Better Jobs and a Fair Deal at Work

Rachel Reeves Excerpts

Wednesday 12th May 2021 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I am proud to open today’s debate on behalf of the Opposition. I am conscious that one of the basic tenets of qualification for Government is to be trusted by the public with their money. If we do not meet that test, then none of our ambitions and none of the changes we seek can come to pass, so let me make one thing clear at the start: it is a test that I intend to meet.

The recovery from the pandemic represents a crucial moment for Britain. This really is not the time for just wallpapering over the cracks; instead, we must match the scale of the moment that faces our people and also our planet. We need a Government who back Britain, and that means an ambitious and bold plan for good jobs. We must end the insecurity and lack of opportunity that there is in our economy for far too many, and seize this moment to create a brighter future for people in all parts of our United Kingdom.

This last year has been like no other. Families have given up so much; so many have lost loved ones. Coronavirus has shone a spotlight on what matters to all of us—our families and friends, our communities, our health and our security. After a decade of Conservative government, our public services were underfunded and underprepared for the pandemic that came—a shortfall of intensive care beds; unfilled vacancies in our NHS; a fragmented and underfunded social care system; and personal protective equipment stockpiles run down, despite all the warnings. This Government have allowed the public square to become degraded, and we all now know the cost of that.

Meanwhile, the failure to increase statutory sick pay in the middle of a deadly pandemic put far too many low-paid families in the impossible position of having to decide whether to go to work and put food on their table or to self-isolate and protect public health. The Government could and should have done so much more for those people.

The truth is that for too many people wages have stalled over the past decade; household debt is rising and too many people live pay cheque to pay cheque. And many of those people do the crucial everyday jobs that keep our economy running and our public services going. They have been overlooked and undervalued. The Government have done nothing for them and nor does this Queen’s Speech.

Instead, £2 billion of public contracts have been awarded to companies with close links to the Conservative party. We are led to believe that this is all one massive coincidence that they got those contracts. How did it happen? Who knows? The Government are taking the public for fools. What taxpayers deserve is for their money to be used to best effect, not for it to be squandered on contracts that do not deliver or used to line the pockets of friends and donors of the Conservative party.

The Government say they want value for money, but they have failed to claw back the millions of pounds wasted on contracts that did not deliver for the NHS and did not deliver for taxpayers either.

[Kevin Hollinrake]

The hon. Lady talked about people with connections to the Conservative party trying to get their favoured contractors to the front of the queue. Does she remember emailing me in the Cabinet Office to ask for one of her constituency companies to get to the head of the queue for exactly the same purpose?

[Rachel Reeves]

The job of a constituency MP, as the hon. Gentleman—a good constituency MP himself—knows, is to look out for our constituents. But I was not pocketing the money: I was not giving contracts to donors of my party, and I was not giving my local pub landlord a contract. Maybe our local pub landlords are really good at delivering contracts for the NHS, even though they have no track record of that—or maybe this one was a mate of a Conservative party Cabinet Minister.

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

That is not really a point of order; it is part of the debate, and I do not want the debate to descend into points of order. I am sure that if the shadow Chancellor of the Exchequer feels she needs to say anything further in response to the hon. Gentleman, she will do so.

[Rachel Reeves]

Two billion pounds-worth of contracts to friends and donors of the Conservative party—I will leave it at that, and let the record speak for itself.

Let us be clear about this Conservative Government’s record. They talk in this Queen’s Speech about a skills guarantee, but it was a Conservative Government who cut the education maintenance allowance; my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), the shadow Chief Secretary to the Treasury, was a beneficiary of that and has spoken powerfully about the difference it made to her. And this Government have overseen a fall in the number of apprentices, leaving millions of people without the skills they need to thrive. They speak in this Queen’s Speech about investing in all parts of our country, but it was this Conservative Government who scrapped the regional development agencies—the very bodies designed to ensure that every part of our country could prosper.

The Government talk in this Queen’s Speech about levelling up, but it is this Conservative Government who have cut 60p from every £1 of funding to local councils, forcing them to close Sure Start and children’s centres, and to cut back on social care, libraries and leisure centres, degrading the very fabric of our local communities. The Government want the public to think that they have been in power for only a year. They have not; they have been in power for 11 years, and they need to take responsibility for their own record.

Throughout this crisis, the Chancellor has pitched our health against our economy, treating it as if it were a zero-sum game, with health on the losing side. To do so was short-sighted, misguided and dangerous, and he must take responsibility for that. In a pandemic of this kind, public health and the economy are two sides of the same coin. The Government’s failure to act speedily, pushing ahead with “eat out to help out” without sorting out test and trace, and the refusal to back an October circuit break or to level with the public about the risks of mixing at Christmas, have caused huge loss and huge suffering, as well as the largest economic decline in the G7.

[Mr Perkins]

My hon. Friend is absolutely right that the Government seem to be railing against the incompetence of their own government, and policies that they have been voting for in the last 10 years. I would add to her list that the lifetime skills guarantee that they are now trumpeting is merely the reintroduction on a smaller scale of what existed under a Labour Government. This Government voted for these things for 10 years, and now say that they are the answer to the problems that they have created.

--- Later in debate ---

[Rachel Reeves]

My hon. Friend puts it very well.

There is a gaping hole in the furlough scheme, meaning that several million people have inexplicably been excluded for support. The self-employed—painters and decorators, plumbers, freelance musicians and fitness instructors—all work hard and pay their taxes, but for many there has been no safety net and no support. Why has the Chancellor ignored their cries for help? Is it because they did not have his telephone number? Is it because they cannot WhatsApp him—signed off with “Love Dc”?

The revelations yesterday about the bombardment of pressure on Greensill’s behalf by David Cameron are astounding: 45 text messages—nine to the Chancellor and 12 to the permanent secretary. When the former Prime Minister did not get his way, he threatened to phone the Chancellor, “Gove” and “everyone” else. What an appalling way to bully Government officials, and what did they get? [Hon. Members: “Nothing!”] That is not true. They got access to the NHS patient records through the Earnd scheme, and access to other Government lending schemes. Government Members know that.

The Chancellor said that he would push his team, so let me ask him how they were pushed. What were they asked to do? This is not just a political row; this is about how our country is run, and for whom, and it is about real jobs and livelihoods that are now at stake. Instead of trying to help out dodgy finance companies with wheezes for making money off the back of the NHS and small businesses, the Labour party is fiercely proud of British-made goods and services, and the people who make them. We champion our industries—from manufacturing to retail, our farmers, restaurants and pubs and our great cultural sector, to businesses starting up now and during the pandemic. We want and need them to succeed.

British industry is vital to our economic recovery, and the Government should be working hand in hand with it, not scrapping their own industrial strategy.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

Will the hon. Lady give way?

[Rachel Reeves]

If the hon. Gentleman wants to explain why the Government have scrapped their own industrial strategy, he can be my guest.

