Oral Answers to Questions

Ann McKechin Excerpts

Tuesday 5th November 2013 Commons Chamber

[Sajid Javid]

Under Labour, the number of first-time buyers fell to its lowest level for 25 years, from an average of 470,000 a year in the early 2000s to around 190,000 by 2008. That destroyed the hopes and aspirations of many hard-working families. This Government’s two Help to Buy schemes will help thousands of hard-working people to get on the housing ladder, including those in Elmet and Rothwell and those throughout the UK.

[Ann McKechin (Glasgow North) (Lab)]

16. Is it fair for taxpayers in my constituency to subsidise a London property bubble that has already increased by 10% since the introduction of this scheme?

[Sajid Javid]

The hon. Lady should know, as she would if she looked at the facts carefully, that the Help to Buy scheme is priced on commercial terms; it is designed to break even and it will not cost the taxpayer anything.

Oral Answers to Questions

Ann McKechin Excerpts

Tuesday 10th September 2013 Commons Chamber

[Mr Osborne]

I am not sure about the out-of-town car park part of the question, because I want to encourage retail and employment wherever they happen. We are aware of the challenge on our high streets, particularly for small retailers. The Government have, in previous Budgets and autumn statements, extended relief from business rates for small businesses, which has meant that many of the smallest firms do not pay business rates. I will take the suggestion as a good submission for a future fiscal statement.

[Ann McKechin (Glasgow North) (Lab)]

6. What recent progress he has made on implementation of the mortgage guarantee scheme.

[The Financial Secretary to the Treasury (Greg Clark)]

The Government are making good progress in working with mortgage lenders to introduce the mortgage guarantee scheme from January 2014. The scheme would allow people who can afford repayments on a mortgage but do not have a large deposit to own their own home.

[Ann McKechin]

The dangers of feeding a housing bubble are real. According to the Office for National Statistics, house price inflation in Greater London is four times higher than in the rest of the United Kingdom. Will the Minister confirm his assessment as to the extent that funds spent on the scheme in Greater London will exceed their pro rata share, based on the UK’s population?

[Greg Clark]

The scheme comes into effect in January. Government Members believe that home ownership should not be reserved for the well-off and the children of the well-off, which is why we are introducing this measure. The average deposit has risen to 79% of the income of a first-time buyer. That is why we are introducing the scheme: we are determined to help ordinary working people who want to own their own home.

Digital Exclusion (Glasgow)

Ann McKechin Excerpts

Tuesday 2nd July 2013 Westminster Hall

[Ann McKechin (Glasgow North) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Walker.

Last week, the Chief Secretary to the Treasury announced further plans to roll out superfast broadband across the UK, so that it will reach 95% of the population by 2017. No one doubts that Government investment in that type of infrastructure is key to promoting further growth; and, in comparison with other parts of Scotland, Glasgow ranks as one of the best for superfast broadband availability and is also benefiting from the Future Cities spending. However, one reason why I have requested this debate is to caution that collectively we may have become too fixated on the rate of installing hardware, compared with the level and depth of usage by our citizens. The two are interconnected, but very often our strategic priorities and procurement policies do not match those needs together. I believe that the Government should do more to link their substantial investment in broadband with investment in citizens’ participation. I hope today, as well as setting out the scale of the challenge, to suggest some practical ways in which the Government could better adapt their policies to provide a more comprehensive strategy.

I have long taken a close interest—I have done so throughout my years in Parliament—in how Government initiatives and policies, whether lottery funds for community groups, the introduction of tax credits or the recent changes in family migration rules, are understood in my local area. Frequently, bureaucracy underestimates or simply fails to understand how, and to what extent, the general public absorb information and application processes. Many Scottish Members will recall the disaster of the 2007 Scottish Parliament election, caused in part by officials simply deleting one line of instruction at the top of a ballot form.

During the past year, I have spent more and more time with local groups and community activists, talking about the impact of the digital divide, particularly in relation to those seeking work and the forthcoming introduction of universal credit. Last year, Ofcom reported that Glasgow had the lowest level of broadband take-up of any major UK city. My hon. Friend the Member for Glasgow Central (Anas Sarwar) is here today. Sadly, it is not a surprise to those of us who represent a Glasgow seat that it is at the bottom or top of a league table for things that are not very good. There are many historical and economic causes of our city’s ingrained poverty, but in the case of digital access, the scale of the gap should result in a call for action, rather than simply a shrugging of shoulders.

