Protection of Jobs and Businesses

Alison McGovern Excerpts

Wednesday 9th September 2020 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

Thank you, Madam Deputy Speaker—I appreciate that intervention! I am grateful for the opportunity to contribute to this debate on a very important subject.

We are living through unprecedented times with a massive health crisis. The economy will of course adapt and change, as the hon. Member for South Cambridgeshire (Anthony Browne) said, but the question is what steps we ought to be taking to make sure that we protect people. Conservative Members have talked about sound finances and not extending debt too far, and the Thatcherite principles of the Conservative party. I have to tell them that they have not been paying attention, because the seats that the Conservative party won in December, particularly those in the north of England where I am from, were not promised a return to Thatcherite economics—they were promised redistribution. So I would say to the Conservatives: get with the programme.

[Miriam Cates]

The focus of the Government’s response has been largely towards those in the lowest income brackets represented by many of us. In fact, the group of people who have most benefited from the Government’s help are those in the lowest income decile. We have seen a huge redistribution of our country’s resources during this crisis.

[Alison McGovern]

Well, the hon. Lady should listen up, because if she thinks redistribution is important, then she should be aware that in the new seats that the Conservatives won at the election in December, there are half a million jobs at risk. If the Conservatives think that they can turn away from this issue as those people end up on the scrapheap, then they are very much mistaken.

We have heard London Tory MPs saying, “London is the powerhouse of the country—make sure London is all right and everyone else will be okay.” Again, I thought that the Conservative party was not about that any more; I thought that the Conservatives had mended their ways. Well, let us see: are they really going to vote to ignore those half a million jobs in the seats they won only in December? I would say to the hon. Member for South Cambridgeshire: beware headline statistics, because the employment rate, as he well knows, cannot describe the situation for places that went through wave after wave of deindustrialisation, and where the previous rounds of high levels of unemployment impact today on people’s skill levels, income and ability to mobilise capital in those places.

My greatest fear right now is for young people, because the labour market has memories. When the labour market has a negative shock like this that impacts on people who are working today and experiencing it, they will feel that shock for the rest of their career. According to the Institute for Fiscal Studies, employees aged 25 and under are about two and half times as likely to work in a sector that is now shut down as other employees. Those young people will live with this shock for the rest of their career. I say to the Minister: those young people in our country today will never, ever forget what this Government did. The Federation of Small Businesses has said that kickstart is disappointing and we need much better for young people.

Finally, on rebalancing, what should that really look like? Where I am from in Merseyside, devolution has been worth it for us and it is going well. Merseyside’s chief economist, Aileen Jones, has come up with a credible recovery plan that ought to be supported by the Government. Whether it is innovation or the new digital economy, we can do it. We just need the Tories to do what they said they would.