Cost of Living Increases

Alan Campbell Excerpts

Tuesday 25th April 2023 Commons Chamber

[Andrew Griffith]

I understand that the hon. Member and his party are not happy campers these days, but we are giving more money per head to households in Scotland than we are in the rest of the United Kingdom, which is why he should get behind the many benefits of being part of this Union. On this very day, more than 8 million families across the United Kingdom will receive in their accounts a £301 cost of living payment from the Government, and that is just the first of three payments that will be made, giving a total of £900 to low-income and vulnerable families.

One measure that touches almost everyone in this country is childcare. In the Budget, we on the Conservative Benches confirmed the biggest expansion of free childcare in living memory. Our new offer will close the gap between parental leave ending and the current childcare offer. It will reduce costs for parents who can get back to work and make sure that a career break does not become a career end. It will improve the lives of millions of people. It is the right thing to do, but we can only afford to do that because of the fiscal discipline that we have exercised.

I am delighted that, as people go to the polls next week, the Opposition have given them a reminder of where they stand, for which I am grateful. Conservative councils charge £80 a year less than Labour on a band E property. Under the last Labour Government, council tax doubled. Under Labour Wales, it has more than trebled. Not for the first time, Labour says one thing and does another. Its motion today calls for a council tax freeze, and yet, far from freezing, I looked at the increases in every one of the constituencies of those on the Opposition Front Bench: Leeds up 5%; Wolverhampton up 5%; Camden up 5%; Ealing up 5%; Greenwich up 5%. A full house of Labour councils charging the maximum that they are allowed in council tax.

Enough, Madam Deputy Speaker: enough of the Opposition giving us rhetoric not record; enough of the economic illiteracy from Opposition Front-Bench spokesmen; and enough of these ChatGPT-does-socialism-type speeches that we have heard this afternoon. We should never forget Labour’s record on the economy: working people and your children pay the price. Labour has ditched its rule not to borrow to fund day-to-day spending, so we know its plan to stick billions on the nation’s credit card. [Interruption.] Labour Members can intervene if I am incorrect. No Labour Government have ever left office with unemployment lower than when they came to power. Under the last Labour Government, unemployment rose from 2.1 million in 1997 to 2.5 million by the time they left office in 2010—more people denied the security and the chance in life of a good job.

Finally, let us never forget, when Labour left office in 2010, how the then Chief Secretary wrote—[Hon. Members: “Ah!”] What did he write? He wrote:

“Dear Chief Secretary, I’m afraid there’s no money left.”

We are a Government focused on delivering the British people’s priorities. We are making sure that we are helping those in financial strain. We are focused on the future and we are delivering not just for growth that comes when a country emerges from a downturn, but for long-term sustainable healthy growth.

Since the Conservative Government came into power in 2010, we have grown more than major economies such as France, Italy or Japan and around the same as Europe’s largest economy, Germany. We have halved unemployment. We have cut inequality and reduced the number of workless households left to us by 1 million. Output is now higher than pre-pandemic levels. There is still much to do, but we are on track to deliver—

[Sir Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the original words stand part of the Question.

Working People’s Finances: Government Policy

Alan Campbell Excerpts

Tuesday 21st September 2021 Commons Chamber

[Mims Davies]

I will make some progress, because I think it is important to talk about the 1 million vacancies that we have in our economy. We have jobs in growing and emerging sectors; we have green jobs, we have tech roles, and they can all be accessed through our jobcentres.

I am determined to help those with the biggest barriers to move closer to the labour market, to ensure that, as the hon. Lady says, people progress into work and see the reward for their efforts, and to help people increase their hours or get into work for the first time, like—I must correct the Chief Secretary to the Treasury, my right hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke)—the more than 69,000 young people who are now in kickstart roles, on that important first rung of the career ladder.

My message today to everyone in the Chamber and everyone looking in is: if you want to progress in this jobs market, whoever you are, wherever you are—at any age or any stage—we are here for you. We will get behind you. We have dedicated work coaches, and we have boosted them by 13,500 as part of our plan for jobs. We will give you tailored support and we will help you progress. We will not leave you behind.