[Aaron Bell]

The hon. Lady is rightly praising British businesses. Will she therefore condemn the comments of her neighbour, the hon. Member for Leeds North West (Alex Sobel), who in March said that business was “the enemy” and that he would refuse to meet with them?

[Rachel Reeves]

I can say that business is our friend and that we will back British businesses and British workers.

The label “Made in Britain” is a sign of quality, a stamp that marks British manufacturing as among the very best in the world, yet the Government do not make the most of our assets. Over the past decade, they have failed to support our manufacturing base: so many jobs did not return after the financial crisis; and short-term sticking plasters have left sectors such as steel and shipbuilding as an afterthought. We still have not heard a word about the Government’s vision of how we will become global leaders in manufacturing and industry outside the EU or how we will help our cultural industries. We are talking about our musicians and performers, our farmers and fishermen, who are suffering because of the huge gaps in this Government’s deal with our European neighbours. In the last quarter, exports to the EU were down 18.1%, and exports to countries outside the EU were up by only 0.4%. This Government are lacking in ambition and they are in denial about what businesses need to thrive in this new environment. For example, our automotive sector is the jewel in the crown of British manufacturing, yet the UK has only one planned electric vehicle battery gigafactory. It is not yet under way, yet many are springing up all over Europe and around the world. We cannot afford to be in the slow lane, which is why Labour is calling on the Government to part-finance, in collaboration with the private sector, three additional gigafactories by the end of this Parliament, putting Britain back in the fast lane of car manufacturing. The truth is that if the batteries are not made here, the danger is that the cars will not be either. There is an irony here: in the year we are hosting the COP26 climate conference, the Conservative Government were pursuing new coal mines in Cumbria and have failed, through sheer incompetence, to deliver their own green homes grants that they promised. For the green future that we need to tackle the climate emergency we can choose to be world leaders or we can allow our communities, businesses and workers to be left behind. Tackling the climate crisis and creating the high-paid, high-skilled jobs in every corner of our country would have been front and centre of a Labour Queen’s Speech.

Let us consider another national challenge. More tax gets paid by shops on the local high street than when we buy online. Some big businesses have made billions extra this year, while other businesses are on their knees. The Government must level the playing field between physical high street shops in our town centres and the online retail giants. Yet none of this is in the Queen’s Speech. The UK has lost nearly 10,000 shops, 6,000 pubs, more than 7,000 bank and building society branches, and more than 1,000 libraries in the past 11 years. All of that happened under the watch of a Conservative Government, who stood by. These things matter to people, and I can tell the House that they matter to Labour. My hon. Friend the Member for Oxford East (Anneliese Dodds) has made that clear time and again, and I will do so too. Action was needed these past 11 years and yet there was none. It is needed even more now, yet there is none in this Queen’s Speech.

Alongside thriving businesses, we also need an economy that delivers for working people. That is what the Labour party is all about. This pandemic has shown so clearly who our country’s key workers are. After all, we were not clapping and banging pots and pans for management consultants; we were cheering the delivery drivers, posties, supermarket workers and our public service heroes, especially those in our NHS and social care. They have kept our country moving and our families safe, and they should be rewarded with a pay rise and not a pay cut. Any meaningful recovery means a new deal for key workers, with investment in their skills, fair pay for a fair day’s work, security and a voice in the workplace. The British people were promised new legislation to protect and enhance workers’ rights now that we are outside the EU, making Britain the best place in the world to work. The British people were told by this Government that there would be fairness in the workplace, better support for working people, and measures to protect those in low-paid work and in the gig economy. The Government said that they would protect

“the majority of businesses who…do the right thing….from being undercut by the small minority who seek to avoid their responsibilities”

to society. That was the absolute minimum that we were promised, yet the Government have not even delivered on that. Why is that? It is because improving workers’ rights has never been, and will never be, the priority of a Conservative Government. And who knows that more than any? Workers at British Gas. They have played a vital role in the last year, but have been fired and rehired on worse conditions. Apparently the Conservatives say that it is wrong. The Chancellor has said that today. We agree. But if it is wrong, why do they not do something about it?

Creating good jobs in all parts of our country, for all people; tackling the climate emergency; making sure that all our town centres are thriving and prosperous; supporting British industry and rights for workers—those would have been Labour’s economic priorities in the Queen’s Speech. They are clearly not the priorities of this Conservative Government. The challenges and the opportunities facing our country are great, yet what the Government are putting forward is so small. After just 24 hours, we can already see how thin this Queen’s Speech is. The foundations were not strong enough going into the pandemic, and people deserve something better than what they had before. The Conservatives have taken for granted those who have kept our economy and our essential services moving this last year, and they continue to undervalue all that our key workers do.

I believe that all our high streets, towns, villages and cities can thrive again if people have more money in their pockets and if we keep more wealth in our local communities. We need jobs that people can raise a family on, and rights that give people dignity, respect and support at work when they need it. Those who work hard should reap the rewards, not just those with access to Ministers or those who believe they can avoid paying their fair share of tax. I believe that we will only truly help our country to meet its full potential when people’s opportunities are not defined by what their start in life was, where they live, or what their accent or job is. We must be ambitious for all of our country, with real and lasting change. These should be the tests of any Government right now, and they are the tests that we will hold this Government to. But from what we have heard this week, and from what we have heard from the Chancellor today, these are tests that this Government look set to fail.

Ministerial and other Maternity Allowances Bill

Rachel Reeves Excerpts

2nd reading & 2nd reading: House of Commons
Thursday 11th February 2021 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I am pleased to follow the Minister, and I thank her for the discussions we have had in the lead-up to the Bill’s Second Reading. I congratulate the right hon. and learned Member for Fareham (Suella Braverman) on the impending birth of her baby, and I know that the whole House will want to send her and her family our very best wishes.

Let me say at the outset that the Opposition will be supporting the Bill, which is a small but welcome step in updating legislation in this important area. It is, of course, important that parents in the workplace should be supported in the challenging early months after the birth of a new baby, with the right to take paid maternity leave from their employment, whether they are in the Cabinet or in any other workplace. These changes should be made for the right reasons—because they are the right thing to do to support working parents, not because they are just politically expedient.

I welcome the Minister’s assurances that the Government are prepared to work on a cross-party basis to look at further reforms to bring us into line with best practice in this area. Further changes are indeed needed, because the proposals in their current form do not include, as the Minister recognised, any provision for paternity leave entitlement, those seeking to adopt or those on shared parental leave. As things stand, we are very much playing catch-up when it comes to parental leave.

If we are to encourage women from all backgrounds to become Members of Parliament and, indeed, Ministers, we must have modern working practices, so that it is a vocation that is open to everyone. A clear sign that further changes are needed, particularly when it comes to making Westminster a more family-friendly environment for working mothers, is the make-up of the House today. At present, 102 years after women first won the right to stand for Parliament and after reforms to sitting hours and the system of proxy voting, there are still just 220 female MPs compared with 430 men. That has to change if we are truly to reflect the country and all the experience and talent within it. I urge the Minister to work constructively with other parties and find parliamentary time to progress the further reforms that I believe many in the House would like to see.

