Economy and Jobs

Alison McGovern Excerpts

Thursday 29th June 2017 Commons Chamber

[John McDonnell]

I am not sure that that adds to the sum of human knowledge.

[Alison McGovern (Wirral South) (Lab)]

In response to the intervention from the hon. Member for Solihull (Julian Knight), does the shadow Chancellor think that the Tory Brexit mess has been good for confidence in the UK economy, or less good for confidence in the UK economy?

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[The Chancellor of the Exchequer (Mr Philip Hammond)]

I welcome the opportunity to respond to this debate, to set out our economic record since 2010 and our plans for Britain’s future, and to comment on Labour’s plans for our economy.

This Government have a job to do, and a large part of that job over the next 18 months or so will be focused on securing a Brexit deal that is good for Britain and helps to deliver the strong economy that will underpin our public services, create jobs and support our living standards. Of course our country and our economy face some significant challenges. I shall set out today how we intend to address them. However, we also have within our grasp some significant prizes and we need to ensure that we are able to seize them.

I have listened for the past half hour, as have my right hon. and hon. Friends, to the right hon. Member for Hayes and Harlington (John McDonnell) talking Britain’s economy down. It is clear that he has, and Labour has, no credible plan for addressing the real challenges this country faces. His solutions, such as they are, would put most of those prizes beyond our reach.

[Alison McGovern]

With all due respect to my right hon. Friend the shadow Chancellor, does the Chancellor think it is more likely that the trouble we have in the British economy is due to the shadow Chancellor’s words or to the mess the Conservative party has made so far of the Brexit negotiations?

[Mr Hammond]

If the hon. Lady bears with me, she will hear how what we have done since 2010 has strengthened the fundamentals of the British economy. If she is asking me whether the decision the British people made last summer to leave the European Union—and the uncertainty that that has inevitably created as we negotiate our way out of the European Union—adds uncertainty to the economic equation, self-evidently it does. That is why we are seeking to progress the negotiations as rapidly as possible to restore certainty for business, investors and citizens as quickly as we possibly can.

Listening to the shadow Chancellor and the Leader of the Opposition reading their election manifesto, it is clear that the Labour party has given up any pretence of a claim to fiscal credibility. Just two years ago, in the 2015 general election, Labour at least pretended that its figures added up. It would pay for its giveaways, so that its plans would not bankrupt the country. Not any more. The current lot are clear that not only would they hike taxes, but they would embark on a massive expansion of borrowing and subject the country to a catastrophic programme of ideologically driven, productivity-sapping, investment-destroying nationalisation on a scale that the country has not seen since the 1970s.

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[Alison McGovern (Wirral South) (Lab)]

I will be brief, but before I make my very short points, I want to pay tribute to my hon. Friend the Member for Walthamstow (Stella Creasy). She was appropriately named by her parents—she is a star.

I want to make two points about how the Queen’s Speech relates to the economy. First, we have significant challenges ahead, particularly in relation to productivity, so on that I agree with the Chancellor of the Exchequer. The productivity crisis we face is a red flag that demonstrates what Tory economic policy has done to our country. At its heart, it is the cause of our wage crisis. The fact that productivity has flat-lined has meant that people have been unable to earn more. There is a simple route out of the productivity crisis: pay attention to the needs of the economy and do more on skills. The Tories have deeply damaged colleges and further education. The T-levels mentioned in the Queen’s Speech are just a pointless rebrand of an existing system that has already failed further and adult education.

Secondly, we have to take the issue of immigration head on. It was a factor in the general election, but the Queen’s Speech contains nothing to deal with people’s concerns about security. If Conservative Members want to deal with the deficit, they cannot afford their current immigration policy. I say to my own party that the only way to deal with austerity is to accept that immigration is good for this country, not bad. As my hon. Friend the Member for Gower (Tonia Antoniazzi) said, we cannot deny our country’s history. Immigration has made my family and this country strong; I will not be ashamed of it.