush. We need to ask: what price honesty and fair play, and what price our reputation at home and abroad as the beacon of parliamentary democracy?

--- Later in debate ---

[Wayne David (Caerphilly) (Lab)]

It is a pleasure to serve under your chairpersonship, Mrs Main.

I offer my congratulations to the hon. Member for Peterborough (Mr Jackson) on securing this important debate. All of us who are democrats and who believe in the efficacy of elections also believe that those elections must be above board and entirely fair, and that all the participants in those elections must respect their integrity. That is important in itself, but it is also important that elections are seen widely in a democracy to be fair and beyond reproach.

The various issues that the hon. Member for Peterborough has brought to our attention have to be taken very seriously. He mentioned the Electoral Commission. Indeed, the Electoral Commission, among other bodies, has taken the allegations and examples of corruption and fraud very seriously, and it has presented to the Government’s anti-corruption champion—the Minister for the Cabinet Office and Paymaster General, the right hon. Member for West Suffolk (Matthew Hancock)—detailed measures about how the electoral system can be tightened up. Those are very positive measures.

The Electoral Commission has suggested four measures, and I would like the Minister to respond to those recommendations. Before that, however, it is worth noting that it is not simply what we have in terms of regulations and electoral law that matters. A fact that needs to be highlighted is that a lot depends on the political parties themselves to make sure that they police their own candidates, to ensure that those candidates and their supporters are aware of the law and fully respect it. That is very important. Responsibility rests not only with the Government, the Electoral Commission and others, but with the political parties themselves and the individuals concerned.

As has been mentioned, we are seeing the introduction of individual electoral registration. It is to be welcomed in principle, because one of the key aspects underlying IER is the new emphasis placed on individuals rather than the head of a household, which accurately reflects society’s changing nature. IER is more modern and also puts greater responsibility on the individual in recognising the importance of the electoral process as a whole and their role within it, although we all regret—at least, Labour Members certainly regret—that its introduction has been rushed. We have our own reasons to believe why that was the case.

The essential point I want to make is that although all of us are united in total condemnation of electoral fraud, it is important to keep such fraud in perspective. The perception among many sections of the electorate is that electoral fraud is quite widespread, which is damaging to democracy. However, it is important to make the point that that perception is not based on concrete fact. As the Electoral Commission said in the evidence it submitted to the Government’s anti-corruption champion:

“The evidence currently available to us does not support the conclusion that electoral fraud is widespread in the UK.”

[Mr Jackson]

The hon. Gentleman is making his remarks in a typically eloquent way, but is it not a matter of regret that the chief executive of Woking Borough Council and the electoral returning officer for the constituency of my hon. Friend the Member for Woking (Jonathan Lord) said on “File on 4”, the programme I referred to in my remarks, that in 12 years he had never presided over a wholly clean election in that borough? I agree with what the hon. Gentleman has said, but surely that is a lamentable state of affairs.

[Wayne David]

Elections have to be clean, of course, but quite often there is a fine dividing line between the rough and tumble of electoral politics and actual electoral fraud. When we talk about fraudulent activity, we have to rely on evidence and hard facts being presented. If in that programme and elsewhere there have been actual examples of fraud and clear evidence of it, then it is right that an investigation is made and action taken. However, I return to my central point. Yes, there is plenty of tittle-tattle, plenty of suggestions and plenty of accusations, but all too often there is very little hard and fast evidence, and we have to go on evidence.

It is important to keep our debate in perspective. Of course that must not be used as an excuse not to do anything, and of course the system must be tightened up, but at the same time let us recognise that our democracy is one of the finest in the world, and we must do everything to defend it, while at the same time making sure that it is as watertight as possible.

Finally, as we move to a system of IER, it is important that we have, above all else, the desire to encourage and to make as easy as possible the participation of our voters in the electoral system. There is a fine dividing line, but we have a system that is open and fair, and that encourages people to vote and facilitates their involvement in the democratic process, and at the same time our system must be monitored and policed effectively.

Surely none of us would want to see a system in place that was as onerous as some Members have perhaps suggested, which would be a disincentive to people to go along and cast their vote. If we made the system too cumbersome, that would undermine the democratic process itself. Therefore, in the interests of democracy and democratic participation, we always have to strike a balance between what is reasonable to do in order to encourage as many people as possible to engage, while at the same time having a system that is above reproach and that is based on fairness and integrity.

--- Later in debate ---

[Mr Jackson]

I thank the Minister for that helpful reply. I support the direction of travel. The Cabinet Office and the Electoral Commission are going in the right direction, but I do not think light-touch will do any more. We need more academic research and more legal sanctions. In particular, we need a proper response to the Electoral Commission’s report from last year.

I have two extra things to say. First, we perhaps need to think about disaggregating ward results in general elections. In the United States, that allows people to see obvious examples of electoral fraud. We have never done that in this country, but there has never been a reason not to, because we have ward results in local elections. Secondly, I would like an undertaking from the Minister that when the Pickles review is produced for the Prime Minister, we will have, if not a debate, then at least a statement in the House, so that we can ventilate all these important issues that we are all committed to tackling. With that, I appreciate the opportunity to raise such vital issues.

Question put and agreed to.

Resolved,

That this House has considered electoral integrity and absent votes.

European Union Referendum Bill

Lord Jackson of Peterborough Excerpts

Tuesday 8th December 2015 Commons Chamber

[Stephen Gethins]

We think that 16 is the right age, and that is why we have drawn from the experience of the Scottish independence referendum. It is a good age for participation and people pay tax at that age, although the Minister talked about six-year-olds paying tax. We think 16 is a good age to start voting.

The question of participation should always be high on the agenda of this House. We should always look at different ways to encourage more people to be involved in the democratic process. Evidence suggests that the earlier we involve young people, the more likely they are to stay involved. As the Electoral Reform Society has found, if people vote early, they vote often. Conservative Members might not like that very much, but we think it is positive.

[Mr Stewart Jackson (Peterborough) (Con)]

Will the hon. Gentleman give way?

[Stephen Gethins]

Not at the moment. The United Kingdom has a tale of two legislatures. On 18 June—the very day that this House struck down amendments to give 16 and 17-year-olds the vote—the Scottish Parliament, which is clearly the wiser institution, passed the Scottish Elections (Reduction in Voting Age) Bill to extend the franchise to Holyrood elections. And you know what? It was passed unanimously. As the right hon. Member for Wolverhampton South East (Mr McFadden) pointed out, the leader of the Scottish Conservatives has said that she is a

“fully paid-up member of the ‘votes at 16’ club now”.

