Amendment of the Law
Debate between Ed Balls and Penny Mordaunt(10 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ed Balls
I have read it, and I think maybe you should too, my son—[Interruption.] I think they should listen. The hon. Member for Thurrock stated:
“The biggest impediment that this Party has when trying to secure a majority at the next election is that on one key question we constantly perform badly. That is on the issue of whether the Party is in touch with ordinary people.”
That was before the poster. She said that
“while people are worrying about whether they are keeping their jobs, whether they will be able to afford the electricity bill and how much it costs to fill the car these days,”
all the Tories seem to be doing is “talking about Boris.” She went on:
“We need to stop talking about ourselves and talk about the things that really matter to people. Otherwise we will be seen as out of touch, and Labour’s message will resonate.”
It certainly will, Mr Deputy Speaker.
In the light of the advice from the hon. Member for Thurrock about the cost of living, let me remind Members what the Education Secretary said over a wine-fuelled dinner with his old boss, Rupert Murdoch. He said that Boris Johnson “has no gravitas”, that the Home Secretary “has no friends”, and that only Osborne is “fit to lead.” Only Osborne is fit to lead? How did the Education Secretary explain his comments? He said he was “tipsy”. Tipsy? He must have been completely legless.
Penny Mordaunt
If press reports, which are what we are talking about, are to be believed, the right hon. Gentleman was critical of the Leader of the Opposition and his speech yesterday for not responding to a single measure in the Budget—there was nothing on support for manufacturing or reforms to pensions. The right hon. Gentleman is well into his speech, which is incredibly amusing, but does he realise that he is in danger of doing exactly the same thing?
Ed Balls
It was very interesting because we scoured the Chancellor’s speech and all the documents for one mention of the cost of living and living standards, and there were none at all—none! Conservative Members say that we are not talking about what is in the Budget, but they are not talking about what is undermining the living standards of people up and down our country.
Last year, the hon. Lady said:
“If we do not believe that the poorest are best served by our policies, we might as well give up and go and do something else.”—[Official Report, 20 March 2013; Vol. 560, c. 1023.]
I am afraid we are going to ensure that she has to give up and do something else.
It has been hard to understand what has been going on, but it is starting to make sense given all the Chancellor’s rebranding of recent weeks and months: the new less foppish hairstyle, the 5:2 diet, the new estuary accent, even photo opportunities down a coal mine—all part of his leadership business; the new working-class hero, not Gideon but George these days.
This weekend the Education Secretary took a further step in the Osborne rebranding. He said that it is “ridiculous”, and “preposterous” that Downing street is governed by a tight clutch of Etonians, and that that has got to change—we say “Hear, hear” to that, Mr Deputy Speaker. However, we all know what he was really trying to say through the pages of the Financial Times. He was saying, “Boris is a toff because he went to Eton, but George is a pleb because he only went to St Paul’s.” The Tory party is having a class war with itself. An Etonian elite has grabbed hold of the commanding heights of the economy, opposing the masses of Tories who went to lesser public schools. Old boys from Harrow and St Pauls, throw off your chains. What are they going to call themselves? The Bullingdon Bolsheviks? The Trust Fund Trots? Posh boys of the world unite?
In all seriousness, does the Chancellor really think that he can stand up for the interests of the energy companies, the hedge funds, Tory donors, deliver a massive tax cut to people earning more than £150,000, and then claim to be on the side of hard-working families—the party of the workers—just because he did not go to Eton? Posing as the posh boy proletarian will not wash when his own Budget ad campaign refers to working people as “them”, and when he will be remembered only as the Chancellor who cut taxes for millionaires while everyone else was worse off.
I know that many hon. Members wish to speak so I will conclude my remarks.
Budget Resolutions and Economic Situation
Debate between Ed Balls and Penny Mordaunt(11 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ed Balls
This is the Conservative Member who stated just two months ago that
“the past 2 and a half years have set Britain on the right track.”
The economy flatlined, borrowing stalled and the national debt is rising year by year by year on his Chancellor’s watch. The right track? I can scarcely think what the wrong track would be.
This morning we heard the Deputy Prime Minister on “Call Clegg” attacking the Leader of the Opposition for repeating the same attacks in this year’s Budget response as he used last year. I went back to my opening speech of a year ago, the one following the Chancellor’s third Budget, the omnishambles Budget. We all remember that one, don’t we? This is what I said a year ago:
“The British economy is stagnating, unemployment is rising…the Government’s deficit reduction plans have gone wildly off track, middle and lower-income families and pensioners are facing rising…prices, rising energy bills and falling living standards—and what did the Chancellor do in his Budget yesterday? Did he admit that his economic plan has failed? Did he act to kick-start the stalled recovery?...No.”—[Official Report, 22 March 2012; Vol. 542, c. 957.]
That was a year ago, and the tragedy is that 12 months on the position is even worse. In the words of the great Yogi Berra, it really is déjà vu all over again. It is a groundhog day Budget from a failing and out-of-touch Chancellor.
Twelve months on, living standards are still falling. The Office for Budget Responsibility says that real wages adjusted for inflation will be a full 2.4% lower in 2015 than in 2010—worse off under the Tories. It is groundhog day too because 12 months on, the economy is still flatlining. As recently as the autumn statement, the Chancellor was expecting growth of 1.2% this year, but the OBR has now halved that forecast to just 0.6%—not the right track; the wrong track. At the time of the spending review in autumn 2010 the Chancellor was expecting growth by now of 5.3%. So far it has been just 0.7%, and the stagnation and flatlining continue.