[Jim Shannon]

I know that the Minister responded to my initial intervention, but the shadow Minister has referred to more reform, which I think is important. That reform has to look towards other elected representatives, including those in the Assembly and the councils. As an example, one of the ladies who works for me is a councillor, and she did not get the leave that she should have had, so I think this Bill is only the first stage when it comes to maternity leave. Does the hon. Lady agree that we can, and must, go further?

[Rachel Reeves]

I could not agree more with the hon. Gentleman. Elected representatives, whether here in Parliament, in devolved Administrations or in local government, and indeed those in all workplaces, absolutely deserve maternity rights which in some workplaces, including those of elected representatives, just do not exist today. I would very much support further reform in this area.

[Mr Richard Holden (North West Durham) (Con)]

I very much welcome what the Opposition are pushing for. Does the hon. Lady agree with me that this House has a position of leadership, in relation not only to the devolved Administrations but to the rest of the country, and that is why work towards paternity leave and, particularly, shared parental leave is so important?

[Rachel Reeves]

I thank the hon. Gentleman for that intervention. The Paymaster General and I have been speaking about the further reform that is needed, and in a way, the case for this Bill has shone a light on the wider reform that is necessary. We should not just be reacting to events; we should be thinking towards the future and about the challenges of combining work and family life which all of us in this place—men and women—face.

I would now like to turn to some of the challenges that women in Parliament have faced over the decades, and to talk about why it is so important that we continue to modernise some of our, frankly, outdated working practices. Without the battles fought in Parliament by the women who have come before us, I do not think we would be here today, fighting for those further changes that will make us more representative of the people we seek to represent. Pioneers such as the indomitable Barbara Castle fought for years to secure equal pay for women. There was also the independent MP Eleanor Rathbone, who successfully battled to see the Family Allowances Act 1945 become law. They both helped to build the foundations for a better, fairer society, particularly for women.

There are many other inspirational women MPs who have done so much for women’s rights. However, that often came at a high price. None of the first four women in Cabinet—Margaret Bondfield, Ellen Wilkinson, Florence Horsbrugh and Barbara Castle—had children, and it is hard to see how in those early decades they could have combined their job, and the antisocial hours it involved at that time, with having much time for family life. The first woman Cabinet member to have children was Judith Hart in 1968, a full 50 years after the first woman took her seat in this place. As the then-Labour MP for Lanark, she found it very hard to combine long periods away from her family with her work in this place, and eventually made the difficult decision to relocate her family from Scotland to London.

The first woman MP to have a baby while serving as a Member of Parliament was the former MP for Welwyn and Hatfield, Baroness Hayman, who had her first baby in 1976. However, just 10 days after giving birth, she was forced to come into Parliament because pairing had been suspended, and there was certainly no proxy voting then. She had to leave her baby in the Whips Office in order to take part in crucial votes. I also remember seeing my hon. Friend the Member for Hampstead and Kilburn (Tulip Siddiq) in a wheelchair in this Chamber two years ago for a key vote, as it was just two days before the birth of her son. At least that unacceptable situation has been ended by the system of proxy voting which, because of cross-party support, now enables MPs who are new parents to nominate another MP to vote on their behalf if they choose to do so.

Despite the hurdles they faced, those remarkable women built the foundations for the work in Parliament taken forward by irrepressible campaigners such as my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman), Dame Joan Ruddock, and the late and very much missed Dame Tessa Jowell, who all tackled inequalities, injustices and rights for women in Parliament and in the country. In fact, my right hon. and learned Friend the Member for Camberwell and Peckham has long supported the changes that we are discussing today. Under the last Labour Government, Ruth Kelly, my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) and my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier) had babies while serving as Ministers but had no formal provisions for maternity leave. The same has been true for Conservative Ministers in the past few years. They all watch with interest and contribute to this debate. It is fair to say that their experiences of combining their work as Ministers and their roles as new mothers were mixed, and I am very much looking forward to hearing my right hon. Friend the Member for Normanton, Pontefract and Castleford speak later in this debate.

I have already touched on Barbara Castle’s achievements with the Equal Pay Act 1970, which came when there were just 24 female MPs and was a watershed in the fight for gender equality. We have also had the Equality Act 2010 from my right hon. and learned Friend the Member for Camberwell and Peckham, the introduction of thousands of Sure Start centres, and the introduction of child tax credits and of free nursery places, all of which have been a lifeline for so many women and families in our country.

However, there is still much work to be done on improving employment conditions for women and the culture in workplaces, both in Westminster and across the rest of the country. The decision a decade ago by the former Speaker to close a bar on the parliamentary estate and replace it with a children’s nursery was undoubtedly a welcome move and has benefited many in this House and our staff, but it was not before time. I also recall that in 2015, when I was shadow Work and Pensions Secretary and expecting my second child, a Conservative Member suggested that as an expectant mum I should not be appointed to the Cabinet if Labour won the general election, as I would not be able to manage doing two things at once. I hope that he has since revised his opinions, and I am pleased that this Bill will allow Cabinet Ministers, for the first time, to have paid time off after the birth of a child.

[Patrick Grady (Glasgow North) (SNP)]

I am sorry to hear the experience that the hon. Lady is recounting. She has been paying tribute to pioneering, so I wonder whether she will join me in paying tribute to Aileen Campbell, a good friend of mine and the first Minister in the Scottish Government to take maternity leave. At that time, the Scottish Government were able to find a way of having a substitute Minister. It is not quite the same as what the Government are proposing today. Aileen and a couple of other MSPs are, sadly, leaving the Scottish Parliament because of these pressures, so it is welcome that we are making small but steady progress along the way to supporting women in politics.

[Rachel Reeves]

I thank the hon. Gentleman for that intervention, which builds on the point made by the hon. Member for Strangford (Jim Shannon) that it is important not just in this place, but for other elected representatives, that wherever they are representing their constituents they should be able both to continue doing their job and to bring up a family. We need in this place and in other elected forums to be able to represent the whole country. We say that we represent Britain or our local community, yet too often we do not look like the communities we are meant to serve. I hope that with the sorts of changes in the Bill, and with those in devolved Administrations and councils, we will make ourselves more representative.

Although the measures in the Bill amount to positive change, there is understandable alarm about this Government’s track record on workers’ rights more generally. It is important that while we today make changes to help women in this place, we also think about employment rights and women’s rights more generally. Just like this Bill, the Government’s new employment Bill should be an opportunity to extend and safeguard workers’ rights, not water them down. However, after a year of silence on that Bill, the Government have failed to deliver on their promise to enhance the rights of all new mums. Pregnant women have found widespread discrimination throughout this pandemic, with many left without basic maternity pay and instead put unlawfully on to statutory sick pay during the pandemic. Indeed, there is a stark contrast to be drawn between the Government’s urgent passing of this legislation, which we support, and their inaction on behalf of struggling pregnant women across the country. I hope that today the Government will reflect on what more they can do to help women in this country.