I welcome that, along with the fact that Labour and the Liberal Democrats are now for votes at 16. In a rare show of unity—I hope I am not jinxing this—the most recent former leader of the UK Labour party, its Scottish leader and its current leader all appear to back votes at 16. I hope that I have not spoken too soon.

--- Later in debate ---

[Stephen Gethins]

My hon. Friend makes a very good point. The Electoral Reform Society has said that the

“UK Government should follow Holyrood’s example”

for the EU referendum and all other elections. SNP Members have a little bit of experience of referendums, and we should follow the gold standard set by the Scottish independence referendum. It is a shame that the issue of EU nationals has not come back to the House, but we are able to debate the vote for 16 and 17-year-olds. It is a shame that people from other European countries —EU nationals make such a huge contribution—will not be able to vote.

It is easy to see why politicians from across the spectrum—Conservatives, Labour, Liberal Democrats—have been won over by votes for 16-year-olds. In the independence referendum, turnout among 16 and 17-year-olds was 75%, and 97% of them said that they would contribute by voting again. They accessed more information and were much better at accessing information than any other age group, which makes all of us much more accountable.

[Mr Jackson]

rose—

[Stephen Gethins]

On that point, I will gladly give way.

[Mr Jackson]

One wonders what we ever did before the SNP arrived with its 56 seats in this Parliament, but obviously we struggled on manfully. The hon. Gentleman will know that the franchise was extended to 18-year-olds in 1969. Since then, very rarely has turnout among 18 to 24-year-olds gone above 50%, although for the over-70s the percentage figure is in the high 70s. With more information available—we have never had so much information about policy and politics—why does he think that young people across the UK are so disengaged?

[Stephen Gethins]

The hon. Gentleman is not of course the only person who is delighted to see so many new SNP Members bringing their wisdom to this Chamber. We refer to the independence referendum because we have the facts and the evidence to show that if we include 16 and 17-year-olds in the process, they get involved. To make the argument that Westminster elections did not inspire people to get involved in elections in the past is more of a reflection on Westminster politicians than on the public at large. We have the evidence that 16-year-olds got involved. It was good that they campaigned—good for those who got involved on the no side as well as for those who did so on the yes side. It was a positive thing all round, and I pay tribute to those people.

Just as with the rest of the population, if we give young people a genuine opportunity to get involved in a meaningful democratic process, they will do so, and the European Union referendum provides us with such an opportunity. To give the Minister and the Prime Minister more of an incentive, I suspect that 16-year-olds will be better informed and give their Government a fairer hearing on the deal they are negotiating with Brussels than will their own Back Benchers.

This House has been left behind on votes for 16-year-olds. It is happening in Scotland, the Isle of Man and elsewhere. Let us not be left behind again. Let us back votes for 16-year-olds.

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Fabian pointed out that people can influence what happens about their own tuition fees only if they are lucky enough to turn 18 at the right time. Lizzie told me that her brother went on a march against increases to tuition fees. He was told that he should not go because he was not at uni, but he said that taking direct action was his only option. Charlie told me that there was a need for young people to be represented, and I will conclude with Owen who said four little words to me: “It just makes sense”—and indeed it does.

[Mr Jackson]

I will speak briefly to support the Government in rejecting the Lords amendment. It is not unusual to be patronised by the Scottish National party, but I notice that the right hon. Member for Gordon (Alex Salmond) is not in his place. I heard a rumour that he was unveiling a statue of himself made from chocolate so that he can first admire it and then eat it.

I am not opposing the amendment because I am against the substance of the debate. In fact, I am a floating voter on this issue, and over the past year or so I have begun to consider the experience of younger people. However, we need a proper debate and legislative framework, rather than have this tacked on to a Bill about an EU referendum.

[James Cartlidge (South Suffolk) (Con)]

I strongly agree with my hon. Friend. I support lowering the voting age in principle, but when we want to make major constitutional changes we do not just have a vote in the Commons, we consult the public. The same should apply to this issue. We should have a national consultation, with all the other stuff that goes with that.

[Mr Jackson]

I agree with my hon. Friend. At the moment we have a gold standard template for the franchise that we measure at the general election. Over the years we have made changes to that franchise, most recently in 1969 and before that in 1924 and 1928, when we rightly enfranchised women as a result of the campaign by the suffragettes, which we celebrated only a few years ago. We accept all that, but let us have a wide-ranging public debate, not just through the prism of the Scottish referendum but across the whole country, because people have differing views.

Not for the first time, the hon. Member for Vauxhall (Kate Hoey) put her finger on the nub of the issue: this measure must not be tacked on; it must be seen within the context of all the other age restrictions, and of whether young people are well-formed and ready to take big civic decisions when voting. I say to the hon. Member for Lewisham, Deptford (Vicky Foxcroft) that I find it inconceivable that turnout would rise from about 45% to 75% just because 16 and 17-year-olds were included. Those figures do not stack up.

[Patrick Grady]

rose—

[Stephen Gethins]

rose—

[Mr Jackson]

I cannot take any interventions from my Caledonian friends.

In conclusion, it is a constitutional outrage that the superannuated, unelected, unaccountable panjandrums in the House of Lords have told us what the elected House should be doing even though we have a settled view on this. They should learn their place. They must be subservient to the elected House, and it is high time that we had House of Lords reform.

Housing and Planning Bill (First sitting)

Lord Jackson of Peterborough Excerpts

Tuesday 10th November 2015 Public Bill Committees

[The Minister for Housing and Planning (Brandon Lewis)]

May I draw attention to my entry in the Register of Members’ Financial Interests?

[Mr Stewart Jackson (Peterborough) (Con)]

May I also draw the Committee’s attention to my entry in the Register of Members’ Financial Interests?

[Chris Philp (Croydon South) (Con)]

May I likewise draw the Committee’s attention to my declarations in the Register of Members’ Financial Interests?

--- Later in debate ---

[Kevin Hollinrake]

Q 16 Mr Blakeway, one of the biggest challenges in providing more housing is delays in the planning system. There are a number of measures in the Bill, such as insisting on local plans by 2017, simplifying overall plans and more timely decisions in planning in principle. How do you think these will work out in terms of expediting the planning system?

