Oral Answers to Questions
Chi Onwurah Excerpts(2 months ago)
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Darren Jones
The issue of so-called hope value was referenced in the Labour party’s manifesto, and the Government will set out further detail in due course.
Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
Alan Gemmell (Central Ayrshire) (Lab)
The Chancellor of the Exchequer (Rachel Reeves)
Investment is at the heart of this Government’s growth mission, alongside stability and reform. With robust fiscal rules and respect for economic institutions, the Government are building the confidence needed to deliver private sector investment. It is vital that the tax system also supports growth, and today I can confirm that the Government will outline a tax road map for business at the Budget to offer the certainty that encourages investment and gives business the confidence to grow, including our commitment to cap corporation tax at 25% for the duration of this Parliament and to retain full expensing.
Chi Onwurah
I thank the Chancellor for her response. Last year, the north-east attracted 67 foreign direct investment projects, creating over 4,000 jobs. In the key growth sectors, from advanced manufacturing to health and tech, those who know the north-east know our huge potential, and I know that the Chancellor recognises that too. What is she doing with the Mayor of the North East, Kim McGuinness, to ensure that more global investors are aware of the north-east’s strengths and that we can attract more inward investment, creating more jobs?
Rachel Reeves
My hon. Friend makes an important contribution on behalf of her constituents, based on her background of working in science and technology before entering this House. My hon. Friend is absolutely right to say that the north-east has huge potential to grow the economy through sectors including advanced manufacturing, health, technology and our creative industries, and this Government will work with our local mayors, including Kim McGuiness, to develop ambitious, long-term local growth plans that reflect the north-east’s strengths. We will look to address some of the barriers to growth and support delivery of our national industrial strategy, as well as narrowing some of the inequalities that have persisted for far too long.
Economy, Welfare and Public Services
Chi Onwurah Excerpts(3 months, 2 weeks ago)
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Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)
I congratulate all the hon. Members who have made their maiden speeches on their passion and their commitment to their constituency, which has come across so well. Age does not wither, nor custom stale the privilege of being in this place, and I too want to thank my constituents, who have returned me to Parliament to represent them all and the wonderful city we call home.
I spent 14 years on the Opposition Benches, standing up for my constituents against a Government who were bearing down on them. It is absolutely fantastic to speak from the Government Benches in support of a Government who will help and empower them. Some Conservative Members have been painting a rosy picture of our economic inheritance, but the message of working people in Newcastle upon Tyne Central and West was clear and consistent: “We need change.” It is not hard to see why. People are worse off; over a third of children in Newcastle upon Tyne Central and West live in poverty; and over 2,000 households in Newcastle are homeless. Those are just a few of the issues that my constituents face, so please, let us not pretend that we should be grateful to the last Government.
But everything changed on 4 July. Indeed, as I was buying my fish supper last Friday at one of the excellent fishmongers in Grainger market—locally smoked cod, since you ask—they told me that on 5 July, sales of halibut soared. That is an expensive fish, so they took that as a sign of celebration, but also of optimism, hope, and confidence in a better future. There is nothing fishy there, because the Bills set out in the King’s Speech will give Newcastle our future back. Our destiny will be in our own hands, with the English devolution Bill and the better buses Bill giving local leaders such as our fantastic Mayor Kim McGuinness the powers needed to drive growth and prosperity locally. Our region’s immense potential in the green industries of the future will finally be unlocked through the national wealth fund and Great British Energy; planning reform will take the handbrake off building new homes and spaces for business, making us an even greater city with an economy that provides great jobs and good homes for all Geordies; and by expanding the rights of workers, tenants and minoritised groups, the Government will make sure that work pays and everyone in Newcastle enjoys their fair share of our national prosperity.
Having worked around the world as an engineer, I have been proud to champion science and innovation in Newcastle and across the UK. I am now privileged to have both of Newcastle’s fantastic universities in our constituency, and our city is looking forward to building a proper industrial strategy once again—one that can boost our universities as drivers of inclusive economic growth. Unlocking private investment through measures such as the national wealth fund and the recently announced pensions review will super-charge spin-outs and start-ups in the north-east, and I believe that sites such as Helix—home to innovative businesses and entrepreneurs in cutting-edge industries—are a tantalising glimpse of the future of Newcastle.