[Anas Sarwar (Glasgow Central) (Lab)]

I congratulate my hon. Friend on securing this important debate. The statistics from Glasgow show that up to 60% of people have access to broadband. That means that 40% do not. Given that access to many Government services is online only, particularly with some of the welfare changes, does she recognise that that could pose difficulties for the most vulnerable people in the city of Glasgow?

[Ann McKechin]

My hon. Friend has raised the point that I was going to raise in the next paragraph of my speech—clearly, he must have had advance sight of it. He has made exactly the right point, because this is a question of social justice, not just access to a certain piece of technology.

Ofcom’s 2012 consumer market report showed, as my hon. Friend mentioned, that only 60% of Glasgow’s households had access to fixed broadband, compared with a UK average of 76%. We know that at-home access is vital to allow our citizens to gain the most value from use of the internet. Against that UK average of 76%, it is perhaps not surprising that the Government, in moving to digital by default from this autumn, are working on the assumption of moving 80% of benefit applications online, but let us dig a little deeper into those figures for Glasgow.

Last month, I was pleased to host a seminar at Westminster with the Carnegie UK Trust, which has recently published a report called “Across the Divide” by Douglas White that is an in-depth review of 200 families in the city and how they are affected by the digital divide. There is much to commend in that excellent report, which is instructive not only for Glasgow but for other areas of the country that suffer from high levels of socio-economic deprivation. It should not surprise the Minister that the author pointed to very similar figures in parts of North Ayrshire, West Dunbartonshire and North Lanarkshire, which surround the city area, but I particularly draw the Minister’s attention to the charts at the start of chapter 3, which show the gap, in terms of both age and socio-economic groups, between Glasgow and the UK average. For the social group C2—a group that is often affected by our social security systems—the divide is an astonishing 25%. Against a UK average take-up of 72% for that social group, the Glasgow figure is only 47%. What happens when age is added to the equation? In the city’s entire 35-to-64 age group, only 35% have access to broadband in their house.

In some of the most deprived areas of the city, housing associations and other community groups estimate that only 20% of their tenants at most have direct broadband access. However, as the figures reveal, this issue affects all sections of the community and all demographics. There are a multitude of reasons for the gap, and the report goes into them in some depth, but cost is the primary one. For people on a low income, a fixed phone line is now a luxury that many drop in favour of pay-as-you-go mobile phones. As the Carnegie report showed, the monthly communications budget for the city’s lowest socio-economic groups is about £30, compared with a UK average spend of about £100.

The Government’s aim to move to digital by default is certainly doing more to raise the importance of the issue, but there is a real fear that we simply do not have the scale of resources required, not only for hardware access but for appropriate software and access to training and support. This is not a problem for which a one-size-fits-all approach will work. It needs a comprehensive and segmented strategy, with political commitment over the long term.

Citizens Advice Scotland, in a report issued in May called “Offline and left behind”, which included interviews with 1,200 clients, found that nearly 72% would struggle to apply for a job online and that almost half those who said that they would be completely unable to complete a benefits application online said that the main barrier was that they had never used a computer. Research conducted this year by the Prince’s Trust with young people who fall into the NEETs category—not in education, employment or training—found that one quarter dreaded filling in job application forms online, while one in 10 admitted avoiding computers altogether. As the Minister will be aware, literacy and numeracy levels play a very big part in that.

Having spoken to my local citizens advice bureau, to welfare rights officers and to my own casework staff, who recently attended a demonstration at the local Department for Work and Pensions office, I understand that the anticipated time to complete a new universal credit application is one and a half hours. Moreover, there is no provision to save information if someone wishes to pause the application process. We all have busy lives. There will be times when we are on the computer and we want to pause it, go away and look for some other bit of information and come back to it, but this is the classic “The machine won’t let us do it” approach. Frankly, it is a completely useless IT approach that by now the Government should have banned from any front-of-house application. Even those experienced in these systems are aghast at the complexity of the process.