Richard Blakeway: We welcome all the measures that are being introduced by the Government to try to accelerate or expedite the planning processes. As you know, since the GLA’s inception, we have had a long-established strategic planning role and in particular we are keen to build upon clause 101, which gives the Mayor greater authority to exercise those strategic planning powers. In addition, we would like to be able to play a role around permission in principle and issuing development orders, as well as the register of brownfield sites and our ability to co-ordinate that. As a basic principle, we would like to see the Mayor of London exercise the kind of functions that the Secretary of State envisages exercising in the rest of the country.

[Mr Jackson]

Q 17 Obviously there is a predisposition in the Bill towards support for residential accommodation and housing in London and across the country. What impact do you think that might have, specifically in London, on commercial and business premises?

Richard Blakeway: I think that some of the issues in relation to the conversion of office to residential are actually outside the Bill. None the less, we very much welcome the Government’s agreement that there will be an exemption until May 2019 for some of the existing areas that we have sought exemptions for, such as the CAZ—the central activities zone—the Royal Docks enterprise zone, Tech City, and the northern part of the Isle of Dogs. We really welcome the Government’s move on that. Clearly, the article 4 measure allows those areas to formulate an application to extend the exemption beyond 2019 and there is obviously a window to do that.

[Brandon Lewis]

Q 18 May I take you back to the conversation a few minutes ago about starter homes? Are you able to give us an idea, even if it is a ballpark figure, of the average price paid by a first-time buyer for a home in London?

Richard Blakeway: A ballpark price would be about £290,000. I think that is based on CML data.

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[Helen Hayes]

Q 31 Given some of the uncertainties that you have all outlined, do you think too much is being left to regulations when it should be in the Bill?

Phil Glanville: Yes.

Philippa Roe: I would say no, because the Bill is going through now, this is complex, and if we tried to rush it through too quickly now there might be unintended consequences. I would like to see proper time given for the regulations to be introduced, picking up on those unintended consequences.

Martin Tett: I agree with Councillor Roe about unintended consequences. If you try to shoehorn everything into the Bill, there is a danger of locking in things on which you might need flexibility later. The LGA is keen to sit down with the Government, understand some of the intentions behind the Bill and try to work through the best solutions that lead to the best outcomes for not just the Government’s policies but local councils and their housing responsibilities.

Sir Steve Bullock: Going forward, the Bill is interesting in the way it proposes to create that space. I suspect that that means that if we are going to be in an ongoing process of negotiation beyond the Bill becoming an Act, local and central Government need to step up their games to demonstrate how they will make that work and how we can have sufficient transparency to provide the reassurances that people will want.

[Mr Jackson]

I was rather remiss earlier for not declaring another interest that might not be in the Register of Members’ Financial Interests: I am a vice-president of the LGA, so that is on the record. That brings me neatly to Councillor Tett.

[The Chair]

Mr Jackson, it is an unpaid post, is that correct?

[Mr Jackson]

Q 32 Yes, regrettably.

If the Bill becomes law, the Secretary of State will acquire powers in respect of local development plans. With your LGA hat on, Mr Tett, why do you think a significant number of local planning authorities have still not adopted local development plans? Is there a systemic issue that is preventing them from doing as other local authorities have done?

Martin Tett: I can give a generic answer to that, but we would have to get down to some specifics as well. There is a complex answer to what sounds like a very simple question. In some cases I suspect that, quite frankly, local authorities have not risen to the challenge sufficiently. In some areas, though, I think they have made their best efforts but, during the process, have fallen foul of various requirements. The one that is cited to me a lot is evidencing the duty to co-operate to the satisfaction of the planning inspector.

There is a lot of frustration in some councils because they have been found to be inadequate and effectively have to restart the whole process. A lot of councils say to me, “Why can’t we go back to where we were found to be inadequate, rather than having to start again?” Councils in my area have failed their local plan on two occasions and are now well into their third, whereas had they been able to short-circuit that, they would probably now be well into adopting a plan. There is a variety of reasons throughout the country and it is a long-drawn-out process. In some cases, councils have not risen to the challenge; in other cases, the process itself is convoluted, complex and difficult.

[Mr Jackson]

Q 33 Is that officer capacity or political leadership?

Martin Tett: It is both. There is a variety of answers to that. In some cases, if one is honest, there has probably been inadequate political leadership, but often local councils are really struggling with sufficient professional, experienced officer capacity. One thing we have all experienced across virtually every council in the country is that experienced, professional planning officers are very difficult to recruit and retain. They are being hoovered up—I use that expression quite often—by the private sector. As the building and civil engineering industries have recovered nationally, they have been able to pay substantially higher salaries than local councils. It is very difficult to recruit and retain the experience required for the successful implementation of a local plan.

[Mr Jackson]

Q 34 May I ask the London representatives about the parts of the Bill that relate to rogue landlords, banning orders and so on? How do you see that working within the context of London boroughs?

Martin Tett: First, although we welcome the provisions in the Bill, we are not clear that they will necessarily go far enough to make the impact that we all feel is needed. For example, on the level of fines, in my borough we had a landlord who was making £319,000 a year. That is at the extreme end, with landlords who are close to being criminal. A fine of £5,000 would be a minor inconvenience to them. Secondly, we would welcome the proposed register, but it needs to be very accessible. The deputy Mayor has been talking about that. It may be something that individual or would-be tenants need to be able to access.

Philippa Roe: We similarly support the proposals. They sit alongside the tools which, as a council, we already use very effectively—for example, to do with environmental health—to pick up on landlords who are providing substandard properties. The proposals will be another tool in our armoury, which is good.

Phil Glanville: I would go along with what has been said: the proposals are positive. Sharing the tenancy deposit database with local authorities allows them to build up a better picture of landlords in a given area or neighbourhood. It is a question of where thresholds lie in terms of banning orders and the register, and where they will end up. Moving to a fine-based system rather than having to take things to a full prosecution is a positive step—though one questions whether the fines would be enough of a deterrent. In building more tools for our armoury the proposals are a positive step.

--- Later in debate ---

[The Chair]

You have sparked a great deal of interest and quite a lot of people are catching my eye, so may I ask for both questions and answers to be as crisp as possible in the 20 minutes left?

[Mr Jackson]

Q 69 May I ask you, Ms Butters, to restate your specific opposition to pay-to-stay? It seems that you might be overlooking fairness and social equity issues and the release of funds that the policy may very well give rise to. London aside, I would contend that £30,000 is significantly above an average wage in somewhere such as Stoke-on-Trent or Newcastle-under-Lyme or several other parts of your area. Therefore, apart from the administrative, bureaucratic issues that Mr Orr mentioned, on what basis do you oppose the policy?

