David Johnston
Main Page: David Johnston (Conservative - Wantage)Department Debates - View all David Johnston's debates with the HM Treasury
(1 year, 9 months ago)
Commons ChamberThere were things in the autumn statement that Conservative Members would rather not have to do, not least in regard to taxes, but we were always going to have to do some difficult things as a result of having spent more than £400 billion protecting jobs and livelihoods during the pandemic and as a result of Putin’s invasion of Ukraine and the consequent impact on energy, food, support and so on. As my right hon. Friend the Chancellor set out, it is right that we are tackling inflation, which, as some Conservative Members have said, hurts the poorest more. It is right that we do not leave this for our children and grandchildren to pay. It is also absolutely right that we ensure, in general, that those with the broadest shoulders pay the most. When we talk about our record on the economy on the Conservative side it is worth remembering, which has not been said very much today, that we have had near record low unemployment—the lowest in nearly 50 years—and for the first time on record we have had more jobs available than people to fill them.
As much as there were difficult things in this statement, there was also a series of measures that I welcome. My constituency is home to Harwell Science and Innovation Campus and Milton Park, where some of the best, most advanced science and technology in this country goes on. They are centres of investment for great companies all over the world. What the Government have set out in relation to research and development—the biggest increase in spending in cash terms over a spending review period—is very welcome. My constituency is also home to the Satellite Applications Catapult, so the increased funding for those nine Catapults all over the country is likewise welcome.
Of course I welcome the additional money for health and education, particularly for education and schools. The IFS has said that that additional money will cover the expected increase in costs between now and 2024. I welcome that support for education, partly because my background was working with schools and running charities for disadvantaged young people, but also because it is key to our future. We have talked about skills and the need to increase productivity and our knowledge base, and that is how we will do it.
As a broader point—not for this debate, but something we need to consider—I do not personally think the balance between the increase in health spending in recent decades and the increase in education spending is right. The increase in health has far outstripped the amount that Governments on both sides have given to education. There are understandable reasons for that, and the two areas are not the same, but we need to think about that balance. Health and education are inextricably linked and we should have more money going into education over time than we have seen in recent decades.
The other basket of measures that I support is about protecting the most vulnerable and the lowest paid. The increase in the national living wage, which takes us to £10.42 an hour, just shy of the manifesto commitment to increase it to £10.50 by 2024, is a much-needed pay boost for people at a time of difficult economic circumstances. I welcome the commitment on the triple lock, which means the increase in the basic state pension will be the biggest it has ever had. Already in 2021 it was at the highest rate in relation to earnings for 34 years; now it will be even higher.
I also welcome the uprating of benefits. There are people outside this House who suggest that people on benefits are all too lazy to work, but if we look at the people who are on benefits, we see that many of them are in work and cannot get enough hours or cannot earn enough in wages from the job they have; some have children who are under two whom they have to look after; and some may be severely disabled and simply unable to work.
Of course, if there are people who could work and are refusing to do so, we have to do something to ensure that they do work. It is right that the Government are conducting a review into the people who have left the labour market since the pandemic, because we have to understand, given that they were working, why they are not doing so now. We know that part of the reason is about mental health, so let us get to the bottom of that and support those people into work. However, until we do that, the overwhelming majority of people who are on benefits are not able to increase their incomes, so it is right that we support them through the uprating of benefits.
Then we turn to the Labour party. This Government have made a series of difficult decisions, but what of the Labour party? We talk about this Government’s 12 years in power, but it is 17 years since the Labour party won a general election, and the last Labour leader to win one, Tony Blair, was fond of quoting:
“To govern is to choose.”
So what difficult choices is the Labour party proposing as part of its plan? The Government have made quite a number of difficult choices; which ones does the Labour party want to make? It seems to be in favour of every spending commitment that the Government make, against every spending reduction, and against every tax increase—unless it has the word “windfall” in front of it. If we went outside now, stopped members of the public and asked, “What do you think about Labour’s plan for the economy?”, they would say, “What plan?”
That is important because, while this Government makes difficult decisions—some of which members of public will not like—the Labour party is not making any. I listened to the shadow Minister, the hon. Member for Hampstead and Kilburn (Tulip Siddiq), who said that she wanted to put VAT on private school fees, raising £1.7 billion; end non-dom status, which she said would raise another £3 billion; and raise another £10 billion through a windfall tax, so we are looking at about £15 billion. The package that we are talking about is £55 billion. Where is the rest of the money coming from? Today’s Labour party, unlike Labour parties of before, wants to govern without having to choose. The British public will decide what they think of that.