(1 week ago)
Commons Chamber
Dr Zubir Ahmed (Glasgow South West) (Lab)
The hon. Gentleman says this country has a defence problem. Could he elaborate on the context of that defence problem, and perhaps reflect on the fact that it may have something to do with the under-investment that has left the Army with unprecedented levels of poor morale and left British soldiers unequipped to do their basic job of defending our country?
Order. Interventions should be short and sharp, and questions should be to the point.
If time allows, I will be very happy to go into great detail about our record on defence. When Russia invaded Ukraine, we were proud to stand with the people of Ukraine, and to reboot the funding for defence. The test that the Chancellor failed was not my test; it was his own test. It was the Chancellor who resigned because the previous Chancellor and Prime Minister would not give our armed forces the proper funding for our defence.
Yesterday we needed decisive action, and all the Government delivered was a Budget of ducked decisions. The Chancellor has taken to heart the idea of, “Why do today what you can put off to next year or the year after?” Let us be clear that, as a result, Britain will be less secure, less fair and poorer for it.
Labour Members try so hard, but the hole in their Budget is gaping wide open. The problem is that it is not just us on the Opposition Benches who can see that hole, but our adversaries around the world, leaving ourselves open. Not properly funding our armed forces is not going to scare anyone in Moscow and it will not deter Tehran.
The Defence Secretary has resigned once before, so we know he is not against resigning. Perhaps he could resign again on principle today. We on this side of the House are used to Labour breaking their promises, but to break the promises they made to our armed forces is a new low. If the Chancellor had any dignity, he would have resigned yesterday.
Despite their failure to fund defence, the Government have still raised the tax burden to the highest level on record—higher than in the aftermath of world war two and higher than even the right hon. Member for Leeds West and Pudsey (Rachel Reeves) raised it. Who remembers how this Government had no plans to put up taxes? How is that working? For the third Budget in a row, the tax burden is set to rise. All told, taxes are going up by a total of £75 billion a year: higher next year, higher the following year and higher in every single year of the forecast. Even the Prime Minister’s former economic adviser, Andy Haldane, now says that Britain is “taxed out”. He also called the Chancellor “penny wise, pound foolish”. I am not even sure about the penny wise bit, to be honest. And where will that money come from? Families, small businesses, the self-employed, farmers, the people who work hard and want to get ahead. Why? To pay for those who do not—those who could work, but choose not to.
The damage does not just stop with the tax bill itself. It is the disincentives in the economy that do the most harm. Two years ago, the then Chancellor stood at that Dispatch Box and raised taxes on jobs. Now, we are in a jobs crisis, with over 170,000 jobs lost since July 2024, all because Labour does not understand that if you tax something, you get less of it. Now it is raising taxes on the banks, which provide mortgages, loans to small businesses and pay interest to savers. The Chancellor might think it is just a bank tax, but we know that, like every tax, it will end up being paid by ordinary working people: higher mortgages, lower returns on savings and bank branch closures in every constituency and every high street, and fewer jobs in this country.
The Budget also contains a vindictive tax rise on people who have done the right thing, those who have done what Governments have always told them to do and what this Government want them to do: save money. Yet for many, up to 49p in every pound of interest on hard-earned savings will now be taken by the Chancellor. It is the same story with landlords, who have already come under attack from this Government, and the OBR says that rents will go up as a result.
Of all that the Budget was missing, the lack of welfare reform stands out the most. Or at least, so we thought—because this morning the Chancellor told the BBC that there will be welfare cuts before the election. Perhaps a Treasury Minister could come to the House and clean up the Chancellor’s mess. His Budget has not even survived 24 hours.
Last week, the Prime Minister called the benefits bill a moral outrage; he was right then, but he is not doing anything about it now, because Labour Members are too afraid to say, “Enough is enough.” They do not have the courage to get a grip on welfare, because they are worried that it would cost them their jobs. Thanks to the TaxPayers’ Alliance, we know that for more than half of all Labour MPs, the number of benefit claimants in their constituencies is larger than their majority. It is true for the Chancellor, it is certainly true for the Defence Secretary, and it is true for the Economic Secretary to the Treasury. They will not get welfare under control because it would cost them their seats—they are putting their own interests before the country’s. [Interruption.] I am making progress. Don’t you worry—I am doing very well, Madam Deputy Speaker.
