Budget Resolutions
Damian Collins Excerpts(8 months, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Damian Collins (Folkestone and Hythe) (Con)
The Chancellor of the Exchequer made one announcement in the Budget statement that has not been referred to today but is relevant given the contributions made so far: the Government will sell the last of their remaining stake in NatWest bank, formerly the Royal Bank of Scotland Group. Of course, we all remember that the Royal Bank of Scotland Group, once the world’s largest bank, ran out of money and would have collapsed if not for a complete Government bail-out. It would have gone down and taken with it the livelihoods, jobs and mortgages of millions of people in this country, having an effect on the entire banking system. It has taken us nearly 16 years to get to a position in which the Government can sell their stake in the bank and return it to fully private ownership.
That is an important benchmark, because it is easy to pretend—as a number of hon. Members have tried to do—that 2010, when the Conservative party was elected, was a year zero and there were no issues from the past that we had to deal with. We came into government on the back of that banking crisis. Both parties acknowledged that the bail-out of the banks was necessary, inevitable and the right thing to do, but it came with a cost attached. It came with the recognition that the huge amount of increased Government debt required to take that stake in the banks would at some point have to be paid back, and that the massive shock to the global economy and our economy and the recession it created would lead to consolidations in public spending.
However, it was the Conservative party—working in coalition at the time—that had to put those plans in place. We inherited no detailed plan from the Labour party; no difficult political decisions were made about where spending would be cut or how debt would be repaid. That was entirely left to the Conservative party to do, and that is what we did. We fixed the roof when we had the chance to do so, and because we controlled debt and got it falling again, when the next shock came in the form of the covid pandemic—nothing anyone could have predicted or known about—we were in a position to respond. We could increase borrowing again to make the necessary decisions to protect people’s jobs and homes, create the furlough scheme and give the economy the support it needed. We could make those decisions because we had regained international trust in the British economy and in our Government, and we could borrow money to do so.
Damian Collins
I will in a moment.
Yes, borrowing has gone up, and taxes have gone up to pay for it. That is an inevitable consequence of those two massive global events that took place: one under the last Labour Government; and one under the Conservative Government in the shape of the covid pandemic. I do not remember the Labour party ever criticising the furlough scheme or the support that was put in place, or suggesting that it should not have been done.
Damian Collins
My hon. Friend is quite right: if anything, Labour wanted the lockdown to carry on longer, meaning that the debts would have been even higher. Had the Conservative party not put the public finances back in order, we would have started that pandemic with much higher levels of debt than we did. The necessary decisions were made to put the economy right.
The borrowing has gone on because of the need to pay for covid. It has been complicated by a war in Ukraine —again, I have not heard any Labour Members say that we should not have supported the Ukrainian people.
Jim McMahon
The hon. Gentleman’s speech is giving the impression—I understand why—that the world was rosy up until covid came and that the problems followed afterwards, but before covid, there were 2 million more people on the NHS waiting list than under the previous Labour Government. The NHS was in a fragile state, as was the national debt, which was over £1.5 trillion before covid hit. The hon. Gentleman cannot say that that is strong foundations.
Damian Collins
No, I did not say that at all. What I said was that we picked up the pieces of an international banking crisis, with no plan from the previous Government for how that would be paid for. It was entirely down to the Conservative party to find that money. The criticism was that the previous Labour Government were increasing borrowing before the banking crisis hit. They were already borrowing for political reasons—to sustain spending they could not afford—and then had to bail out the banks on top of that. If Members are going to criticise the past 14 years of Government, let us start where the problem started, which was before we came into power. We were required to pick up the pieces of the mess we inherited.
There are big things that happen, which require responsible Governments to take big, responsible decisions. That sometimes means that they have to put up taxes in order to pay for borrowing to get through a crisis. Let us not pretend that that is not the case, but the question is whether Governments have a serious, credible plan and whether they are prepared to be honest with the British people about what that plan entails. On the back of the pandemic, we have had to put up taxes and borrowing to pay for that. We have done that, and we are now at a decision point. As the economy recovers and the OBR projects that debt will fall, what can we do? What path should we go down? As the Chancellor has set out, the priority of this Government is to recognise that because taxes had to go up to pay for the pandemic, we want to reduce taxes when we can. We want to lift that burden from the British people and start to reduce taxes.