In addition, as the Minister will be aware, jobseeker’s allowance applicants are regularly instructed to spend multiple hours each week searching online for work, but little assessment has been carried out of the actual availability of free-to-use computers in local areas. Last year, I started to carry out a survey in my own constituency of where free-to-use computers were available and what training or lessons might be appropriate and accessible if people wanted to go online and complete CVs. I then began to realise that I was the only person trying to collate that information and I was eventually contacted by a Scottish Government agency, which agreed to fund the publication of the list, so that we could distribute it to a whole host of community groups and public offices.

Absolutely no mapping has been done of where computer access is available. I know that the DWP is now trying to establish local job clubs in my constituency and many other areas, where people can access computers on an informal basis. That is all well and good, but it has only just begun that process and it takes time for community groups to find the finance, to get organised and to get the equipment—yet we are facing that radical change in a few months’ time. That is why I urge the Minister to scrap the Government’s aim of starting with a target of 80% of benefit applications being made online. It is unrealistic, grossly unfair and runs the risk of vulnerable people losing essential financial support.

What is the alternative target? I am sure the Minister will respond by saying that there has to be a target. We should all want greater online access for our constituents, because it means not only the ability to apply for benefits and search for jobs, but the opportunity to benefit from cheaper utility costs, new sources of information and knowledge and greater connectivity with the wider community. Such targets are useful to measure and drive success, but they need to be based on evidence, with a clear strategy to improve take-up. There are good examples to follow, and I point to the programme that introduced digital TV switchover as an excellent example: it adapted messages for different segments of the public; it worked with all tiers of government and local community organisations to ensure efficient delivery; and it constantly analysed evidence throughout the project and adjusted its work to suit, to ensure that it became one of the most successful Government programmes of recent years delivering information and change to the entire public.

The question that is always asked in these difficult economic times is, can we find the finance for such work? The answer is yes: to return to the point I made at the beginning of my speech, we need to integrate funding solutions with the provision of the hardware that delivers the service. I suggest that we take a small slice of the funds that we set aside for mass broadband coverage and use it to finance a public community access programme that is fit for purpose.

How do we tackle the depth of the problems faced in my home city? I was struck by the success of a community project that began in Liverpool a couple of years ago, and which has witnessed a substantial increase in usage by the population. There are certainly lessons from its success that we in Glasgow need to learn. Glasgow city council launched a digital participation group earlier this year as part of its new digital strategy, which is good, but we need the UK and Scottish Governments to respond positively to that initiative. Both Governments should look at using Glasgow as a pilot for the wider task of tackling digital exclusion wherever it occurs in the country. We need a comprehensive and segmented approach based on good-quality evidence and clear messaging. We need clear branding, which everyone in the community understands at all levels. The Carnegie UK Trust recommended creating local role models or digital champions.

Government also have a role in assisting local authorities and communities with procurement. Some of our larger registered social landlords, such as Glasgow Housing Association, are piloting special deals for their tenants that directly address the issue of cost, which is good, but given that more and more people are finding themselves in private residential properties or renting from much smaller landlords, we need to extend such schemes to everyone on low incomes. The Government can disseminate best practice, co-ordinate action and ensure that services are delivered to the public we serve. I hope that both Governments and agencies such as Ofcom will assist with a thorough mapping exercise and bring in the expertise and support of the private sector.

I mentioned software and the question of how people with few skills or qualifications can access information on computers if they do not have experience of doing so. We need simplified software that will work for them and to offer support to build their knowledge and experience, rather than just using a couple of apps. Some of the experience has been that those in the lower socio-economic groups, if they have a mobile phone, may use only eight apps in total, so we need to create a deeper and more valuable experience for them.

I appreciate that the Minister has been called in at very short notice to respond to this debate. His colleague, the Under-Secretary of State for Scotland, has advised me that he has a previous and long-arranged engagement with Her Majesty at Holyroodhouse. I well understand why he is otherwise detained, but I should like formally to request a meeting with the Under-Secretary of State in the near future so we can discuss these issues in further detail. I want to be practical today and offer suggestions to the Government that are achievable and will assist everyone. We do not want people or communities to have a digital divide, but to see a new digital era in which everyone can take part.

[The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)]

I congratulate the hon. Member for Glasgow North (Ann McKechin) on securing this important debate, speaking in large part to the findings of the Carnegie UK Trust report, on the challenge of digital exclusion in Glasgow. In presenting its findings and some of the difficult and challenging issues raised, she did huge justice to the report. I commend her for the typically practical and constructive approach she has taken this afternoon.