We are directly investing in our young people most at risk of long-term unemployment with the £2 billion kickstart scheme, a life-changing scheme of a six-month work placement—a springboard into a future career. With over 188,000—I got it right this time—kickstart roles, young people must turn to their work coaches to hear about these amazing opportunities.

Meanwhile, I must let the House know that we have a new youth hub across every Jobcentre Plus district throughout England, Scotland and Wales. By Christmas, we will have 150 new youth hubs open. These are valuable new partnerships—interventions for direct life chances—with local councils, football clubs, charities such as the Prince’s Trust, and local training providers.

We are also seeing lives changed by our job entry targeted support programme, which is known as JETS, with over 25,000 people starting new jobs since our plan for jobs was launched. That is not forgetting our £2.9 billion restart scheme, which will, crucially, help those who are leaving furlough. We have also refreshed our “50 PLUS: Choices” offer, and we have stronger support for those who need any extra skills through our lifetime skills guarantee.

I am passionate—I hope the House has noticed it this evening—about getting people into jobs, but also about progressing people when they are in work. This Government’s longer-term ambition remains to build an economy that ensures that everyone, no matter what their background, has the opportunities to enter work and progress out of low pay.

We are absolutely taking action. The in-work progression commission was launched in March 2020 by the DWP. We will respond shortly to its report, but it is all about getting that understanding about the barriers that people in low pay face and, crucially, as we talked about this afternoon, ensuring that work remains the best route out of poverty.

Our plan for jobs programme is also helping claimants to gain the skills they need to progress in work. Our sector-based work academy programmes—SWAPs—are helping people get new skills to retrain and pivot into growing sectors, from viticulture to construction, infrastructure and social care. Haulage has been mentioned this afternoon; we have a programme in that, too. We also have DWP Train and Progress, which provides the ability to access the Department for Education skills bootcamps in growing sectors. With over a million—

[Sir Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the original words stand part of the Question.

RBS Global Restructuring Group and SMEs

Alan Campbell Excerpts

Thursday 18th January 2018 Commons Chamber

[Mr Alan Campbell (Tynemouth) (Lab)]

Perhaps I should begin with the confession that I am not a capitalist, but I do share the hope of the hon. Member for Hazel Grove (Mr Wragg) for fairness. I congratulate my hon. Friend the Member for Norwich South (Clive Lewis) on securing this debate. The motion primarily relates to RBS, but it acknowledges that the problem goes far wider than just one bank. At the heart of the motion is the proposition that several banks deliberately managed the closure of businesses to protect their own interests and in doing so prioritised the realisation of assets over any other outcome. The Tomlinson report, about which we have already heard, suggested that the banks had a deliberate strategy to artificially distress viable businesses, to engineer loan-to-value ratios to cause a breach and to revalue assets downwards to trigger a default. The banks had all the power and businesses had no meaningful recourse, and professional advisers were either ineffective or took the side of or even aided the banks.

In the brief time available to me, I want to highlight two constituency cases. The first is Mr Graham Stewart, a builder and property developer, who was courted for his business by Lloyds bank in 2003. His accounts were successfully managed locally and regionally at first, but then the fateful decision was made to transfer his accounts to the Bristol business support unit, and that is when his troubles began. The review periods on his loans were shortened, repayments were doubled and charges were added at every single stage. He was told to sell some properties and to use Alder King, Lloyds chosen valuer, which systematically undervalued his properties. When he complained, his loans were called in. I understand that some of the banks may have accessed the enterprise finance guarantee scheme to cover their losses, and advisers got their fees, but my constituent was left with huge debts. He had never missed a payment and had never been in arrears.

My second constituent is Ben Warren, who was an Allied Dunbar client. Allied Dunbar was sold to Zurich Financial Services Ltd in 1998 after several mis-selling scandals, and parts of it were sold on a decade later. The deposit book was attractive, the loan book less so. Despite assurances to clients that they would not be materially affected by any transfer, within 14 days of the transfer, 95% of loans were declared to be impaired. That affected 300 people, including my constituent. A third were pushed into bankruptcy. The companies protected themselves at every stage by betting on the financial market. My constituent described it as like selling a car and then betting on whether it would break down. Mr Warren has a very simple question for the Minister: why does the UK allow companies based in offshore tax havens to manipulate small and medium-sized enterprises in that way? It certainly seems like systematic manipulation. To many, including myself, it looks like criminality.