Technology has the power to make our constituents’ lives so much better, and measures such as planning reform will make that a reality. As an ex-shadow science Minister, I have spoken to Lord Vallance, as he begins his ministerial role, to offer my support, and to make the case for investment in regional research and development. I know that the Department for Science, Innovation and Technology team are already committed to opening up careers in science to everyone, getting money outside the golden triangle and connecting science to industrial strategy, healthcare and economic growth.
As I have said, this Government inspire hope that has been lacking in Newcastle— that is, apart from on match days. That is why, as the MP for St James’ Park, I welcome the football governance Bill. From Mike Ashley to the Saudi Public Investment Fund takeover, football governance has been a thorn in our side, and Geordies around the world will welcome the safeguarding of our precious football club.
My constituents sent me to this place because our party promised change. With this King’s Speech, with this Government back at the service—
Mr Deputy Speaker (Sir Christopher Chope)
Order. I call Olly Glover to make his maiden speech.
The Economy
Chi Onwurah Excerpts(5 months, 2 weeks ago)
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Bim Afolami
I thank my hon. Friend for a characteristically thoughtful and informed question. I will indeed look at what he said about the Bank of England’s balance sheet being settled by 2025, and I will talk to him about that in due course.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Like the Chancellor, the Minister likes to talk about the difficult decisions that Conservative Administrations have made. The cost of a family shop has risen by £1,000 since the last election. The difficult decisions are the ones that families in Newcastle have to make every time they go to a supermarket. Is it not the case that the decisions that his party has chosen to make—austerity, stealth taxes on working people, and crushing growth out of the economy before crashing it altogether—are why my constituents are worse off?
Bim Afolami
I am afraid I disagree with the hon. Lady. It is very important that this House recognises and admits that, because there was a once-in-a-generation pandemic that cost the Government over £400 billion in supporting people, it was necessary for the tax burden to rise for a time to help pay for that. That was a difficult and responsible decision. Now that we have moved into a period of relative calm, there is choice about what we want the economy and our fiscal position to look like over the medium term. On this side of the House, we choose high business investment, high growth and lower taxes on working people, whereas the Opposition choose more union power, higher borrowing and higher taxes. I think the British public are going to stick with us.
Oral Answers to Questions
Chi Onwurah Excerpts(7 months, 2 weeks ago)
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Jeremy Hunt
That is a very tempting offer, and I will see whether my diary permits me to visit the hon. Gentleman in his constituency. I have not seen the film, but I have seen a film on a holocaust theme called “The Zone of Interest”, which is a remarkable British-led film that I thoroughly recommend to him.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Clive Lewis (Norwich South) (Lab)
The Chancellor of the Exchequer (Jeremy Hunt)
The economy is beginning to turn a corner after a series of unprecedented shocks. Inflation has more than halved, GDP grew in January and the economy is on a path to long-term growth.
Chi Onwurah
The economy has grown at a snail’s pace under the Tories, but that snail is still 30% faster nationally than in the north-east, despite our strengths in clean energy, manufacturing, science and health. On average, my constituents are £11,500 worse off that they would have been had the economy grown at the same rate that it grew under Labour. Is it any wonder that the Public Accounts Committee found no compelling evidence of levelling up? Is a vote for the Tories not a vote for continued economic failure?
Jeremy Hunt
It is not, because we have grown faster than Spain, Portugal, France, Italy, Germany and multiple other countries since 2010. With respect to the north-east in particular, the hon. Lady is absolutely right to say that our vision is to spread growth into every corner of the country. That is why, in the last three months alone, both the Prime Minister and I have been to the Nissan factory in Sunderland to mark its decision to make two electric car models in the UK. Just last week, we announced the opening of a massive new film studio in Sunderland that will bring more than 8,000 jobs to the north-east.
Economic Growth
Chi Onwurah Excerpts(11 months, 3 weeks ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
It is an honour and a privilege to represent the people of Newcastle upon Tyne Central. It is the city I grew up in and, quite simply, the best place in the world. My question in this King’s Speech debate is: why are the Government letting Newcastle down?