If any hon. Members want to come in at this point, I am happy to give way.
Matt Western
I will, because I was trying to intervene a few moments ago, as the hon. Gentleman will hopefully recall. My point was simply going to be that during the mid-2010s, there was a fantastic opportunity to invest in our infrastructure—repairing our schools and so on—when interest rates were at a record long-term low, and that opportunity was missed. Does the hon. Gentleman not regret that?
Damian Collins
I do not agree with that. Just looking at my own constituency, we have had two brand new secondary schools built, a big new special needs school, and primary schools as well. There has been investment in most school buildings, and we have seen a huge amount of investment in the infrastructure of this country. References have been made to the decision not to complete the northern leg of high speed 2. Of course, that money is not being taken out of infrastructure spending—it is just being spent on different things. That is a point that has not been made.
As the economy recovers and debt is predicted by the OBR to fall, we have a decision to make. The priority of the Government is to reduce taxes, and they have done so through the national insurance cuts made in the autumn statement and again in the Budget: a 4% cut in national insurance, and yes, a longer-term ambition that that tax may go altogether. That is not an unfunded commitment; it is saying, “That is the priority. That is the decision we would take—the direction we would go in.”
Damian Collins
In one moment. What we have heard in today’s debate—particularly from the shadow Chancellor, the right hon. Member for Leeds West (Rachel Reeves)—is that Labour would go down a different path. Labour would spend more; they call it investment, but basically, Labour would spend more. Labour’s priority is not to cut taxes. It is begrudgingly going along with the tax cuts we have announced because it does not want to oppose them, but there was certainly no statement made today that suggested Labour would seek to cut taxes.
Labour would seek to spend more, so that is the choice for the British people at the next election and moving forward: as the nation recovers from the shocks it has been through, and as the Chancellor has got the discretionary money to spend, do we give that money back to the British people? Do we let them keep more of what they have earned, or do we just spend it on their behalf? That is the classic separation between our parties, which has existed for generations. The belief to which the Labour party is still wedded is that growth is created—something that we both want to see—by the Government spending more. What has been demonstrated over the decades is that by backing the British people, and their ingenuity and hard work, we generate the growth we need. That is the separation that we see now.
The shadow Chancellor said at the beginning of her speech that she would not make unfunded commitments on spending or taxes, but she has done so today, because now that the money from the non-doms is no longer available to fund the things that Labour wanted to spend it on, there is no plan in place. On the radio this morning, she said that she would find the money; today at the Dispatch Box, she said that there would be a detailed piece of work to seek it out, but we still do not know what the plan is. The only thing the Labour party could point to today that would increase revenue is taxes on private schools, which will not pay for much at all, so we have an unfunded commitment to spend more—we do not know how; I imagine that it will be borrowing more, but it could be taxes going up—and some specific unfunded commitments. The Labour party will not say where the money will come from, but what it has said today, loud and clear, is that cutting taxes is not its priority. There has been no ambition today to say that we should cut taxes at all.
Jim McMahon
I thank the hon. Gentleman for giving way twice. He has mentioned a number of times the need to repay any debt and borrowing. He will know that part of the borrowing for HS2 was going to be serviced through the revenue from HS2 ticket sales, and through moving more freight off-road and on to rail, to be carried by the track that was freed up. Is he absolutely confident that the new transport projects, including on potholes, that will be funded by the spare capital that has been freed up will be serviced through revenue, or will that be a funding gap in the future?
Damian Collins
I am confident that the robust plan that the Government set out for spending that money on other transport projects will deliver.
What I would say about High Speed 2 in the north—based on my own constituency experience in Kent, where we have High Speed 1—is that Folkestone in my constituency has benefited enormously from high-speed rail. I believe that these big infrastructure projects deliver benefits in time that are sometimes intangible and difficult to predict at the beginning. However, for HS1, the train only goes at high speed on the high-speed line as far as Ashford. The same rolling stock then runs on the traditional railway to Folkestone, Dover, Canterbury, Ramsgate, and other places on the Kent coast. A high-speed rail service that runs at high speed on the high-speed line from Birmingham to London, but with those trains starting elsewhere in the north of England, will still deliver huge benefits in reduced journey times and attracting other investment. That has certainly been our experience in Kent, and that is why I have always supported high-speed rail for the north: I think it can deliver the same thing. I still think it will deliver big benefits for the north-west, even though the trains will only go on the high-speed line from Birmingham down into London.
