Oral Answers to Questions

Alison McGovern Excerpts

Tuesday 2nd November 2021 Commons Chamber

[Helen Whately]

I thank the hon. Member for his question, which gives me the opportunity to remind him that his area is receiving hundreds of millions of pounds of investment in transport infrastructure. We look forward to receiving further bids for future rounds of the levelling-up fund, for instance. We are delighted to invest in constituencies such as his.

[Alison McGovern (Wirral South) (Lab)]

The Exchequer Secretary says that levelling up is the defining mission of this Government, yet if we look at the spending review priority outcomes and metrics, we can see that across the Department for Business, Energy and Industrial Strategy, the Department for Levelling Up, Housing and Communities and the Treasury, there is just one metric on which to judge the Government:

“Economic performance of all functional economic areas relative to their trend growth rates”.

That is all that they are being measured on, so will she be specific? By how much does she expect to close the economic gap by the end of this Parliament?

[Helen Whately]

I thank the hon. Member for her interest in our objective to level up across the whole United Kingdom. As she repeated, it is the defining mission of this Government; as she can see, it is the golden thread running through the spending review and the Budget, with steps taken and investment made across Government to support levelling up across all our constituencies.

Oral Answers to Questions

Alison McGovern Excerpts

Tuesday 7th September 2021 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

I am afraid that I must tell the Chancellor that his infrastructure revolution is not very noticeable in cities in the north of England, which grind to a halt at rush hour. They desperately need infrastructure investment, particularly in public transport. Can he tell the House when he last met our city region Mayors in the north of England, and what his plans are for fiscal reform that will help them invest in public transport infrastructure?

[Rishi Sunak]

My entire team meet the regional Mayors all the time, and of course we will do so in the run-up to the spending review and the Budget. I agree with the hon. Lady that intra-city transportation is important. Unlocking the economic potential of our cities is important to driving our economic recovery. That is why last year, in my first Budget, we announced £4.2 billion for intra-city transport settlements for our largest several cities outside London so that they enjoy the same long-term funding as London and can invest in exactly the types of schemes that she describes.

Economic Update

Alison McGovern Excerpts

Monday 11th January 2021 Commons Chamber

[Rishi Sunak]

I am fairly certain we have already put in place a new matching services for apprentices who, sadly, are unable to complete their apprenticeship with their current employer, but I am happy to get the details and write to my hon. Friend about that. More broadly, like him, I support passionately further apprenticeships, which is why we have given companies a £2,000 bonus to take on a new apprentice and provided additional funding to both businesses and colleges to pay for the associated training.

[Alison McGovern (Wirral South) (Lab) [V]]

Thank you for calling me, Mr Speaker, and well done Chorley FC!

If the only economic message is quibbling about how statistics have been used, there is no message. Now that the Chancellor is with us, can I ask him, if he thinks there is so much unity of purpose, does he really stand by the plan to cut £20 a week from universal credit and to maintain the cruel two-child policy? I give him the opportunity to make an announcement and do something today to make sure that his appearance before us in the House today is not a total waste of time.

[Rishi Sunak]

At the beginning of the pandemic, we put in place a temporary uplift in universal credit, which lasts all the way through to the end of this year. Of course, future tax and welfare decisions will rightly be made at the Budget.

Future of Financial Services

Alison McGovern Excerpts

Monday 9th November 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend has focused on that issue for as long as I have been in this House—and rightly so. He will know that we passed the Sanctions and Anti-Money Laundering Act 2018 the year before last, and in the Budget we said we would consult on introducing an economic crime levy that would provide additional funds to combat the scourge of crime in our financial system. My hon. Friend the Economic Secretary will be outlining further measures on market abuse in the debate on the Financial Services Bill.

[Alison McGovern (Wirral South) (Lab)]

We do not see very much of the Chancellor of the Exchequer in this place. I wonder what it could possibly be about the Monday after the electoral routing of populism in the USA over the weekend that makes him want to come to the Dispatch Box and speak about climate change. Never mind the good management of his reputation, his Government cannot escape the consequences of Brexit and the lack of the deal that was promised for financial services. Given the shape of the UK’s economy, the consequences will be far worse for those workers that we keep talking about who are in financial services outside London and in other regions. Will he confirm what he believes will be the relative regional impact of the current state of the Brexit negotiations? What is his policy to stop Brexit making regional inequality even worse?

