Andrew Selous
Main Page: Andrew Selous (Conservative - South West Bedfordshire)
Caroline Flint (Don Valley) (Lab)
I beg to move an amendment. At the end of the motion add:
‘but believe that the Gracious Speech offers no answers for squeezed households facing a cost of living crisis; regret that the economy is flatlining, unemployment is rising, borrowing is set to be £245 billion more than planned and the Office of Budget Responsibility has confirmed that by 2015 people will be worse off than they were in 2010; and call on your Government to take real action to get people back into employment, build more affordable homes, tackle rising energy and water bills, tackle the growing cost of getting to work and instability in private sector housing rents and tenancies and end extortionate letting agents’ fees and charges.’.
We debate the Queen’s Speech at a time of crisis for millions of people in our country. This was a golden opportunity for the Government to show that they were in touch with the nation’s concerns and that they would help with the rising cost of living and offer hope to families who are seeing their dreams evaporating with every year that passes. But this Queen’s Speech will not take the pressure off the squeezed middle, lessen the anger of commuters powerless to halt the relentless rise of rail fares or address the choice between heating and eating for our most vulnerable senior citizens. For the shop worker whose hours have been cut, putting them with the 1.5 million people who are part-time through no choice of their own, for the middle manager workless for the first time at 50, for the design graduate offered only unpaid internships and for the parents whose child is still living with them at an age when they should have a home of their own, this Queen’s Speech has only confirmed what they dreaded: jobs and growth will have to wait and living standards will continue to fall.
While the wealthiest 1% will see their earnings rise with the Chancellor’s spring bonus, everyone else will have to settle for less. They will be expected to make ends meet, cut corners, postpone the holiday and perhaps join the 5 million families who, according to Which?, use credit or savings to pay for food. The Queen’s Speech is not just a missed opportunity, but a denial of the power of Government to change lives for the better. I believe that Government can stimulate jobs, foster growth, encourage investment and skill a work force for today’s jobs and those of tomorrow, but not if the golden rule, at every turn, is to cut the deficit first, whatever the impact, cost and evidence.
Andrew Selous (South West Bedfordshire) (Con)
Of course, the right hon. Lady is right that the employment market is tough for many people, but in these difficult times, will she welcome the fact that there are now 750,000 more people in work than when her Government left office and that the UK’s overall employment rate is growing at twice the rate of the United States’ and is the fastest growing of any G7 country? That is not a bad record in tough times.
Caroline Flint
The Prime Minister promised change, but things have got worse, not better. He inherited an economy in which growth had returned, inflation was low, unemployment was falling and borrowing was lower than forecast. Today the economy is still flatlining, with more people out of work than when he became Prime Minister, the slowest economic recovery for more than 100 years, prices rising faster than earnings and real wages down £1,700 since 2010, while energy bills, train fares and the cost of a weekly shop have spiralled out of control.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
I am honoured to speak in this year’s debate on the Loyal Address and to make some comments on Her Majesty’s Gracious Speech.
I join the sentiments expressed by other Opposition Members that Britain could and would have hoped for so much more from this Queen’s Speech. After three years of low growth, rising unemployment, increased borrowing and a rising cost of living, including fuel and food bills and transport fares, Britain deserved much more. We got no answers on tackling the rising cost of living, at a time when real wages have fallen by £1,700 since the election, and there was nothing to help the increasing number of Londoners struggling to afford food. It is clear that, after three years of failure and U-turns, this Government are out of touch, out of ideas and unable to bring the change this country needs.
Last year, I spoke in my first Queen’s Speech debate as the Member of Parliament for Feltham and Heston. I spoke of local unemployment and how Her Majesty’s Gracious Speech last year offered no hope to these local families and young people, but 12 months later the situation is worse. More than 550 local people in my constituency who were unemployed 12 months ago are still unable to find a job. More people are out of work now than there were when this Prime Minister took office, and a growing number of food banks are now opening across the country—these are the most visible manifestation of the growing crisis of food poverty in Britain. Food is the most basic of human requirements, yet in one of the richest cities in the world, local families and children cannot afford to eat and are going hungry. The Trussell Trust, which runs the largest chain of food banks in the country, fed more than 34,000 people in London in the past year. In my borough of Hounslow two food banks have opened in the past two months alone, with the local council, local charities, places of worship and volunteers doing all they can to help local families and a growing number of children in poverty.
Andrew Selous
Perhaps the hon. Lady would like to put on the record the fact that food banks increased tenfold under her Government. Will she condemn the fact that her Government refused to let Jobcentre Plus signpost people to food banks because they were worried about the political damage? That was a callous way of treating people in need.