How we involve more people in the digital community is an important subject, which we take seriously across Government. My right hon. Friends the Under-Secretary of State and the Secretary of State for Scotland are mindful of the issues the hon. Lady raised this afternoon and are aware of the report. Without wishing to make diary commitments on behalf of the Under-Secretary of State, I am sure that he will be more than happy to meet the hon. Lady to discuss the topic in greater detail. I will let him arrange that with her. Much of the agenda we have talked about is devolved, and it is in large part the responsibility of the Scottish Government to address the issues, but I assure hon. Members that the UK Government are working hard to raise the level of digital inclusion across the whole of Britain.

The Carnegie UK Trust report says that Glasgow has one of the lowest broadband take-up rates in the UK, which is true, but we should not allow that to overshadow the progress that has been made in the city. Take-up in the greater Glasgow area increased by 20% between the start of 2011 and 2012, exceeding the Scotland-wide rate of increase, which is closing the historic gap between Scotland’s broadband take-up and the UK average. Catch-up is taking place in Scotland and in Glasgow itself, so we can point to a relatively positive picture, but that does not detract from the gap that the hon. Lady spoke about.

The concept of digital inclusion lies at the heart of the Government’s digital strategy. “Digital by default” is our ambition for Government services, but it is not and will not be mandatory for everyone. It is important to stress to all hon. and right hon. Members that we all need to do our bit to dispel any scare stories or myths that suggest that people will not be able to access the services they are entitled to or claim the benefits they need if they do not have access to the internet at home. I was interested to hear the hon. Lady’s point about not being able to pause in the middle of an online application for benefits. That is the first time I have heard about it. I will certainly look into it, and not only from a Scottish perspective.

We recognise that it will not be possible or appropriate for everyone to receive and manage future payments of universal credit online. The Department for Work and Pensions is working closely with local authorities, to provide access to the benefits system in a variety of ways. As part of that, the Department is sponsoring local authority-led pilots around Britain, including in Dumfries and Galloway and in North Lanarkshire. For those able to use the internet, but without their own computer, all the Government’s digital services are available through the free internet access provided at libraries, and in this Glasgow is particularly well served, with 33 local libraries in the Glasgow city area offering free internet access. I completely take her point that internet access at home is particularly important for a jobseeker.

[Ann McKechin]

I am grateful to the Minister for replying in such a positive manner, particularly about the online application form for universal credit—my caseworkers were horrified when they came back from a presentation on it. In some parts of the city of Glasgow, where broadband access is at only 20% and there may be only one small library, there are physical issues with the sheer lack of computers, and that is even if all the libraries in the city provided them. There are queues of people trying to book appointments at the library. They are competing not only with other job applicants, but with other users of library services.

[Stephen Crabb]

I hear what the hon. Lady says. All I can say in response is that the Secretary of State and the Under-Secretary of State meet regularly with Scottish Government officials and Ministers, and with city council leaders as well, and if there is a physical capacity issue, in that there is not enough digital infrastructure for the demand, meaning that people who do not have internet access at home cannot benefit from the publicly available services, they can certainly discuss that with them.

As the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Fareham (Mr Hoban) has previously said in the House, all jobseekers claiming benefits have a personal adviser whose role it is to support them back into work. If an adviser identifies that someone does not have the knowledge and skills needed to access online services, they can discuss those needs with the jobseeker and arrange for suitable IT training to be provided. In fact, the Department for Work and Pensions is currently piloting a digital skills assessment tool in four jobcentres in the east of Scotland, which will be used by advisers to assess claimants’ digital ability. I hope that what I have said goes some way in addressing the hon. Lady’s point about jobseekers’ lack of skills in relation to making job applications or accessing benefits online.

The hon. Lady slightly humorously talked about Glasgow being at the top or the bottom of the league table of things that were “not very good”—I think that was her phrase. We should remember, however, that some really positive and encouraging things are happening in the city. I am sure that she and the hon. Member for Glasgow Central (Anas Sarwar) will be only too aware of those initiatives, and will have done their bit to champion and support them in recent months and years.