[Rishi Sunak]

It would not be right for me to give a day-by-day commentary on the negotiations. As we heard from the Prime Minister at the weekend, we have made significant progress. Those talks are ongoing and it is clear that a deal can be done, but it will require both sides to act constructively. We remain ready to do that and are working hard at it.

Covid-19 Economic Support Package

Alison McGovern Excerpts

Wednesday 14th October 2020 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

I am grateful for the opportunity to contribute to this debate in what has been a horrendous week for all in Merseyside. I would like to pass my thanks, through the Chancellor before he leaves the Chamber, to the Chief Secretary of the Treasury for agreeing to meet Merseyside Members of Parliament on the 20th of this month. Just as the Chancellor walked out of the Chamber now, it has felt to us in Merseyside that it has just been too difficult to get the attention of the Treasury during what has been the most extraordinarily challenging week. I ask the Economic Secretary to the Treasury to flag up to all his colleagues inside the Treasury how very difficult this situation is for us. We have uniquely been placed in the top tier of restrictions, and that surely demands a unique level of attention and a unique set of interventions to ensure that our economy does not go under. I know that the Minister will take those comments very seriously.

I want to take the short time that I have to make a couple of comments about Merseyside, but before I do so I just want to thank all those businesses in my constituency that have been in touch with me. I have had sobering conversations with the management of the Thornton Hall Hotel, and with James, who runs the Rose And Crown pub in Bebington. They have made it absolutely clear to me what the consequences are of this situation. They have done everything that could possibly have been asked of them. This situation is not of their making, and I hope that it is a cross-party endeavour in this House to back our hospitality industry. That is particularly important for the Liverpool City region. We have spent 20 years working to ensure that our visitor economy replaced much of what was lost in de-industrialisation.

Now, Madam Deputy Speaker, if you had said to me when I was a child that, one day, people would come for a mini-break to Merseyside, I would have laughed. Most people in the country—well, they did not think that much of us. All that work could go down the drain if we are not careful, so I say to the Minister: “Don’t do it. Help us.” I urge him to make sure that this place of opportunity, with these young and growing businesses, has the chance of an economic future that says to anywhere in our nation: “It does not matter how far down or out you are, Britain offers you hope.” There is a way to do that. Although our businesses are young and they do not have huge cash reserves, they are incredibly creative and, crucially, fast growing. If the Treasury wants to see growth, I heartily recommend it backing the creative, cultural and visitor economies such as Merseyside.

[The Economic Secretary to the Treasury (John Glen)]

indicated assent.

[Alison McGovern]

The Minister is nodding, and I thank him for it.

We really need that practical support now, so, if the Minister is prepared to work with us to help Merseyside—I know that I speak for the shadow Chancellor here as well—we will be there. We never want to go back to the dark days. I simply ask everyone in this House to work together to help.

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.

Finance Bill

Alison McGovern Excerpts

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Kevin Hollinrake]

My hon. Friend makes a very good point. We have some very good people here in our tax authorities and in our ministerial team. The difficulty is, of course, that those companies have some very good advisers working for them, too. It is a case of “Catch me if you can”. That is why the Government have stepped in with a diverted profits tax and a digital services tax, neither of which existed before 2010. The Government have stepped forward to try to do this, but it is certainly not easy.

From the figures, Google should be contributing £420 million to the Exchequer. Of course, much of that money would have previously gone to the Exchequer through some of our own companies, but they no longer get that revenue. Regional media is a good example of that. As businesses, we used to spend our money in regional newspapers and regional radio. Now we put that money straight into Google and Facebook and other such places, so it is being shifted away from UK jobs and UK businesses and spirited away to different parts of the world.

I know the Minister will say that we are working with the OECD in terms of base erosion profit shifting, which is absolutely right. The difficulty, of course, is the lack of public scrutiny of that. That information is available only to tax authorities. The media play a hugely important role in highlighting the inappropriate shifting of profits internationally by companies, which therefore do not pay their fair share of tax. It is hugely important that we have publicly disclosed country-by-country reporting.

I very much support new clause 33. I hope that the Government will step forward with something similar in the very near future. The digital service tax is a great step forward and a very bold move in the teeth of international opposition, particularly from the USA, but it is a short-term measure. We need something much more important and much more fundamental. At a very minimum, that fundamental thing should be country-by-country reporting and I urge the Government to go further, continue with their great efforts to tackle tax avoidance, and bring in country-by-country reporting for all multinationals.

