Jobs and Growth

Debate between Bill Esterson and Ed Balls

Wednesday 12th October 2011 Commons Chamber

[Ed Balls]

The Chancellor’s whipping team really must tell people to listen to the answers before they intervene.

The Nobel prize winner himself, Chris Pissarides, says in the New Statesman tomorrow that a temporary VAT cut is the right way—[Interruption.] I say to Government Members that Nobel prize winners who give good advice to the Chancellor should be listened to. Given that 70 more people are unemployed in the constituency of the hon. Member for West Worcestershire (Harriett Baldwin) than a year ago, perhaps she should start to listen too.

[Bill Esterson (Sefton Central) (Lab)]

I know that the shadow Chancellor is aware of the “Cut the VAT” campaign, which wants the Government to reduce the VAT on home repairs, maintenance and improvement work from 20% to 5%. Its analysis shows that when the rate was 17.5%, cutting it to 5% would have injected £1.4 billion into the UK economy in the first year alone. I wonder whether he is aware that the campaign is backed by 49 business organisations.

[Ed Balls]

I know the details of that campaign, although I do not know all 49 members. I know that it argues for a widening of our proposal.

One business organisation, the Federation of Small Businesses, has said:

“the Government’s growth strategy is just not working…We must see a cut in VAT to five per cent in the construction and tourism sectors to boost consumer demand.”

The business demand for a change of course is growing.

Academies Bill [Lords]

Debate between Bill Esterson and Ed Balls

Monday 19th July 2010 Commons Chamber

[Ed Balls]

We have 720 schools where children from primary school were looking forward to going into brand-new schools. Their hopes have now been dashed by the Conservatives to pay for their free-market schools policy—[Hon. Members: “Answer the question.”] Unlike the Secretary of State, I have the courage to answer the question, and the fact is that in 1997 70% of children reached the required level in English and maths at age 11, and that rose to 80% under the last Government. We improved standards because we invested in schools and teachers. It is the cuts by the Government that will set back the improvement in standards.

Government Members know that the reason the new schools have been cancelled is not to reduce the deficit. It is not because of the nonsensical claims about bureaucracy. Those claims are as flimsy as the Prime Minister’s promise to protect the front line. The cuts in the school building programme are to pay for the new free schools policy. We know that, because in opposition the Conservatives said:

“we propose that capital funding for new academies should come through a new fund, established by reallocating the money available within the building schools for the future programme.”

To be fair to them, they promised it in opposition and they are delivering it in government, so that 700 schools around the country are now feeling the reality of a Conservative-Liberal Administration, and do not like it very much.

[Bill Esterson]

The Secretary of State talked at length about various freedoms. One of the freedoms that concerns me is the freedom of schools to exclude children with special educational needs and looked-after children, among other categories of children from disadvantaged backgrounds. Does my right hon. Friend agree that the lack of protection for children from such backgrounds is a worrying aspect of the legislation?

[Ed Balls]

I visited Sandwell last week, a borough where several schools were told that their new school buildings were going ahead—in version 1 of the Secretary of State’s list—but were told in list 2 or 3 that he had made a mistake and all their new buildings were being cancelled. As part of that discussion, I met the head teacher of a special school whose promised new investment has been taken away. We discussed the fact that the new academies policy will take out of the funding agreement the obligation on academies to focus on stopping exclusions of children with special needs. So I have exactly the same concern as my hon. Friend.

The head teachers in Sandwell were pleased that I visited. They were also pleased that the Secretary of State has agreed to visit Sandwell to apologise for his dreadful mistake. However, they think that it is odd that he wants to visit on 5 August. Visiting schools in August is not usually the done thing, as the Secretary of State will find out. I am sure the reason is that his diary is full. Perhaps he should share the load. I know that the Prime Minister is today in Liverpool announcing his big society. Perhaps the Secretary of State should urge the Prime Minister to apologise to the 25 schools in Liverpool and the many thousands of children who have seen their new school taken away from them by the free-market schools policy in this Bill.

Perhaps while the Prime Minister is there, he could also apologise to the leader of the Liberal Democrat group on Liverpool council, who had some interesting things to say about the Secretary of State. Former council leader Councillor Warren Bradley said:

“it would be absolute folly if we were to ignore the impact of such a ridiculous decision by Michael Gove, whether or not we are in coalition. Not only would it show how shallow we are, either in control or opposition, we would be letting this and future generations of young people down.”

He goes on:

“It’s ridiculous. The plans for BSF were so far advanced and it’s unforgivable that other funding options are not in place.”