I would like to take this opportunity to highlight a few of Glasgow’s recent successes. The UK Government are supporting the city of Glasgow to lead the way in using modern technology to support growth and increase sustainability. Glasgow beat off bids from a number of other cities around the UK to be awarded £24 million as the host city for the Technology Strategy Board’s future cities demonstrator project. The university of Strathclyde recently secured funding for two of the UK Government’s catapult centres, looking at offshore renewable energy and high-value manufacturing, which are important sectors for future growth. In 2013, Glasgow overtook Edinburgh in the global financial centres index for the first time, making it the highest-ranking financial centre in the UK behind London, and Glasgow is to host the Commonwealth games next year, which will be a highlight for the whole of our country.

Oral Answers to Questions

Ann McKechin Excerpts

Tuesday 14th May 2013 Commons Chamber

The Chancellor of the Exchequer was asked—

[Ann McKechin (Glasgow North) (Lab)]

Q1. what fiscal steps he plans to take to stabilise the housing market.

[The Chief Secretary to the Treasury (Danny Alexander)]

My right hon. Friend the Chancellor is in Brussels today at ECOFIN, exercising the considerable influence that Britain enjoys as a full member of the European Union. The Government are committed to the vital reforms needed to address long-term structural issues in the housing market. They have already committed to investing £11 billion during the spending review period, and in the Budget we announced the Help to Buy scheme, a major new package to increase the supply of low-deposit mortgages for creditworthy households, which I hope the hon. Lady will welcome.

[Ann McKechin]

In evidence to the Treasury Select Committee, the distinguished commentator, Martin Wolf, described the Government’s mortgage indemnity guarantee as

“good politics and horrendous economics.”

Why are the Government pursuing a policy that is likely to increase the price of already over-inflated property, rather than financing affordable social housing that is needed by hundreds of thousands of people across the country?

[Danny Alexander]

The hon. Lady comments on affordable social housing, but I note that during Labour’s 13 years in office the amount of social housing fell by 421,000. This Government’s policies will increase the amount of social housing by 200,000—a record on which she should compliment us. On the mortgage indemnity guarantee, offering support to many households who cannot afford the large deposits now required is a thoroughly good thing, and by involving the Financial Policy Committee of the Bank of England in a review after three years we also have a guarantee of financial stability.

Oral Answers to Questions

Ann McKechin Excerpts

Tuesday 12th March 2013 Commons Chamber

[Mr George Osborne]

I absolutely agree with my constituency neighbour. The Mersey Gateway bridge, which has been talked about for many years, has now got the go-ahead. The northern hub, which MPs from all parties and on both sides of the Pennines have been calling for, is now funded and will be of particular benefit in the Greater Manchester area. High Speed 2 is controversial, but nevertheless will connect the biggest cities of our country and help reduce the north-south divide in our economy. One piece of good news in our economy recently has been the growth of private sector jobs in the north of England.

[Ann McKechin (Glasgow North) (Lab)]

T10. Has the Chancellor of the Exchequer managed to overcome the militant tendency within the Cabinet to allow him fully to implement the recommendations of the Heseltine review on growth and localism?

[Mr George Osborne]

We will set out next week our response to the Heseltine review. Michael Heseltine has set out a compelling vision of how we can operate as a more decentralised country and empower our great cities. I was with him in Birmingham just the other day, with the Labour leader of Birmingham council, working on how Birmingham could set out a report and act as a test case for other cities.

Autumn Statement

Ann McKechin Excerpts

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

I am delighted that there has been that good news in my hon. Friend’s constituency and I hope that with the new investment allowance for businesses in his area there will be more jobs. He is right to say that the Heseltine review also asks big questions of us as a Parliament about how we spend money locally and whether we should create a single pot for which LEPs could make bids. I have announced that we want to proceed in that direction and we will have much more to say about it when we have our spending review.

[Ann McKechin (Glasgow North) (Lab)]

One in 10 people of working age in Scotland is underemployed. Does the Chancellor consider that that figure will increase or decrease in the next three years?

[Mr Osborne]

Of course our ambition is for employment to increase. That is why we have made further changes to make our businesses more competitive, to help working people and to create a welfare system that encourages those who are in work. I hope she will support that.

Jobs and Growth

Ann McKechin Excerpts

Thursday 17th May 2012 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

Last week, I travelled with the Business, Innovation and Skills Committee to Brazil, as part of our new inquiry into our export trade with that developing nation. I wish to put on the record our appreciation of the work of the UK Trade & Investment team in Brazil and the efforts they are making to meet the Government’s ambitious targets. What struck me time and again, however, was that we were visiting a country that had a clear and unambiguous industrial strategy. That is not to say it is perfect—in fact, in terms of ease of doing business, our countries are poles apart: the UK is fourth and Brazil 121st on the list—but everyone I spoke with appreciated the ability to work within a political environment that is firmly focused on job creation and growth. I noticed a sense of purpose and momentum that is totally absent here at home.