In addition to the points I have made about the very clear difference between the two parties with regards to taxing and spending—whether we want to cut taxes, or put spending up—I will focus on one or two specific things. The Chancellor noted in his speech that Britain has become a global centre for television and film making. Sometimes, that is said as if it is a happy accident; that, despite the fact that people could have invested anywhere in the world, they decided through serendipity to invest in the UK. The reason that the UK now has this leadership position, which is not one that we had in 2010, is that we have invested in making it happen. We have recognised that in a highly global market, production tax credits mean that people will bring production investment to the UK, rather than taking it elsewhere in the world. That generates revenue for the Treasury—my hon. Friend the Member for Christchurch (Sir Christopher Chope) is not in his place, but that is another great example of Mr Laffer’s curve at work. When we reduce the tax burden, the investment goes up, and the revenue goes up with it.
That has had huge benefits for this country: the investment in our creative industries, the jobs that people have in studios and film production—jobs that simply did not exist before—and the fact that we remain a massive global centre for investment. We have introduced tax credits for high-end television production, animation, video games, orchestras and touring exhibitions. I was very pleased to see in the Budget yesterday that those tax credits will be extended to smaller-budget independent productions, which will massively open up opportunities for smaller film companies to attract investment.
However, the big thing we have seen is the investment in studio space. Britain rivals any place in the world for studio size, which makes it, after California, the global home of film and television. One of the barriers to further investment in studios—I am thinking of a very exciting and ambitious studio project just outside my constituency in Ashford, an investment that will benefit the whole of east Kent—is that if someone builds a film studio on derelict land, which studios are often on, the business rates cost would go up massively. Is that fair, given that the uplift was generated by massive external investment? If the Chancellor recognises that, and gives new studios a 40% reduction in business rate uplift for 10 years, it will unlock a further pipeline for investment, allow us to consolidate our global leadership, and be a huge boost for the creative sector in this country.
I want to mention nuclear technology and small modular reactors. I have a constituency interest in this: Dungeness nuclear power station is in my constituency, and it would be an ideal site for small modular reactors. The Government have launched a competition to design them, and the Chancellor is encouraging people get their tenders in. I hope that we will consider that the benefit is not just us producing the clean energy that we need for the future, but us backing British industry. A British-designed and built SMR manufacturing process in this country will meet our needs, but this could also be a fantastic export industry for Britain.
I urge the Government and the Chancellor to carry on backing this new nuclear technology, to support the design competition, and to back one of the bidders. Ideally, a British company such as Rolls-Royce would be great, but there are other excellent bidders. The Government should also support the roll-out of this technology. Through their civil nuclear road map, they have established how they intend to do that, and they acknowledge that they need more nuclear sites. As a result of the road map and the consultation on it, I hope that other sites, such as Dungeness in my constituency, will be identified where this technology can be deployed.
Huge investment in green energy and new nuclear has been delivered under this Government. In 2010, when we came into government, we still had not completed the national policy framework on nuclear energy, and there had not yet been any decision about where nuclear would go. The new fleet of power stations, and the investment —and there is a lot—has entirely taken place under this Government, which is something I whole- heartedly support.
In closing, a number of hon. Members have talked about housing, and a lot of important points were made about levelling up in the Budget, and in the statements released by Ministers alongside it. New house building is incredibly important for delivering economic growth, and growth of our communities. I was very pleased that Folkestone town centre was a beneficiary last year of a significant levelling-up investment. I encourage the Department for Levelling Up, Housing and Communities and Homes England to continue their discussions with Folkestone and Hythe District Council about backing the new garden town proposal in Otterpool Park in my constituency, which will not only deliver homes that people need, but create a great many new jobs in east Kent for the coming decades.
