Budget Resolutions and Economic Situation

Debate between Albert Owen and Kevan Jones

Thursday 17th March 2016 Commons Chamber

[Albert Owen (Ynys Môn) (Lab)]

It is a pleasure to follow the hon. Member for South West Wiltshire (Dr Murrison). I have great respect for him and his views on health and I would never call him a health fascist. He is measured in the way that he presents health issues, particularly in relation to public health.

I will repeat some of what was said from the Front Bench by my hon. Friend the Member for Hayes and Harlington (John McDonnell). This is the eighth Budget of this Chancellor in six years—eight Budgets of big promises to eliminate the deficit by 2015. He has broken his own budgetary rules on debt and on welfare, and he is heading towards breaking his rules again on the budget surplus in this Parliament. Why? Because of the actions of this Chancellor. Yes, there are global issues that will impact on any country’s economy. That was the case when the Labour party was in government, it was the case when the previous Conservative Government were in office, and now this Chancellor is admitting that they will impact on his plans.

Early Budgets choked off growth. The initial emergency Budget in 2010 contained cuts and an increase in value added tax.

[Mr Kevan Jones]

Does my hon. Friend agree that it is remarkable that the Chancellor now refers to global headwinds that may knock him off course, but in 2010 when he choked off demand—and we have heard it again today—he claimed that the recession in 2008 was nothing to do with the global situation, but was all down to a Labour Government? Is it not ironic that he chooses to use the global situation as an excuse for what he blamed the Labour Government for in 2010?

[Albert Owen]

My hon. Friend is right. He and I and the Chancellor came into Parliament together and we know he has form on these issues, which have been laid bare in this Budget.

The early Budgets choked off growth. I mentioned value added tax because it is forgotten that initially this Government raised value added tax by 2·5p in the pound. That took money out of the economy at a time when there should have been a fiscal stimulus, as there was in many other countries, to ensure that we got out of the recession and out of austerity as quickly as possible. So it is the Chancellor, in his eighth Budget over six years, who is responsible for not being able to balance the books, which he promised he would do.

The poorest, the vulnerable are paying the price of extended austerity, and less so those on higher incomes, who have seen their income tax cut. Now we hear in this Budget that capital gains tax will be cut at a time when the personal independence payment is being taken away from some disabled people. That is the priority of this Chancellor, and that is why we are in the present situation.

I talk about value added tax being raised because the Chancellor is always talking about how thresholds are going up and how that is helping. However, that is eliminated by the additional value added tax that people have to pay on goods. The big announcement yesterday about a freeze in petrol duty and a freeze on beer duty is wiped out when people have to pay 2·5p on each pound when they buy petrol, drink beer or go out for a meal. This Chancellor is putting taxes up, not down, and families are suffering across the country. Ordinary people are paying the price.

I refer to the insurance premium tax. Yes, we all want to see investment in our flood defences, but again, it is ordinary families who will pay for that through a stealth tax. Rather than being the work of a tax-cutting Chancellor, the Osborne taxes are hurting ordinary families in this country.

The biggest losers are women and the disabled. The Chancellor really missed an opportunity to use the Budget to help the many women born in the 1950s through transitional pensions. He missed the opportunity to use some imagination to come up with a formula to try to smooth out the issue of those whose pension age is going up but who were not given sufficient warning to plan for that.

The Chancellor talked about an ISA for young people under 40. He needs to get out and about. I have two daughters under 40, and they are burdened with student debts—they are struggling to pay the bills. People like them do not have £4,000 in their back pockets to invest for the future. They need help and support—not to be told that they can get an extra £1 for every £4 they save. The Chancellor is out of touch.

I do agree with the sugar tax, but it is not a silver bullet. To deal with child obesity, there needs to be long-term, careful planning, and there needs to be a change in lifestyles as well. I welcome the proposals on sports provision in English schools—I do not think it has been cut in Welsh schools—but it was the Chancellor who cut the funding for it, which he is now reintroducing.

When the Chancellor talked about infrastructure for the future and the next generation, there was one area he missed out: digital infrastructure. The Prime Minister has promised universal superfast broadband coverage across the United Kingdom. Again, the Chancellor had an opportunity to stand up and say how we will fund that in a way that will allow us to compete with the South Koreas of the world and to have modern infrastructure.

Mobile coverage is poor across most of the United Kingdom. There is a small plan in the Budget for 5G in 2017. Many areas that I represent in north-west Wales do not even have 3G, and they certainly do not have the luxury of 4G. Poor broadband, alongside poor mobile coverage, makes businesses in that area difficult to operate. We talk about education, but what about those who are not in conventional education but doing Open University courses? They cannot complete their studies, because they do not have the basic infrastructure in the 21st century.