The HBOS Reading fraud cost Thames Valley police £7 million to investigate, so where are the resources for such a Herculean task as investigating this situation? Allied Dunbar victims went to Northumbria police’s economic crime unit, which said that it lacked the resources to investigate and directed them to the Serious Fraud Office, which then sent them back to Northumbria police’s economic crime unit. We need accountability; we need transparency; and we need justice for the victims, including compensation. As we have heard, we need to protect SMEs in the future with a more effective tribunal system. Finally, and importantly, we need the Treasury Committee to continue to take a keen interest in the matter.

The Economy and Work

Alan Campbell Excerpts

Thursday 26th May 2016 Commons Chamber

[Stephen Crabb]

I am absolutely clear that our national health service is protected from TTIP.

One group in society who have faced particularly difficult barriers are disabled people. We are committed to our ambition to halve the disability employment gap, which we must do by learning from and listening to those who know most about what works—disabled people themselves. That is why I will be publishing a Green Paper later this year. I want to consult and engage fully with them and their representatives to build a strategy that we know will work. I hope that Members on both sides will see it as an opportunity for us all to move forward together.

The Queen’s Speech demonstrates the Government’s commitment to improving the life chances of the most disadvantaged while delivering security for people in work and strengthening our national security so that we keep our country safe. I welcome the contribution from the hon. Member for Fermanagh and South Tyrone (Tom Elliott) on our Bill to improve adoption. Our education for all Bill will ensure better outcomes for children, especially those in disadvantaged homes and communities. Our higher education and research Bill will allow the creation of new universities so that young people have more choices for continuing their education.

That is the kind of society I believe in, but I also believe in a society that gives people a second chance, which is why we welcome the prisons and courts reform Bill, which will put a greater focus on rehabilitation in our prisons, greater support for prisoners with mental health conditions and better education and training. At the heart of the Queen’s Speech are real reforms that provide support for the most disadvantaged at the start of life; support for people making those big leaps in life, such as leaving care; and support later in life for those looking for a second chance. None of those reforms would be possible without the foundations of a strong economy, but at no point in the last six years has Labour shown any willingness to recognise that point. We will never forget how night after night, in the last Parliament, Labour trooped into the Division Lobby to vote against every single measure we introduced to fix our national finances. It opposed all our efforts to reform welfare and restore the value of work.

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly, That the amendment be made.

Public Appointees (Tax Arrangements)

Alan Campbell Excerpts

Wednesday 23rd May 2012 Commons Chamber

[Danny Alexander]

I am grateful to my hon. Friend for his comments and his welcome. He is right that the arrangements should be exceptional and unusual, and should apply only in particular cases, such as when there is a short-term shortage, as he says, or a particular specialism is needed to deliver a project. That is why so many of these cases relate to IT professionals delivering individual projects. There is an employee test under the IR35 rules, which I am told is simple and straightforward, and that should be sufficient for determining on which side of the line someone sits.

[Mr Alan Campbell (Tynemouth) (Lab)]

It is now clear that some of the worst cases take place in local authorities such as North Tyneside. Can the Chief Secretary not do more to direct HMRC not only to deal with these abuses, but to seek redress?

[Danny Alexander]

I am interested to hear that there are particularly egregious offenders in North Tyneside and am grateful to the hon. Gentleman for drawing that to the House’s attention. My right hon. Friend the Secretary of State for Communities and Local Government has of course drawn this process to the attention of all local authorities precisely to get them to show a transparency similar to that which we have shown with the review today, and I very much hope that they will all follow that example. It is for HMRC to decide whether it wishes to investigate an individual case and whether there is a case to answer. As I have said, the existence of these arrangements does not in itself demonstrate that tax avoidance is taking place, because it is perfectly possible for the arrangements to be in place and for the proper amount of tax to be paid. The problem is a lack of transparency, so getting people to publish the information so that HMRC can decide whether it wishes to investigate must be the right process to go through.