Oral Answers to Questions
Damian Collins Excerpts(8 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Vara
Absolutely. Such a pension will be much fairer. When such passionate comments come up at oral questions and in the various debates we are having on this issue, it is worth remembering that not one party—neither the Scottish National party nor the Labour party—put such a measure in its manifesto. That is because simply to reverse the 2011 measures would cost over £30 billion, and it would cost countless billions more to reverse the change made in 1995. Those parties should be mindful of the fact that the issue was in not in either of their manifestos.
Damian Collins (Folkestone and Hythe) (Con)
3. What assessment he has made of trends in the level of private sector jobs.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
A record 26 million people are working in the private sector, up over 500,000 in the past year and by 2.7 million since 2010.
Damian Collins
Will the Secretary of State join me in welcoming the fact that the unemployment rate in my constituency has fallen by 48% since 2010? Does he agree that the roll-out of universal credit, which came to my constituency on 25 January, is a further fundamental part of our welfare reforms to make sure that everyone can benefit from work?
Mr Duncan Smith
My hon. Friend is right that universal credit provides the support and incentives that people need to get back into work. Evidence released a few weeks ago shows that universal credit claimants are more likely to have been in employment, spent a longer time in employment, done more job-search activity and earned more than those on jobseeker’s allowance. It is also important to note that, as part of the national roll-out, universal credit has now been rolled out across the whole county of Kent, which includes my hon. Friend’s constituency.
Jobs and Work
Damian Collins Excerpts(10 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)
In view of the shortness of time, I shall confine my remarks to two aspects of the Queen’s Speech. The first relates to the commitment to increase the number of apprenticeship places to 2 million, and the second relates to pub companies. Both issues have attracted considerable interest from the Business, Innovation and Skills Committee, as the Secretary of State has acknowledged.
I welcome the commitment to having 2 million apprenticeship places, but if the Government are to avoid the accusation that they are not matching their rhetoric with detailed policies to deliver those places, we shall need more information on this proposal and on the changes to other policies that will be necessary. In regard to the Government’s phraseology, I must point out that “apprenticeship places” are not necessarily the same as apprenticeship placements. If we look at the records for the past full year, we can see that the number of apprenticeship placements that were actually taken up fell to 510,000. Raising the total number of apprentices to 2 million will therefore require a considerable change in policy. Perhaps more seriously, there has been a drop in the number of apprentices taking placements in the key sectors at which the Government are aiming this policy—namely, construction and manufacturing. If we are to have a skills programme based on apprentices that is designed to address the acute skills shortage—which will be strategically important in delivering economic growth—we will need a far more comprehensive list of policy proposals.
Damian Collins (Folkestone and Hythe) (Con)
Anyone who has listened to a number of speeches by Labour Members during this debate could be forgiven for believing that the good news about unemployment that we continue to see month on month—the 2 million jobs created by the economy, the record pace of the fall in unemployment, and more people, including more women, working than ever before—had never actually happened.
A number of Members have referenced the picture in their own constituency and I will briefly do the same for mine. More than 800 fewer people are on the unemployment register now than 12 months ago. Unemployment has fallen by a third. In east Kent, wages are rising faster than the national average and unemployment is falling faster. We are seeing the regeneration of the local economy.
Some Members have said that nothing is being done about apprenticeships, but nothing could be further from the truth. The number of young people starting an apprenticeship in my constituency this year is more than three times the number under the previous Government. Significant strides forward are being taken and young people are benefiting from that.
I also want to take this opportunity, in front of the Secretary of State for Work and Pensions, to thank a group of people who do not get thanked enough, namely the staff at Jobcentre Plus in Folkestone. They are dedicated to what they do and work very hard with employers and people who are looking for work, particularly young people seeking apprenticeships and work placements. There will always be cases that we as Members of Parliament will take up with jobcentre teams, but they are a dedicated and hard-working group who are doing their best for people and we are seeing the result, which is fast-falling unemployment.
If Members were to stand in the middle of my constituency—this is certainly true of Folkestone—they would be considerably nearer to the coast of France than to the House of Commons. It is interesting, therefore, to reflect on the difference between the employment picture in Folkestone and that in Boulogne, with which we have been twinned for many years. Many Labour Members have suggested that if the Government had taken a different course—such as borrowing more money or taxing more heavily—perhaps things would have worked out even better, but the French economy gives us a live example of what might have happened. The unemployment rate in Folkestone is 3.4%, but in Boulogne it is more than 15%. The average hourly wage in Folkestone and Hythe is £12, whereas in Boulogne it is £9.
