Living Standards

Debate between Alison McGovern and Ben Gummer

Wednesday 4th September 2013 Commons Chamber

[Gavin Barwell]

rose—

[Ben Gummer]

rose—

[Alison McGovern]

As I am following the speech of the hon. Member for Croydon Central, I will give way to him.

Finance (No. 4) Bill

Debate between Alison McGovern and Ben Gummer

Thursday 19th April 2012 Commons Chamber

[Alison McGovern]

I shall make a few remarks about an important impact of the changes, which is at risk of going unrecognised. I think of that as the cluster impact of the changes. Our country does not have the same kind of people distributed uniformly across the United Kingdom. People of different ages cluster in different areas.

I am deeply proud to represent the Wirral, not least because the area has a higher proportion of older people. It is a great strength of our area. They bring a large amount of expertise and stability, and we should not talk about people living longer as though it was a negative thing. I benefited from having grandparents who lived longer than they might have expected, and I cherished each of those relationships.

With that clustering of older people comes a responsibility to pay attention to the issues that affect them. Even if that was not the right thing to do in and of itself, our local economy in Wirral is highly dependent on the income of pensioners. We have many small independent businesses whose relationship with their customers is important. They have regulars of many years’ standing, and many of those people are retired and on a fixed income, so even if it was not the case that we should care about the needs of older people, the employment of the rest of us in the Wirral and the vitality of some of the local shops is related to the income of older people.

Before I deal with the clustering of the local economy and the attention that Ministers must pay to how our economy works in practice, I want to make a few points about longevity and the increase in life expectancy that we are seeing. We must recognise that this is not a uniform phenomenon. Not everybody in our country is living longer in the same way. There is a social justice element. Poverty is still a pretty strong determinant of the length of people’s life. People such as those in my constituency who have worked in manufacturing might not expect to live as long as those in relatively more affluent parts of the country. My constituency is very mixed, and there are people there who may not be able to expect to live longer as the average increases. That average masks different expectations.

When Treasury Ministers make decisions about, for example, age-related allowances, I ask them to find out how those will impact on different parts of the country and different groups of people. The impact will not be uniform. We are not all uniformly living longer in exactly the same way. The NHS is a wonderful thing, but we still have a heck of a long way to go on public health to make sure that poverty does not limit people’s life expectancy, as it has done in the past and still does.

[Ben Gummer]

The hon. Lady makes a sensible point. One of the big challenges that faces us in increasing the state pension age and the point at which people retire is trying to understand the different requirements of people who have done heavy manual labour throughout their life or for any part of their life and have had different physical pressures put upon them, and those who have not. But that does not remove the point that most people who are affected by the tax allowance freeze are relatively wealthy pensioners—most of them. Therefore, although this is not a precise instrument, I am not sure that her point addresses exactly what the Minister seeks to do.

[Alison McGovern]

I shall return to my constituents and tell them that a moment of cross-party agreement broke out over the problem that the hon. Gentleman and I agree exists, where we must rightly consider the state pension age, but that that decision will affect certain people in a completely different way from that suggested by any average figure. I hope that the hon. Gentleman will allow me to respond to his second point by saying that I will remark later on whom the proposals affect and their relative position.

Before making my substantive point about how the economy clusters and how these proposals will affect us, I want to answer the point about inflation made by the hon. Member for Stourbridge (Margot James), who has unfortunately just left the Chamber. She sought to make a case against my hon. Friend the Member for Leeds West (Rachel Reeves), saying that the Government were doing pensioners a great service by increasing their pension on inflation, which has come about because of events beyond our shores, and the Government are just trying to respond to the oil price, and so on. I have no doubt that world events have had an impact on inflation in this country. Thankfully, I do not have to work out which events have an impact on inflation and report that to the Chancellor. That is the job of the Governor of the Bank of England. I have read the Governor’s letters on inflation and he remarks on the impact of the Government’s VAT rise on inflation. If the hon. Lady were here, I would tell her that it is not entirely true to say that the inflation that we face that has caused the Government to be so proud of their cost of living rise for pensioners is entirely beyond our control. It is in part at least down to the Government’s action.

I want now to think about the cumulative impact of this policy and a couple of others on the part of the world that I represent, but also on similar local economies. Some of the Government’s decisions have resulted in a kind of conflagration that means that particular localities face a really difficult economic future.

--- Later in debate ---

[Alison McGovern]

Is the hon. Lady therefore saying that the proportion is not 40%? She indicates that she does not know—that is fine.

[Ben Gummer]

Whatever the proportion of pensioners affected, whether it is 10%, 20%, 30% or 40%, does the hon. Lady think it is right that they currently get a different tax rate from low-earning families who are struggling hard but for some reason seem to be discriminated against just because they are not over 65?

[Alison McGovern]

The hon. Gentleman, too, is welcome to intervene on me again and say what he thinks the proportion is if he thinks the BBC is wrong. He said it might be 10% or 20%. No? Okay.

The Economy

Debate between Alison McGovern and Ben Gummer

Wednesday 22nd June 2011 Commons Chamber

[Ben Gummer]

I have taken one intervention; I will not take any more.

I am afraid that the Opposition are falling down already with their motion, but let us go on to the next phrase:

“in the last month retail sales fell by 1.4 per cent.”

[Interruption.] If hon. Members listen carefully, they might find that their interventions are prefigured. Not content with six months’ worth, the Opposition have to go to the last month, but let us go back to the motion and what has happened over the past year. In the past year, retail sales have grown by 4.5%. I congratulate the Opposition on their motion, as we are seeing growth in the two key figures—GDP and retail sales—that we have considered so far.

The next thing in the Opposition’s motion is manufacturing output, which, it says, “fell by 1.5%” over the last month; but actually, over the year, it has risen by 1.3%.

[Alison McGovern]

I am going to skate briefly over the hon. Gentleman’s comments about Labour Members never having seen a balance sheet. I hope that he will discuss economic variables and lag times and say whether, in fact, what happened in the previous six months might have been attributable to the last Government and that we need to allow time to feel the impact of this Government’s policies. Will he cover that?

[Ben Gummer]

The hon. Lady makes a perfectly reasonable point, but it is not one that she has conveyed to Opposition Front Benchers, because they chose as the subject of the motion, “The economy one year since the Government’s first Budget”. I am merely commenting on that, not on the rather crass detail in the motion. So far, we have growth in manufacturing, growth in retail sales and growth in the economy. Let us go on to the next thing that they are talking about.

The motion refers to

“a welcome recent fall in unemployment”.

The Opposition concede that. It was not just welcome; it was the largest fall in unemployment for 10 years—88,000—and larger than that achieved at any point when the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), whose Parliamentary Private Secretary questioned me a moment ago, was Prime Minister.