Devolution and Growth across Britain

Debate between Chuka Umunna and Caroline Lucas

Wednesday 3rd June 2015 Commons Chamber

[Mr Umunna]

I could ask the hon. Gentleman why, in the 18 years beforehand, his party did not come up with the ideas of the Mayor of London, the Welsh Assembly or the Northern Ireland Assembly.

We will, of course, hear a lot more about the Government’s plans for growth in the Budget, but in the Queen’s Speech we had the enterprise Bill. To the extent that it promotes growth and supports businesses, we will support it. I see the new Minister for Small Business, Industry and Enterprise in her place. I am pleased that the Government propose to extend the primary authority scheme, which we established, to reduce the regulatory burden on business. That is good.

I would like the Business Secretary and his new deputy to go much further in the Bill than they have indicated they will in order to clamp down on the national scandal that is the late payment of small and medium-sized businesses by their large customers. We will press the Government on that during the passage of the Bill through this House. A conciliation service is all well and good, but what small businesses want is a regime with teeth that will impose sanctions on late payers automatically, without their having to have a row with their customers. That must be the Government’s goal.

To reform our economy, we must invest in our infrastructure. The key thing is to ensure that people in every part of the UK have a decent, affordable place to live. The shadow Secretary of State for Communities and Local Government will say more about that later.

[Caroline Lucas (Brighton, Pavilion) (Green)]

Does the hon. Gentleman agree that economic devolution must include mending our broken banking system, which is sucking money into London? Does he agree that, although the Government are about to announce, I imagine, the selling off of RBS at a massive loss to the taxpayer, we should instead use our investment in RBS to create a local banking network to support small businesses and rebalance the economy?

[Mr Umunna]

The hon. Lady is absolutely right that when we look at economic devolution we should consider reform of the way banking works. I am a big fan of regional banking.

I am conscious of time and I know that many Members want to make their maiden speeches, so I will finish where I started and return to the rationale for devolution. Often, people dismiss debates such as this as not being high up the list of concerns for the public. It is true that the turnout in the referendum on whether to establish the Greater London Authority and the Mayor was just 34.6%, and that the referendum on the establishment of the Welsh Assembly was carried with just 50.3% of the vote. However, I leave this thought for hon. Members to consider: if any Government now proposed to abolish the institution of the Mayor of London, not only would my hon. Friend the Member for Hackney North and Stoke Newington (Ms Abbott) go crazy, but there would be a public outcry. The same would be true if a Government proposed to do away with the Welsh Assembly or any of the new institutions we have set up. That reinforces my view that, when it comes down to it, people want more power, so we should ensure that they have it. For that reason, I commend our amendment to the House.

Jobs and Work

Debate between Chuka Umunna and Caroline Lucas

Wednesday 11th June 2014 Commons Chamber

[Mr Umunna]

I thank my hon. Friend for that intervention. I was not aware of that, but I am sure the Business Secretary has heard what he said and will no doubt ensure that his Department looks into those two firms.

We have to build on the national minimum wage. Many Members, for example my hon. Friend the Member for Wansbeck (Ian Lavery), have argued for us to do so. It is currently £6.31 and is due to increase to £6.50 in October, but that is just 53% of median hourly earnings. We want to set—this in part relates to the point raised by the hon. Member for Dover—a more stretching target for the minimum wage for each Parliament, within the Low Pay Commission framework, to increase it faster than average earnings, while retaining capacity to take account of shocks to the economy. We would also give local authorities new powers of inspection and enforcement of the minimum wage, alongside central Government, to ensure it is enforced properly. We would also increase fines for non-payment to £50,000.

A number of measures are contained in the small business, enterprise and employment Bill. We are told, among other things, that the Bill will strengthen UK employment law by tackling national minimum wage abuses. It does not appear, however, that the Government will come close to matching our commitments to strengthen the national minimum wage. There will be no stretching target, no enhanced role for local authorities and much lower fines than we envisage. We will be pushing the Government to adopt our package during the passage of the Bill.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I am glad to hear that the hon. Gentleman is talking about moving towards something that might eventually look like a national living wage. He will recall that it was the Greens on the London Assembly who made the Living Wage Commission a possibility. Will he also consider, as inequality is such a major issue, maximum pay ratios between the highest and lowest paid in companies?