If we look at the performance of the British and French economies, we will see not only that unemployment here is lower, but that the rate of business start-ups here is significantly higher. Earlier this year, I was interested to read in The New York Times, which is not exactly famed for being a tribune of the hard right—it is a fairly liberal, moderate newspaper—an article called, “Au Revoir, Entrepreneurs”. It looked at the growing trend of people moving from France to the UK to set up their own business, and quoted Guillaume Santacruz, who explained his thinking:
“A lot of people are like, ‘Why would you ever leave France?’…I’ll tell you. France has a lot of problems. There’s a feeling of gloom that seems to be growing deeper. The economy is not going well, and if you want to get ahead or run your own business, the environment is not good.”
When asked why he had chosen to come to the UK, he said:
“I asked myself, ‘Where will I have the bigger opportunity in Europe?’…London was the obvious choice. It’s more dynamic and international, business funding is easier to get, and it’s a better base if you want to expand.”
I am pleased to hear anyone tell such a story about their reasons for coming here.
Mr David Ward (Bradford East) (LD)
In the short time available to the hon. Gentleman, will he, as the chair of an all-party group that covers the textile industry, say what a great news story the renaissance in UK textiles is?
Damian Collins
The hon. Gentleman makes an important point. Textiles is becoming one of the great renaissance industries, with British textile businesses and manufacturing centres winning contracts back from the far east, creating high-quality jobs here and supporting the fantastic British fashion industry. That is one of the great success stories.
The shadow Secretary of State spoke about picking winners and having a positive industrial strategy. We see that nowhere more clearly than in the creative sector in this country. The recovery in textiles is such an example, but the Government’s programme of tax credits for film, animation and television production—now extended to theatre production as well—is bringing more work not just to England, Scotland and Wales, but to Northern Ireland, where it is a very important part of the renaissance of the Northern Ireland economy.
The Opposition amendment requires a bit more attention, which the Secretary of State for Business, Innovation and Skills gave it in his speech, because the Labour party is once again presenting itself as the champion of a great cause, without having any real answers for the problems it identifies. In its amendment, Labour does not propose the adoption of the living wage as the minimum wage—it is largely proposing exactly what the Government are doing, which is to encourage the Low Pay Commission to consider increasing the minimum wage faster than average earnings—and does not propose to mandate any changes, while it includes the caveat that the Low Pay Commission is still free to disregard Labour’s advice and do what it wants.
On the basis of the amendment, Labour is somehow seeking to present itself as a party with a very different policy. It does have different policies on tax and spending, which are those that got the economy into the mess it was in. Our policies are leading to a renaissance in work, employment and business start-ups, and they are also delivering a fairer deal for the low-paid, both in increasing the minimum wage ahead of the rise in average earnings and in cutting taxes for low-paid people in work. That is a much better model to follow.
The future is incredibly bright for business and job creation in this country. The very large number of people who, as we come out of the recession, have decided to set up their own business, start up on their own and invest in themselves and their community is a sign of the great underlying heath of the economy today.
Oral Answers to Questions
Damian Collins Excerpts(10 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mrs Grant
I am very interested in this issue. I have met representatives of Supporters Direct, and we are considering a recently updated proposal that we have received from the organisation in the last few weeks relating to the setting up of the expert group, which will enhance supporter engagement. I am keen to press on with this. I will continue to work with the Football Association and with football authorities, and will take the FA up on its offer to provide secretarial support for the group.
Damian Collins (Folkestone and Hythe) (Con)
Given the recent conviction of the former owner of Birmingham City football club for money laundering, the fraud convictions of the putative owner of Leeds United, and the fact that we still do not know the identities of the individuals who own Coventry City, does the Minister agree that a “fit and proper person” test should be applied to the owners of football clubs, and that it should be administered by the authorities and, if necessary, given the legal security of being underpinned by statute?