The Government should also be doing more to help the parents of babies born prematurely. Under the current rules, maternity leave of up to 52 weeks starts when the baby is born, but because a premature baby can spend weeks in hospital, mothers are effectively cheated of spending some of the leave with their new child. I raised this subject two years ago, as a Back Bencher, based on casework in my constituency and working with Bliss—the charity for babies born prematurely or sick that does such brilliant work. I called on the Government then to change the rules so that new parents of premature babies are not put under further unnecessary pressure; today, I again urge the Government to bring forward plans to ensure that parents of premature babies are given the time and flexibility granted to other parents to care for their baby once their baby is home.

At present, Ministers have no rights when it comes to maternity, paternity or adoption leave. If a Minister wants to take maternity leave, as the Paymaster General set out, the rules do not allow for them to continue to receive a Government salary along with the person providing their maternity cover. It is right that that should be changed to remove that barrier in a woman’s career. The Bill would end that anomaly and mean that Ministers would not have to face being financially penalised or forced to stand down from their ministerial role to care for a newborn. The changes would bring Ministers into line with most civil servants by providing them with a period of six months’ leave on full pay.

Last year, there was cross-party support for the change that now allows MPs who are new parents to use the proxy voting scheme, so they can spend precious time with their new child. The proposals before us today represent another baby step in what should be an ongoing modernisation of working practices to ensure that women do not get a raw deal at work due to failure to move with the times. It is a shame that it has taken the pregnancy of a member of the Cabinet—happy news though that is—for this Government to realise that improving the workplace rights of expectant parents should be a priority. This change will benefit family life, remove a barrier to career progression, and ensure that having a baby does not come with a financial penalty as well as the sleepless nights that none of us can prevent. However, we need to see far more progress by the Government on this issue to ensure that women and all workers are treated fairly in the workplace, including when they have children.

We are behind the times when it comes to adopting modern, family-friendly working practices in Parliament and in Government, and change is long overdue. I ask the Minister to make a firm commitment to review and explore, as a matter of urgency, further potential reforms that can be made with cross-party support to ensure that this “mother of Parliaments” is a Parliament that genuinely welcomes mothers. This should be the start, not the end of a journey by this Government to deliver more employment rights and to give workers in all workplaces and in all jobs the protection and support they need and deserve.

[Mr Deputy Speaker (Mr Nigel Evans)]

Before I call Caroline Nokes, I want to set out the time limits that will apply. As Chair of the Women and Equalities Committee, Caroline Nokes will have six minutes. She will be followed by another Front-Bench spokesperson. Then, from Cherilyn Mackrory onwards, a four-minute limit will apply, and that may be reduced later.

Future Relationship with the EU

Rachel Reeves Excerpts

Thursday 10th December 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent Question): To ask the Minister for the Cabinet Office to make a statement on the progress of the negotiations on the UK’s future relationship with the EU and preparations for the end of the transition period.

[The Paymaster General (Penny Mordaunt)]

I am grateful for the opportunity to update the House again on the progress of our negotiations with the European Union. The Prime Minister met the Commission President yesterday evening in Brussels. They, along with the chief negotiators, Lord Frost and Michel Barnier, discussed the significant obstacles that still remain in the negotiations. It is clear that we remain far apart on the so-called level playing field, fisheries and governance. However, they agreed that talks should resume in Brussels today to see whether the gaps can be bridged. They also agreed that a decision should be taken by Sunday regarding the future of the talks.

We are working tirelessly to get a deal, but we cannot accept one at any cost. We cannot accept a deal that would compromise the control of our money, laws, borders and fish. The only deal that is possible is one that is compatible with our sovereignty and takes back control of our laws, trade and waters. As the Prime Minister said, whether we agree trading arrangements resembling those of Australia or Canada, the United Kingdom will prosper as an independent nation. We will continue to keep the House updated as we seek to secure a future relationship with our EU friends that respects our status as a sovereign, equal and independent country.

[Rachel Reeves]

The country was hoping for a breakthrough last night, yet there was none. There is a sense of huge dismay, as we all wanted to hear significant progress, but we heard more about the Prime Minister’s meal than we did about his deal. In fact, we have not heard from the Prime Minister at all, even though he was supposed to be taking charge of these negotiations.

On Sunday, we will have just 18 days to go until the end of the transition period. How has it come to this? Businesses desperately trying to plan need to know what on earth is going on. If talks break down and the Government pursue no deal, what happens next? Will the Government look to swiftly restart negotiations, or do the Government believe there should be no talks next year or even for the rest of this Parliament? Or have the Government not thought that far ahead?

I want to focus in my question today on the security implications of no deal. The political declaration, signed by the Prime Minister, stated that there should be a

“broad, comprehensive and balanced security partnership.”

Yet despite numerous questions from the Opposition, and indeed from the right hon. Member for Maidenhead (Mrs May), Ministers have been unable to tell us how border officers and police will be able to access security data. The Government’s “No-Deal Readiness Report” admitted that, without a deal on security and data, the UK would lose access to key law enforcement tools such as SIS II—the second-generation Schengen information system—Europol and the European arrest warrant. These databases help us to fight organised crime and terrorism. Can the Minister guarantee that the security of the British people will be in no way undermined in the event of no security agreement?

The Labour party believes that the security of our country and our people are crucial. The Government will not be forgiven for undermining those. So for our economic prosperity and for our country’s security, will the Government do the responsible thing and bring back the deal?

[Penny Mordaunt]

I thank the hon. Lady for her comments. First, let me assure her of the Prime Minister’s resolve, efforts and determination to secure a deal. It is one reason why she is having to endure me today and not others. We are going to do everything we can to secure a deal. The best outcome is a Canada-style arrangement, and we are going to leave no stone unturned. We will carry on in talks and carry on negotiating until there is no hope of that happening, but at the moment there is hope of that happening, even though things do appear gloomy.

I appreciate also that Members are very concerned about these matters. Ministers are always happy to come and answer questions and update as much as we can on these issues, but I would say to all colleagues, particularly those on the Opposition Benches, that calling for urgent questions or asking other questions on the Floor of the House with the express mission of trying to undermine our negotiating position by pretending we are not ready for any outcome that these negotiations might yield is not helping to secure the outcome we all want, and it is certainly not in the interests of the country. These are serious times and none of us should be doing anything that may undermine the possibility of us getting the deal we all want.

Let me turn to the issues the hon. Lady raises. We have been clear that the end of the transition period will bring both opportunities but also challenges. We have been making extensive preparations for a wide range of scenarios at the end of the year, including whether it is an Australian-style outcome, and we are ready to seize those opportunities of being outside the single market and the customs union. This includes investing over £700 million in jobs, technology and infrastructure at the border and providing £84 million in grants to boost the customs intermediary sector, alongside implementing border controls in stages and ensuring that we have the necessary time to prepare.

