Leaving the EU: Parliamentary Vote

Debate between Catherine West and Colin Clark

Monday 11th June 2018 Westminster Hall

[Catherine West]

I thank the hon. Member for his intervention. I am sure it reflects trends such as the increased use of the internet to purchase products, but it is also a fundamental question of there being less money in people’s pockets. For example, there is just as much footfall as there has ever been in the high street in Wood Green, which I represent, but all the shops are closing because people do not have money in their pockets to spend. That reflects the 30-year flatness of wages, which I believe has been a big contributor to people’s dissatisfaction with traditional politics and led to some of the debate that we have ended up with.

Furthermore on the economy, of course, we have seen the drop in sterling, although it is slightly better now than it was just after the referendum result. However, we have also seen the effect on trade, in terms of uncertainty.

[Colin Clark]

The hon. Lady is citing specific statistics, so maybe she can answer two questions: why is employment so high; and why is the stock market at an ever-increasing level? How do those things reflect her argument about Brexit?

[Catherine West]

I thank the hon. Member for his intervention and I am very pleased that unemployment is now about 4%. That is something to be proud of and I am pleased that so many people are forcing themselves to go out to jobs that in other circumstances might not be that attractive. We know that most people—50% of the population—earn under £23,000. London MPs know that a lot of that money goes on rent for those in the private rented sector, and that those in the social housing sector still pay a lot of money for service charges and other things. Although I am very pleased about the employment statistics, as I am sure the hon. Gentleman is, we cannot just celebrate on that one fact alone; we have to consider the wider meaning, in terms of the level of income and the other costs that must be borne.

There is another thing to mention, of course, about trade being one of the general indicators of the economy. Today, the Financial Times shows the huge drop-off in both exports and imports for the UK, which is very troubling. We cannot say whether that is Brexit-related, of course, but what we can say is that it is related to uncertainty. Also in today’s Financial Times, I read that even the City of London—of course, as a London MP, I take an interest in jobs, not just the traditional City jobs but also those in all the supply chains that go into the City—seems to be losing its patience with the chaos around the Brexit negotiations. For example, when the Prime Minister gave her Mansion House speech, there was a lot of talk about, “Let’s be positive. We can do better.” However, there is now more and more concern from Catherine McGuinness, who is a leading member of the City of London corporation. For example, there is a real concern about the insurance industry and the financial services industry, and ensuring that we field the real economy efficiently. We feel that time is running out to mend the many fractures that Brexit has caused. For policy makers to have a chance of success, the City must first agree on its own priorities. So the City itself is confused, which is quite unusual for the City; City people are normally quite confident lobbyists, and rally both the Bank of England and the Treasury behind them.