Budget Resolutions

Barry Sheerman Excerpts

Thursday 23rd November 2017 Commons Chamber

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Secretary of State is going on, yet again, about investment in the south of England, but he has not mentioned Yorkshire or the north of England. Will we, for example, get the electrification of the trans-Pennine rail system? We have real opportunities to grow the population and wealth in the north of this country, but the Government do not hear that message.

[Sajid Javid]

The hon. Gentleman will know, if he has had an opportunity to study the Budget closely, that the Chancellor referred to the housing deals that we are working on in Greater Manchester, Leeds and the west midlands. The hon. Gentleman mentioned the trans-Pennine railway, and he will know that the Chancellor offered an additional £300 million yesterday for the trans-Pennine railway. I am sure the hon. Gentleman will welcome that.

--- Later in debate ---

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

It might surprise some people on the Government Benches in particular to hear that I agree with several of the major themes of the speech made by the right hon. Member for Sevenoaks (Sir Michael Fallon). We have worked together on manufacturing and other matters and would agree on the need for greater expenditure on our defence sector. As a Labour and Co-operative Member of Parliament, I was surprised at his conversion to passionate advocacy of employee share ownership—I perhaps did not know about his championship of the idea. There are other matters on which we do not agree.

This is my 43rd Budget so, if I am a little cynical and pessimistic, it is because I have sat through 43 Budgets since I came to the House in 1979. Some have been amazingly bold, ambitious and brave. I remember sitting on the Government Benches during what was not a Labour party-induced economic meltdown but a banker-induced global economic meltdown, when brave men such as Alistair Darling stood at the Dispatch Box and made the right decisions about getting our country through. It is sometimes very important to set the record straight.

All Budgets are usually compared to a magician’s performance. We all know what a magician is like—they take one’s eye off the main business with nice sparkly things and rabbits coming out of hats. My experience is that we can never judge a Budget until the papers hit the doormat on a Sunday morning. That is when we get a relatively mature view of what is happening. Let me give an example. We should watch a Chancellor who switches from percentages to pounds, to billions. Yesterday, I noticed that the Chancellor of the Exchequer suddenly said that there would be £1.6 billion for the national health service, but this morning I had the House of Commons Library check what that was. It is 1.2% of the overall NHS budget. So, £1.6 billion sounds like a lot of money; 1.2% does not.

We must judge the Budget cautiously. It is the most depressing Budget that I have ever heard, and not just because of the growth figures or the dire situation that so many people in our country are still in, but because the shadow of Brexit looms over everything the Chancellor said yesterday. It could not be a Budget of passion, imagination, new ideas and real change, because he was hemmed in not only by those in the Cabinet who would not give him an inch if he made any slight mistake, but by the passionate Brexiteer majority behind him, which will not let anyone question this absolutely disgraceful decision to take ourselves out of the European Union. Not everyone on my Front Bench agrees with me, but I must confess that I will fight to the very end of the Brexit process to make sure that we stop it if we possibly can.

I want to deal with four points. First, let us start with productivity and growth. Sometimes, I hear the word productivity bandied around, and not many people know that the definition of productivity is the measure of the efficiency of a person, machine or factory system in converting stuff into useful outputs. We ain’t very good at it. Under all parties, of all Governments, we have not quite managed to become as productive as we should be.

The right hon. Member for Sevenoaks referred to managerialism in his closing remarks. That is different from competent management, and what this country needs more than anything else, in the private and public sectors—running our hospitals, our universities and our private sector businesses—is first-class management. Our universities and colleges are producing too many people with soft social science degrees and arts degrees and not enough managers who know how to run this country, run our industries and create wealth. There is very little in this Budget about encouraging managers. There are some nice things about science and maths, and I do not decry them, but we need good managers and more of them.

[Emma Hardy]

My hon. Friend mentions that we need skills for managers, but he will find that, ever since the right hon. Member for Surrey Heath (Michael Gove) was Education Secretary, this Government have got rid of the development of those soft skills—teamwork, leadership and oral communication—because of his ideological focus on fact retention.