[Alison McGovern (Wirral South) (Lab)]

It is good to rise to speak in support of new clause 33. In doing so, I want to begin by thanking the right hon. Members for Sutton Coldfield (Mr Mitchell) and for Haltemprice and Howden (Mr Davis) for their leadership on this issue. They have been talking about this and pressing the Government on this for many years. Although this House is not always a model of cross-party decorum and high-mindedness, on this it certainly has been, and I pay tribute to their work. They have made compelling arguments, and I sincerely hope that the Minister will listen.

Other very good arguments have been made in this debate. The hon. Member for Penistone and Stocksbridge (Miriam Cates) caused slight jocularity in the Chamber when she suggested this idea that Finance Bills are not fun. I do not know who she thinks thinks that, but, obviously, they are the best bit of Westminster.

The hon. Member for Harrogate and Knaresborough (Andrew Jones) pointed out how difficult it is to introduce new taxes. He is right, and we are introducing a new tax here, so we should have a think about how the circumstances are different. Anybody who thinks that it is easy to introduce new taxes should offer George Osborne a trip to Greggs. He thought that the pasty tax would be a minor and uncontroversial measure—how wrong can you be?

--- Later in debate ---

[Mr Mitchell]

The hon. Member is absolutely right. I think two very good examples are Pakistan, where British techniques and expertise have helped the Pakistan authorities to raise more tax from their citizens, and Rwanda, where Britain helped the Rwandan Government set up a fair and equitable system of taxation that has worked and succeeded in helping that country to fund its expenditure. Back in 2007, the Rwandan Government raised only about 20% of their annual expenditure, and today they raise over 80%.

[Alison McGovern]

I know some people think that tax is boring, but how could we listen to that example, talking about one of the countries that has suffered worst in the world in my lifetime, and not think that this new clause—the issue of getting tax to the place where it belongs—is truly a great mission that we should all subscribe to? Forgive me for being passionate about it, Madam Deputy Speaker, but I think it is much more important than any of us ever properly give it credit for.

The DFID aspect of this is absolutely crucial. If we want to stop giving aid forever and a day—I personally think that that should be our objective in having a more equal world—we absolutely need to pull every other lever that we possibly can in this House to get developing countries and poor countries globally the tax they are due, and this is how we will do it. As has been mentioned, this House has already voted in favour of it. It is quite obvious from the debate today that there is cross-party support, and, given all the other controversies that we have to deal with, why we would not do something supported by all corners of the House, I do not know.

The Minister will forgive me for telling him that while accepting that the Government have gone so far and have made efforts and shown willing, there is an old trade union saying, “When you argue with the manager, never say that they have done nothing; always say that they have not yet done enough.” That is my message to the Minister: you need to go further.

--- Later in debate ---

[Jesse Norman]

If I have given that impression, I have been misunderstood. We are pushing for a multilateral approach, as I have indicated, through the OECD and the G20, and also in consultation and collaboration with the EU. The purpose is to achieve a sustainable approach that does not run the risk of creating incentives to restructure out of this country and thereby reducing tax transparency and effectiveness. It might also reduce the impetus for tax transparency, because the more countries there are that require it and so have firms relocating or restructuring to avoid it, the less impetus there could be to secure a multilateral solution.

[Alison McGovern]

Would the Minister be so kind as to give a rough deadline for the multilateral approach?

[Jesse Norman]

It is in the nature of these beasts that I cannot give a deadline, and I am not sure anyone can. It is a continuing debate. That does not mean, however, that progress cannot be made. As we have seen, for example in some of the work done with the OECD on minimum taxation levels, there has been clear evidence of progress in discussions within the OECD, which is a matter of public record.

Oral Answers to Questions

Alison McGovern Excerpts

Tuesday 11th February 2020 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

The people with the least productive, lowest-paid jobs, although often highly skilled, are women working in care, retail or hospitality. Where is the Chancellor’s productivity plan for the women in our country?

[Sajid Javid]

The hon. Lady will be pleased to know that we have more women in employment than ever before in our history, and that the gender pay gap is the narrowest ever recorded. However, she is right: we need to do more, and more investment will help, whether it is in infrastructure or skills. What will also help is our new points-based immigration system. Too often businesses have sought to take unskilled labour from abroad and cut the wages of people locally, and we must put an end to that as well.

National Productivity

Alison McGovern Excerpts

Wednesday 22nd January 2020 Westminster Hall

[Alison McGovern (Wirral South) (Lab)]

It is a pleasure to serve under your chairship, Mr Paisley, and to speak in the debate introduced by my hon. Friend the Member for Barnsley Central (Dan Jarvis), who made a characteristically serious contribution.