Tax Avoidance (Public Servants)

Alan Campbell Excerpts

Thursday 2nd February 2012 Commons Chamber

[Danny Alexander]

It is precisely those sorts of issues that the review will seek to examine and properly understand, and I am sure that the Public Accounts Committee might wish to take an interest in that issue.

[Mr Alan Campbell (Tynemouth) (Lab)]

Will the urgent review extend to the top salaries of people employed in local government?

[Danny Alexander]

I have so far written to Cabinet colleagues for salaries in central Government, and the Treasury Officer of Accounts has written to accounting officers in central Government, but I will take that suggestion away and discuss with my right hon. Friend the Secretary of State for Communities and Local Government whether that particular extension would be appropriate.

Youth Unemployment and Bank Bonuses

Alan Campbell Excerpts

Monday 23rd January 2012 Commons Chamber

[Chris Grayling]

I simply cannot understand the view that Opposition Members have of our retail sector. Our larger retailers are national and international businesses, with hugely varied career opportunities for young people. The manager of a single supermarket can run a £100 million business, so let nobody say that giving an unemployed young person the opportunity to show to a supermarket chain their ability to contribute to that organisation is nothing but a possible footstone for a long-term career.

The proof of the pudding is in the eating, because more than half the young people who are going through our work experience scheme are moving off benefits quickly afterwards. When we make a comparison with the future jobs fund, from which about half moved off benefits immediately afterwards, we find the total cost of that scheme was between £5,000 and £6,000 per placement, whereas the total cost of our work experience scheme—of achieving a similar result—is about £300 per placement. Which do Opposition Members think represents better value for the taxpayer?

Alongside that, we are also delivering 170,000 wage subsidies, through the youth contract, to employers who take on young people, and that is the big difference between our philosophy and that of the Opposition, who simply want to recreate another scheme with artificial, six-month job placements in the public or voluntary sectors. We are trying to create a path to a long-term career for young people. That is what the wage subsidies in the youth contract will do, and it is also why we have expanded by so many the number of available apprenticeships. They are not about short-term placements; they are about building long-term career opportunities. Since we took office, we have increased massively the availability of apprenticeships in the economy, precisely because we believe that our young people are best served by creating a path that they can follow to a long-term career opportunity.

The right hon. Member for East Ham (Stephen Timms) talked about the Work programme, which is providing much better and more intensive support for the long-term unemployed than previous schemes, and about the flexible new deal, which we inherited last year. Let me, however, give him some statistics about that. It cost the Department for Work and Pensions £770 million, and it achieved 50,000 job outcomes in six months—at a cost of £14,000 per job outcome. Does that represent good value for money or a programme worth keeping? Does anybody seriously believe that that programme had the effect he describes?

I am confident that, by contrast, the Work programme will deliver results because it is based on payment by results, and because we have created an environment in which the organisations, large and small, that are delivering the programme are paid only when they succeed in getting somebody into long-term employment. Having now been around the country and visited almost all the providers, I have seen a team of people who are motivated, determined and succeeding in getting the unemployed back to work. I meet people who have not worked for years but who have got back into employment, and people who did not believe they could get back into work but are getting back into employment.

When we publish the figures, and we will, I look forward to demonstrating that that approach makes a difference to the prospects of the long-term unemployed in this country—

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question put accordingly.

The Economy

Alan Campbell Excerpts

Tuesday 6th December 2011 Commons Chamber

[Mr Davey]

Other Governments, faced with rising interest rates on their debts, are now having to address their budget deficits. Often they are having to cut deeper than us. It is true that our deficit reduction, at 3.7% of GDP over the next four years, is the third highest in the G7. After all, in 2007 our structural deficit was the highest in the G7. Yet Italy is now making much deeper cuts, and France too is planning deeper cuts. Our deficit reduction is of course significantly less than that of Greece, Ireland, Portugal or Spain, so we will not be opting for plan B as suggested by the Labour party.

We heard many excellent speeches from Members in all parts of the House. I particularly commend those of my hon. Friend the Member for Chichester (Mr Tyrie) and of the hon. the Members for Skipton and Ripon (Julian Smith) and for Newton Abbot (Anne Marie Morris), all of whom referred to the importance of the supply-side reforms. The hon. Member for Skipton and Ripon mentioned the important employment law reforms which, I believe, will make a big difference to our efforts to return people to work, and the hon. Member for Newton Abbot spoke of the importance of ensuring that regulation was cut for micro-businesses. I can tell the hon. Lady that we are achieving that now, even at European level.