Sinéad Butters: There are two reasons. One is the need for local housing providers to be able to make judgments about what their area needs and to reflect the points you made about affordability. An imposed national figure of £30,000 will not take account of local need and local incomes.

In Stoke, 38% of the working adult population earns £16,000, so two adults together would be above the £30,000 limit, yet that is a marginal figure for being able to pay a market rent. I accept that market rents in Stoke are low, but in other areas they are not. We had the example of a tenant in Oxfordshire whose particular circumstances could mean that her rent would be tripled from £600 to £1,800. Obviously, there are issues about tapers and how they would apply, but this national approach with a single £30,000 outside of London does not take account of local circumstances, and that is our greatest fear. For me, it is about the ability of housing associations to set rents that are appropriate for that tenant, and the freedoms and flexibilities that the National Housing Federation has talked about. That will mean a range of different choices, working with our local authority partners, on how to pitch and what is right for their area in terms of affordability. This does not allow us that flexibility.

[Mr Jackson]

Q 70 But you agree that registered providers, with the extra income that may arise from this policy—I do not know whether you have any examples; you mentioned some examples earlier—may have the authority and autonomy to ring-fence for developing other sites for social rented housing.

Sinéad Butters: Absolutely, but the point I am making is that that ability to use the additional receipts should be based upon known local circumstances—local incomes and local affordability—and not set nationally. That would allow flexibility.

David Orr: May I add something here? Rents in our sector are a shambles because of Government intervention in rent-setting for the past 17 years. Decisions that are made for short-term reasons, which do not understand the long-term impact, have created a pattern of rents that is almost incomprehensible to anyone. We would like to be in a position to relocate responsibility where it lies: with the boards of individual housing associations, to provide housing and associated amenities in accordance with their objectives and to be responsible for charging appropriate rents. The rents will be different for different people in different parts of the market. Part of pay-to- stay says, is it sometimes appropriate to charge people higher rents if they have higher incomes? Yes. Is it right for Government to be imposing it? No.

[Mr Jackson]

Q 71 That is a fair point, Mr Orr, but this is at the beginning of the process and Ministers might surprise you in a pleasant way.

David Orr: Good. I am always happy to be surprised in a pleasant way.

[Mr Jackson]

Q 72 Far be it from me to speak for the Ministers, but are you really suggesting that registered providers operate in a hermetically sealed bubble, given that the housing benefit bill has spiralled significantly over the past 20 years? The Government surely have a fiscal responsibility to make big strategic decisions in the provision of public housing when they have a spiralling housing benefit bill.

David Orr: The housing benefit bill is spiralling primarily because the number of people who need to claim housing benefit has grown as rents have grown, and because of the number of people in work in the private rented sector who have to claim housing benefit. It is not fundamentally about the growth of rents in the social sector, but, where rents have grown in the social sector, that has been a direct consequence of Government decision making. So I can sit here and say, “It’s not our fault, guv. It’s your responsibility. It’s Government decision making.” I don’t think that is acceptable. I think that local government and the public should be able to hold housing associations to account for the rents that they charge. It has been the case in the past that when the Government were setting rents, they also said that housing benefit would cover the cost of those rents. I am afraid that the decision to set the overall benefit cap at £20,000 and £23,000 means that rents that the Government have themselves set are not now, in a significant number of cases, covered by housing benefit. So if the Government want to limit their exposure by what they do with housing benefit rules, they should withdraw from rent-setting.

[Grahame M. Morris (Easington) (Lab)]

Q 73 I want to go back to starter homes and the issues that you have touched on. A survey found that 6 million people— 5.84 million, in fact—earn less than the living wage. That is not a TUC figure; it is from KPMG. Some 23% of the labour force earn less than the living wage, and the numbers are going up. There are 750,000 people on zero-hours contracts. What is there in the Bill to address the housing needs of that substantial sector of people who we refer to as the working poor?

David Orr: There is little in the Bill that addresses that group specifically. The only real new housing or tenure product that it contains is the starter home initiative. As a component of a much wider, mixed-tenure, mixed-priced series of developments, starter homes have a role to play, but a comprehensive transfer away from social rent or shared ownership towards starter homes would be a mistake. They have a role to play as part of a broad pattern of provision, but not instead of the other things we are doing.

National Insurance Contributions (Rate Ceilings) Bill

Lord Jackson of Peterborough Excerpts

Tuesday 15th September 2015 Commons Chamber

[Stewart Hosie]

My hon. Friend is right. Harking back to 2009 and the Fiscal Responsibility Bill, the then Chancellor made great play of legislation to bring down the debt and deficit, and what was the sanction should he fail? “We would just change the targets,” he said. I suspect the current situation is rather similar, and I may come to what the current Chancellor said about that particular legislation shortly.

[Mr Stewart Jackson (Peterborough) (Con)]

The hon. Gentleman must be vying for the 2015 Caledonian brass neck award. On the arc of prosperity of Iceland, Ireland and Scotland, if we are talking about black holes, would he care to enlighten the House about the £8 billion black hole predicated on the dwindling price of oil, which means that if the Scottish people had made a different decision the country and the constituency he represents would be bankrupt?

[Stewart Hosie]

The £1.5 trillion black hole, which is the UK national debt, is of rather more significance than any cyclical deficit any country may have, but then I suspect the hon. Gentleman probably knew that already.

Returning to the scope of the Bill, it is important that the Minister says what will happen should the yield forecasts be less than planned. That is important for his Government, too, because their rationale, as stated in their manifesto, was focused on

“reducing wasteful spending, making savings in welfare and continuing to crack down on tax evasion and aggressive avoidance.”

That allowed them to commit to no increases in VAT, income tax or NICs. They argued:

“Tax rises on working people would harm our economy, reduce living standards and cost jobs.”

I have no problem with tackling genuinely wasteful spending, such as Trident, or clamping down on tax evasion, but it is this Government’s attack on welfare which is harming the economy, reducing standards of living and threatening the growth needed to ensure the forecast yield from NICs is maintained in the way the Red Book forecasts suggest.

Finance Bill

Lord Jackson of Peterborough Excerpts

Tuesday 8th September 2015 Commons Chamber

[Caroline Lucas]

I am grateful to the hon. Gentleman for his intervention, and of course he is absolutely right; long gone are the days of hugging huskies and we are now in the days of “green crap”—even, ridiculously, when there are strong economic arguments for pursuing green policies. The idea that that is somehow against the interests of business is completely belied by the fact that so many businesses are crying out for a change in direction on the part of this Government.