The previous Labour Government recognised—later than they should, but with unequivocal passion from our last Business Secretary, Lord Mandelson—the need to form a convincing industrial strategy, with a relentless focus and wholehearted support from Government at all levels. The result was developments such as High Speed 2, carbon capture and offshore wind, with science and innovation at their heart and a recognition that we must take risks if we want to be leaders in new industries. Two years on from the election, we are still waiting for the coalition’s strategy. HS2 has been kicked into the sidings of potential oblivion; there is yet more equivocation about airport capacity, as planes stack up waiting to get into our major airports; carbon capture has been put back several years at least; and offshore wind receives only cursory support.

Where are the big ideas? Where is the narrative that allows industry and finance to make the necessary commitments? Where is the financial support to allow us to enter those new industries? The establishment of the Green investment bank is welcome, but as one leading figure in the renewable energy sector told me this week, it must not be the bank of last resort. It needs to lead the way, not take the cast-offs that no one else wants to touch. It needs to be big enough to meet the challenges and opportunities we face. Instead, we have had a painfully slow start. The original concept has been watered down and now the bank will not have full borrowing powers until 2016. It is not fast enough or deep enough to do the job.

Our international competitors will not be sitting idly by. We need to learn the lessons of why we lost out on onshore wind production and ensure that that is not repeated. Since 2010 the UK has dropped from third to seventh in the world ranking for green growth investment. Our competitors know that investors need a stable environment, not the farce we witnessed over feed-in tariffs earlier this year. We also need to address the lack of capital grants, which are vital in forming the new supply chains of the future. Cuts in corporation tax are the wrong priority at this time.

As the Business Secretary correctly pointed out in his leaked letter to No. 10, we need to address the lack of confidence in the business sector. UK companies have some of the largest cash reserve ratios of any advanced economy, but there was nothing in the Budget to encourage the release of those funds. At the same time, we have many companies that are not cash rich, particularly in the SME sector, which cannot find affordable finance. The case for a business investment bank has never been stronger, yet there is more silence.

Amendment of the Law

Ann McKechin Excerpts

Wednesday 21st March 2012 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

There has been much trumpeting and advance spinning of the Budget in recent days, so almost every announcement this afternoon came as no surprise. There are also hidden messages in the Budget: those who are poor and whose income is being squeezed are being asked to work longer; but for those in the top income bracket, the message is, “Let us ease your pain. We’ve reduced your corporation tax bills, lowered your banker’s bonus tax, now let’s cut your income tax rate.”

[Robert Flello (Stoke-on-Trent South) (Lab)]

Was not another thing sneaked through the Budget quickly and carefully: the more than £1 billion hit that British pensioners will take as a result of the announcement on “simplifying” personal allowances for pensioners?

[Ann McKechin]

My hon. Friend has cleverly noted that hidden message, to which, I am sure, the Chancellor was keen to avoid drawing attention. However, pensioners are not as daft as he thinks, and I think that they will soon reckon that they are paying for the millionaires’ tax bonus announced today.

There has also been complete radio silence on other matters: women, for example, or children. By any rational definition, the Budget has not only ducked the hard issues, but entrenched the division in our society.

[Robert Halfon (Harlow) (Con)]

For 13 years of the Labour Government, the millionaires’ tax rate that the hon. Lady mentioned was at 40%. That was changed only in the last stage, and it is now 45%. Why was it 40% for so long while she was in office?

[Ann McKechin]

As even the Chancellor would admit, the economy was very different. [Interruption.] We had job growth and we were taking people out of poverty—that was the difference, which the hon. Gentleman seems to have completely failed to realise.

The Chancellor must by now be all too aware of the criticism levelled at his efforts in the past two years. Women were left paying more than 72% of the net cost of the changes in taxes, benefits and tax credits in his June 2010 Budget, and the subsequent comprehensive spending review ushered in yet more of a burden on women and families. Of the £18.3 billion raised through net direct tax, pay and pension changes up to now, £13.2 billion is coming from women. For children, the position is even worse. If we are to reach the target set in the Child Poverty Act 2010, the Government need to reduce the number of children in poverty by 120,000 per annum.