We will not compromise on security. This has been an absolutely key part of our preparations on any outcome, and it is one of the reasons why, even in these gloomy times, I still am optimistic that a deal can be secured, because I do not believe that any European Union member state would wish to affect or compromise the security of its own citizens. But if we leave on an Australian-style outcome, we have measures in place to ensure that our citizens will be safe, and that we will be able to share intelligence and the other things we need to do to ensure our security arrangements are as they should be. I urge all colleagues, whatever their political hue or imperative, to put our nation first over the next few days, to support our negotiating team, to demonstrate our readiness under any scenario and our resolve, and to help us get a deal.

UK-EU Future Relationship Negotiations and Transition Period

Rachel Reeves Excerpts

Monday 7th December 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent Question): To ask the Minister for the Cabinet Office if he will make a statement on the progress of the negotiations on the UK’s future relationship with the EU and preparations for the end of the transition period.

[The Paymaster General (Penny Mordaunt)]

I am grateful for this opportunity to update the House on the progress of our negotiations with the European Union.

Intensive talks continue. In fact, the United Kingdom’s negotiating team, led by Lord Frost, has been in talks with the EU almost every day since 22 October and is working tirelessly to get a deal on our future relationship. This also affords us in this place the opportunity to show our collective resolve to get a good deal, our expectations of what that needs to look like, and what we will not accept. While there has been some progress across many areas, familiar differences remain on the so-called level playing field, fisheries and governance. Of these, the level playing field issue is currently the most difficult.

On Friday, after an intensive week of talks in London, the respective chief negotiators, Lord Frost and Michel Barnier, issued a joint statement. This outlined that the conditions for an agreement had not been met, and that talks should pause briefly to allow the Prime Minister and the Commission President to discuss the state of play on Saturday. Following their telephone call, the Prime Minister and President von der Leyen issued a joint statement. It welcomed progress, but noted that an agreement would not be feasible if the issues on the level playing field, fisheries and governance were not resolved. They agreed that a further effort should be made by the UK and the EU to assess whether the outstanding differences can be resolved, and instructed the chief negotiators to reconvene in Brussels.

We are at a critical moment in the negotiations. Teams are negotiating as we speak, and the Prime Minister will call the Commission President later this afternoon to discuss progress again. My right hon. Friend the Chancellor of the Duchy of Lancaster is in Brussels today, meeting the European Commission vice-president; they are meeting in their capacity as co-chairs of the UK-EU Joint Committee under the withdrawal agreement.

We are all working to get a deal, but the only deal that is possible is one that is compatible with our sovereignty, and that takes back control of our laws, trade and waters. While an agreement is preferable, we are prepared to leave on so-called Australian-style terms if we cannot find compromises. As the Prime Minister has made clear, people and businesses must prepare for the changes that are coming on 31 December, most of which are related to our departure from the EU single market and customs union, and not the outcome of these talks.

Mr Speaker, we will continue to keep the House updated as we seek to secure a future relationship with our EU friends that respects our status as a sovereign, equal and independent country.

--- Later in debate ---

[Rachel Reeves]

Last year, the Prime Minister said that to leave with no deal would be a “failure of statecraft”, so this Government must take responsibility for their failure if we leave without a deal. We will hold the Government to account for whatever they bring back—deal or no deal.

With just 24 days to go until the end of the transition period, let me ask a few basic questions about this Government’s and our country’s readiness. Trading on World Trade Organisation terms would mean tariffs on lamb exports of 40%, so what is the latest assessment of how many farms would go to the wall in the event of no deal? Tariffs on car exports would be 10%, so what is the viability of our great automotive industry if there is no deal on rules of origin?

The Office for Budget Responsibility said last week—I am surprised the Chancellor did not mention it at all in his spending review statement—that if we leave without a deal, GDP would fall by an additional 2% next year, unemployment would rise by an additional 1% and inflation would be up 1.5%. Those are not just numbers; this is about British industries and people’s jobs. The detail does matter, so will the Minister admit to the House how many of the 50,000 customs agents who the Government agreed are needed by the end of the year have actually been recruited?

Today, the Minister for the Middle East and North Africa claimed that the oven-ready deal had already been delivered. If that is the case, it must have been sent to the wrong address, because the whole country is still waiting for the comprehensive trade and security deal that was promised to the British people at the general election less than a year ago.

Mr Speaker, you will remember that the former International Trade Secretary, the right hon. Member for North Somerset (Dr Fox), once said that a trade deal with the EU would be the “easiest in human history”. Let me finish by asking the Minister: is that still the view of this Government?

[Penny Mordaunt]

I have some sympathy with Her Majesty’s Opposition today, because although I have been involved with various aspects of the negotiations and am vice-chair of the Joint Committee under the withdrawal agreement, I have not been in the room for these negotiations, and neither has any Member of this House. I understand that we have so much invested in getting a good result, for all the reasons the hon. Lady sets out. This is how it must have been for an expectant father waiting for news outside the delivery room. I can understand the tension and frustration many Members must be feeling at this critical moment.

We are all waiting for what we hope is good news, but we are not powerless in this. We are all active players and participants, and we should all be doing everything we can at this critical moment to ensure that our negotiating team are supported, and that we get the best result for this country. That means that we should provide clarity and resolve about what we want from a deal and what we are not prepared to accept, and show united support for our negotiating team. I hope that all Members of this House will join me in sending our resolve and good wishes to Lord Frost and his team as they continue to work on our behalf. We must also provide the necessary focus to get the negotiations over the line, which many Members of this House did by ensuring that we did not extend the transition period.

Sadly, the hon. Member for Leeds West (Rachel Reeves) and her colleagues on the Opposition Benches have failed to do any of those things to help us secure a good deal for this country. That is fair enough if Labour does not have a position on Brexit, but it might like to get one in the next few days.

All of us in this House must show support and resolve to get the deal that the hon. Lady articulates, and that we all want for citizens and businesses, not just within the UK but throughout the remainder of the EU. [Interruption.] I am turning to her questions; there were not that many. The tariff issues are published on gov.uk. I know that she has recently written to the Chancellor of the Duchy of Lancaster, who will reply to her in detail, as he always does.

What I would say to the hon. Lady, having been involved with transition preparations, is that when we have got into some of the detail—site visits and so forth, and helping ports, for example, put together their bids for the port infrastructure fund—assumptions that have been made about what we will need have been reduced. In my own local patch, for example, we were looking at having to have 10 freight gates. We now need only three because we have had greater clarity about how things will work.