[Mr Stewart Jackson (Peterborough) (Con)]

I am listening to the hon. Lady’s comments, which are always passionate, well made and eloquent. Does she not agree that the industry is complicit in the problems she alludes to because it has gone for the easy win of developing on agricultural and green-belt land, rather than doing the more difficult thing, which is developing on previously developed land? That is why people have been resistant in communities to solar energy projects such as those in my constituency.

[Caroline Lucas]

I do not agree with the hon. Gentleman’s comments. There are some cases where renewables are being sited in areas where there is opposition, but those are a minority. I assure him that if he thinks there is going to be much popular objection to renewables, he should just wait until his constituents and others see the impact of fracking. That is when he is going to see an awful lot more opposition to the energy choices that this Government are making.

The fact is that the renewable energy industry is a fantastic advantage to our economy. It does some brilliant things, and it does so despite Government policy, not because of it. It is now absolutely at risk of not being able to get away from the subsidies. It does not need subsidies for much longer and has always understood that there will be digression. [Interruption.] From a sedentary position, the hon. Member for Daventry (Chris Heaton-Harris) is suggesting that this industry is surviving only because of subsidies. Nothing could be further from the truth. The subsidies are coming down. There is digression, but it has to happen in a planned way. It is not justifiable, or even reasonable, to expect an industry to not know what kind of economic situation it is working in from one year to the next. This Government keep changing the goalposts on an almost monthly basis. The renewable energy industry and the solar industry know that digression will happen and that subsidies will be withdrawn, but it must be to a predetermined timetable. When that timetable keeps changing, it is incredibly difficult for business to adapt.

Compare that with what is happening to the nuclear industry. The nuclear industry will have subsidies for decades to come. It is already 50 years old, and yet Hinkley Point C could not even begin to be built were it not for the fact that it has massive subsidies, which are hugely bigger than anything that the renewable energy industry could ever dream of. I will not hear suggestions that the renewable energy industry is somehow greedy when it comes to subsidies; absolutely nothing could be further from the truth.

Tax Credits (Working Families)

Lord Jackson of Peterborough Excerpts

Tuesday 7th July 2015 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

We have had a good debate. I begin by congratulating my hon. Friends the Members for Bradford West (Naz Shah) and for Blackburn (Kate Hollern), and the hon. Member for North Ayrshire and Arran (Patricia Gibson), on their excellent maiden speeches and their contrasting reflections on their predecessors. The House looks forward to hearing much more from them in the years ahead.

The Minister said at the beginning that he wants the Government to be a Government for working people. That is a laudable ambition, but they are failing. My hon. Friend the Member for Sheffield, Brightside and Hillsborough (Harry Harpham) is right that working people feel uncertainty and insecurity. Working families are deeply worried about what the Government have in store. They have suffered a long squeeze on their incomes, and they are worried about a fragile recovery and what the future holds for their grandchildren and children. Their insecurity has been heightened by the prospect of deep cuts to the tax credits that they rely on, and which it appears the Chancellor will announce in the Budget tomorrow. Working families will pay the price for the decision of the Prime Minister and his Chancellor to promise big reductions in social security spending before the election without having worked out a plan to deliver them. The announcements tomorrow will not be about making work pay—in this instance, that is baloney—but about making working families pay.

The Opposition welcome new concern from Conservative Members about low pay—we have heard a good deal in the debate about the living wage and the need for more secure, high-skilled and high-productivity jobs to support that. We all want a higher-productivity, higher-wage economy, but that requires a change of direction in the management of the economy. For example, it would mean delivering infrastructure, not just second or third announcements of future projects, or announcing and then cancelling them, as has happened in the past couple of weeks. It would mean high-quality training and apprenticeships for young people, not just rehashing old courses.

What the Chancellor must not do—it appears that this is exactly what he plans to do—is make working families much worse off by cutting their tax credits long before any increase in their pay. In millions of working families, people work hard but rely on tax credits for the family budget, as was acknowledged by Conservative as well as Opposition Members. It is high time to tackle low pay, but the Government should not attack the low paid, which is exactly what cutting tax credits will do. It will be an attack on working families on low and median incomes.

It would be fantasy to claim—I am glad nobody did so in the debate—that cutting tax credits will in itself lead to higher pay. Research has shown that the introduction of tax credits did not push pay down, and the drastic cuts now envisaged will not push pay up. Raising the personal tax allowance is not the answer—60% of tax credit claimants earn too little to pay income tax. Only about 1% of the cost of the planned personal allowance rises will actually be spent on lifting lower earners out of tax.

Tax credits recognise the needs of children in a household in a way that wages never can. The hon. Member for South Suffolk (James Cartlidge) suggested that tax credits provided a ceiling on earnings. That is completely untrue. That is not how the system works at all. In fact, tax credits have been by far the most effective move we have ever made in Britain to make work pay. They were introduced by the Labour Government alongside the boost to pay of the national minimum wage, improved and expanded childcare with Sure Start, and groundbreaking welfare-to-work support with the new deal.

The combination was a huge success, boosting employment by making work pay, supporting the incomes of large numbers of working families, and reducing child poverty in large part by making it worth the while of many more lone parents to be in work. The lone parent employment rate was less than 45% in 1997. Today, it is nearly 65%. Researchers have shown that that transformation was largely thanks to tax credits. The benefits have gone much wider. My hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) opened the debate. In an excellent speech, she drew attention to what the Financial Times said recently, which is that the system of financial support we have in Britain for low-income working families is a key reason for our high rate of employment.

The flagship reform of this Government, universal credit, aims to build on the success of tax credits. We have always supported the principle of universal credit and we still want it to succeed. It is a good idea. The Government, however, have utterly failed to deliver it. Five years after it was announced, less than 1% of claimants are receiving it and 99% are still on the old benefits. In 2011, we were told it would take six years to deliver universal credit. Today, we are told it will take another six years. Now, before it has even properly begun, the Chancellor wants to make drastic cuts in support for working families that would hole universal credit below the waterline.

Will the Minister tell us whether he understands the crucial difference between reforming welfare and labour markets to get people into work and make work pay, and taking an axe to social security and to employment support? These cuts will store up far greater costs if they send into reverse the progress of decades in raising employment rates and reducing child poverty. We will welcome any credible plans to tackle low pay. We have championed the living wage. As my hon. Friend the Member for Edmonton (Kate Osamor) pointed out, the coalition Government presided over a 45% rise in the number of people paid less than the living wage,

[Mr Stewart Jackson (Peterborough) (Con)]

There is consensus on the living wage. I personally hope that there will be fiscal incentives in the Budget, and in future, to persuade employers to look at that. Does the right hon. Gentleman agree that unless the issue of working tax credits is reviewed, we will be continuing the practice of de facto subsidising large employers to underpay their staff?