[Mr Sheerman]

My hon. Friend makes a very good point.

I want to move on to skills. We can talk about higher education. When I was Chairman of the Select Committee some people said it was disgraceful that we were going to aim to have 50% of people in our country going to university, but I was very much in favour of that move. I came into politics to give every child in this country the maximum opportunity to develop their potential to the full. Often, Members of Parliament like me, with a very successful university in their town—I am very keen on my university, which got the global award for teaching recently and is a gold standard for teaching whereas my alma mater, the London School of Economics, got bronze—find that those who train people for local businesses are the further education colleges. The local FE sector is the Cinderella of our education system.

[Dr David Drew (Stroud) (Lab/Co-op)]

Like my hon. Friend, I go back rather a long way. One of the problems now is the lack of security for those who are doing the teaching, both in higher and further education. Most of my friends are on short-term contracts and cannot invest in their future, let alone the future of the people they are teaching. Surely that is the wrong way to do things. Does he agree?

[Mr Sheerman]

My old friend, and hon. Friend, is absolutely right. The percentage of impermanent and short-term contracts in colleges and universities is not good and does not bode well for a happy team delivering high-quality output.

FE colleges are vital if we are to produce the people who work in the sectors in which we must improve our productivity. There is very little sign that that is being taken seriously. My local college is brand-new, with a fine new building—an extraordinarily good building—because it invested. Why should kids going to FE college not have the nice environment that university students have? All those colleges that invested in new buildings and high-class facilities are now in deep financial trouble. They are struggling.

We must also take into account the intransigence of the Department for Education on the question of GCSEs in English and maths. There should be a practical qualification as well as an academic one, and I and many others have called for this for many months and years. At the moment, most FE colleges are warehousing tens of thousands of young people who cannot get on with their lives or start an apprenticeship because they do not have a GCSE in English and maths.

We know that some very good reforms have come out of the Sainsbury recommendations. They were a good piece of policy in many ways. The new skills levy and apprenticeship levy are excellent policies, based on getting someone who knows about that stuff to take evidence. I gave evidence. However, in the Budget the Government have not considered one of the ramifications of the policy, which is the 62% drop in the number of young people starting an apprenticeship this year. That is appalling news for the income streams of further education colleges. According to the regulators—we had the commissioner in the House of Commons only this week—many of the colleges are experiencing real problems with their financial arrangements. My own college, Kirklees College, and many others are struggling, and this Budget does nothing to help them.

My next point is on housing. I believe that everyone in this country should have the chance of a decent home, but many people cannot afford one. Let us reflect on the history of housing crises over the years. The Victorians could see the problem and, as the railways came, they established a programme for garden suburbs. After the first world war, Lloyd George declared that we needed “homes fit for heroes”, and the Liberal Government encouraged the building of council houses. What a wonderful initiative that was! Between the wars, the new towns started to be built, and after the war we had the prefabs. In every housing crisis, there has been a resolute determination to have a policy to fix it, but the policy announced in yesterday’s Budget is neither bold nor imaginative, and it will not fix the problem. As the Chancellor was making his remarks yesterday, I could see behind him rows of people who jump up and down in their constituencies and tell their constituency associations and their local electorate, “There will be no houses near you. You can have the green views and the rolling hills. No one will move in next door to you.” The nimbys rule in the Conservative party, but they should stop being so powerful.

I want to finish by mentioning the north-south divide. There was little in the Budget about the north of England, and there was precious little about Yorkshire. When I asked the Secretary of State whether the Budget would give us the money to electrify the Pennine rail link, he would not answer, because the money is not in there; we have not got it. This country has greater gaps between its regions than any other OECD country. If only the Chancellor had grasped the real chance he had in the Budget to invest in the northern regions, he could have given us great transportation and great communications. He could have invested in the north, rather than investing in London and the south all the time. We will fight this Budget. We will fight it for Yorkshire and for working people, and we will change it when there is a Labour Government.

[Several hon. Members rose—]