Those of us who have participated in economic debates over the past decade, as I have had the great fortune to do in this House, have been talking about productivity for some time; yet the problem is not resolved. Today, we are talking about national productivity, and we have heard about regional disparity, which is certainly a problem for our economy. The divergence between some of the regions of the United Kingdom is greater than between some of the regions of the European Union as a whole, so if we think that Brexit will solve all our problems we are in for a bad surprise. However, that is not the reason I rise to speak.

It is true that investment in our economy, particularly from the private sector, is in a chronic and parlous state. We need a greater contribution to the future potential of our economy, and as an ex-employee of Network Rail nobody believes more than I do in the power of infrastructure, particularly trains, to do great good for our economy. Unfortunately for us all, infrastructure investment is necessary but not sufficient for the future good of our economy.

I want to make a different contribution on how we should look at productivity in the UK, because it is important to understand and get to the root of the issue. When we look at who does the jobs in the least productive firms—those jobs that add less to our national productivity—the answer is women. Women work in jobs that are, on average, 22% less productive than those that men do. Why? It is because they work in those areas of our economy that are the least productive, such as retail and hospitality, where productivity growth has been slow for many years.

As a result, women do the worst-paid work. We can ask ourselves whether women do those jobs because of gender stereotypes, whether those jobs are paid less because of gender stereotypes, or whether investment in those areas is so poor because of gender stereotypes, but the truth is that that is the situation we face. I simply ask the Minister to point to what the Government strategy will be to approach that, because if they do not approach the question of productivity with a focus on gender we will not solve the problem.

Women are also less likely to work in high-productive firms. We have heard a lot about advanced manufacturing. It is certainly the case that the most productive firms are those that invest heavily in technology. I do not think that it is fair that half the population has much less of a chance of working in the sectors of employment in our country that are likely to offer a higher pay packet.

In order to understand the question, we need to think about what productivity actually is. As has been said, it is a measure of how much value is added to the economy with the time that we have. That is why the question of time is so important. How we improve productivity depends on who decides what we do with our time. According to the data, women’s productivity really drops off around child-bearing age, because that is the point at which women have less of a choice about what they do with their time.

Childcare responsibilities still fall heavily on women, and the Institute for Fiscal Studies has found that access to childcare is a central problem for the productivity of our country. If we focus just on putting pounds in the ground—building new railways and road links, and investing in heavy infrastructure—we will fail to solve the productivity crisis in our country for yet another generation.

The other aspect is about power inside low-productivity firms. It is about time management, and the poor quality of management that we have had in the United Kingdom for many years in low-productivity firms, where people do not have the power to say, “Actually, I would like to manage my time so that I can be out of the business for one day a week, so that I can learn and upgrade my skills.” Again, women are most likely to be unable to do that, because of childcare responsibilities and, increasingly, responsibilities looking after older people in our society. Our social care system is collapsing before our eyes, and when that system collapses, it means that women cannot get to work because they are busy looking after older relatives as well as children.

In summary, if national productivity is to mean anything and if the Government are to have any kind of strategy to improve the productivity of this country, we must recognise that one half of our population are unable to take the steps they need to improve their working life and their ability to contribute to our economy. If we do not recognise that, we will fail yet again.

--- Later in debate ---

[Mr Clarke]

I am afraid the hon. Lady will have to wait for the publication of the consultation at the comprehensive spending review. The key point is that we want to make sure that this gives the Scottish Government meaningful control over key aspects of resources. She mentioned European funding in her remarks. The point I would submit is that that money was fundamentally UK money that was recycled back to this country, with conditions attached. We should be clear that we want to devolve control of that funding to the lowest possible level, and we will inevitably want to do so in a spirit of genuine concord with Holyrood.

The Government will set out further information about our plans here in an English devolution White Paper this year, which will outline our strategy to unleash the potential of our regions, level up powers and investment and give power to people and places across the country. Alongside that, we will publish a refreshed northern powerhouse strategy, building on the successes of the existing strategy in bringing together local leaders to address key barriers to productivity in the regions.

As the hon. Member for Islwyn (Chris Evans) said, productivity is not a concept that always commands headlines, but it goes to the heart of national prosperity. It is the best way to boost wages, improve living standards and enhance economic growth across the country, regionally as well as nationally. We are working hard to build a stronger and fairer economy—dealing with the deficit, helping people into work and cutting taxes for businesses and families. There are 3.7 million more people in work, and the hon. Member for Wirral South alluded to the record rate of women in employment, which is worth highlighting. More than 60% of the increase is in regions outside London and the south-east, but we need to go further and we need to be candid about the extent of the productivity challenge we face. Productivity growth slowed globally in the aftermath of 2008, but the slowdown has been particularly acute here. The Government are committed to tackling that challenge as we enter a new decade in which we are less under the shadow of the financial crisis and the impact on our public finances.

