Working People’s Finances: Government Policy

Debate between Alexander Stafford and Aaron Bell

Tuesday 21st September 2021 Commons Chamber

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

It is a pleasure to follow the hon. Member for Coventry North East (Colleen Fletcher).

It is also a pleasure to contribute to the debate in which my hon. Friend the Member for Hartlepool (Jill Mortimer) made her maiden speech. When I went up to campaign for her in Hartlepool, I was struck by the reception that we had on the doorsteps and the faith that the people of Hartlepool put in her. That faith has been entirely justified by the tone of her speech. She stands for putting pride back into Hartlepool, exactly the same as other Members in the post-industrial areas that the Government are levelling up and addressing, like me, in Newcastle-under-Lyme, and my hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates). It will be good for working people that Newcastle-under-Lyme has a £23.6 million towns deal, just as Hartlepool has its towns deal funding. The Government have taken on that agenda. Let us be fair: it was originally the hon. Member for Wigan (Lisa Nandy) who said that we needed to do more for towns, but the Labour party decided that it did not want to listen to what people in towns have to say—people who voted for Brexit and wanted Brexit to happen—and it did not vote for her to be its leader. That is why it has been reduced to the state that it is in.

I turn to the effect of Government policy on the finances of working people. The key thing is that people should be working and the Government have been extraordinary in ensuring that people can continue working. There was a period when people had to stay at home, but now they have jobs and businesses to go back to because of the extraordinary measures taken by our extraordinary Chancellor in extraordinary times. We saved millions of jobs through furlough—more than 10,000 people in Newcastle-under-Lyme were on furlough. We saved tens of thousands of businesses through the grants and loans that we gave them, and those businesses are now recovering and hiring again. We have also protected people’s salaries through measures such as the energy cap. Yesterday, I was grateful to hear the Secretary of State for Business, Energy and Industrial Strategy say that, with the energy cap put in place by the Government, people will not have to pay much more this winter.

Above all, the Government have kept people in jobs. Unemployment peaked at 2 million fewer people than was initially feared at the start of the pandemic, which is a tribute to what we have done through the pandemic. As my hon. Friend the Member for Penistone and Stocksbridge said, jobs are now available—we have 1 million vacancies out there—and wages are rising because the era of unlimited immigration is over. We have the highest growth in the G7, and the OECD predicts that we will have the highest growth this year and next. We also have, as I said in my intervention on the Chief Secretary to the Treasury, a plan for jobs that is about not just getting people into jobs but getting them into better jobs and getting them better skills in jobs. We have policies such as kickstart and restart, and we are doubling the number of work coaches. I thank the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), for visiting the Newcastle-under-Lyme jobcentre with me in the summer, where he saw what our work coaches are doing to get people into jobs in north Staffordshire.

Of course, the Government also have policies for more skills, including apprenticeships and technical training. For the last two Fridays, I have been giving out awards at Newcastle College, first to those in higher education and last Friday to those in further education. The college’s apprenticeship scheme is outstanding—in fact, it was the first college to be graded “outstanding” across the board with Ofsted—and people who go there and get those technical skills will end up with much better jobs, and much better paid jobs, than they would have done without those innovations. My hon. Friend the Member for Bury North (James Daly) mentioned an Institute of Technology bid. Newcastle College also has one in. If it gets that, that will only enhance our offer to young people in north Staffordshire and Newcastle-under-Lyme.

[Alexander Stafford (Rother Valley) (Con)]

Does my hon. Friend agree that it is about not just creating jobs but creating high-quality jobs? This Friday, United Caps is opening a new manufacturing facility in my constituency, providing high-quality jobs on the top of the old pit site. It is doing that because of the aspiration that the Government have given the company to invest in a former pit town on a former pithead to give us the new high-quality jobs that Government Members want and Opposition Members do not.

[Aaron Bell]

Like my hon. Friend, I have the honour of representing a former mining area, and it is so important that we give our areas the hope, the skills, the jobs and the future they need. So much public money is coming into places such as Newcastle-under-Lyme, but in the long term we will need the private sector to sustain our economy, which we can do by using the pump-priming of the towns fund and the future high streets fund—we have got money from that—to grow our local economy to support people. We can do that by paying people higher wages, and by giving them better skills they can earn those higher wages. He is absolutely right.

The Government have a plan for jobs, but where is the Opposition’s plan? We did not hear one from the shadow Minister, the hon. Member for Houghton and Sunderland South (Bridget Phillipson). Labour must address the fiscal reality; it cannot wish it away. We spent £400 billion in extraordinary support during the pandemic. We now have a £300 billion deficit—nearly 15% of GDP—but we were able to put that support on the table only because previous Conservative Governments accepted that we have to live within our means and get the deficit down when we can. We dealt with Labour’s deficit and we will now have to deal with the deficit that is the legacy of the pandemic.

As the Chief Secretary to the Treasury—I welcome him back to his rightful place at the Dispatch Box—said, the Opposition do not seem to want to accept any of that. They voted against extra money for the NHS, which I find astonishing. They say that we should put the tax elsewhere, but they voted against our increase to corporation tax. They also voted against freezing income tax thresholds, which was not a popular decision but a necessary one in the face of the fiscal realities. They also voted against the reduction in the international aid budget. Again, we breached the manifesto on that, but in the extraordinary economic circumstances we are in, I believe it is the right thing to do.

Labour Members want more spending and they want no tax rises in the face of an unprecedented, enormous deficit. I believe that that is economically incoherent, and it takes the British people for fools. They tried that once before in the face of an enormous deficit during the 2010 to 2015 Parliament, and I have to tell them that it did not work out well for them at the next election. I am reminded by today’s news that they also took the opportunity during that Parliament to change the way they elect their leader. They are trying to do that again now, and that really did not work out well for them, so they really should be very careful what they wish for.

In conclusion, the reason why Government economic policy is working and is in the interests of working people is that it is really all about jobs. Conservative Members all believe that jobs and work are the best way out of poverty. There are more jobs, more people helped into jobs, more training within jobs, including the apprenticeships I talked about earlier—[Interruption]—with up to £3,000, as my hon. Friend the Member for Broadland (Jerome Mayhew) says. There is our lifetime skills guarantee for those who are in the wrong job and want to change jobs, and we have also put an end to unlimited immigration, protecting our citizens from the race to the bottom in wages that, sadly, we have seen so often. The Labour party wants us to rejoin the EU, reopen those borders and force wages back down again.

From the plan for jobs to the increase in the national living wage, I firmly believe that this Government are putting those on lower incomes at the heart of our economic policies and at the heart of our economic planning, and it will be a brighter future for all of us.