Seema Malhotra
Yet again, we see how the Conservative Government are so out of touch and so complacent, not acknowledging any of the challenges—rising unemployment and a rising cost of living—that people in Britain are facing today; they are not taking any responsibility.
A recent report by the London assembly found that more than 95% of teachers asked in London said that children in their schools regularly went without breakfast—more than half of such instances were because families could not afford food. That is completely unacceptable in modern Britain. The health, educational attainment and life chances of these children are threatened by hunger, and the Government continue to do nothing to help with the cost of living.
Mrs Laing
Indeed it is. I thank my hon. Friend for that point. It is important that we treat women fairly, and much in the Queen’s Speech will make it easier for women to go to work and look after their families and do the two important jobs of being a mother and being active in the economy and the workplace. It is through measures such as reforming how we organise child care that that will be done. That is fairness and how we eradicate child poverty and improve the position of all families throughout the country.
Andrew Selous
On child poverty, did my hon. Friend note, as I did yesterday, that the Institute for Public Policy Research, a left-wing think-tank, has now disowned Labour’s approach to priority and is backing ours in dealing with the causes of child poverty? That is good news, as I am sure my hon. Friend will agree.
Mrs Laing
I did indeed, and my hon. Friend makes the point extremely well.
There is something that has not surprised me, but let me draw it to the House’s attention. The hon. Member for Feltham and Heston (Seema Malhotra) and many of her colleagues get excited about food banks because they believe that it is in the power of the state to do everything to help people. We believe, as a matter of principle, that power is with the people and it is up to individuals to help each other, voluntarily, if they so wish, in times of need. Food banks are not about entitlement. Entitlement and benefits are one issue, but food banks are about relieving short-term need. It is important that we should be able to do that voluntarily.
It is not nasty to make difficult economic decisions, but necessary. It is not nasty to tell the truth about having to cut public spending, but necessary. It is not nasty to reduce the nation’s debt to secure the future for our children, but necessary. It is right to construct a taxation and public spending regime that makes work pay. That is what fairness is all about—taking people on lower incomes out of taxation and not requiring them to pay benefits for those who can work but find that there is no point because they are better off not working. That is what Labour brought about, and it was wrong.
By reforming benefits and immigration laws, we are putting Labour’s mistakes right. It is wrong that people who have worked and saved all their lives have to sell their homes to pay for care in later life, and we are putting that right. It is wrong that enterprising people should be held back by the dead hand of an overbearing state. That is what Labour believes it in and it is one of the reasons made such a mess for 13 years. It was wrong and, again, we are putting it right.
Something else is wrong. Most of us appreciate the benefits of the European single market. However, it is wrong that unnecessary rules and regulations from expensive institutions are hindering our businesses and restricting our freedom. We must, as a nation, renegotiate the terms of our membership of the European Union. I am not going to mention any hypothetical amendments, Mr Deputy Speaker.
Andrew Selous (South West Bedfordshire) (Con)
I think that all of us on the Government Benches absolutely recognise the increase in people’s bills, whether it is their gas bill, their electricity bill, the bill to fill up their car with petrol or diesel when they go to a garage, or their weekly food bill. We absolutely recognise the squeeze that our constituents are experiencing and the fact that wages have not gone up to compensate, and in many cases we have been extremely clear about that.
Nevertheless, because of the decisions that the Government have taken, it now costs people £7 less to fill up their cars than it would if we had gone ahead with all the price increases that Labour legislated to introduce before they left office. Also, we heard from the Secretary of State for Energy and Climate Change that our energy bills are 5% lower than they would have been, again because of the decisions we have taken. We know that Labour would have added £193 a year to our energy bills, because they would have funded the renewable heat incentive and carbon capture and storage through levies on people’s energy bills, whereas we are funding those things from general taxation.
Council tax is another area where the Government have done fantastic work to reduce the impact of the cost of living. Under the previous Government, council tax more than doubled—it went up by 109%. Thanks to the excellent stewardship of my right hon. Friend the Secretary of State for Communities and Local Government, we have managed to freeze council tax—certainly for principal authorities—for three years in a row. I remember that pensioners regularly came to see me in my surgeries, and some would complain that they were spending up to a third of their income on their council tax. I have not had pensioners coming to see me about that in the last three years, because in real terms we have cut council tax by 10%. In fact, my own council tax bill has gone down in cash terms in the last two years, thanks to the excellent stewardship of Central Bedfordshire council and Studham parish council. We are talking about a council that has taken £52 million out of its budget and improved services. We now have a better leisure centre in Houghton Regis, the gutters are sprayed three times a year rather than twice a year and more potholes are being filled, despite £52 million being taken out of the budget, which shows that it can be done.