We will keep the hon. Lady and all Members of the House updated on this front, but I assure her that we are making every effort to secure a deal. That is our aim. That is what everyone, I think, in this House would want, but that deal must respect the United Kingdom’s sovereignty and its integrity as a nation. We want to be able to control our own borders, set our own robust and principled subsidy control system, and control our waters. Those things are not up for compromise. We will not compromise. If the hon. Lady and colleagues want to assist Lord Frost and his team in that, that is the message that they should send them this afternoon in this place.

Future Relationship with the EU

Rachel Reeves Excerpts

Tuesday 9th June 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

(Urgent question): To ask the Minister for the Cabinet Office if he will make a statement on the fourth round of the negotiations on the UK’s future relationship with the European Union.

[The Paymaster General (Penny Mordaunt)]

Negotiators from the UK and the EU held full and constructive discussions last week via video conference led by David Frost, the UK’s chief negotiator. The talks covered trade in goods and services, fisheries, law enforcement, criminal justice and other issues, in which both sides engaged constructively. There was, however, no movement on the most difficult areas where differences of principle are at their most acute, notably fisheries, governance arrangements and the so-called level playing field.

We have now reached an important moment for these talks. To make progress, we need to accelerate and intensify our work, and the Government are working closely with the EU to achieve that. It is our priority to conclude this negotiation in good time to enable our citizens and businesses to have certainty about the trading terms that will follow at the end of this year and, if necessary, to allow any ratification of agreements reached. We have always been clear that such a deal must of course accommodate the reality of the UK’s well-established position on the so-called level playing field, on fisheries and on the other difficult issues, and fully recognise the UK as a sovereign equal.

The House should also be aware that this Friday, the Chancellor of the Duchy of Lancaster and I will be at the second meeting of the withdrawal agreement joint committee. We will be able to update the committee about the positive progress the UK is making on implementing our obligations, not least on citizens’ rights and the Northern Ireland protocol, but we will also emphasise that we will not be extending the transition period, and will push the EU on implementing its obligations under the terms of the agreement.

The Government remain committed to our negotiations with the EU and the implementation of the withdrawal agreement and will continue to keep the House updated on developments.

[Rachel Reeves]

The UK left the European Union in January, and our task now is to build the best possible new relationship with our European neighbours. Our chief negotiator, David Frost, said last week:

“We need to conclude this negotiation in good time to enable people and businesses to have certainty about the trading terms that will follow the end of the transition period at the end of this year”.

We agree, but currently we are in the dark about what this new relationship looks like.

Both the CBI and the TUC are warning about the impact of chaos and uncertainty on jobs and livelihoods. The Association of the British Pharmaceutical Industry warned this week that, as a consequence of covid-19, the stockpile of medicines has been run down and cannot be rebuilt, in terms of volume or range, by the end of this year. The Road Haulage Association says:

“We are still missing the essential practical information on all new processes and procedures”

as the Government look to introduce millions of extra declarations at the border each year. Does the Minister believe that having 50,000 new customs officers to process those declarations will add to or reduce the red tape for UK businesses?

From freight to farming, fisheries to pharmaceuticals, we need clarity. During the general election, the Prime Minister claimed time and again that the Government had an oven-ready deal. Its fundamental ingredients matter, so will the Minister confirm that the Government still, as they did in December, guarantee that there will be no tariffs, fees, charges or quantitative restrictions across all sectors? Leaving on WTO standards, or even a Canada-style deal, does not guarantee that. Will she also confirm that the Government will safeguard workers’ rights and consumer and environmental protections? There is much concern that that is no longer Government policy. Are the Government still committed to a broad, comprehensive and balanced security partnership, which is essential to bring criminals to justice? Will the Government respect the Good Friday agreement in its entirety?

To conclude, this is not just a deal between the UK Government and the European Union. Through the course of the election, it was the basis of a deal with the British people. We urge both sides to redouble their efforts over the next few days and weeks to ensure that progress is made by the end of this month, so that the Government can honour their commitment to ensuring a good deal for Britain by the end of this year.

[Penny Mordaunt]

I thank the hon. Lady for those questions. At the start of her response, she made a powerful argument for not extending the transition period. If we have learned anything over the last few years, it is that that would only extend the negotiations. I agree that business, our citizens across the EU, and the rest of the world, with which we are also focused on trade negotiations, want to have certainty about the future, so we must press on with that. That is one of the many reasons why we will not extend the transition period.

The hon. Lady is also right to draw attention to the fact that the covid crisis is going on. I know that she is aware of the huge amount of work that was done last year on no-deal preparations, and the tremendous work that civil contingencies and all Government Departments have been doing to ensure that supply chains remain strong, that we can quickly adapt, and that we have stocks of all sorts of goods, including the medicines that we need. These are challenging at times, in the light of what the world is facing, but they are our focus. I assure her of the incredible work that those civil servants are doing to ensure that our citizens have what they need when they need it.

I take a keen interest in those areas as a former employee of the Freight Transport Association. We will shortly be saying more about our border operations. A tremendous amount of work has gone on to improve on our communication with businesses from every part of the UK last year to ensure that is good, and that we are not just giving people the right information, but picking up solutions from the sector, because that will be key to getting it right.

On the hon. Lady’s remarks about rights, animal welfare, security, zero tariffs and zero quotas, our policy has not changed. We will of course respect the Good Friday/Belfast agreement and we expect the EU to do the same.

Covid-19

Rachel Reeves Excerpts

Monday 11th May 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I thank the Minister for that thoughtful opening speech. We all need the Government to get this right. Labour has been clear: we will always put the national interest first. We will support the Government when they get it right but challenge them to do more when that is needed.

We all know how hard lockdown has been, especially for those who fear for their jobs and their businesses; the elderly; the lonely; and those living with an abusive partner or carer. At the moment, most grandparents want nothing more than to be able to hug their grandchildren. Thousands of people are missing out on the chance to say goodbye or even to hold the hand of the person they love in a care home. The same applies to the ambiguous situation relating to funerals and cremations, which is causing enormous pain and distress to so many families. It is in depriving us of these poignant moments—opportunities to hug, to hold and to say goodbye—that the impact of the virus causes the most distress.

There are so many profound social costs, and it all has to be balanced with the huge challenges and risks faced by people working in health and social care. We all want the Government to get this right, but, frankly, the Government’s response in the past 24 hours has been a shambles. Last Thursday, the Government’s briefings to newspapers led to headlines proclaiming that we could look forward to “Happy Monday” and “Lockdown Freedom”, the day before a sunny bank holiday weekend. When I saw those headlines, I recalled the world war two poster in my history class at secondary school that said, “Careless talk costs lives”. I wonder sometimes whether the Government pause to contemplate the health impacts of some of their briefings and statements.

Last night’s statement by the Prime Minister was a chance to provide some clarity about the situation, but it obscured as much as it revealed. This morning, the Foreign Secretary told “Today” programme listeners that they were free to see both their parents at the same time. Almost immediately afterwards, it was clarified that people may see only one parent at a time. The Foreign Secretary then told Sky News that people should return to work from Wednesday, but the press release issued by Downing Street alongside the Prime Minister’s statement clearly stated that people should be encouraged to return to work from Monday. If senior members of the Cabinet struggle to follow the advice, what are the rest of us meant to do?