Order. Fascinated as we all are, there are many people hoping to contribute this afternoon, so I hope the shadow Chancellor will be concluding soon.
I read that the Budget had the most measures in it of any Budget, but also that they were the most inconsequential. I will try to crack through a few other things. [Interruption.] Labour Members are all chuntering, but I will tell you who else’s interests they are putting first: the trade unions.
While the Government are raising taxes on everybody else, they are handing out more than £40 million over the next two years to a union learning fund. I cannot even begin to imagine what they will be learning: how to run rings around the Health Secretary; what to do with those extra days off from working a four-day week; how to keep public sector pay rises twice as high as the private sector—[Interruption.] The Defence Secretary says, “How to keep the Conservatives out.” That is probably about right—that is probably exactly what they are doing! It is a political bung to their political allies. It is ridiculous. While families face tough choices in a cost of living crisis, this Government use their Budget to tax people and hand money to the trade unions.
It was not just the Budget we heard yesterday; we also heard the figures from the Office for Budget Responsibility, and they really do show us just how bad things are. For the first time ever, the Government are planning to spend over 45p in every £1 in the economy. Government spending goes up every year of the forecast, debt is up every year of the forecast, and it is official: living standards are down. Real household disposable incomes are set to be lower next year than when Labour took office—£1,500 lower at the end of this Parliament than they were forecast to be under the Conservatives. It is not hard to understand why: inflation is up, interest rates are soaring and unemployment is up again.
The one-off £100 that the Government are putting into bank accounts will not touch the sides for most people, given the cost increases. The only thing that will put us on a path out of decline and deficits is growth. The Conservatives understand the value of growth. The Prime Minister has got his history entirely wrong. The mistake this country made was not to choose markets over socialism in 1979—it was not electing Mrs Thatcher—but giving up all that we achieved in the ’80s and ’90s.
In conclusion—Madam Deputy Speaker is very firm, so I will conclude—this Budget will go down as one of history’s great missed opportunities. It was an opportunity to undo not 40 years of neoliberalism, but the damage of the first two years of this Government—the mistakes made by the right hon. Member for Leeds West and Pudsey, who is now busy job hunting and discovering for the first time what it is like to receive rejection after rejection. Yesterday was a chance to put Britain back on the right track, and the Chancellor blew it. Higher taxes, higher spending, higher borrowing; lower growth, lower living standards, fewer jobs—I hope the Chancellor kept the receipt for the Budget, because I think he is going to want to return it.
The British people know that this is not the Budget we need. This is a great country whose potential is being held back. We have a Chancellor who ducks his choices, and a Prime Minister who wants to take us back to the 1970s. We cannot tax and regulate our way to growth. National security really does matter more than social security, and only by tackling the deficit can we back away from the fiscal cliff edge and do the right thing by future generations.
(8 months, 3 weeks ago)
Commons ChamberOn a point of order, Madam Deputy Speaker. I wrote to the Chancellor on behalf of a constituent on 10 December last year; I followed that up on 6 January and 20 January, but on each occasion I received no substantive reply. It was only when I tabled a written question that Ministers finally informed me that my correspondence had been passed to HM Revenue and Customs. They told me three weeks ago that they would reply by 11 February, yet they have not done so, nor have they written to me.
It has been more than two months since I first raised the matter with the Chancellor. I have no answer for my constituent. Can you advise me, Madam Deputy Speaker, on what further avenues there are to ensure that this Government treat Members of this House properly?
I thank the hon. Member for notice of his point of order. It is important that Members receive timely answers from the Government to such correspondence. No doubt those on the Treasury Bench are listening. It is not a matter for the Chair, but I am sure that those on the Treasury Bench will have noticed not only the hon. Member’s concerns but those of other Members about slow correspondence, and no doubt they will pass on his remarks. He may also wish to consult the Table Office about other steps that he can take if he so chooses.