[Dr Julian Huppert (Cambridge) (LD)]

Will the hon. Lady give way?

[Ann McKechin]

In a minute. The Institute for Fiscal Studies has told the Government that their current policies will see poverty increasing by 100,000 people a year. What does it say about a country when it allows tax cuts for the richest but at the same time allows more of its children’s lives to be stunted? I will be interested to hear what the hon. Gentleman has to say about that.

--- Later in debate ---

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. If the hon. Gentleman wishes to make a speech, he should put in for it. He is not going to do it through an intervention.

[Ann McKechin]

I am grateful, Mr Deputy Speaker. The hon. Gentleman should remember that under this Government, unemployment among women is at its highest for more than 23 years. The Chancellor did not make one mention of what he will do about that scandal.

The Lib Dem part of the Government has made great play of the increase in personal allowances, but more than 70% of that benefits higher and middle earners and fails to benefit those at the lowest levels, who already do not pay income tax. I point out to the hon. Member for Cambridge (Dr Huppert) that, funnily enough, the majority of them are women.

While middle earners stand to gain £379 when the threshold reaches £10,000, low earners on housing benefit and council tax benefit will gain only a paltry £57, as the rest will be tapered away. Overturning the perverse reductions in tax credits, which increased child care costs and penalised those trying to work on the lowest income scales, would have helped those in need the most. As my hon. Friend the Member for Stoke-on-Trent South (Robert Flello) said, pensioners will also bear the burden as the years go on.

It is estimated that the reduction in tax credits on child care from 80% to 70% has pushed tens of thousands of parents out of the labour market, with 44,000 fewer families claiming support in December 2011 than in April that year. We have a Chancellor who thinks that it should be no problem for a cleaner to increase their hours from 16 to 24 hours a week to claim tax credits. Frankly, that is the reaction of someone living in a parallel universe, who fails to listen to those who have to attempt the challenge at a time when overtime and extra hours are almost impossible in most low earning jobs. As the Union of Shop, Distributive and Allied Workers reported yesterday, two thirds of those already receiving tax credits who are about to lose them next month already live in poverty: 200,000 couples with children face losing £3,870 per annum and an extra 80,000 children will be pushed into poverty by this one measure. It is immoral, unfair and unjust. I wait to see if anyone on the Government Benches can mount any argument to support such an outrageous measure, given that it completely fails their own core test of making work pay in every case. Even at this late stage, I hope that the Government will see sense and postpone the measure until universal credit is in place. If we are all in it together, why was there no mention of that today? It is a scandal of the Budget.

As the Scottish TUC pointed out in its Budget submission, it is now indisputable that Government policy is hitting wages much harder than profits. Indeed, as I pointed out at last week’s Business, Innovation and Skills questions, UK companies are now sitting on the highest ratio of cash reserves of any major western economy. That is not only unfair, but bad economics. We need more of those profits to be converted into real investment, and we need a much greater rise in consumption if we are ever to achieve the necessary higher growth.

The Government’s austerity plan has led to lower tax receipts and further downward revisions of growth, which is exactly the opposite of what we need. The Business Secretary has asked for a report on how to release company cash reserves. I welcome that, but I detect a complete lack of focus or priority in tackling the issue, just as I do in efforts to achieve a coherent industrial policy. Where is the Budget to create jobs? Where is the analysis to explain why, in the past year, female unemployment in Scotland and across the UK has increased by more than 17% , but male employment has increased by only l%? Where is the analysis on the increasing move into involuntary part-time working? Where is the analysis and policy on how to shift jobs into the industrial and manufacturing sectors, and to retrain those who have lost their jobs to enable them once more to hold down secure employment? Answer is there none.

The fact that we now have the highest female unemployment in 23 years was ignored in today’s Budget speech. That is not going to go away, and I fear that the consequences have been heavily underestimated by the Government, economists and our media. Far more women work in the public sector, and increasingly, men enter and compete for traditionally female-dominated work in the private sector. We are told that three quarters of public sector reductions are still to come, with the inevitable contraction of the work force, but there is absolutely no planning on how to create new jobs for the many women who will seek work.