A four-nation strategy is essential to ensure a coherent and consistent message. It has served us well so far, so why is England now pursuing a different strategy from Northern Ireland, Scotland and Wales? If someone lives in Bristol but works in Cardiff, should they be going to work? What about if someone lives in Berwick but works in Edinburgh?

When it comes to Northern Ireland, the Government must also consider cross-border co-operation. Northern Ireland is unique in that it shares a land border with the Republic, so close co-operation with the Irish Government and the Northern Ireland Assembly is vital to ensure a joined-up approach to effectively combating the virus, particularly with regard to contact tracing. The UK has the highest death toll in Europe. That calls for greater care, not greater risks.

The most substantive change in Government advice today is that workers who cannot work from home should return to work. We want workers to earn an income and businesses to thrive, but for that to happen, workers need to know that they and their families will be safe. Businesses want that knowledge and security as well.

Let us be clear that the biggest risk to our economic security and recovery would be decisions that led to a second peak of the virus, so it is deeply worrying that workers were asked last night to return to work today with no guidelines published with regard to safety in the workplace. If someone has been told to return to work, but lives with a partner with a pre-existing condition or an elderly parent, what are they meant to do?

What if someone has a school-age child but is now expected by the Government and their employer to return to work without the childcare to be able to do that? Can people still be furloughed? Is that at their employer’s discretion? If people cannot work through no fault of their own, will they be required to go on to statutory sick pay?

Who will assess whether a workplace is sufficiently safe? Is it up to the individual employee? I refer the Minister to section 44 of the Employment Rights Act 1996, which permits an individual employee not to return to work without risk of detriment if they reasonably believe that adequate safety measures are not in place. I hope that employers and Ministers will protect those rights.

Meanwhile, workers are told to avoid public transport if possible, but for millions of people in the UK, it is not possible to get to work any other way but by public transport. We have already seen bus drivers in London lose their lives to covid-19. People need to know that they can go to work without endangering themselves, or indeed others. If we are to balance concern for the economy with concern for public health, the Government should bring unions, business leaders and scientists together to develop a national safety standard. The safety of workers and their families is not, and can never be, an optional extra.

It is vital that the furlough scheme continues to support workers, including enabling people to work part time, particularly if businesses are unable to operate at full capacity. We need to hear more from Ministers about ongoing support until the time is right to operate at full capacity for some of the hardest-hit sectors, such as hospitality and travel. We need to support areas such as our coastal communities, which are so dependent on tourism.

The impact of the virus exposes deep inequalities in our society. The poorest areas of the country have been hardest hit. Lower earners are most exposed while the better-off are insulated from the biggest threats. Of the bottom 50% of earners, just one in 10 can work from home. At the top, it is five times that.

This crisis has shown who the real key workers are, from NHS staff to care workers, supermarket workers, cleaners, delivery drivers and bus drivers. They are often underpaid, under-appreciated and undervalued, and they have been asked to put their lives at risk while keeping others safe. Now, more working people who do manual jobs in manufacturing, food processing and construction are being asked to risk their health, and that of their family, while those doing office jobs, which are often better paid, can work from home and face fewer risks.

Black and minority ethnic Britons are disproportionately at risk. We know that black Britons are four times more likely to die from this virus compared with white people. We need a public inquiry into that, which Baroness Lawrence called for today, and we need urgent action to protect the most vulnerable from this virus. Coronavirus did not cause those inequalities, but it has thrown a sharp light on them. We must not let them deepen even further.

In our care homes the spread of the virus continues and the death toll is still too high. Half of workers in care homes earn less than a real living wage, and a quarter are on zero-hours contracts. Many have died. Last Wednesday, the Prime Minister reported that 29 care workers have died since the start of this crisis, but data from the Office for National Statistics show that there were 131 coronavirus-related deaths among social care workers up to 20 April. According to the National Care Forum, just one in five care workers with symptoms have been tested, and they still lack priority testing for coronavirus. Those who dedicate their lives to caring for others, and who care for the sick and the dying whose relatives cannot be with them, are being left without adequate protection, and we are only beginning to know the real cost.

One reason why the lockdown rules are causing so much worry is that new infections and deaths are still at higher levels than when we went into lockdown. The test and trace strategy is still a mess. MPs from across the House will have constituents who have been waiting for well over 48 hours to get their results, and some who have been waiting for more than a week. We see reports of tests having to be flown to the United States because we lack the capacity here. How did we get into that position? Without a test, trace, and isolate strategy it is almost impossible to identify a new spike in infections, or to do anything about it. The Government need to sort that out. Relaxing lockdown will work only if it is sorted out.

At some point we will come through to the other side of this virus, and we will go about rebuilding our lives, our communities, and our economy. The recovery will not be easy, and it will require boldness and imagination to build something better. The contribution of the British public and all our key workers has been immense, but the crisis has revealed huge injustices and inequalities. We deserve a fairer country—that will be Labour’s mission, and I hope it will be the Government’s mission too.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Thank you. There will now be a four-minute time limit on Back-Bench speeches. As ever, I advise Members who are speaking from home and do not have the benefit of the clock in the Chamber to have some other method of ensuring that they do not exceed four minutes. It is amazing how many people cannot add on four, but I know that does not apply to Mr Mel Stride.

Economic Update

Rachel Reeves Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend has made a good point. I believe that providing liquidity now ensures sustainability for the future, but he is right to identify the further steps that are needed to provide support on fixed costs such as employment, and preserving and incentivising that employment. This is work that we are undertaking as a matter of urgency.

[Rachel Reeves (Leeds West) (Lab)]

For those who are currently off work on statutory sick pay or are self-isolating for public health reasons, who are laid off because there is no work or who are self-employed or low-paid, there is nothing at all in the Chancellor’s package of measures. The Chancellor says that these matters are under review. As a matter of urgency, will he at least increase statutory sick pay to the level of the national living wage, and come back to the House with a package of support that ensures that workers will not be financially penalised for doing the right thing, and will not be unable to pay their bills and rent and put food on the table?

[Rishi Sunak]

We have put £1 billion into the welfare system to provide extra financial security for those people, to speed up both access and the generosity of all those benefits.

Economy and Jobs

Rachel Reeves Excerpts

Monday 20th January 2020 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I welcome the investment that the Chancellor speaks of and the commitment to get to net zero by 2050. Climate change also means more extreme weather events. In Leeds West, we had serious floods in 2015, and yet still the Government refuse to put in the funding to build the flood defences to protect against the one in 200-year flood event that we experienced. When will the Government put the money into that infrastructure?

[Sajid Javid]

That is an important point. I am aware of some of the serious flooding to which the hon. Lady has referred. That is why our national infrastructure plan includes much more funding—significant new funding—for flood defences, and I hope that she will welcome that and support those plans when they come before this House.