[Stephen Timms]

If he had been present during the debate, the hon. Gentleman would have heard a lot of agreement that raising levels of pay is a good thing. That is the right way to reduce the cost of tax credits; not taking an axe to them now in the hope that pay will go up at some point in the future. Calculation of the living wage assumes that families receive tax credits. Those who calculate the living wage say that if families did not receive tax credits, the living wage would have to go up by another 25%.

Working people need a long-term plan to back businesses that commit to paying the living wage—I agree with the hon. Member for Peterborough (Mr Jackson) on the importance of that—and share with them the Exchequer savings, as we have proposed with our “make work pay” contracts. We need to give the Low Pay Commission the remit and the powers to tackle low pay across the country, as proposed in the report by Alan Buckle, the former deputy chair of KPMG. We need economic and industrial policies to support more high-skill, high-productivity jobs created by innovative competitive businesses of the future. Belated conversion to the cause of tackling low pay must not be an excuse for Ministers cutting away the vital support on which so many working families rely. As my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) pointed out to the Prime Minister two weeks ago, not a single family will be helped into work and not a single worker will see their earnings rise simply as a result of cutting tax credits. Ministers should be tackling low pay, but they must not attack the low paid.

The Government promised to eradicate the deficit in one Parliament and failed completely to do so, but working families must not be made to pay the price for that failure. Can the Minister assure us that any action taken to tackle low pay or in other ways to support the finances of working families will make up for the losses arising from tax credit cuts? I fear he cannot. He will not be forgiven for a shabby raid on the incomes and security of working families simply to get the Prime Minister and the Chancellor out of a hole. I hope that Members on both sides of the House will join us in supporting this important motion tonight.

Greece

Lord Jackson of Peterborough Excerpts

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

It is fair to say that Greece’s membership of the European Union, as opposed to membership of the eurozone, was an important step in that country’s transition from fascist dictatorship to democracy and in entrenching that democracy, and I think that view is broadly held by the Greek people, whatever their views about the current financial situation or their membership of the euro. I repeat that whatever happens we stand alongside Greece as an important member of the family of European nations.

[Mr Stewart Jackson (Peterborough) (Con)]

Almost 20 years ago a number of us predicted the disastrous consequences that would be visited on small countries as a result of monetary convergence and the single currency, and so it has come to pass this week with Greece, which it seems is being smashed on the altar of German monetary policy. With that in mind, will the Chancellor give the House an undertaking that proposals for further future financial convergence—a single EU-wide corporation tax rate, which would damage the British economy—will never see the light of day?

[Mr Osborne]

I will tell my hon. Friend what I have to say about that: we are not going to sign up to some European corporation tax rate.

Future Government Spending

Lord Jackson of Peterborough Excerpts

Wednesday 4th March 2015 Commons Chamber

[Mr Gauke]

My hon. Friend is absolutely right. Indeed, as a distinguished Chair of the Public Accounts Committee, he was heavily involved in identifying that wasteful spending. One of this Government’s achievements is the measures we have introduced to reduce such wasteful spending. In particular, the efforts of the Minister for the Cabinet Office in pushing forward reform and identifying efficiency savings have reduced the cost of Whitehall strikingly.

[Mr Stewart Jackson (Peterborough) (Con)]

Is not it disingenuous—some might even say slightly dishonest—to pray in aid references to 35.2% of public expenditure, as opposed to GDP, as ideological extremism when we need look back only 12 years to the Blair-Brown Government to find a time when the percentage was 35.9%, which is almost indistinguishable? Is not that trying to hoodwink and fool the voters, and is not that pretty dishonest?

[Mr Gauke]

My hon. Friend makes an important point. The statistics he uses are absolutely right. With regard to public spending on services—I will turn to the detail in a moment—we are talking about returning to the levels of 2002-03, before the previous Government lost control of public spending.

--- Later in debate ---

[Mr Gauke]

It was an attempt to show how ridiculous the Labour party’s economic policy is when the only example it puts forward, apart from the 50p rate, which is likely to cost money, is increasing the cost of gun licences. I did not really expect the shadow Chief Secretary to take it seriously that that was the big policy. Does he disagree that the shadow Home Secretary has already claimed that that money will be spent on policing? It is going to be spent on policing, is it not? There was a time in debating these matters when the big argument from Labour Members, their big macro-economic analysis, was that we were going too far, too fast. Now it has come down to this. What have they got a few days away from a general election? They have a policy on gun licences—that is it. What has the great Labour party come to? Gun licences!

[Mr Stewart Jackson]

Perhaps the Minister can help me out. The Labour party had a top tax rate of 40% for 155 of its 156 weeks in office, which apparently was the epitome of social justice. Why does he think Labour is attacking us for having a 45% rate, which brings in more money but is suddenly seen as feathering the nest for the rich?

[Mr Gauke]

My hon. Friend is absolutely right. The problem with the 50p policy is that it is not an effective way to raise revenue. Our record is very clear: we have been very effective at getting more money out of the wealthy. As we see from the IFS analysis today, the wealthiest have made the biggest contribution. What we are left with is a symbolic gesture, not a tax policy.

--- Later in debate ---

[Mr Stewart Jackson (Peterborough) (Con)]

What a pathetic, facile motion the Opposition have brought forward for their last Opposition day debate during this Government. They could have introduced a proper costed programme. As my hon. Friend the Member for Wolverhampton South West (Paul Uppal) has said, they could have apologised for the huge number of errors they made in government. All elections, including the one in 63 days’ time, are about hope versus fear. From them we hear fear and smear, but we have a policy of hope, because we have turned around the economy following the disastrous economic legacy left by the Labour party.

[Mrs Main]

My hon. Friend is absolutely right. Elections should be about honesty and transparency. The Labour party has mentioned spending cuts, but it is not telling us which it will make.

[Mr Jackson]

Absolutely. In more than two hours, we have not heard anything, except in relation to gun licences and, of course, the recycled bankers’ bonuses.