Replacing the woman actually elected to lead his party, the Prime Minister promised to get the economy growing, but the IMF now forecasts that our country will have the lowest growth in the G7 next year, yet taxes are at their highest rate since 1949. What are my constituents paying for? It is not a better health service, better schools or safer streets; we are paying for Tory failure. This King’s Speech does nothing to change that.
I suppose it should not be surprising that an old Harrovian failed Prime Minister thinks the answer is an old Etonian failed Prime Minister, but it is not. That Tory failure will continue in my constituency. I see it on the doorstep, at my surgeries and on our streets, with young people trying to get on the housing ladder, but held back by Tory Britain’s systemic failure to build. We have businesses contending with inflation, as well as the scourge of late payments. We have pensioners choosing between heating and eating. Less than half of children in England saw a dentist in the past year. We have supermarket security tags on half a pound of butter. Some 42% of children in my constituency are growing up in poverty, 17% of households are in fuel poverty and almost one fifth of adults in Newcastle are estimated to be in problematic debt.
It is little wonder that this year, the citizens advice bureau in Newcastle is on course to help more people with crisis support, food bank referrals and charitable support than in any other year on record. Behind each statistic, there is a living family. One example from Newcastle City Council’s cost of living helpline is of an adult with two children. The parent has not eaten anything for three days, saving food so that the kids can eat. There is no gas and no electricity. They are going to warm places in the city to spend the day and wrapping up in multiple layers at night. That is impacting on the mental health of everyone in the family. This is Newcastle in 2023 under the Tories. This is the human cost of Tory economic chaos.
I am immensely proud of our local food banks such as West End food bank, Newcastle United supporters trust food bank and Kenton food bank. I am proud of the work of our council, and I am proud of the work of all the charities helping Geordies to survive, but it should not have to be this way. Newcastle’s wonderful industrial heritage inspired me to go into engineering. Whether it is renewable energy, life sciences, start-ups or innovative manufacturing, Newcastle has exciting prospects for the industries of the future and a green industrial manufacturing future. In our long-standing areas of strength, such as our world-renowned hospitality sector, which adds more than £300 million of GVA each year in my constituency, I can see enormous potential for growth, helped by Labour’s plans on business rates, energy markets and the planning system.
Labour has a plan to make people across the whole country better off by growing the economy, boosting wages and bringing down bills. Our industrial strategy would bring together our excellent universities, skilled workforce and deep capital markets to turbocharge growth in constituencies such as mine. Our planning reforms would make it possible to build the infrastructure we need, and switching on Great British Energy would bring down bills, create hundreds of thousands of high-paid jobs and put the UK on course towards energy independence.
The record speaks for itself. People in Newcastle upon Tyne Central would be better off with Labour. Under the Tories, disposable income is forecast to grow by just £42 between 2010 and 2025. Under Labour, it grew by £11,000 per person. The Tories low-growth, high-tax economy has meant hardship and setbacks for my constituents. We need a Labour Government and a Labour King’s Speech to restore pride and purpose to our country and to give Newcastle upon Tyne Central and the whole country our future back.
Mortgage Market
Chi Onwurah Excerpts(1 year, 4 months ago)
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Andrew Griffith
If York is a low-wage economy, the hon. Lady’s constituents will be benefiting enormously from the unprecedented 9.7% increase in the national living wage. The measures we are putting—[Interruption.] Perhaps she does not like the 9.7% increase in the national living wage that this Government came forward with. We are putting measures in place with lenders, including forbearance, and working with the Department for Work and Pensions on mortgage interest support and to ensure that families have access to the support they need.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The typical household’s mortgage payments have risen threefold in the last two years, yet in the north-east the typical wage packet is lower than when the Conservatives came to power 13 years ago. The Minister refuses to take any responsibility for the economic misery his Government are inflicting, despite having flagrantly and blatantly crashed the economy less than a year ago. Will he tell my constituents why they should carry on paying the price of Conservatism?
Andrew Griffith
Once again, we have a contribution from the hon. Lady that completely ignores the fact of the global pandemic, the £400 billion of support we have provided and, although I believe she is highly literate in these matters, the fact that interest rates are rising across the western world.