Bill Presented
Representation of the People Bill
Presentation and First Reading (Standing Order No. 57)
Secretary Steve Reed, supported by the Prime Minister, Darren Jones, Secretary Liz Kendall, Secretary Lisa Nandy, Dan Jarvis, Samantha Dixon, Chris Ward and Josh Simons, presented a Bill to make provision extending the right to vote to 16 and 17 year olds; to make provision about the registration of voters; to make provision about the administration and conduct of elections, referendums and recall petitions; to make provision about election agents’ addresses; to make provision about political expenditure and political donations; to make provision about information to be included in electronic campaigning material; to make provision about offences and civil sanctions in connection with elections, referendums and recall petitions and with donations and expenditure for political purposes; to make provision about the disclosure of information by the Electoral Commission; to make provision about the disqualification of offenders for holding elective offices, and their sentencing, where offences are aggravated by hostility towards persons involved in elections, referendums or recall petitions or holders of such offices; and for connected purposes.
Bill read the First time; to be read a Second time on Monday 23 February, and to be printed (Bill 384) with explanatory notes (Bill 384-EN).
(9 months, 1 week ago)
Commons ChamberI call the shadow Secretary of State.
The Minister has just heard from across the House continuing pleas to support the hospitality industry. It is always a good day when the Government U-turn and provide more support for pubs, so we welcome that. However, unless the Minister can explain to us when a pub becomes a gastropub, when a gastropub becomes a restaurant, and when a restaurant with rooms becomes a hotel and descends down that wormhole, will she make representations to the Chancellor to extend the same measures for pubs that she U-turned on this week across the whole retail, hospitality and leisure sector? The truth of the matter is that 90% of that sector will not benefit from this week’s U-turn.
I call the shadow Secretary of State.
Of course, it is not just Bracknell, and one day those on the Labour Benches will understand that there are no workers’ rights if people have no work. Youth unemployment is up significantly. That is a tragedy that everybody should be ashamed of, and it is going up on Labour’s watch. Small businesses, which provide so many jobs, are very worried about the administrative burden of trade union access. We are talking about the very smallest businesses—pubs, restaurants, garden centres and small catering businesses. They are the backbone of our communities. As the Minister tries to implement the Employment Rights Act, will she consider lifting the threshold for the trade union access agreements to a headcount of 250—that is recognised elsewhere in law as a threshold—which would protect our very smallest businesses from that administrative burden?
(10 months, 4 weeks ago)
Commons ChamberOrder. Colleagues should note that the debate will have to conclude by 7.55 pm, so only a couple of Back-Bench Members will get in. A speaking limit of eight minutes will apply to Back Benchers. I call the shadow Secretary of State.
Two weeks ago, the Chancellor stood at the Dispatch Box and delivered a Budget that contained not a single measure to support growth. Today, in moving the motion to disagree, the Minister has signed the warrant for a war on jobs. She is at the Dispatch Box representing the Government, but everyone knows that it is the former Deputy Prime Minister, the right hon. Member for Ashton-under-Lyne (Angela Rayner), who is calling the shots. We discovered this morning that Labour Together is already auditioning for the Prime Minister’s replacement. Perhaps the Minister has an outside chance at the job, but my money is probably more on the right hon. Member for Ashton-under-Lyne. Perhaps the Labour party could have its first female Prime Minister just before the Conservatives have our fourth. Given all that job insecurity, it is no wonder that Labour Members seem so keen on employment rights.
This is not a Bill for employment rights; it is a charter for a jobless generation. Thanks to measures in the Bill, thousands of young people will struggle for opportunities because the rungs of the ladder have been sawn off. Since Labour entered office, 144,000 payrolled jobs have been wiped out. Manufacturing, the oil and gas sector, construction and hospitality are all unable to make ends meet due to high energy and employment costs. The unemployment rate has been higher every month of this Government. Half the jobs lost belong to the under-25s.
(1 year, 2 months ago)
Commons ChamberIf we are going to exchange numbers, does my hon. Friend agree that it is shocking that over 1,000 pubs and restaurants have closed since the autumn Budget, and that 84,000 hospitality workers have lost their jobs? That is one in every 25 since the autumn Budget alone—and that was when the autumn Budget was actually in the autumn. Does he agree that that is having an impact on our high streets and the very viability of our local town centres and that it needs to stop? The Government need to stop holding our hospitality sector responsible for everything that happens in the local economy.
Order. We must keep interventions short. We have close to 50 people trying to contribute today.
