(9 years, 2 months ago)
Commons ChamberI think it probably will be now that Labour has a new leader—it seems to be very politically aligned.
It should be noted that according to the Office for National Statistics, 3 million working days have been lost in the past five years due to labour disputes, more than 80% in the public sector. That is simply unfair on the hard-working taxpayer, so, on their behalf, I welcome clause 2.
Does my hon. Friend agree that it is a bit of a cheek for the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson) to question the constitutional propriety of the Bill, which has an election mandate behind it from the election four months ago, whereas, under the previous Labour Government, the unions effectively bought policy through the Warwick I and Warwick II agreements in exchange for large amounts of funding for the Labour party?
My hon. Friend makes a point that has been made often. I think we also saw the influence of the union movement in the recent Labour leadership elections and the selection of Front Benchers.
Other sensible measures in the Bill are clauses 7 and 8, which set an expiry date on industrial action ballot mandates and extend the notice period that unions must give employers from seven to 14 days. The latter will give more time to reach settlements, which can only be a good thing for all parties concerned, while giving those adversely affected, such as commuters and parents, time to make other arrangements, whereas the former is a common-sense measure given the present situation of having effectively rolling mandates that can last for years and might be ongoing long after the members who originally voted for them have left employment.
Clause 9, on picketing, has engendered a number of comments and I understand that there are concerns about the level of police involvement. There is, however, an issue of intimidation in the trade union movement. One needs only to think back to the incident with Unite officials at the Grangemouth oil refinery in 2013, in which a mob was sent to protest outside a family home with banners, flags and a giant inflatable rat, which led to a country pub and even a charity fun run being disrupted.
(12 years, 8 months ago)
Commons ChamberI draw Members’ attention to my declaration in the Register of Members’ Financial Interests.
The Budget is set in the context of continued uncertainty in the global economy, but it is a Budget that binds many threads of Government policy as we seek to reward work and enterprise and to rebalance our economy. The House would do well to remember that it is only by virtue of the deficit reduction plan set out by my right hon. Friend the Chancellor in June 2010 that the UK has managed to achieve a relative safe haven status and achieve record low interest rates, which will save the taxpayer a projected £36 billion over this Parliament.
The Chancellor today announced measures that will allow companies and individuals further to share in the benefits of these low interest rates, achieved no doubt by international acceptance of the fiscal competence of this Government’s policies. The deficit reduction plan, however, is not just about reducing the size of the increase in Government spending; it is also dependent on achieving growth. Although the eurozone crisis has damaged economic growth rates across the continent and globally, it is a testament to this Chancellor and this Government’s handling of the public finances that the deficit reduction figure was ahead of target this year, while at the same time achieving a growth rate in the economy of 0.8%.
As we have heard during the debate, the Opposition try to argue that deficit reduction is being pursued at the expense of growth, and America has been mentioned. They should look at the International Monetary Fund’s fiscal monitor, which shows that fiscal policy in America was tightened by 0.8% of gross domestic product last year, at the same time as a growth rate of 1.7% was achieved. This fact completely contradicts the inaccurate claims of the Leader of the Opposition in his Budget response and those in the Labour party who still cling to the misguided mantra that the only way to obtain economic growth is through fiscal stimulus. When will they learn that they cannot borrow their way out of a debt crisis?
There is, however, no room for complacency and the economy needs to start growing at a faster rate. I welcome the measures outlined today that will stimulate the economy and see taxes cut for 24 million taxpayers through the increase in the tax threshold. That is another example of the Government’s commitment to the lowest-paid and stands in stark contrast to the actions of the previous Prime Minister, who removed the 10p starting rate of tax in his final Budget, hitting the lowest-paid the hardest. The increase in the personal allowance to £9,205 is very welcome and will lift an additional 66,000 people in the east midlands alone out of income tax and benefit more than 1.7 million individuals nationally. The Government will have lifted a total of 148,000 people in the east midlands out of tax at this rate.
Another damaging legacy of the previous Prime Minister was the 50p rate of tax—a purely political and cynical attempt to lay a bear trap for the Conservative party. As my right hon. Friend the Chancellor explained, it is raising little or no money and damaging the competitiveness of our economy. It was a Trojan horse of a tax. It raised no money and at the same time damaged our economy.
Is it not the case that the Opposition have no credibility on this issue, because even though the shadow Chancellor knows that the 50p rate damaged entrepreneurship and collected very little revenue, he still refuses, even this afternoon, to confirm that the Labour party, if in office, would bring it back?
My hon. Friend is absolutely right; they have no credibility and will not confirm whether they would bring the rate back. I remind the House of the comments of their former leader, Tony Blair, who stated:
“I wanted to preserve, in terms of competitive tax rates, the essential Thatcher/Howe/Lawson legacy. I wanted wealthy people to feel at home and welcomed in the UK so that they could bring more business, create jobs and spread some of that wealth around.”
Whatever happened to new Labour? Even Mr Blair accepted that the top 1% of earners pay almost 30% of the taxes in this country, and many other countries certainly feel the same, but our top rate of tax was the highest in the 10 largest economies in the world.