Oral Answers to Questions
Chi Onwurah Excerpts(1 year, 5 months ago)
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John Glen
I am always happy to meet my hon. Friend. I congratulate him on his leadership of his council candidates last week and the excellent result that he secured. Of course, we have invested in many coastal communities across the country, and we are keen to discuss the specifics of how the Government can support him as he drives that local constituency and economy forward.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
John Glen
No, I do not recognise that characterisation. What I recognise is that the Government are determined to see the economy grow. I see investment in investment zones focused in the hon. Lady’s region, working with the excellent universities that she is familiar with. I see a Government who are putting £100 million into the foundation model taskforce, £900 million to invest in a supercomputer to fund AI, a quantum strategy that is generally seen as world leading, as well as £160 million of investment in the tech sector. So this is a Government who are committed to the growth industries of the future.
Silicon Valley Bank
Chi Onwurah Excerpts(1 year, 7 months ago)
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Andrew Griffith
As my hon. Friend knows, the Government are seeking to support challenger banks to make sure we have a vibrant and competitive sector. That includes looking at issues such as the level of MREL—minimum requirement for own funds and eligible liabilities—and making sure that we have proportionate banking regulation that is relevant to the risk involved. He makes important points about the culture and capabilities of SVB UK, which is why it was so important that we had to very swiftly find it a home. I have spoken today to the chief executive of HSBC, as well as to the former chief executive of SVB UK. They are both enormously excited about the future. They see this as a platform for mutual growth, taking our brilliant life sciences and technology businesses international and to a new scale. The Government will not rest until we have mobilised capital to turn us into that science superpower.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Minister said, “The system worked.” Certainly, it was a huge relief that the estimated 50% of the UK tech sector that banked with SVB UK could today pay their suppliers and staff. However, surely that highlights the lack of diversity of capital available to the UK tech sector, and our dependence on the US. In the last two years, Silicon Valley Bank’s deposits tripled, but its exposure to Treasuries, and therefore to interest rate rises, went up ninefold. Is the Minister seriously saying that no one on this side of the Atlantic should have noticed that, and that it had no impact on what happened?
Andrew Griffith
The hon. Member talks about dependence on the US, but if that is her concern she should welcome this deal wholeheartedly, because we have taken a former subsidiary of a US business and made it part of a thriving and successful UK business.
IMF Economic Outlook
Chi Onwurah Excerpts(1 year, 9 months ago)
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Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Wages in the north-east are 3% lower than when Labour left office, and households have lost £11,000 in wage growth under the Conservatives. Now, according to the IMF forecast, we will get poorer still, as prices rise and the economy contracts because the Conservatives have crashed it. Did the Minister come into politics to make people poorer? If not, is it not time for a Labour Government to deliver prosperity for the British people?
James Cartlidge
I am not sure whether the hon. Lady was here for my maiden speech—I entirely recognise that she may not have been—but I said:
“I am a one nation Conservative,”
because I believe in
“not going back to dark and divisive days of high unemployment.”—[Official Report, 3 June 2015; Vol. 596, c. 636.]
And here we are, with the lowest unemployment in almost 50 years.
On regional earnings specifically, I can confirm that pay has grown faster in every region outside London since 2010. That shows that we are succeeding in our levelling-up agenda.
Wagner Group: Sanctions Regime
Chi Onwurah Excerpts(1 year, 9 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
James Cartlidge
My hon. Friend has considerable experience as a Foreign Office Minister. He will be aware of how these things work. I am happy to give that reply. I believe that the decision would be for the Foreign Office, but he is right that we must work across Government, and I will write to him on that point.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
As well as the Wagner Group’s murderous activities in Ukraine, I am aware, as chair of the all-party parliamentary group for Africa, of its activities across that continent. It has mercenaries in Mali, the Central African Republic, the Republic of Mozambique and Libya. It is targeting civilians, actively spreading disinformation and propping up autocratic regimes, all to defend Putin’s footprint and ambitions in the continent. Is the Minister saying that it is acceptable for someone to make money from those evil activities, be sanctioned and then get a licence from the British Government to evade those sanctions in order to defend themselves legally? Regardless of what he is saying, what message does that send to our allies across the world?
James Cartlidge
Of course we are not saying that. We are saying that, whether we like it or not, there is a principle under democracy and the rule of law of the right to a defence. Therefore, we have a system in place under the sanctions regime to consider applications for legal fees to be paid from frozen assets. That is a statement of fact on how the system works.