The Budget is therefore a missed opportunity, although I welcome many of the things the Chancellor talked about. He mentioned north Wales, which I was very pleased about, because I have been lobbying the Conservative Government to link north Wales into the so-called northern powerhouse. I will work with the Welsh Government, the UK Government and local authorities to get a good deal for growth in north Wales, but we need to see the detail. What we heard were big plans for the long-term future that we have heard before. What we wanted were radical, bold initiatives to invest in this country, invest in people now, invest in those who are losing out on pensions and invest for those in the next generation, helping them today—not giving them false promises for tomorrow.

Europe

Debate between Albert Owen and Kevan Jones

Wednesday 30th January 2013 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

It is a pleasure to follow the hon. Member for North Dorset (Mr Walter), who has been an isolated and lonely voice of sanity on the Government Benches this afternoon.

Like my hon. Friend the Member for Ynys Môn (Albert Owen), I am fascinated by the modern-day Conservative party’s obsession with Europe. We only have to mention the word “Europe” to send many Conservative Members into an act of communal or self-flagellation. As my hon. Friend said, however, that has not always been the case. The major changes in our relationship with Europe were introduced by Conservative Governments. They took us into Europe, and it was Margaret Thatcher who signed the Single European Act.

Now, however, the Conservative party holds to a little Englander narrative, which goes as follows: Europe is a foreign place that is anti our culture and somehow does things to poor old little Britain. Nothing could be further from the truth. It is true that we are an island off the continent of Europe, but we are part of Europe. For centuries, we spoke French, not English, and we even speak Norman French at the Prorogation of each Parliament. Our royal family has a proud German history and heritage, too. It is therefore plain wrong to argue that Europe is somehow alien to our culture. It is part of our history, and it is in our DNA, too, as the blood of people from Europe who have settled here flows through our veins. All this also influences the decisions we take: if we go down to the Members’ car park, we can see the most fervent anti-Europeans driving French and German-made cars.

The hon. Member for South West Bedfordshire (Andrew Selous) said what is important is inward investment and access to the European market. I completely agree. The EU is vital for jobs in my region of the north-east, and also for our future prosperity. My hon. Friend the Member for Ynys Môn made a point about structural funds, too. They made a real difference when the last Conservative Government ripped the heart out of the north-east economy. This is not only about manufacturing, however; it is about access to financial markets, too, and liberating the European telecommunications market, which cannot be done from the sidelines.

[Albert Owen]

My hon. Friend is making a strong argument about our being an English-speaking gateway to Europe, but we are not the only one. There is also the Republic of Ireland, so we must be on our toes and make decisions at the centre of Europe.

[Mr Jones]

That is true, which is why current policies and statements are potentially putting us at a competitive disadvantage.

There are those who argue we would be better off outside Europe, and that we should have an in/out referendum now. I respect that position—although I totally disagree with it—but that is not what is before us. It is worse than that. We will have five or more years of indecision because this Prime Minister has put party advantage ahead of Britain’s national interest. We will have five years of companies looking at Britain and asking themselves, “Should we invest? Can we be sure Britain is going to be part of Europe?” The Prime Minister will not even tell us what the red lines in respect of Europe are going to be. As my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) said earlier, they will involve, for example, driving employment rights down to the bottom to try to ensure that we are competitive with the rest of the world.

Europe is our major trading partner and we need to be at the centre of it. We will not achieve that by standing on the sidelines, or, as this Prime Minister seems to do, by threatening to take our bat and ball home if we do not get our own way.

Much has been said about the free movement of people throughout Europe. This is nothing new. I grew up in the region of the north Nottinghamshire coalfields and went to school with people with Italian and Polish names—the children of people who had settled there after the second world war. Conservative Members who represent areas such as Lincolnshire will be aware that many generations of immigrant workers have come there to pick fruit and other agricultural produce. That has added to, not taken away from, this country’s prosperity.

Business of the House (Thursday)

Debate between Albert Owen and Kevan Jones

Wednesday 8th December 2010 Commons Chamber

[Mr Jones]

My hon. Friend makes a very good point about the specific day that the Government picked for the debate. We have seen changes to the motion this week, and it would be interesting to know why the motion for a three-hour debate was not moved the other night. I return to the point that I have yet to learn the justification for why we got the extra two hours. If we can allow two extra hours, I am sure we can allow more.

[Albert Owen]

My hon. Friend is making a strong point. The Leader of the House has been here throughout the debate, and he is very courteous and usually very helpful. He could clear the matter up by coming to the Dispatch Box and explaining to us why we have a 5.30 pm cut-off. I am dismayed that he has not taken up the opportunity. [Interruption.]

[Mr Jones]

I am sure that the Leader of the House—[Interruption.] I am sorry, but I think that barracking the Leader of the House is wrong, because he is a very courteous individual who respects the House. I am sure that in his winding-up speech, he will want to explain why we have the extra two hours.

We have already explained how the motion before us tonight relates to “Erskine May”. It is the same principle as a programme motion.