We have an immigration Bill in the Queen’s Speech, which is absolutely necessary. I am sorry that the right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) is no longer in his place, because I would have liked to remind him that the Migration Advisory Committee—an independent body from the UK Border Agency that advises the Government—has pointed out that the 2 million extra net migrants who came to this country under the previous Government decreased wages for working people and meant that fewer UK citizens went into jobs. That is something that we need to be mindful of when many of our constituents are looking for work. Only two days ago, one of my constituents wrote to tell me that on the construction site he was on in London he was virtually the only British worker; all the others were Albanian. I am not sure why they were there, given that Albania is not a member of the European Union. These are genuine issues for our constituents. The people of this country are speaking to us loud and clear, and we would do well to heed what they are saying.
I hugely welcome the national insurance contributions Bill. We are talking about a tax off jobs. Up to 2.5 million employers will benefit and 450,000 of our smallest businesses will no longer pay national insurance contributions. That means that every business could take on one extra employee on a salary of up to £22,400 or four more on the minimum wage without paying any more national insurance contributions. That is just the thing that we should be doing.
Sheila Gilmore (Edinburgh East) (Lab)
How many businesses benefited from the Government’s previous attempt to use national insurance to stimulate the economy? My understanding is that very few did so. Why does the hon. Gentleman think that the current proposal will be any more successful? He is talking about the future, but what about the past three years?
Andrew Selous
All I know is that employers and employers’ organisations up and down the country have strongly welcomed the employment allowance. It is a tax off jobs. I remind the hon. Lady that the Labour Government were going to increase national insurance, had they got back into power. We believe in trying to get more people into work by taking costs off employers.
The Pensions Bill will help savers by ensuring that they get the benefit from everything that they save for their pension. That has not been the case in the past. The Care Bill will also help people by ensuring that they do not have to sell their homes to fund their care in old age.
The Opposition have said that this is a thin Queen’s Speech, but it is not; it contains 19 Bills. Labour Members need to be careful not to confuse legislative activity with the real business of government. A by-pass in my constituency was announced by the right hon. Member for Edinburgh South West (Mr Darling) when he was Transport Secretary in 2003. In the following seven years of the Labour Government, however, not a shovel hit the ground. Nothing was done. All Governments like to announce things, but the delivery mechanisms and speeding up the ability to get things done are what matter. The planning system takes far too long to achieve finality and get results in this country. We also need to look into the matter of judicial reviews. In 1998, there were 4,500 judicial reviews, but the number trebled over the following decade. It is absolutely right that the Prime Minister and the Secretary of State are looking at those issues to ensure that we can get things done more quickly.
What we are doing on training and apprenticeships is absolutely right: 520,000 apprenticeships have been brought into being by this Government. I am particularly pleased by what is happening on the higher apprenticeship route and by the technical baccalaureate announced by the Secretary of State for Education, which will be a type of vocational A-level. Those are very welcome indeed, as are the university technical colleges. It is also vital that we export more. We have increased our exports outside the European Union by 33% since the 2007 peak. We have done well in that regard, but there is clearly much more for us to do in those growing world markets.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
Without doubt, the rising cost of living, combined with stagnating—or worse, falling—income, has to be one of the biggest worries for many people up and down the country. There is little sign of light at the end of the tunnel. People rightly feel that they are working hard and putting in the hours, but they are at best standing still and some are going backwards. Others have found themselves out of work, and the little support that they get when that happens is dwindling every day.
I find my constituency surgeries ever more heart-wrenching, given the number of people coming to see me not only because they have become unemployed, which is clearly a tragedy for those affected, but because they need help with the situation that they find themselves in after that. Some might be looking for help to start up on their own but are unable to get past first base. Others might be hoping for a more reasonable approach by the jobcentre that insists they pay the £3.60 return fare to travel to town rather than go to the centre that they could walk to in an hour. They would rather do that than spend £3.60 of their dwindling weekly budget. Others may fear that they are being discriminated against because they are over 50 and, having worked all their life, now find themselves unemployed and having to compete with graduates for jobs. Others might fear bankruptcy because of the loss of their home; they have been out of work for a year and the support they have received is now drying up. Those people are the victims of this Government’s economic mismanagement.
That is why it is even more galling that the only people who seem to have been given a break by this Government are those fortunate enough to earn more than £150,000 a year. They will benefit from the 50p tax cut. They are the very last people who should be getting such a break right now.