We also heard good speeches on the importance of infrastructure investment from the hon. Members for Folkestone and Hythe (Damian Collins), for Ochil and South Perthshire (Gordon Banks) and for Scunthorpe (Nic Dakin), and from the former Chancellor of the Exchequer, the right hon. Member for Edinburgh South West (Mr Darling). The significance of the infrastructure plans that we announced in the autumn statement is that they are well advanced, and some are even shovel-ready, so the problems that the shadow Chancellor worried about do not pertain.

This was an important debate. For once, it was not about the figures in the economic forecasts and the Budget questions. Thanks to the innovation of the Office for Budget Responsibility, it focused largely on analysis—although at times the analysis presented by the shadow Chancellor was more theoretical than academic—and it sharpened the differences between the coalition and the Opposition. While the Government are focused on keeping interest rates low, Labour’s priority is to spend and borrow more. While this Government—

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the Closure (Standing Order No. 36).

[Mr Speaker]

The Question is, That the Question be now put. [Interruption.] I think the Ayes have it. [Interruption.] Order. Hon. Members must calm themselves; it will be injurious to their health otherwise. The Question is, That the Question be now put. [Interruption.] It is simply a case of putting the Question. I will try once more. The Question is, That the Question be now put. I think the Ayes have it.

Question accordingly put, That this House has considered the matter of the economy.

Northern Rock

Alan Campbell Excerpts

Monday 21st November 2011 Commons Chamber

[Mr Hoban]

The previous Government injected £1.4 billion-worth of capital into Northern Rock plc. That has gone down to £1.2 billion because of the losses incurred, and we expect further losses in this financial year and in the next. The challenge for Virgin is to use the platform it will have in Gosforth to grow the business, attract new customers and use its reputation for challenging incumbents.

[Mr Alan Campbell (Tynemouth) (Lab)]

Will the Minister give a cast-iron guarantee that the foundation will still exist beyond 2013?

[Mr Hoban]

It is a matter for Virgin Money and Northern Rock Foundation to discuss. Virgin Money has said as part of its agreement to acquire the business that it will extend existing arrangements to the end of 2013. It is keen to work closely with Northern Rock Foundation so that it can continue its excellent work in the north-east and Cumbria.

The Economy

Alan Campbell Excerpts

Wednesday 22nd June 2011 Commons Chamber

[Justine Greening]

Well, there is a cross-party consensus, because his party agrees with it. We are now in government, so I do not think that that is particularly complicated. He is trying to waste my time, so I will make a little more progress.

The bottom line is that the Labour party has only one economic policy: spend, spend, spend. When times are good, their policy is to spend, spend, spend, because they can afford to. When times are bad, their policy is to spend, spend, spend, because they cannot afford not to. It is no wonder that this Government ended up mired in debt when Labour left office. The hon. Member for Airdrie and Shotts (Pamela Nash) talked about the previous Government’s record but was unaware that she had abstained on the VAT rise. As we have seen with the overall VAT policy, there is clearly a huge disconnect between their Front and Back Benches. After all that spending and the creation of the structural deficit, even Labour Members asked themselves, “We’ve spent all this money, but what have we got for it?” The answer is, “Not enough”.

When the Opposition called this debate, people might have been entitled to think that they had something relevant to say on the economy, but they do not, and we have seen that demonstrated again. We do have a plan. As my hon. Friends the Members for Bromsgrove (Sajid Javid), for Spelthorne (Kwasi Kwarteng) and for Ipswich (Ben Gummer) all pointed out, it is a plan backed by the IMF, which described it as essential. It is a plan backed by the OECD, which described it as vital. It is a plan backed by the CBI, the rating agencies and pretty much everyone who understands why it is important that we get our economy back on track and our public finances back in order.

We have a plan to rebalance the economy, generate growth and ensure that those communities that can most benefit from the new jobs do. We have a plan to create the most competitive business tax regime in the G20. We have plans for more apprenticeships and work placements—

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the original words stand part of the Question.