National Minimum Wage

Debate between Alec Shelbrooke and Matt Hancock

Wednesday 15th October 2014 Commons Chamber

[Matthew Hancock]

I will come later to progress on raising the national minimum wage, but the central point, which Labour Members do not understand, is that we cannot have a strong national minimum wage without a strong economy.

[Alec Shelbrooke]

Does my right hon. Friend agree that the interventions we have heard from Labour Members show that the Opposition have learned nothing from their time in government?

[Matthew Hancock]

I could not have put it better myself.

The rise in the national minimum wage comes against a background of record job creation, the biggest fall in unemployment since records began—before I or my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) were born—falling youth unemployment, falling long-term unemployment, unemployment of fewer than 2 million and a claimant count of fewer than 1 million; and that is all part of our plan to build from the ruins of the past an economy that works for everybody.

--- Later in debate ---

[Matthew Hancock]

The shadow Secretary of State could not even explain his own tax policy when he was asked by my hon. Friend the Member for Elmet and Rothwell. On the other hand, we are clear about ours—[Interruption.]—and I am delighted every time the Opposition complain about it. They should put it on their leaflets. We will increase the threshold to £12,500 so that anybody on the minimum wage doing 30 hours a week will not pay a penny in income tax.

[Alec Shelbrooke]

Labour Members chunter about VAT, but does my right hon. Friend find it surprising that Labour increased VAT by 2.5% and doubled taxes on the lowest-paid workers while, by comparison, we have put VAT up by 2.5% and raised the tax threshold?

[Matthew Hancock]

We know what would be most damaging for the low-paid—if we lost control of the economy and had another great recession like the last time Labour was in office.

--- Later in debate ---

[Matthew Hancock]

On the contrary, Government analysis underpinning today’s evidence projects that, on the OBR’s earnings forecasts, the minimum wage is set to reach £8.06 by 2020.

[Alec Shelbrooke]

I am sure that we all want the facts to be right when we have a debate, so let me quote directly what the Leader of the Opposition said as reported in the Sunday Mirror:

“I am delighted to be able to tell Sunday Mirror readers that we are going to raise the minimum wage–if we win the election–in the next Parliament to over £8 an hour.”

There was no qualification in that statement.

[Matthew Hancock]

Absolutely. I concur strongly with what my hon. Friend says. Today’s Labour U-turn on low pay policy shows that ours is the only party and this is the only coalition Government strongly supporting the national minimum wage. We are the ones who are raising the minimum wage, putting it up in real terms at record levels when compared with average earnings, while at the same time reducing taxes. It is those on the Government Benches who support the minimum wage, and it is particularly the Conservative party that is the party of the low-paid.

Finance (No. 3) Bill

Debate between Alec Shelbrooke and Matt Hancock

Tuesday 26th April 2011 Commons Chamber

[Alec Shelbrooke]

But you cannot deny that your Government doubled income tax for the lowest paid in society and destroyed pensions—not you, Mr Deputy Speaker, but the previous Government. The previous Government destroyed pensions, leaving many people whom we would class as the most vulnerable in society to take their pensions with fear and trepidation. At least we have brought in the triple lock on pensions, meaning that people should never again get the 75p rise in their pension.

[Matthew Hancock (West Suffolk) (Con)]

In addition to the facts that my hon. Friend is bringing to bear in this debate, is it not shocking that the amount that the Government have borrowed only over the past year is equivalent to more than £2,000 for every family?

[Alec Shelbrooke]

Again, that illustrates my earlier point: when the figures are brought down to a smaller level, people can understand their full impact and the state of the nation’s finances. When I compare that to our personal finances, I say to people, “For every £1 we’ve spent, we’ve borrowed 25p. How long would your household finances survive with that sort of economics?” They simply would not. Indeed, the increase in private debt and in people’s credit card debts, with some even committing suicide because they used credit cards to pay off credit cards, is a lesson that Governments should learn.

Let us look at the growth and debt figures. Our debt is 10.4% of GDP, Spain’s is 9.2% and Portugal’s is 9.1%, but I do not see our interest rates on the gilt markets being as high as Portugal’s. My hon. Friend the Member for North East Somerset made an excellent point when he described the percentage rates being below RPI by 300 unit points, or 500 unit points below normal. That shows that a credible plan had to be put in place.

I find it distressing when we get into this argument with the Opposition, who say, “You don’t need to do all this.” I will give the House an analogy. For 13 years, the previous Government fed everybody chocolate and burgers, and every person in this country now weighs 35 stone. Along comes the doctor, in the form of this Government, who says, “I’m afraid if you don’t lose at least 20 stone you are going to die very young and it is going to be disastrous for you.”

Budget Responsibility and National Audit Bill [Lords]

Debate between Alec Shelbrooke and Matt Hancock

Monday 14th February 2011 Commons Chamber

[Alec Shelbrooke]

As the hon. Lady suggests, previous forecasts and attempts at caution came from many different angles. The public will recognise that the OBR is giving us a proper set of figures that can be relied on. If the Chancellor of the Exchequer then ignores those figures and ploughs ahead, not only would the calls from the Opposition be deafening but the public would know that the Chancellor was acting against their interests.

[Matthew Hancock]

Does my hon. Friend know that in 1995 the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown) called for a panel of independent forecasters to express their views on public finances? Does he agree that it is a great shame for the nation that the right hon. Gentleman did not act on that when in government, because it might have meant that there was restraint and, in turn, that he would not have left this country in such a terrible mess?

Finance Bill

Debate between Alec Shelbrooke and Matt Hancock

Tuesday 20th July 2010 Commons Chamber

[Matthew Hancock]

Let me make some progress; I have only a couple of minutes left.

The final argument is about productivity. Greater tax competitiveness not only helps productivity in the private sector, as consolidation can also help productivity in the public sector. We read only this morning that the police have said that they can take 12% out of their budget without affecting front-line services. I wonder what that 12% was spent on under the previous Administration.

[Alec Shelbrooke (Elmet and Rothwell) (Con)]

Paperwork.

[Matthew Hancock]

My hon. Friend is probably right.