Andrew Selous
Does the hon. Lady not recognise that the rich are going to pay more in tax in every single year of this Government than they did in any year under the last Labour Government?
Catherine McKinnell
That is a spurious statistic. We know that the deficit needs to be paid down, but this Government have made a choice to give a tax cut to those on the highest incomes while leaving other people to pay. It is not just me who thinks that. Conservative voters and, indeed, Conservative party members up and down the country are frustrated by the choices this Government have made.
Hilary Benn (Leeds Central) (Lab)
I draw the House’s attention to my indirect interest, previously declared and recorded in Hansard.
We have had a good debate in which my right hon. Friend the Member for Don Valley (Caroline Flint) made a powerful and forensic opening speech, in sharp contrast to the contribution of the Secretary of State for Energy and Climate Change. By my reckoning, 40 Members have contributed to the debate. I suppose that traditionally one would say it has been a wide-ranging debate, but certainly that term has been given new meaning by some of the contributions we have heard today. The right hon. Member for Meriden (Mrs Spelman) referred to High Speed 2, and we heard about UKIP from my hon. Friends the Members for Lewisham West and Penge (Jim Dowd) and for Swansea West (Geraint Davies). We heard two very contrasting speeches on climate change from the hon. Member for Brighton, Pavilion (Caroline Lucas)—who is, I think, right; 400 parts per million is a significant moment—and from the hon. Member for Monmouth (David T. C. Davies), who railed against environmentalists in general.
The hon. Member for North East Somerset (Jacob Rees-Mogg) was, I think, at one point inviting us to send our tax contributions to him at home, but I do not think he will be very successful because he forgot to give us his address. We heard serious contributions on Syria from the hon. Members for New Forest East (Dr Lewis) and for Elmet and Rothwell (Alec Shelbrooke), as well as from the right hon. and learned Member for North East Fife (Sir Menzies Campbell), who also touched on Europe and said, rather plaintively, that if we undermined the credibility of our Prime Minister, we undermined the Government. I would simply observe that it seems to me that the Prime Minister is doing a pretty good job of that himself.
We have also heard powerful testimony about to the impact on living standards of what is happening at the moment, most notably from my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) who represents many people who are affected in that way and warned us of the dangers, especially in tough times, of those who would point the finger at others and try to blame them for their troubles.
We also heard strong speeches from my hon. Friends the Members for Feltham and Heston (Seema Malhotra), for Eltham (Clive Efford), for Newcastle upon Tyne Central (Chi Onwurah), for Newcastle upon Tyne North (Catherine McKinnell), for Blaydon (Mr Anderson), for South Down (Ms Ritchie), for Wirral South (Alison McGovern), for Ogmore (Huw Irranca-Davies), for Scunthorpe (Nic Dakin), for North West Durham (Pat Glass), for Inverclyde (Mr McKenzie), for Oldham East and Saddleworth (Debbie Abrahams), for Cardiff South and Penarth (Stephen Doughty) and for North Ayrshire and Arran (Katy Clark), all of whom spoke with feeling about the experience of their constituents, as did Conservative Members, particularly the hon. Members for Harlow (Robert Halfon) and for Halesowen and Rowley Regis (James Morris).
Given what we have heard, it is perhaps not surprising that there is a crisis of confidence in politics in this country. People are wondering if, as politicians, we have the answer. Are we on their side? Are we doing things to help make a difference? That is why there is a particular responsibility on Government to do the right things, to show that they are helping people in very difficult times. People want to see an effort being made and some action, even if all the problems cannot be solved immediately. It is precisely because of the absence from the Gracious Speech of any practical help with living standards—the “empty luggage” that my hon. Friend the Member for Ogmore described in quoting Nye Bevan—that we have tabled our amendment.
A number of Members referred to the housing crisis. We have had plenty of housing announcements over the last three years: 300 of them, and by my count four classed as major housing launches. If we look at the record, whether of starts or completions, we see that the story is the same: both are down. The rate of homeownership is falling and, as we have heard—particularly from my hon. Friends the Members for Hackney South and Shoreditch (Meg Hillier) and for Hammersmith (Mr Slaughter)—private rents have continued their relentless rise, made worse by some letting agents charging very high fees. On lettings agents, a redress scheme is welcome. I suppose that in the end the Minister for Housing realised that he could not argue with himself and against the points that he had made previously when calling for regulation. But redress helps only after one has been ripped off—we should be stopping it happening in the first place.