My right hon. Friend makes an important point. It is about the numbers, and it is important that we should be instrumented. This is a sector that is extremely well instrumented, and groups such as UKHospitality do a great job at calling out the impact. But it is not just about the numbers, because behind every one of those numbers is a story: a family, a striver, a risk taker, an entrepreneur, a community or a high street whose life is being sucked out of it by this Government. Hospitality is where the character of our nation lives, in the welcome of a restaurant host, the laughter in a dining room and the clink of a glass, and it is the fact that that life that is being extinguished that is so tragic.
(1 year, 3 months ago)
Commons ChamberI call the shadow Secretary of State.
May I start by paying tribute to Norman Tebbit? He was a former Secretary of State for Trade and Industry and a great reformer who did a great deal to unleash growth in this country.
The only thing growing under this Government are the unemployment queues. Today, the Office for National Statistics revealed that the number of payrolled employees has fallen by 180,000 over the last year and 40,000 in the last month alone. Unemployment has been higher in every month since the Chancellor has been in office. In the last hour, we have heard news of another 500 job losses at Jaguar Land Rover. This is a great country with great people. When the Secretary of State talks to businesses, what reason do they give to him for unemployment rising?
(1 year, 5 months ago)
Commons ChamberOrder. May I point out, to prevent any further errors, that the term “you” is not used in the Chamber, because it refers to me, in the Chair? Hopefully no one else will make the same mistake.
No one would believe, Madam Deputy Speaker, that you would implement such terrible measures without a proper impact assessment. More significant, however, is the fact that we have heard not just the voice of my hon. Friend the Member for Bognor Regis and Littlehampton (Alison Griffiths), representing those important seasonal industries, but the voice of employers across the country, who have pointed out that it will no longer be possible for seasonable and flexible work to deliver the economy that we need.
Andrew Pakes (Peterborough) (Lab)
In that spirit of listening and learning, I have been speaking to businesses in my constituency this week, and the chambers of commerce have signalled that the trade deal is a new start for British business because it is reducing red tape, giving certainty to businesses and allowing them to trade and do well, in my constituency and elsewhere. Do you think they are wrong?
Order. “Do you think they are wrong?” We have a long afternoon ahead of us—even longer for me in the Chair.
One has to celebrate small mercies, and I am delighted by the hon. Gentleman’s conversion to the cause of free trade. Free trade is what has lifted billions of people in the world out of poverty. It has made us the great country that we are today. The business in the hon. Gentleman’s constituency that has formed such a clear view has obviously benefited from considerably more detail than the House, so perhaps he will share its name. We would be very happy to hear about the details of the trade agreement that has been reached.
Perhaps, in having that conversation with his local business, the hon. Gentleman would like to engage in a discussion about its views on the Employment Rights Bill. Despite legion opportunities that I, and others, have given Ministers to name a single business that is in favour of all the measures in the Bill, answer still comes there none.
May I tell my hon. Friend why I think the hon. Member for Peterborough (Andrew Pakes) is wrong? Since the very inception of our negotiations to join what was then the common market—now the European Union—it has attached huge importance to fishing. We have just handed over the enormous leverage of an annual negotiation, and for what? Absolutely nothing.
I hesitate to stray into the matter of fishing, which I suspect we will debate many times in the future, but I note that those on the other Government Benches next to us tabled an amendment, which has not been selected for debate but which seeks to shackle our small businesses further by having us reverse across a much broader range of topics than the pass that the Government already sold earlier this week, so that we become a taker of rules from Brussels, and our small businesses, entrepreneurs and founders are crushed by the red tape that would originate there.
I thank my right hon. Friend and predecessor in the role of City Minister. This is an important point: where we can, we will support the Government in continuing the work, which he and I started, of trying improve the investment outcomes for our economy. We want to increase equity investment to mobilise pension funds and, most importantly, deliver good returns for our investors: the constituents who send us here, and who want the best possible outcome for their pension. It is really important that the Treasury leans into that, and that we have abundant capital markets that are well regulated but not over-regulated. We must create the right culture when it comes to the advice guidance boundary, our tolerance of risk, and our financial literacy and education in our schools. That is a really big point. I hope we continue to work collaboratively and supportively with the Government, along with the excellent Select Committee of which my right hon. Friend is a Member.
