The Economy and Living Standards

David Ruffley Excerpts

Thursday 12th June 2014 Commons Chamber

[Mr David Ruffley (Bury St Edmunds) (Con)]

I fear that the amendment contains several new Labour clichés that make me nostalgic for the Blair and Brown years. Delivering rising living standards for the many, not the few, making work pay—the only one that is missing is “an end to boom and bust”.

Of course, new Labour did not deliver any of those things, but it did deliver the biggest peacetime borrowing deficit that the country has ever seen. I regret to say that Labour has not learnt anything in the last 12 months. According to the House of Commons Library, it has made £29 billion worth of unfunded spending commitments. As for making work pay, this is the party that refused, in the House, to back the benefit cap. Labour Members are quite happy for those on benefits to earn the equivalent of £40,000 a year before tax.

The amendment refers to child care. Of course that is very important for some of my constituents, especially working mothers. That is why we are introducing a Bill that will deliver 20% of child care costs—up to £10,000 per child, which is worth up to £2,000 per child per year—to working families. Moreover, 85% of the child care costs of families receiving universal credit will be covered.

What are we doing to support small business, the biggest deliverer of the 1.7 million extra jobs that have been created since 2010? I do not know what the Labour party is doing, but, as well as cutting the “jobs tax” by providing an employment allowance of £2,000 a year, we have come up with a Bill that will raise the maximum fine for employers who do not pay the minimum wage, and will ban the exclusivity that currently prevents people who are on zero-hours contracts from working for other employers.

Housing has been mentioned. It is true that we need more brownfield sites to be built on by residential developers, and our Infrastructure Bill will cut the red tape surrounding unneeded public sector land that is not being returned to planning permission territory. It will also reduce energy costs, which are a key component of the cost of living, by ensuring that shale extraction takes place across a wider area and more rapidly.

Finally, let me draw the House’s attention to an omission. I do not know whether it is due to slack drafting on the part of Opposition Front Benchers or to their general disdain for pensioners, but the word “pensioner” does not appear once in the amendment. We are introducing two Bills to deal with the fact that about 12 million of our fellow citizens are not saving enough to provide for an adequate retirement income. Our private pensions Bill will create collective pension schemes to ensure that more people can gain access to affordable pensions, while our pension tax Bill will bring about the most revolutionary change in pension provision that the country has seen for more than half a century. Crucially, it will allow individuals not to be compelled to buy annuities at 75, but to have true freedom in relation to the pot of money that they have built up during their working lives.

The plan is working. Labour has no plan. We should just keep on going.

[Several hon. Members]

rose—