Let me also briefly address the amendment in the name of the Leader of the Opposition. Every Labour MP stood on a manifesto that would have cost the average taxpayer an extra £2,400 each year—each and every one of them did that. Labour committed to spending an extra £1.2 trillion over five years, which is equivalent to funding the NHS budget for nine years. It is no wonder that the hon. Member for Salford and Eccles (Rebecca Long Bailey) said, just a few days ago, that the policies that she helped to write lacked “economic credibility”. It is a bit late for that.

Whatever they may say now, every single one of the would-be Labour leaders tried to make the Leader of the Opposition Prime Minister. They endorsed his vision, his world view and his ideas for Britain, and that is why they will never be able to bring the change that the British people voted for. Instead, they are confirming that Labour is the party of the past and that it is out of touch with working people. Labour will just keep on refighting the same old internal battles while this Conservative Government get on with renewing the country.

--- Later in debate ---

[Rachel Reeves (Leeds West) (Lab)]

It is a pleasure to follow the hon. Member for West Worcestershire (Harriett Baldwin), and I echo her concerns about the financial services sector in any future relationship with the European Union. I also put in a plea for the manufacturing sector and its supply chains, which rely on regulatory convergence with our closest trading partners.

I will concentrate my remarks on the employment Bill, but first I will speak about my worries for the economic outlook, especially ahead of the Budget in a few weeks. Business investment, which is essential for our long-term prosperity and productivity, has been falling for six quarters—the sharpest decline for a decade. The economic growth we have seen is anaemic at best, and the economy is likely to have grown by just 1.3% last year, with even lower rates of growth expected this year. That is half the average growth experienced over the past 50 years.

Far too much of the growth we have seen is premised on unsecured household debt, which now stands at more than £15,000 per household—a record 30.4%. We cannot go on like that if we want to build a strong and sustainable economy. Yet we have heard very little, if anything, on that from the Chancellor this afternoon. Many of our cities are growing and have become richer, but inequalities are increasing, too. In other areas, particularly our towns that were once powered by industry, industries have largely disappeared thanks in large part to previous Conservative Governments, leaving an acute legacy of deprivation and disadvantage that I hope the Government will now make their focus.

Turning to the employment Bill, behind the overall positive employment statistics a few facts should be ringing alarm bells to all of us who care about the living standards and the job security of those we represent, particularly the poorest. We welcome increases in the national minimum wage, even if it is not at a rate that we on the Labour Benches would like it to be, but underpayment has been steadily rising over the past two years. Some one in four workers aged over 25 earning about the legal minimum report that they were underpaid two years ago, yet only seven firms have been prosecuted in the past 10 years for underpayment of the national minimum wage, despite violations being in their thousands. Why is that? Even when fines are levied, the full penalties are not applied. Only half the penalties that could be imposed are being imposed.

If we want our workers to be paid a minimum wage, we must ensure that laws are enforced. I support the Government’s commitment to a single enforcement agency to help workers enforce their rights, but I hope that it will be properly resourced and that the barriers the Government have sought to put in the way of workers looking to enforce their rights through the courts will not be repeated in this Parliament.

I urge the Government to look seriously at the recommendations of the Business, Energy and Industrial Strategy Committee from the previous Parliament, which called for workers to be granted worker status as a default, rather than having to take their case to the courts.

Two other changes not in the Queen’s Speech would also be useful: an actual right to a contract reflecting hours worked, not just a right to request one, and, as the TUC has argued, two weeks’ notice of shifts, rather than an early morning text message to let people know whether they have work that day; and payment when shifts are cancelled without reasonable notice.

Too many firms, particularly in the gig economy, try to get out of paying full taxes, national insurance, the national minimum wage, and holiday and sick pay. That is a disgrace and we need much stronger action, yet the Government have let the issue drift while a growing number of workers miss out on the rights that we have fought so hard to secure both in this Parliament and, indeed, through the European Parliament. It is hardly surprising that work is now no longer always a route out of poverty. Some 14 million people live in poverty, including nearly 5 million children, and 60% of them are in households where at least one person works. This is a problem that is set to get worse under this Government, with the number of people in zero-hour contracts and in bogus self-employment on the rise yet again.

I also want to say something this afternoon about business excess and the lack of regulatory oversight. We are now more than two years on from the collapse of Carillion. When Carillion failed, thousands lost their jobs, suppliers went unpaid and large-scale infrastructure projects, including hospitals in Liverpool and the west midlands, went unfinished. The collapse was caused by the recklessness, hubris and greed of its directors, yet they have not paid the price—others have. Carillion was a notorious late payer. Suppliers had to wait 120 days to be paid, or pay Carillion if they wanted to be paid on time. When it collapsed, 30,000 suppliers were owed £2 billion.

Meanwhile, its pension scheme had a £2.6 billion deficit. Ordinary workers—but not, of course, the directors—will not get the full pension that they were entitled to. Yet its auditors, KPMG, signed off Carillion’s accounts for 19 straight years in a row without qualifying them or raising concerns.

Here we are, two years on, and nothing has changed. The Government’s obsession with outsourcing and privatisation continues. The hands-off regulation and light-touch auditing continues. The employment Bill says it will give more powers to the Small Business Commissioner. That is welcome, but it does not really suggest the degree of urgency or priority that is needed.

The corporate failure and the audit failure happened then and it could just as easily happen today. Our audit firms are too powerful. The assumption that the private sector is always best has to end. Small businesses should not be at the mercy of dominant big businesses that determine whether their suppliers are paid, and regulators should clamp down on abuse and not just turn the other way.

This is not some abstract ideal. It is the basis of an economy that: values workers by paying them a decent wage and offering them some dignity and security in the workplace; supports businesses that play by the rules and invest in our economy while ensuring that big businesses do not exploit the system; and invests in every region and nation of our country—in green energy and transport, infrastructure and skills to help our economy to thrive for everyone.

The Queen’s Speech touches on some of those themes but I fear that it lacks the conviction to do what is needed. There is a common theme in all this: the failure to put in place rules to stop workers being exploited; the chipping away of regulations that protect the most vulnerable; the remorseless faith in the private sector, with more outsourcing and privatisation; and the creation of city Mayors but a reluctance to devolve the power and money to let them do their jobs as effectively as they can.

The real problem with the Government and the Conservative ideology is that they do not allow for a challenge to the neo-liberal economic model and do not account for the social value of the public sphere—the glue that binds our society together. While the Government speak on some of these themes, I do not believe that they have the willingness to see them through to deliver the economy that we need.

Oral Answers to Questions

Rachel Reeves Excerpts

Tuesday 7th January 2020 Commons Chamber

[Mr Speaker]

I call Rachel Reeves.

[Rachel Reeves (Leeds West) (Lab)]

indicated dissent.

[Mr Speaker]

Let us take somebody else then.