What a contrast between the Opposition and the Labour party on the cusp of the election on 1 May 1997, when I was a candidate and lost by the not inconsiderable majority of 19,500 in Brent South. No wonder Labour MPs are depressed when they are sober and catatonic when drunk, quite frankly, because they know there is an acute contrast between that historic election and now. The Labour Government led by Tony Blair was ambitious, and their programme was thoughtful, forward looking, positive, generous and optimistic. Tony Blair is now persona non grata in the Labour party, and it now has a core vote strategy, with a mean-spirited, peevish, insular, dreary collection of bungs to special interest groups, and smears and caricatures aimed at the Conservative party.

What is more, Labour policy does not stand up to any form of scrutiny. We have heard about the utilities price freeze—a disastrous policy that has damaged the industry and, perversely, will damage the interests of consumers. Wither Labour’s cost of living crisis? Today, the IFS says that prices are being outstripped by wages for the first time since 2007. There is no more cost of living crisis because wages are growing at 2.1% against a retail prices index of 0.9%. On fuel, council tax, food, beer duty and children’s air passenger duty, the Government have made efforts to reduce the cost of living of ordinary families. We have driven up the personal allowance, and we are committed to drive it up to £12,500 in the next Parliament.

[Sheila Gilmore]

Will the hon. Gentleman give way?

[Mr Jackson]

No, I will not give way at present.

As we have already heard, the 45p tax rate has raised more income for public services than was ever done by the 50p rate, which was put in place for cynical political reasons. We will not take any lectures from the party that abolished the 10p tax rate for the poorest working families. What sticks in my craw is the moral superiority of the Labour party in this debate. In 2011, 1,200 people in my constituency had been parked on out-of-work benefits—incapacity benefit or invalidity benefit—for more than 10 years during a period of economic growth. Some 5.2 million were parked on out-of-work benefits when the economy was growing quarter by quarter during the 13 years of the Labour Government. We will not take any lectures or moral indignation from the hon. Member for West Dunbartonshire (Gemma Doyle) and other Labour Members.

The top 1% of taxpayers are paying 25% of income taxes. We have driven up employment levels. More women than ever are working. Some 30.9 million people are working, despite the ludicrous prognostications of people such as David Blanchflower, who told us that 5 million people would be unemployed, and the right hon. Member for Morley and Outwood (Ed Balls), who said that we could not cut expenditure and have growth in private sector jobs—complete and utter nonsense. In my constituency, unemployment has gone down by almost 60% and youth unemployment by almost 66%.

[Stephen Mosley]

Under the last Government, almost 1 million young people were out of work. Through apprenticeships and job opportunities, those people now have opportunities and hope for the future. They are the people who are benefiting from this Government. Does my hon. Friend agree?

[Mr Jackson]

I absolutely agree. My hon. Friend has put forward the strong views of his constituents in Chester for the past five years, and I expect him to be handsomely re-elected.

What I find depressing is the pernicious smear and myth that we are going back to the 1930s, when there was no NHS. That is a lie. It is disingenuous to make that point. First, the figures were not even collected until 1956. Secondly, the economy is at least 10 times bigger than it ever was in the 1930s. As I made clear in an earlier intervention, expenditure as a proportion of GDP is more or less the same as it was in 2002—the fifth year of a Labour Government.

I will not dwell on Labour’s record on the economy, other than to say that we had a record decline in manufacturing—that is for the benefit of the hon. Member for Blaydon (Mr Anderson)—we had disastrous school results, youth unemployment doubled, a quarter of all public expenditure was borrowed by the end of Labour’s rule and there was a structural deficit when the economy was growing. While we are at it, inequality grew between 1997 and 2010. The gap between the poorest 10% and the richest 10% grew wider during the time of the Labour Government.

What a contrast that is to what we have done. We have capped benefits, focused on capital investment, driven up the number of apprenticeships, created 760,000 new jobs, increased the state pension and come up with a properly costed plan for our future. I am proud of the work that this Government have done, given the appalling financial inheritance they were encumbered by in May 2010.

Let us have a little humility from Labour Members. The reason they have zero credibility with electors on the deficit and the management of the economy is that they do not believe they did anything wrong. That is normal for a party that won 258 seats, even though if we had got the same number of votes, we would have got fewer than 200 seats because of the boundaries. They think, “One more heave. More spending and more borrowing is absolutely fine.”

However, the election of a Labour Government is an existential threat to the health and prospects of the economy and my constituency, and to the mortgages, jobs, pensions, savings and businesses of my constituents. Higher mortgage rates, higher unemployment, higher prices, more debt and borrowing, punishing middle-class earners, punishing aspiring wealth creators, same old class envy, same old spiteful prejudice, same old economic failure, same old Labour—on 7 May, the British people just won’t risk it.

Bankers’ Bonuses and the Banking Industry

Lord Jackson of Peterborough Excerpts

Wednesday 25th February 2015 Commons Chamber

[Debbie Abrahams]

Will the Minister give way?

[Mr Stewart Jackson (Peterborough) (Con)]

Will the Minister give way?

[Andrea Leadsom]

I give way to my hon. Friend.

[Mr Jackson]

Is not this debate a displacement activity for a party that does not have any coherent narrative to deal with jobs, growth and the economy? Is it not reckless of Her Majesty’s Opposition to keep recycling the tax on bankers’ bonuses—10 times over—without ever having to account for where that money will actually go?

[Andrea Leadsom]

My hon. Friend is exactly right that the Opposition are simply trying to recycle something as a distraction. I am truly delighted that the motion gives me the opportunity to set out the wide-ranging measures that this Government have taken to sort out the appalling legacy of the Labour party on banks and remuneration. We have taken an extraordinarily wide-ranging set of measures to sort out a mess left, once again, by a Labour Government.

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[Mr Bain]

I was here for four months of the previous Parliament, when a tax on bankers’ bonuses brought in £3.4 billion in revenue and we introduced a 50p top rate of tax for people earning £150,000 a year or more. The next Parliament should reintroduce that to ensure that the wealthiest in society make a fairer contribution to getting our deficit down, and so that we bring back opportunities for young people who have been denied them during this Parliament.

[Mr Stewart Jackson]

I admire the hon. Gentleman’s sincerity, but his argument would carry more weight were it not for the fact that under the previous Government—run by the party of which he is a member and supports—during a period of economic growth 5.2 million people were left on out-of-work benefits and youth unemployment doubled. The gap between the richest and poorest 10% widened. That is his Government’s record, and it ill behoves him to lecture our Government who have done a lot to address those key issues.