None of that helps if wealth creators and global investors have left these shores due to vindictive measures that simply will not raise anything like the money needed. It is perfectly okay to admit when one makes a mistake, and in this case Treasury Ministers have made a mistake. The amount raised will be nothing like the amount expected. The Centre for Economics and Business Research has done important research on that, and found that the cost will be significant. Far from raising money for the Treasury, the country will, I am afraid, lose money.
It is a truism—one that we Conservative Members have to continually teach Labour Members, I regret to say—that we do not make the poor richer by making the rich poorer. Like all socialists, Labour Members are attracted to superficial measures that will ultimately make all of us poorer. Those of us who are left behind will have to pay more, or endure less well-funded public services, as a result of this Government shepherding the golden geese into a pen and then exiling them.
The Deputy Prime Minister was right in her memo, which we saw today: this Government are indeed coming for your job, your business, your pension and your savings. It is all very clear in black and white. Whether Members are Team Rayner or Team Reeves, when it comes to decisions on the economy, it is all bad for business. When the Minister responds, perhaps he will share with us whether he believes that the tax measures advocated by the Deputy Prime Minister, which will have a chilling effect on business, are the right way to proceed.
Whether they are stabbed by employment red tape or shot by higher taxes, the outcome for businesses is the same. The Government duck the difficult questions while the Chancellor fiddles the fiscal rules, making it up as she goes along. Families know that the cost of living is getting higher under Labour. [Interruption.] The Parliamentary Secretary to the Treasury is so animated that I feel I should keep going, rather than disappoint him. He should listen, rather than chunter.
The Conservative party has a clear vision. It understands business from first principles—[Interruption.] Conservative Members could usefully listen and learn. This could be an exercise in understanding what a proper strategy that is on the side of business looks like. We back the millions of entrepreneurs and businesses who create wealth and jobs across this country. We are unafraid to talk about the need for business, and celebrate private capital, international investors and risk taking.
It was the Conservatives who delivered the single biggest tax cut for business in modern history through the move to full expensing, and the Conservatives who slashed business rates when we introduced retail, hospitality and leisure relief, and during that terrible covid pandemic, it was the Conservatives who provided billions in finance to keep business and the economy going. That is what leadership looks like. That is what a party that is truly on the side of business looks like. I urge Government Members to do a little less talking and a little more listening. They should think of every business owner and employee whom they told, during the election campaign, that the Government would have their back, and ask themselves whether their actions, rather than their words, have proved that to be anything like the case. With employment falling, wealth creators leaving this country at a rate never before seen, businesses closing, investment crashing and inflation rising today, the Conservatives certainly do not believe so. I commend this motion to the House.
A substantial opening speech there. I call the Minister.
(1 year, 9 months ago)
Commons ChamberI call the shadow Secretary of State.
In the week of Labour’s latest reset, how does the Minister reconcile imposing an additional £5 billion of costs on business—on the Government’s own figures—with growing the economy? What was it about the breakfast with the Prime Minister that saw bosses laying off more workers 24 hours later?
I call the shadow Secretary of State.
Next week, members of the Public and Commercial Services Union in the Department for Business and Trade are once again out on strike. Does the Minister consider the union’s demands to be reasonable? Will Ministers cross picket lines to return to work?
(1 year, 10 months ago)
Commons ChamberI thank the Secretary of State for an advance copy of his statement. The famous yellow gantry of Harland & Wolff stands tall, not only on the skyline of Belfast but in the history of our nation. It is difficult to overstate what Harland & Wolff means to people in the communities of Belfast, Appledore, Arnish and Methil. Extended families across the country will welcome today’s confirmation that the shipbuilding contract that we awarded in government will now proceed. There remain, however, many unanswered questions, which I would be grateful if the Secretary of State could answer. If he cannot answer them at the Dispatch Box today, I would be grateful if he or the Defence Secretary would write in the coming days.
First, at a time of enormous geopolitical uncertainty, can the Secretary of State confirm that there will be no change to the in-service date of the three fleet solid support ships, with the first ship entering service as expected in the fourth quarter of 2028? Secondly, what funding or commitment, if any, has been provided by any part of the Government to Navantia to secure this finalised deal? If so, which budget will that be appropriated from? Has he received state aid clearance for the transaction and, if not, could he clarify the process by which that will now be obtained?