Mrs Grant
My hon. Friend has made an important point, but I believe that the enhanced checks and requirements that have been introduced by the football authorities are making some difference. I am also hopeful that the Football Association regulatory authority will ensure that changes in club ownership are much more fully scrutinised.
Oral Answers to Questions
Damian Collins Excerpts(10 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Speaker
If I gently hint at shorter questions and answers; then we might make more progress.
Damian Collins (Folkestone and Hythe) (Con)
Further to the question asked by the hon. Member for Coventry South (Mr Cunningham), will the Minister consider publishing the draft Bill and supporting documentation referred to by the previous sports Minister and place them in the House of Commons Library?
Oral Answers to Questions
Damian Collins Excerpts(12 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Damian Collins (Folkestone and Hythe) (Con)
3. What plans she has to ensure a suitable commemoration of the centenary of the first world war.
The Secretary of State for Culture, Media and Sport (Maria Miller)
We have announced a series of measures to commemorate the centenary of the first world war. The Government’s programme will focus on the key themes of remembrance, education and youth. It will include national commemorative events, a major remodelling of the Imperial War museum, support for school visits to the battlefields and a special grants programme from the Heritage Lottery Fund to support young people in community projects.
Damian Collins
I thank the Secretary of State for that. Does she agree that it is particularly important to support community projects, especially those such as the Step Short project in Folkestone, which is working to commemorate the lives of the 10 million men who passed through the fort, going to and from the trenches, during the first world war?
Maria Miller
My hon. Friend rightly highlights the importance of local events, and I urge all hon. Members to examine the connection between their area and the first world war. It is by bringing it to life in this very local and personal way that we can give this commemoration the importance it needs. The Government are investing more than £50 million in projects such as the refurbishment of the Imperial War museum, but we will also be doing an awful lot more at a community level.
Jobs and the Unemployed
Damian Collins Excerpts(14 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Jack Dromey
I shall come in a moment to why it is important to have a regional structure by way of co-ordinating local authorities, because sometimes the competing views and demands of local authorities do not necessarily work in the best interests of the regional economy.
I shall provide a practical example of why, right now, we need an effective regional development agency. There are 150,000 people working in the automotive cluster in the midlands—from the major manufacturers such as Jaguar and its plant in my constituency, through the machine tool, logistics and component companies, to the universities and research and development institutes. All work together in an effective cluster, with the regional development agency bringing together local authorities and the private sector to work in partnership and galvanise and consolidate that which is absolutely key to the success of our regional economy.
Damian Collins (Folkestone and Hythe) (Con)
Is there not an arbitrary nature to the structure of regional development agencies and the areas they cover? That automotive cluster would not include, for example, Cowley in Oxford, which is part of the south-east region. My constituency is also in that region, which covers an area stretching from Dover up to Oxford and Milton Keynes. Some of the structures do not necessarily fit the economic realities of local areas.
Jack Dromey
I accept that, and I am very familiar with Cowley because I have been to the plant there many times. However, if we want that automotive cluster to succeed, there is a simple reality to acknowledge. I am in discussions right now with Jaguar Land Rover about its decisions for the future. It says that the power and effectiveness of that automotive cluster is absolutely vital for its organisation, and in turn Advantage West Midlands is crucial to the cluster’s success.
Why destroy a success story and replace it with—what? I am all in favour of an intelligent debate about, for example, how one might have sub-regional arrangements in the midlands. Crucially, however, if we throw away the advantage of that regional, strategic approach, with it will go the co-ordination and initiative, working with strong business leadership, that has been absolutely key.
We need the Government to clarify their approach to the issue. I hope that during the debate the Minister will respond to that point, because there are mixed messages: on the one hand, the Secretary of State for Business, Innovation and Skills says that he is open-minded about the retention of a strong regional structure if that is the wish of the midlands; on the other hand, the Secretary of State for Communities and Local Government has taken an ideological position, which says, “We will wind up the RDA and not have a strategic approach, come what may.” We need clarity. I am in dialogue, right now, with local authorities, with the business community, and with many others who want that intelligent debate on what kind of structure we have for the future. Are the Government open to the retention of a strong regional strategy, which is what the midlands wants?