The key will be an ambitious programme of investment. Infrastructure is a key driver of productivity—it is not sufficient in itself, but it is an absolute good. It links people to jobs and products to markets and supports supply chains, encouraging domestic and international trade. It affects daily life: speeding up internet connectivity means less time staring at blank screens; improving roads and trains, which the hon. Member for Stalybridge and Hyde rightly mentioned, means less time stuck waiting to get to work and more time to play; decarbonisation means cleaner air for us all to breathe and more efficient energy. When the national infrastructure strategy is published alongside the Budget on 11 March, that will be a core moment in this piece. We will set out further details of our plan to invest £100 billion to transform our infrastructure and achieve a real step change. The strategy will set out our long-term ambitions across all areas of economic infrastructure, including transport, local growth, decarbonisation, digital infra-structure, and infrastructure finance and delivery.

Alongside that investment in our physical capital, it is essential to focus on and improve our human capital, as the hon. Member for Wirral South, whom I had the pleasure of serving alongside on the Treasury Committee, rightly said. I know that from my constituency. The hon. Member for Barnsley East (Stephanie Peacock) is right to say that talent is evenly spread across this country, but opportunity is not. We know that, which is why our recent manifesto pledged a national skills fund—I was briefed on it yesterday, and it is exciting, bold and visionary. We all know that it needs to happen, because there has been profound personal, human dislocation as part of our transition from one era of industrialisation to a new one. That has had uneven consequences across England, let alone across the UK. We will seek to give a leg up to people looking to get onto the career ladder, support those wanting to switch careers, and support growth by ensuring firms can get access to the skills they need.

The hon. Member for Stalybridge and Hyde referred to Be the Business. I had the pleasure of meeting it last week, and it is hugely impressive. I heard first-hand from several of the entrepreneurs it has helped about how targeted interventions and upskilling have helped them to be better business leaders. We need more of that to create a culture of entrepreneurship, which, as the hon. Member for Islwyn said, is not always common in all parts of the United Kingdom.

Increasing our productivity also means innovating. The hon. Member for Barnsley Central referred to the AMRC in Sheffield. That is precisely the kind of thing that we want to see more of. That is why we are committed to meeting our target of raising investment in research and development to 2.4% of GDP by 2027, ensuring that the UK remains at the cutting edge of science and technology. One of the great frustrations of recent decades is that the UK has so often come up with brilliant ideas but has not had the opportunity to build them out at scale. That needs to change. If we do that correctly, there is so much good that we can unlock and economic potential that we can unleash. We are increasing public spending on science and innovation by an additional £7 billion by 2021-22, which marks the biggest increase in 40 years.

The point that the hon. Member for Wirral South made about human capital, and in particular women, was well made, and I take it to heart. It is something I have been talking to my officials about. The Government are seized of the cost of childcare and the need to resolve fundamentally the problem we face with social care, which has so many spillover consequences for our health service and our economy, and we will be coming forward with proposals. Particularly on the social care piece, we genuinely welcome constructive engagement with the Opposition as we try to build a settlement that has lasting legitimacy. We want to do it right for successive generations, which will doubtless encompass Governments of both colours.

On female entrepreneurship, my predecessor—the current Secretary of State for Housing, Communities and Local Government—and I are working with Alison Rose to develop the Investing in Women code, which will help to pioneer work. We are looking to increase lending to female entrepreneurs to increase the possibilities. Clearly, if someone cannot even make the time to work because of competing priorities, that constrains them. I genuinely take the hon. Lady’s point to heart, and I will continue to work on it with officials.

[Alison McGovern]

Will the Minister make a commitment that the Treasury’s next productivity strategy, connected to the Budget or otherwise, will have a gender analysis of who does what work and for what remuneration?

--- Later in debate ---

[Mr Clarke]

It is best that we wait for a fiscal event to set out our targets in this area. The Government are clear that we need to increase trend growth. There is no doubt that we accept that challenge, which is thrown down quite legitimately. As we have now cleared the rubble from the 2008 crisis, we need to aspire to do more. I accept that in the spirit in which it is offered. It is right to challenge the Government and hold us to account on whether we can now put that vision into practice. There is always a lag when it comes to investment on the scale and of the nature that we are talking about, but we are doing things that I hope by the end of the Parliament will have made a demonstrable impact, in terms of changing our economic structure.