Penny Mordaunt (Portsmouth North) (Con)
I would be interested in the right hon. Gentleman’s explanation of why the OBR is forecasting 600,000 more jobs in 2013 than there were a year ago.
Professional Standards in the Banking Industry
Debate between Ed Balls and Penny Mordaunt(12 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ed Balls
That is a very important point. Banks play a very important role in our economy. Hundreds of thousands of jobs depend on our retail and global wholesale banking industry. It would be very dangerous to take risks with that industry and those jobs. It makes no sense to throw the baby out with the bathwater. I say to the Chancellor, and those who use the importance of our financial services industry as an argument against a broad-based inquiry, that they badly under-estimate both public anger and what needs to be done, because banking is a profession which above all needs trust, and that trust is currently badly undermined.
The Chancellor said earlier this week:
“We know what went wrong”.—[Official Report, 2 July 2012; Vol. 547, c. 613.]
When the public hear that, I do not think they believe him. That is the problem. In the light of recent events, when they find out that the Government have decided, against the recommendation of Sir John Vickers, to allow complex derivatives inside the retail bank ring fence, they think, “Well, could this allow the appalling mis-selling to happen again?”
Let me quote to the House the comments of Mr Martin Wolf, a member of the Vickers commission, who was asked last week whether he agreed that any sort of derivative should not be sold to a retail bank. He was asked whether they should be kept separate, and he replied:
“We wanted to separate them completely and the Government has gone back on that and we think that is really quite dangerous. It leads to the very serious risk of mis-selling which we have seen has been a constant theme of the relationship between retail banks and relatively inexperienced, uninformed clients.”
That is right, and that is why a LIBOR inquiry is not enough. We need to look at these Vickers issues as well.
Penny Mordaunt (Portsmouth North) (Con)
The shadow Chancellor may know that a constituent of mine is a former Labour Treasury Minister whom I unseated at the last election. For her sake, if not for mine, will he tell us who were the Ministers Bob Diamond was referring to?
Ed Balls
We return to the smears of the Chancellor and his aides. We have had answers to that question from the City Minister at the time, the Chancellor and Shriti Vadera. I have asked the Chancellor to provide the evidence or withdraw and apologise, and he cannot. That says quite a lot about the Treasury team that he leads.
It is our view that a comprehensive review of the whole culture of banking must start with the conduct of bankers and traders, look at the institutions in which they operate, and cascade outwards into the rules, corporate governance, industry approaches and regulatory and legal frameworks in which banks have done business in past decades. There are many important, searching questions that we need to answer, and the only way to answer them—I have them here, but for reasons of time I will not go through them all—is through the broad-based inquiry that we need, not a narrow, LIBOR-based inquiry.
Jobs and Growth
Debate between Ed Balls and Penny Mordaunt(12 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ed Balls
The right course is to take a balanced approach that combines medium-term deficit reduction with getting jobs and growth moving. The problem with austerity is that it chokes off jobs and growth and ends up costing more in spending, more in unemployment and more in borrowing. We have set out a clear alternative. We have said “Repeat the bank bonus tax, and use the money to create jobs.” We have said “Rip up the failed national insurance cut introduced by the Chancellor, and use the money for a tax cut for small businesses.” We have said “Yes, cut VAT by £12 billion for a year to get the economy moving.” We have not said how many shovel-ready infrastructure projects can be launched, because we do not have the details.
The Prime Minister says that you cannot borrow your way out of a debt crisis, but unless you grow, your debts get bigger and your deficits get worse. That is what the Chancellor has proved over the last two years. It is not only the Labour party that is advancing that argument. Only last week, the managing director of the International Monetary Fund said:
“We know that fiscal austerity holds back growth and the effects are worse in downturns... so the right pace is essential”.
Even the head of the European Central Bank is now pressing for a jobs and growth plan.
The Prime Minister and the Chancellor must wake up to the fact that our economy has not grown on their watch for a year and a half. Instead of trying to divert the blame for their failure and using the eurozone as an excuse for Britain's problems, they must admit that they got it wrong—that they gave the eurozone the wrong advice—and start pushing for the right solution to the eurozone crisis. I agree that there should be a proper role for the European Central Bank and a greater emphasis on fiscal burden-sharing, but there should also be a change of course on austerity, because only a balanced plan that puts jobs and growth first will succeed in getting the deficit down. When the International Monetary Fund, the OECD, the European Commission, the European Central Bank and even the United States are urging policies for jobs and growth, this Chancellor and this Prime Minister are looking increasingly isolated and out on a limb.
Penny Mordaunt
Since April 2010, in my constituency the number of job vacancies has risen by 316%, the number of apprenticeships has doubled, the number of jobseeker’s allowance claimants has fallen by 12%, and the number of claimants aged between 18 and 24 has fallen by 15%. Those are the facts. I understand why the right hon. Gentleman does not want to give Ministers any credit for that, but will he stop talking down the businesses and entrepreneurs in Portsmouth who have made it possible?
Ed Balls
I am sure that the hon. Lady and I can agree on one thing. There has been a 130% rise in long-term youth unemployment—unemployment lasting more than six months—in her constituency over the last year. [Interruption.] It is up by 129% in her constituency, and that is really worrying. Constituencies of Members on both sides of the House saw the damage done by long-term youth unemployment in the 1980s, and we should act to prevent a repeat of that rather than being complacent.