We have heard it said that according to the Treasury’s leaked documents, as yet unpublished, 1.3 million jobs will go, while the hope is to create 2.5 million new jobs. With the greatest respect, if we look at the history of job creation in Britain, believing that, in the current climate, with the savage cuts being made to public investment, 2.5 million jobs are going to flourish in the private sector is as respectable a view as that of the economist in the 1930s who argued that what caused the recession was sunspots that interfered with the mechanisms of the market and the minds of the bankers in the marketplace. The simple reality is that all informed sources, including the CIPD, have said, “There’s not a hope in hell.”
We look to the Government to respond constructively to the dialogue that we want on the future of Advantage West Midlands. We also want them to think again about some of the decisions that have been made: the abolition of the future jobs fund; the cutting back of the working neighbourhoods fund, with £4 million of cuts in Birmingham, the largest cut anywhere in Britain, despite the deprivation that we face; the cutting back of Connexions, with £2.7 million of cuts in Birmingham, the second largest cut in Britain; and the impact of the jobs tax—the VAT increase.
All this from a marriage of convenience—two parties that have come together. On the one hand, there is a party with a once great progressive tradition, the party of Lloyd George, Beveridge and Keynes; on the other, there is a Conservative party that once had a different tradition, that of Harold Macmillan, who, scarred by the memories of the 1930s, said, “Never again.” Sadly, in the 1980s the Conservative party, in the immortal words of Julian Critchley, got taken over by the garagistes, and in the 21st century it has been taken over by the bankers. Those parties are abandoning their own traditions whereby they remember the bitter period of the 1930s and know that if we walk away from the unemployed, this country pays a terrible price. The Con-Dem alliance may do that; this Labour party never will.
Capital Gains Tax (Rates)
Damian Collins Excerpts(14 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Glenda Jackson (Hampstead and Kilburn) (Lab)
May I say what a pleasure it is to serve under your chairmanship, Mr Deputy Speaker? It is such a pleasure to see you sitting in that Chair.
There was a kind of creepy pleasure in listening to the hon. Member for Peterborough (Mr Jackson) because, in a curious way, it was like hearing a really bad horror film, and there is always a great deal of pleasure to be found in a really bad horror film. As for this recalling of Thatcherism in all its glory, dressed up for the 21st century, I love the idea that we can simply get people to work. There are all these people living in Peterborough who apparently have no desire to work and are perfectly happy to stay at home, neglecting their children, but the hon. Gentleman has been their MP for all this time—how long?—so why has he not done something about it? The issue is that in Peterborough, as in the rest of the country, under this—in my view Thatcherite mark 2 —Budget, there will be no jobs. As was said by my hon. Friend the Member for Coventry North West (Mr Robinson)—I regret that he is no longer in his place—the only guarantee in the Budget is a massive rise in unemployment.
Damian Collins (Folkestone and Hythe) (Con)
In my constituency, the number of people in receipt of disability living allowance doubled under the previous Government; and not only did it double, it went up every year. Would the hon. Lady not see that as an example of the failure of the policies of the previous Government?
Glenda Jackson
Perhaps that is one of those areas—this was briefly touched on in an earlier contribution—that, like our health service, has increased so much because we are all living longer, so that people who might have died many years before are still living, but justifiably claiming disability living allowance because they are disabled. The hon. Gentleman should forgive me for giving him a tiny history lesson, but I would just point out to him that when his party was last in total government—as opposed to being propped up by the “30 pieces of silver” party—it massaged the unemployment figures by putting people on incapacity benefit, and that ran for years.
The hon. Member for Peterborough is also suffering from selective amnesia. Those of us who lived through the first Thatcherite era remember well the levels of unemployment, the destruction of communities, and the throwing on to the scrap heap of the greatest national resource that this country will ever have: its people. Their talent, their ability, their creativity and their capacity for hard work were all thrown away for the same reason that they are being thrown away now. “You can’t buck the markets” was the litany then; it is exactly the same now, even though it has been dressed up and presented in a very different way.
We hear massive arguments from Conservative Members that the Labour party created this fiscal downturn, yet they are all intelligent enough to know that that is grossly untrue. It is easy, in the blame culture that we live in today, to make threats to bankers and to say that they are the most blameworthy people, yet they have not been punished in the Budget at all.