On housing supply, my right hon. Friend the Member for Greenwich and Woolwich (Mr Raynsford) and my hon. Friend the Member for Edinburgh East (Sheila Gilmore) made a powerful case, not least because of the economic benefit that would be felt, for house building. We have called for the proceeds of the 4G auction to be used to build 100,000 affordable homes. What has been the Government’s contribution? They have cut the affordable housing budget by 60 per cent. No wonder starts and completions are down.
There have been lots of promises, but precious few delivered. On the Help to Buy scheme, I said at the time that we welcomed steps that would make a difference, but the Treasury Select Committee was not terribly impressed by it, was it? It found the Chancellor’s argument—that it would lead to an improvement in supply—unconvincing. The Secretary of State was asked in the Budget debate who would be eligible and particularly whether foreign buyers would be able to benefit from the Help to Buy scheme. He could not have been clearer in his reply. He said:
“This scheme will not be available for foreign buyers; this is a scheme to help people from this country.”—[Official Report, 25 March 2013; Vol. 560, c. 1311.]
When my hon. Friend the Member for Glasgow North (Ann McKechin) and I both tabled a written question to the Secretary of State on this matter—in particular, asking whether foreign nationals from the EU would be eligible for assistance from the Help to Buy scheme—we did not get that straight answer. Instead, we got a reply that frankly could have been drafted by Sir Humphrey:
“In our approach to revising the rules on access to such schemes, we are carefully taking into account the restrictions and obligations that stem from EU directives. We will be making a further statement in due course on the steps we will be taking.”—[Official Report, 25 April 2013; Vol. 561, c. 1126W.]
That reply is eloquent, but as clear as mud.
I have a very simple question to put to the Secretary of State, and I will happily give way to enable him to answer it. Will EU nationals who have come to the UK to exercise their treaty rights be eligible for assistance from the Help to Buy scheme—yes or no? I will happily give way to him. [Interruption.] The reason I keep doing it is that the Secretary of State shows a remarkable propensity to be unable to answer the simplest of questions. If he cannot answer my question, I wonder whether the Minister for Housing can. [Interruption.] Perhaps even the planning Minister, who is so voluble, could come to the Dispatch Box and aid the House by giving a reply. Those watching will notice that there is no reply.
That brings me to the big question in this debate: are those with the broadest shoulders bearing the cost of dealing with the global crash, or is it those in society who have the least? A couple of weeks ago, I sat down with the hard-working staff at the local advice centre in Burmantofts in east Leeds to hear about the impact of the council tax benefit cuts and the bedroom tax. We talked about the estimated 41,000 people in Leeds who will be affected. There are eight constituencies in Leeds, but 30% of those 41,000 people live in one constituency, Leeds Central—12,600 of the least well-off families struggling to get by. What are the Government doing to help them? They are sending them letters telling them that they have to pay more council tax and letters telling them they have to pay higher rent, and that they must hand over £2.8 million from their pockets and purses to pay for those council tax bills and those rents. [Interruption.] The planning Minister finds that funny, but it is not very funny for my constituents who are in that situation.
What will be the consequences for those people? They will have less money to spend on food and heating and they will be at greater risk of ending up in debt to payday lenders or, even worse, loan sharks. There will also be rising council tax and rent arrears because, as the workers in the advice centre know better than almost anybody else, a lot of these people are desperate because they do not have the money. The Secretary of State for Energy and Climate Change said in his opening remarks that the Government were about protecting the vulnerable, but those are words that will ring very hollow with my constituents.
What the Government are doing to my constituents fails the basic test of fairness. It will not help their living standards. When someone says to them, “These are tough times; we have to make tough decisions,” I point out that the number of poor people being hit is 12,600, which is almost exactly the same as the number of millionaires—13,000—who will benefit from the cut in the top rate of tax. That choice, which is the wrong choice, has defined the values that lie behind what the Government are doing, and it fails—
Hilary Benn
No, I cannot give way; I would love to, but time is short.
What the Government are doing fails the fundamental test of what a Government should be doing in hard times, which is to help those who have least. We see that in the biggest cuts falling on the most deprived local authorities, in the lack of action in this Gracious Speech to help the rising number of long-term unemployed young people, in the lack of action to cap rail fares and in the Government’s failure to deal with the energy market, as my right hon. Friend the Member for Don Valley said. That is the judgment that will be made of the Gracious Speech. It does not rise to the challenges that we face, it will not restore confidence in the Government, it will not help those who need help most, and it reminds us why this coalition, as it ekes out its remaining two years in increasing disharmony, was not the answer to the crisis of confidence in the first place. I urge the House to support the amendment.