Economic Growth

Chris Leslie Excerpts

Wednesday 15th May 2013 Commons Chamber

[Mr Osborne]

We have spent more on pensions, and we are proud that we have done so, and we have a triple lock on pensions and pensioners last year got the biggest ever increase in the state pension. As for other areas of the welfare state, we have cut welfare entitlements by £19 billion a year.

Let me conclude, because there is a five-minute limit on Back-Benchers’ contributions. We have spoken about Europe, but many of the economic challenges that we face remain at home. We spoke about banking regulation, and an important part of the legislative programme this year is the Financial Services (Banking Reform) Bill, which is a carry-over Bill. We are making the changes necessary to fix our banking system, ring-fence our retail banks and make sure that we deal with the too-big-to-fail problem. We also have legislation to support small businesses. It will not be the most controversial Bill, because I suspect that the Labour party will not dare to oppose it, but it will be of enormous help to our constituents and to many businesses throughout the country. Our new employment allowance will cut the tax on jobs—

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Not for another year.

[Mr Osborne]

We have to get the legislation because we need a national insurance Bill, which is what—[Interruption.] The hon. Gentleman had 13 years to do something for small businesses, and the only idea he came up with was to put up the small companies’ tax rate.

From next April, every business and every charity will have their employer national insurance contributions bill cut by £2,000 a year. It means that a business will be able to employ four adults on the minimum wage without paying any employer NICs at all. I know that the shadow Chancellor does not want to hear it, because his policy was to put taxes up on jobs. That is what he fought the general election on, and that is what he still talks about when people listen to him in his interviews. That is the point. The Opposition offer more borrowing; we are reducing the deficit. They want to increase the size of government; we want it reduced. They penalise enterprise and wealth creation; we support it. They would put a tax on jobs; we are abolishing it. While they would repeat all the mistakes of the past, we are engaging in the great economic challenges of the future. We are building an economy that will enable Britain to compete and succeed in the world. We are building an economy that helps people who want to work hard and get on. I commend the Queen’s Speech to the House.

--- Later in debate ---

[Chris Leslie (Nottingham East) (Lab/Co-op)]

I thank my hon. Friend the Member for Corby (Andy Sawford) and my many other hon. Friends for their consistently strong arguments about the shortcomings of the Gracious Speech. It is a Queen’s Speech that lacks vision, substance and coherence. It lacks any answers to the big challenges that Britain faces. As such, it is entirely typical of this pitiful excuse for a Government. It is as though they could not be bothered to think through the legislation that is needed to get our economy moving, perhaps because their minds were elsewhere. We know where their minds were. Downing street has been caught in the headlights. It is fixated with internal party management and is frantically trying to hold it all together, when what we really need is a Prime Minister and a Chancellor who can focus relentlessly on the weaknesses in our economy and on the action needed to kick-start growth. They are so distracted, however, that they have lost sight of the things that matter most to the British people.

Youth unemployment still stands at nearly 1 million, and the Work programme is so useless that the number of young people on the dole for more than a year has tripled since it was introduced. At the spending review in 2010, the Chancellor said that there would be at least 6% economic growth by now, but we have seen barely more than 1%. As my hon. Friends have pointed out, house building is at its lowest level since the 1920s, yet the Government housing scheme offers a better subsidy for second home buyers than for building new homes. The construction sector is collapsing on this Government’s watch, but only seven projects from the list of 576 in their infrastructure plan are actually completed or operational. That is pathetic.

The Government promised to help 400,000 businesses with a national insurance holiday for new firms, but they have helped barely 5% of them. They are now having to replace that legislation. We are experiencing the slowest economic recovery for more than 100 years, and deficit reduction has ground firmly to a halt. When we hear the Government claim that they have cut the deficit by a third, we must remember that it was the same last year as it was the year before, and that it will be the same again this year. It is no wonder that they have lost the triple A credit ratings that they promised to preserve. It is a simple lesson: if the economy is flatlining, they should not be surprised if the deficit stubbornly remains high.

The Government are either too weak to admit that they have made mistakes or too distracted to see it for themselves. As a result, we are left with a legislative agenda that fails to rise to the challenges facing our country. These Ministers see consumers and businesses that lack confidence and they see weak economic demand, but their Government’s response is to pull back from the role that they should play, pull the rug from beneath the feet of those who are trying to move forward, pull away the safety net from families facing hardship and pull up the drawbridge against the entrepreneurs and investment that our country needs.

Where is the jobs Bill to ensure that all the long-term unemployed are offered a decent job opportunity on at least the minimum wage, with the private sector in partnership with the Government? We could do all that, and cover the costs, if only the Chancellor would stop being so weak towards the banks and instead make them pay their fair share. Where is the finance Bill to reverse the unfair tax cuts for the richest 1% and to help to make work pay with a 10p starting rate of income tax? Where are the measures that my hon. Friends have so eloquently called for to tackle rip-off energy bills, extortionate train fares and rogue landlords? Where is the action, the drive, the activity? Nowhere, because the Government are frozen to the spot.

It says everything about the hollowness of this Government that the Queen’s Speech debate today has been totally dominated by one subject that is not even in it. Where once we had a Conservative Prime Minister who boasted of her convictions, tonight we have a Conservative Cabinet united only by their abstention. As that Prime Minister once said, this is not leadership but “followership”. The truth is that this Queen’s Speech is not a legislative programme of a functioning Government; it is a sticking-plaster programme trying desperately to hold things together while Conservative MPs kick lumps out of the Prime Minister.

