Budget: Pre-announcement of Provisions

Debate between Simon Clarke and Jack Dromey

Tuesday 26th October 2021 Commons Chamber

[Jack Dromey (Birmingham, Erdington) (Lab)]

Eighteen years ago, I was deputy general secretary of the Transport and General Workers Union. I was a founder member of the drive for the living wage, when we organised 3,000 cleaners in Canary Wharf and the City of London. I agree with the Resolution Foundation that the proposed increase would “not remotely compensate” those who will lose £1,000 as a result of the cut to universal credit. With workers facing a cost of living crisis, rising energy costs, rising inflation, rising fuel costs and rising food prices, is it not the case that workers’ living standards will continue to be squeezed as the Government give with one hand and take away with another?

[Mr Clarke]

No, I do not accept the premise of the hon. Gentleman’s point. We remain committed to our ambitious target of the national living wage reaching two thirds of median earnings by the end of the Parliament and expanding it to include workers over the age of 21. We have done an awful lot to help with living standards—doubling the personal tax threshold, doubling free childcare, expanding free school meals for all five to seven-year-olds, and introducing the new household support fund and the energy price cap—and further measures will be announced by my right hon. Friend the Chancellor tomorrow.

Working People’s Finances: Government Policy

Debate between Simon Clarke and Jack Dromey

Tuesday 21st September 2021 Commons Chamber

[Jack Dromey]

rose—

[Mr Clarke]

I give way to the hon. Member for Stockton North (Alex Cunningham).

[Mr Clarke]

I do so quite readily when I look at the extraordinary potential of our local economy. We have all the new jobs coming in at the Teesworks site, the former Redcar steelworks site. We have the hope and potential of green industry, which the hon. Member champions, as I do, with all the jobs in carbon capture, utilisation and storage as well as hydrogen. There is the new GE Renewable Energy factory, which will employ 2,500 people. Its construction starts incredibly soon, and it will be fully operational by 2023. Those are the reasons for hope and optimism. Of course, I will never apologise for talking up Teesside, just as we should never apologise for talking up the UK economy. We have done an extraordinary thing in this country: we have got through the pandemic—we have weathered the storm—and now we can move on to the recovery.

[Jack Dromey]

Three out of the 10 most deprived constituencies in England are in Birmingham and 42% of children in Birmingham are growing up in poverty, yet the Government are hitting Birmingham hard with the £1,000 a year cut to universal credit and the national insurance rise on top of the cost of living going up and soaring energy costs, with supermarket costs up, childcare costs up and rents up. Can I ask the right hon. Member this question: have the Government carried out any impact assessment of the consequences of their actions on Brummies, not least because the simple bleak reality is that tens of thousands face a tough Christmas and a bleak new year?

[Mr Clarke]

I thank the hon. Gentleman for his question, which basically re-summarised the speech we heard from the shadow Minister. I can confirm that HMT’s distributional analysis has shown that, as a proportion of income, our interventions have supported the poorest working households the most. Of course I recognise the challenges—I represent a constituency that has many challenges—but the number of children in absolute poverty, to which he alluded a moment ago, is lower than it was when Labour left office in 2009-10, both before and after housing costs are considered. These are incredibly important achievements, and we should never lose sight of them. In short, we took decisive action, and that action has worked.

It is clear that the world of September 2021 is very different from that of March 2020. The success of our vaccine roll-out means that most restrictions have now been lifted and we are seeing the benefits of our approach. These new circumstances therefore require a new response. We of course believe that the best anti-poverty strategy is a jobs strategy, and the best way to help vulnerable people is to provide them with the opportunities that they need for well-paid work.