Announcements on infrastructure are welcome, but construction jobs are entirely male dominated. Only about 1% of electricians are female, for example, and we have the lowest proportion of female engineering professionals of any EU nation, at less than 9%. The Government need to use procurement in such a way that will encourage and increase the numbers of women. There is an example for them to follow—the Olympic Delivery Authority has got more than 1,000 women into work in construction jobs—and I want to ensure that that good practice is followed throughout every major Government procurement programme to come.

[Charlie Elphicke (Dover) (Con)]

I agree with the hon. Lady that we need more women in work, and to look after women and take them out of tax, which is what the Government are doing. Nevertheless, she mentions jobs. In her constituency in the last Parliament, unemployment increased by 44%; in this Parliament it has hardly changed. Does she agree that the previous Labour Government’s policies caused massive damage to this country?

[Ann McKechin]

The hon. Gentleman distorts the employment figures in my constituency and my city, where jobs were growing before this Government started to suppress demand and consumption and to take away huge amounts in benefit. I do not want women out of tax; I want them to get better-paid jobs so that they are in a position to pay tax. That is the fundamental problem, and taking people out of tax is an acceptance of it. Far too many people work in jobs that are too low-paid, but we are not doing anything about it.

As the Joseph Rowntree Foundation and others have repeatedly pointed out, we have a high level of under-employment in this country—4 million to 6 million people are in that category. The Scottish TUC has calculated that more than 0.5 million people, or more than 17%, are either unemployed or under-employed. Tax and benefit changes do nothing to change that long-term lack of demand for jobs.

The Government had the opportunity today to move away from their failed policy of austerity and to focus on stimulus for growth and jobs. They have failed, but the consequences will stay with this country and the communities we represent for many years to come. I am sure that point will depress many hon. Members, and it should depress all hon. Members on both sides of the House.

Banking Commission Report

Ann McKechin Excerpts

Monday 19th December 2011 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

The Chancellor rightly attacked casino banking. Does he not agree that now is the time to restrict UK state-owned banks in respect of their operations in tax havens, which have been a source of much of that casino banking?

[Mr Osborne]

We have required all the major banks in Britain to sign up to the tax code that the previous Government introduced, although they got only two or three banks to sign up to it. We not only have the code, but we are making the banks sign up to it.

Arch Cru Compensation Scheme

Ann McKechin Excerpts

Wednesday 19th October 2011 Westminster Hall

[Tom Greatrex]

The hon. Lady is exactly right. It is almost as though the deal that has been reached leaves the liability with people who have, as she said, been misled, with the result that they end up carrying the can, which would be very unfair. That is why the deal on the table is wholly inadequate, and I will go on to make a few points about that.

[Ann McKechin (Glasgow North) (Lab)]

Does my hon. Friend agree that it is inappropriate, given that such serious regulatory failures have been identified in this crisis, for the FSA to be so directly involved in the negotiations and the settlement being offered? The FSA lacks the appropriate independence, because it might be to its advantage for the settlement not to result in legal action and further inquiry.

[Tom Greatrex]

I thank my hon. Friend, who makes an important point, which goes to the heart of this issue—the role of the FSA as the regulator and, it seems, the broker of a deal that might help to get something off its back.

It seems the FSA cannot work out what happened. It wants a line to be drawn under this issue, but thousands of unhappy people expected the regulator to prevent this abuse from happening. The FSA has said that the deal will return to investors approximately or up to 70% of their investment, and the words “up to” are quite significant. That 70% is based on the £54 million that has been returned already, £149 million from the sale of other assets, which were valued at that level at 31 March 2011, and an additional £54 million, which Capita, HSBC and BNY Mellon agreed to without accepting liability in a deal brokered by the FSA. However, that £149 million might well not be realised, especially when we consider that the asset base included Greek shipping and what have been described to me as rust-bucket ferries, as well as middle eastern property, the value of which—if there is any left at all—could have fallen, even in the short time since March, given the current economic conditions.

The question I put to the FSA—it was entirely reasonable, but the FSA was unable to answer it—was why it did not add up the asset sales and projected asset sales and subtract them from the investors’ losses to give a figure that would make the compensation up to 100% of what people invested. In that way, people could get their money back; they would not make a profit, but simply get back what they invested, based on the assurances they were given by an organisation that was regulated by the FSA when they took out their investment.