A week ago, the Prime Minister did not think that an EU referendum was important enough to put in the Queen’s Speech, but a week later we find that it is the first Bill that the Government have published. If they want a referendum, why are they not supporting the amendment; if they do not want a referendum, why have they drafted their Bill?

The draft Bill that the Government have rushed out—I do not know whether the Chief Secretary or the Chancellor had a hand in the very technical drafting of the one side of A4—had nothing to do with consulting the public; it was all about silencing the Conservative party’s internal divisions. They are not so much a coalition as a contradiction. There are three parties in this Government: the two faces of the Conservative party in league with the Liberal Democrats—perhaps best represented by the Chief Secretary to the Treasury, to whom I wish many happy returns today. Hon. Members will be interested to know that this right hon. Gentleman spent a decade of his life before entering this House making the case for a federal Europe. What a triumph it is for the Government Whips facing a difficult vote on Europe that the final speech in support of the Government’s programme should come from the former chief spokesman for the campaign to join the euro. You couldn’t make it up, Madam Deputy Speaker. The sad truth is that this Government are too weak, too divided and too distracted; they are fiddling on about Europe while the economy burns.

[Mr McFadden]

On the subject of the Government’s tactics over the rushed, panicked publication of this referendum Bill, does my hon. Friend agree that today’s debate shows that the tactic has already failed because during the debate the people who wanted this were already asking the Government to go further by having the referendum this side of the general election rather than after the next one?

[Chris Leslie]

The Prime Minister said yesterday, “No more concessions; that is the line in the sand; this is as far as they will go.” It is amazing to think, though, that he has to keep feeding the beast. The problem is that Conservative Members are carrying on a bit like the strange man in the corner of that country pub endlessly moaning about the dreadful threat of outsiders and incomers. I have to tell them that if they spend all their time trying to be like UKIP, they should not be surprised when people vote for the real thing.

We are left with a Government increasingly out of touch with the real problems facing real families across Britain. Tonight, it is those families that are paying the price: higher taxes because growth is stagnant and lower living standards because wages are falling. Every year that goes by while our economy stands still and while our Government are divided and distracted, our international competitors get further and further ahead.

The Queen’s Speech lists 15 Bills that look as though full time has been called for this Parliament, not just the end of the first half of it. The Government’s legislative agenda, supposedly to drive Britain forward, did not even make it from Downing Street to the Cabinet Office before running out of support. We should look at their child care strategy, stumbling in more directions than a toddler learning to walk. They are not going to convince the public that it is sensible to have one nursery worker looking after six two-year-olds on their own if they cannot even persuade their own Deputy Prime Minister. Surely, the Prime Minister of all people must know how difficult it is single-handedly to watch over a group of immature and disobedient trouble-makers, constantly throwing tantrums. They cannot even manage the basics.

Just at the moment when we need a strong voice for the United Kingdom arguing for the reforms and change of direction we need across the European economy, we get a Prime Minister saying one thing, an Education Secretary who is not here and a Defence Secretary who is not here saying another, while his Back Benchers are revolting and the Deputy Prime Minister is wielding his veto. Our country and our partners deserve better than that. Britain needs to be leading in Europe, not leaving Europe, and the Prime Minister should be brave enough to say it. He should stand up to those who are undermining his authority. On the very day when he was extolling the virtues of a new EU trade deal with the United States, his own Ministers implied that they would rather turn their backs on that £10 billion advantage.

The amendment has blown the last semblance of unity in the coalition to smithereens. The Prime Minister could not even tell his own troops to vote against it, so we have ended up with the absurd spectacle of Ministers being told to abstain while the Prime Minister is supposedly “chillaxed” about the rest of them supporting it. The Prime Minister should not be relaxed when those on his own side express regrets about his own Government and his own Queen’s Speech; he should be embarrassed by it. He should not “chill” at the thought; he should be chilled by it. He should have led from the start and asserted his authority, but he is too weak, and his party is too divided and distracted to be brought into line.

The fact is that this in/out, in/out, hokey-cokey referendum policy sends all the wrong signals. The Prime Minister’s party is left leaderless, and the country is left rudderless. Make no mistake, Madam Deputy Speaker: there is a real-world price to be paid for this weakness, and it will be paid in jobs, with inward investors left mystified about whether or not they would have access to a single market with 500 million customers if they came here.

When will the Conservatives realise that the top priority for this country must be the strength of our economy, not their obsession with Europe? The Prime Minister once said:

“Instead of talking about the things that most people care about… we were banging on about Europe.”

They are back to banging on, and on, and on—not about jobs, not about growth, not about recovery, but about Europe, yesterday, today and tomorrow. They are too distracted to see what needs to be done, too divided to agree on how to do it, and too weak to take the action that the country needs. Weak, divided, distracted: we see a Government who are slowly imploding under the weight of their own contradictions.

Britain, at home and in Europe, needs a Government who are strong enough to make the tough decisions for our country’s future, united in seeing those decisions through, and focused on securing growth and recovery. That is the only genuine way of improving our national finances. Britain needs that one nation Government and we need it now, but sadly, with this Queen’s Speech, with this Government and with this Prime Minister, Britain must wait.