[Mr Bain]

The Government whom the previous Labour Government replaced were content to leave a wages structure in place in this country in which security guards earned less than £1 an hour. That inequality had to be tackled, and that gap reduced during the previous Parliament. People will want to hear during this debate about the next Parliament, and about our vision for the future of a high-skill, higher wage, higher investment economy. I believe that the Labour party has the more convincing vision.

--- Later in debate ---

[Mr Bain]

I agree with my hon. Friend. In this country people want targets for abolishing long-term youth and adult unemployment, not targets in jobcentres for sanctions. We see that in our constituency offices when people arrive in a desperate state having been sanctioned because of edicts from the office of the Secretary of State for Work and Pensions.

The vision of a different economy was picked up by the OECD yesterday in its report. It stated that future growth and rises in living standards in this country will come only if our economy sees increases in productivity, exports and levels of investment. We must improve our skills record and, importantly, sort out more secure and long-term pathways to finance for business and industry in this country—real structural reform for our banks must happen in the next Parliament.

A high-skill, high-investment, higher-wage economy cannot be built when thousands of people are locked outside the labour market for long periods, with skills going to waste and promise left unfulfilled. In 10 weeks’ time—10 weeks tomorrow—my constituents and the rest of the country will go to the polling stations in the hope that change is on the way with a new Government. However, the House does not have to wait that long. By passing the motion today, it can send a powerful message to the Chancellor that a Budget that will command support in the country in a few weeks’ time must have the purpose of abolishing the scourge of long-term unemployment that is so destructive of long-term income prospects, and corrosive of the human spirit.

The House should do more. We must restore fairness to our taxation system and reintroduce that tax on highly paid financiers who have pocketed some of the biggest gains from this Government over the past five years. With the 50p tax cut, for the last few years they have had a Government who have been on their side. Now the British people, who are meeting the burden of high long-term unemployment costs through our social security system, need a new Government who are on their side instead.

With as much as £34 billion a year in taxes going uncollected under this Government, we need policies that maximise revenues and encourage excluded parts of our society back into the labour market. Sweden’s equivalent of the jobs guarantee policy was first introduced in 1983 under a social democratic Government, and it helped balance the books there in the mid-1990s while restoring the right to work to thousands of people. That jobs guarantee was followed in Norway, Finland and Denmark. We should match that ambition in this country by having more people in work and paying into the system, and becoming better off and improving our public finances at the same time.

With bonuses paid by the financial sector since the onset of the financial crisis in 2007 having reached £100 billion this year, and with a few at the top pocketing the biggest gains, the case for asking for a greater contribution from those people—given the taxpayer assistance that has been provided to the banks and financial sector since 2008—is unanswerable. With the Office for Budget Responsibility having revised down by £48 billion at the autumn statement the levels of revenue from income tax and national insurance from the next financial year until 2018-19, the case for more people being in work, and for the super-rich to pay their fair share, makes best economic sense. That is why it is right to increase the clawback period for bonuses paid to people guilty of misconduct in the financial sector from seven years to 10 years, and—crucially—to introduce penalties in law for breaches of the general anti-abuse rule on avoidance.

As the High Pay Centre has shown in recent months, the link between company performance and executive remuneration and bonuses at the very top is tenuous at best. Reform of corporate governance so as to have an employee representative on remuneration committees would help secure greater accountability over what highly rewarded executives receive, and the wider commercial and social obligations that they should have in mind.

Too often, pay structures reward failure when instead there must be a greater relationship with long-term performance. That can be dealt with by the Financial Conduct Authority and greater legal transparency on bonuses, and secured by reform of the laws and corporate governance. Through the taxation system, we in this House can do a great deal more to discourage irresponsibility in the financial sector, and secure justice for the disadvantaged by raising £1.5 billion to £2 billion through a repeat of the bank bonus tax, to fund the jobs guarantee policy that will help so many long-term and young unemployed people. But as has also come up in this debate, we also need to deal with the structural reforms in the banking system which are needed to restore proper channels of finance to small and medium businesses.

A British investment bank, constructed for the purpose and capitalised by some of the revenues we can expect from 3G and 4G licences in the future, is the best way to deal with the gap in the British economy and ensure stable finance for small businesses. As the OECD pointed out yesterday, ensuring consistent lending for businesses is vital for future growth, and policies such as funding for lending have not bridged the gap. They have not delivered the necessary impetus to net lending and the next Parliament and Government need to be much more ambitious on that front.

[Mr Stewart Jackson]

The hon. Gentleman is elucidating another straw man, which was articulated by the shadow Minister—that we somehow have a crisis in lending. The fact is that businesses of all sizes hold unprecedented levels of cash reserves and they will spend if we have a benign macro-economic policy framework. That is not what is being offered by his party, so any accusations of missing lending targets obscures the bigger picture.

[Mr Bain]

I am citing evidence—I hope that the hon. Gentleman has been listening carefully—from the OECD and Bank of England reports that net lending to business has continued to fall. The OECD said yesterday that weak lending is a structural problem in the British economy. He might think that I am raising a straw man, but I hope that he is not accusing those organisations of doing so. It is their argument that this Government have left unsolved that structural weakness in the past five years. Tougher action is needed in the next Parliament to secure stable finance for our businesses, because that is how we will get the jobs and growth that will generate the tax revenues and lower the deficit.

Oral Answers to Questions

Lord Jackson of Peterborough Excerpts

Tuesday 9th December 2014 Commons Chamber

[Danny Alexander]

I will set the record straight. The record shows that under the previous Labour Government the Crown dependencies and these bodies did not make any progress on registers of beneficial ownership. Progress is being substantially made now because of the lead this Government showed at the G8. By the way, these same places have also now agreed to the automatic exchange of tax information, to make sure that for the first time—this is something the Government of the hon. Lady’s party never did—we can get tax from people who are trying to hide it in these jurisdictions.

[Mr Stewart Jackson (Peterborough) (Con)]

T2. My constituents in Peterborough who work at Thomas Cook and many families with young children will have been delighted by the announcement on children’s air passenger duty in last week’s autumn statement. Will the Exchequer Secretary give an undertaking that she will continue to monitor the impact of air passenger duty on tourism and the family budget and not rule out further cuts in the near future?

[The Exchequer Secretary to the Treasury (Priti Patel)]

I thank my hon. Friend for his question. The reductions in air passenger duty announced last week are to be welcomed not just by his constituents and by Thomas Cook but by hard-working families across the country. As with all other taxes, air passenger duty will be kept under review, taking into account our commitment to creating sustainable public finances alongside helping households and, of course, the tourism industry.