[Alison McGovern]

I apologise for testing your patience, Mr Paisley. Doubling the trend rate of growth would really return it only to pre-crash levels of growth. To repeat the questions that my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) just asked, what measure for the Government to be held to, specifically on productivity, will the Minister commit to?

[Mr Clarke]

That is simply not something that I am in a position to commit to on behalf of the Government today. As I said to the hon. Member for Stalybridge and Hyde, we are resolved to do more to increase growth in a way that will mean that, the next time we come to review these statistics at the start of a new Parliament, there is a new tone and a new level of ambition realised in the results. That is genuinely the Government’s commitment. We are particularly interested in ensuring that areas such as Merseyside, Teesside, Greater Manchester and South Yorkshire lead the charge and are not left behind.

[Dan Jarvis]

I want very briefly to reflect on two points that the Minister referred to. First, the transforming cities fund is absolutely vital for us, in terms of productivity and economic growth. We have worked incredibly hard with the Department for Transport to put forward an outstanding bid into the transforming cities fund. I am the only metro mayor who has been required to bid for that money. My parliamentary colleagues in South Yorkshire, who now include three Conservative Members for the first time, and I will be looking very closely at what the Chancellor announces in his Budget in March.

I want to reiterate the points that the hon. Member for Glasgow Central (Alison Thewliss) rightly made about the shared prosperity fund. It is a critical amount of money for our regional economies. I am pleased that the Minister said that the consultation will be launched later this year. It is vital that both regional and national leaders can contribute to the important process of determining how the shared prosperity fund will be allocated in our regional economies—that is incredibly important. We urgently require clarity so that we can make long-term investment decisions.

The debate has been really useful; we have had a series of very constructive contributions from Members representing every corner of the country—Northern Ireland, Wales, Scotland, the north-west and north-east of England, and Yorkshire. We have established a consensus that productivity is a key driver of economic growth in the UK, and that regional imbalances are huge challenges that will require investment in skills, R&D and infrastructure, of which public transport is key. Devolution is a significant way to address some of those challenges, but democratically elected leaders need investment and resources to make regional and local decisions.

My hon. Friend the Member for Wirral South (Alison McGovern) rightly placed the focus on women and challenged the Minister and the Government on what they will do about gender disparities. To be fair, that important challenge also needs to be levelled at our metro mayors, all of whom are men, as she will know.

[Alison McGovern]

Oh yes, I know!

[Dan Jarvis]

I had no doubt about it. My hon. Friend has put that important challenge to the Government and we will look and listen very carefully at how they respond to it. That challenge should also be put to our metro mayors, and I assure her that in South Yorkshire we take that very seriously and have a programme of work, through our skills and employment board, that looks specifically at the points she raised. I would be grateful for the opportunity to discuss that further with her at some point.

Question put and agreed to.

Resolved,

That this House has considered national productivity.

HMRC Impact Analysis: Customs

Alison McGovern Excerpts

Tuesday 8th October 2019 Commons Chamber

[Jesse Norman]

I would have expected the right hon. Gentleman, as a man of great assiduity who is widely respected across the House, to differentiate between the £7.5 billion that we are talking about and the overall impact on the EU as well as the UK of £15 billion, which is one of the things that will bring both sides together into what we hope would be, in these extreme circumstances, a deal. Of course, no impact on business is something that we want. That is why we are pressing the House for a deal, and I hope he will support us in doing that.

[Alison McGovern (Wirral South) (Lab)]

I think we are all confused about the nature of conservatism this afternoon. When the Minister and I joined the House in 2010, Prime Minister David Cameron was embarking on a red tape challenge. I did not understand that the ambition was to increase red tape in the manner that we see today. When did the Minister last speak to the car industry? We know that every 60-second delay takes away from that industry £50,000 of gross value added—every 60 seconds. If, as it seems, there is no deal to be had and we are heading towards that catastrophe, has he asked the car industry how many jobs we are going to lose?

[Jesse Norman]

The way to respond to that is to remind the hon. Lady that when I was at the Department for Business, Energy and Industrial Strategy, I had extensive engagement with different industrial sectors, including the car industry. The same was true when I was at the Department for Transport. There is no doubt, as she will know, that the importers and exporters that are repeatedly crossing the borders will be affected by this. Of course, there are mitigations in place, and I hope she will help us to avoid those by supporting the deal.