The Secretary of State said in his statement that the Department has agreed the
“absolute minimum of changes to the contract,”
but the statement provides absolutely nothing whatsoever as to what that actually conceals. Can he guarantee, as Navantia promised as part of its original bid for the contract, that no less than 60% of the whole supply chain activity will take place in the UK? Will he confirm that there are no additional work packages beyond those originally envisaged moving from Belfast or anywhere in the UK to Puerto Real in Cádiz? Above all, will he assure the workers and their families who are watching that the final assembly and systems integration, which is where much of the high-value work sits for all three of those vital ships, will take place in Belfast, rather than in Navantia’s parent shipyards in Spain?
The Secretary of State will appreciate that it is sometimes hard, though one tries, to take him at his word after the number of impacts on business over the past few months. The wider context—though welcome in respect of this particular contract and these defence jobs—is the large-scale uncertainty that our defence companies, contractors, workers and employees face about the timetable for the Government to reach 2.5% on defence spending. They do not have the certainty that Harland & Wolff workers now do this Christmas. We do not even have a timeline for a timeline as to when that 2.5% will be hit, and we have seen a degree of equivocation on exactly when the strategic defence review will be published. Again, I would be grateful if the Secretary of State clarified that or if a colleague wrote to me.
It is, at the end of the day, action not words. We welcome this deal for Harland & Wolff and the certainty that it will provide to workers and their families, and I thank the Department officials for their work on that, but there are still many questions to be answered.
I call the Secretary of State. Having served in his Department, I too will be paying close attention to the answer.
(2 years, 2 months ago)
Commons ChamberA very strong maiden speech, without a script in hand—your parents will be proud.
It is a delight as ever to serve under your chairmanship, Ms Ghani. I congratulate the hon. Member for Loughborough (Dr Sandher) on his maiden speech and his kind comments about his predecessor Jane Hunt, a great colleague of this House. It was one of my great pleasures in my previous role as Minister for science and research to visit the fine university he now represents; I wish him and them well, and I wish him all the best of luck with those on his Front Bench in procuring the financial support he seeks.
This is a disreputable Bill, if we are brutally honest. It is a piece of political theatre, which all of us on both sides of this House should think very strongly about giving our support to. This history of this place is of legislation made in haste, which this House subsequently repents at leisure. I say this in all seriousness and in the spirit of this place: at a time when there is low trust in politics, did our constituents—did the hon. Gentleman’s constituents, when they trooped to the ballot box and returned him to this place only weeks ago—seriously expect that our role would be to give away even more of our responsibilities? Can any of us, hand on heart, say that our constituents know what and who the OBR is? Did the electors of Bristol North West, Hampstead and Highgate, Richmond Park or, indeed, Arundel and South Downs send us to this place only to give away our duties and responsibility to the unnamed, unknown and unelected officials—well-meaning, no doubt—of the Office for Budget Responsibility? Hands on the face of a stopped clock are sometimes more accurate than the OBR forecasts, as they are at least correct twice a day for sure.
In truth, this legislation, put together at breakneck speed, has more holes than a Swiss cheese. If we look at clause 1(3), who decides the “costing”? Proposed new section 4A exempts any measure that is intended, at the time of its introduction, to be temporary. Members of this House will be familiar with the fact that income tax itself, one of the largest ever fiscal measures, was intended to be temporary; perhaps the Minister will address that fact when he winds up. Income tax was introduced by Pitt the Younger in 1799 as a temporary measure. Well, here we are, 225 years later, and that temporary measure is still going extremely strong.
Who defines what is and is not a fiscal measure—a measure with a potential impact on the GDP of this country? Many things decided in this House will have a direct or indirect impact on the GDP of this country; the decision by Tony Blair to take us to war without a vote in this House undoubtedly had an impact on our GDP. Decisions to introduce a four-day working week—if this House so chooses to make them, as is its right—would have a material impact on the GDP of this country. The Centre for Business and Economic Research estimates that every bank holiday costs this country a sum approaching £3.6 billion. Three, four, five or six bank holidays add up to a 1% impact on GDP, which I speculate may be the threshold for the OBR to intervene.
On trade deals, if those on the Government Benches fulfilled their ambition to realign with Europe—to federate and once again abrogate our trade to Europe—that would potentially have a material fiscal impact on GDP. There are very few domains of this House—very few of the decisions that our constituents have sent us here to legislate and decide on their behalf—that would not potentially fall foul of this rule.