Better Jobs and a Fair Deal at Work

Ed Miliband Excerpts

Wednesday 12th May 2021 Commons Chamber

[Edward Miliband (Doncaster North) (Lab)]

We have had an excellent debate with noteworthy contributions on all sides. I particularly want to congratulate my hon. Friend the new shadow Chancellor, who made an excellent speech and will do a brilliant job in her new role. I also want to commend the excellent speeches of my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) and my hon. Friends the Members for Harrow West (Gareth Thomas), for Barnsley Central (Dan Jarvis), for Easington (Grahame Morris), for Chesterfield (Mr Perkins), for Newport East (Jessica Morden), for City of Chester (Christian Matheson), for Aberavon (Stephen Kinnock), for Ellesmere Port and Neston (Justin Madders), for Kingston upon Hull West and Hessle (Emma Hardy), for Swansea West (Geraint Davies), for Bristol South (Karin Smyth), for Warrington North (Charlotte Nichols), for Cambridge (Daniel Zeichner), for Merthyr Tydfil and Rhymney (Gerald Jones), for Hornsey and Wood Green (Catherine West), for Liverpool, Wavertree (Paula Barker), for Luton South (Rachel Hopkins), for Liverpool, Riverside (Kim Johnson), for Jarrow (Kate Osborne) and for Birkenhead (Mick Whitley). I also congratulate all other hon. Members who spoke in this debate.

The central question facing this Gracious Speech is whether it can rise to the moment in which we find ourselves because, while life is starting to return to a semblance of normality, and we are all thankful that that is happening, we cannot just go back to business as usual. Exposed in this pandemic we see millions of workers in deeply insecure jobs, the key workers in our country underpaid and undervalued, public services under deep strain, and an economy not working for too many people in our country and characterised by deep inequalities of wealth, income, power and place. And on top of that we face the challenge of economic recovery from covid and the climate emergency.

I welcome the fact that after 10 years in power some of the issues I have mentioned are at least being recognised by the Conservative party finally; I am old enough to remember when it was controversial to do so. But acknowledging the problems is not the same as solving them, so the test of Government and this Gracious Speech is whether they can address them. Last October, the Prime Minister said they would. Indeed, he invoked the spirit of the post-war Labour Government:

“In the depths of the second world war…when just about everything had gone wrong, the Government sketched out a vision of the post-war new Jerusalem…And that is what we are doing”.

Let us be absolutely clear, therefore, about the scale of change that the Prime Minister is claiming he can deliver: a new economic and social settlement for our country. We agree this is necessary. The question is: will the Government deliver?

What would that mean as a start? It would mean five things: tackling insecurity at work with a new deal for workers; responding to the climate emergency with a genuine green industrial revolution; supporting our businesses to recover from the pandemic; rewriting the rules of our economy to shift wealth and power towards ordinary people and their communities; and rebuilding our public services. On those five issues, the British public deserved a Queen’s Speech that met the moment, but on each of those tests the Gracious Speech failed to deliver.

Let us start with the insecurity that millions of workers face. There is no greater symbol of this than the scourge of fire and rehire tactics—at British Airways, at British Gas and at many other employers—now spreading through our economy. We would never want this for ourselves or our families, so why should we ask the British people to put up with it? The Prime Minister says it is unacceptable, so where is the legislation to outlaw fire and rehire?

In the 2019 Queen’s Speech, we were promised an employment Bill. What about this Gracious Speech? No employment Bill. The Government have sufficient legislative time to seek to disenfranchise millions of voters with a voter ID system, but they do not have sufficient legislative time to tackle the insecurity that millions of workers face. It is shameful. Never mind a new economic and social settlement—a Government committed to basic rights at work would have brought forward this legislation. The obvious conclusion is this: the problem is not a lack of legislative time; it is that they have not changed their minds about how an economy succeeds. They still believe that insecurity masquerading as flexibility is the route to economic success: treat people worse, give them fewer rights and they will work harder. The rhetoric is changed, but the reality is more of the same.

Let us consider the climate emergency. There has been lots of talk about jobs and skills in this debate—lots of good rhetoric. What do we see in the United States? President Biden has a $1 trillion green stimulus over the next decade. We have called for a £30 billion stimulus over the next 18 months to create 400,000 green jobs. What do this Government offer? Investment that, even on their own dodgy analysis, is one 60th the level of Biden’s stimulus.

This has real consequences for our manufacturers. There was talk of the automotive sector, and that is the litmus test for any green recovery. Germany is investing billions and France the same, in a global race to build the new gigafactories of the future. We need to start financing three additional gigafactories in this Parliament, public and private together. Where are the resources from Government? Nowhere near the scale required. It is the same in aerospace and in steel. We have a new clean steel fund that is hopelessly inadequate and will not even come on stream until 2023.

This illustrates a wider truth about industrial policy. In the Gracious Speech, there are new measures on subsidies—what was called state aid—as part of our post-Brexit arrangements, and there are some sensible changes to the old EU regime, but let us understand the truth here. What was holding back Government from giving industry the support it needed was not the previous rules but their prevailing ideology. In 2019, under the old system, Denmark invested 1.5% of GDP in industrial support and Germany 1.4%. The UK invested 0.38%—among the lowest in Europe. The real fear is that this will not change.

What about our businesses? Businesses can breathe a sigh of relief as our society reopens, but many face a long road to recovery. The hon. Member for Strangford (Jim Shannon) raised the real issue of the unmanageable debt facing businesses. We have been calling for months for that debt to be restructured. I do not think that the Chancellor has done enough. At the end of June, the moratorium on evictions from commercial properties will be lifted, and I really worry about the issue of rent. It is often the largest cost for a small business, and commercial tenants in the UK have paid just a fifth of the rent they owe in the last quarter. We needed a comprehensive plan for British business, including meaningful debt restructuring. The Gracious Speech failed to deliver.

Rebuilding in a fairer way for business is not just about cash. Too many of our rules favour anti-competitive monopolies. Nowhere is that clearer—and I think there is agreement on this on both sides of the House—than in relation to big tech. It is good that a Digital Markets Unit has been established in the Competition and Markets Authority, but it needs new legislation; where is it? We need a new competition Act that establishes a statutory code of conduct for tech giants and gives the CMA real powers to act on behalf of consumers and small businesses. My hon. Friend the shadow Chancellor spoke very well on the issue of online retailers versus the high street. Again, there have been years of promises but no action. It is another missed opportunity to build a new economic and social settlement.

As we rewrite the rules of our economy, we also need to change our vision of what a successful economic future looks like. Industrial policy is about manufacturing, but it is also about what my hon. Friend has called the everyday economy in which so many people work. Nowhere is that more true than in relation to care. We need to get away from the idea that care is somehow a burden and understand that it is a crucial part of our economic infrastructure. That is true of care for the young —one of the best economic investments we can make and in which we still lag way behind other countries—and care for older generations. We are now two years on from the Prime Minister saying that he had a plan to fix social care “once and for all” and 10 years on from the Dilnot report on social care. It is shameful that the Government are still not making any concrete proposals in the Queen’s Speech and are letting down our care workers.

We cannot ignore the wider context of the Gracious Speech in terms of public spending. The Chancellor has acted in the pandemic to help businesses and individuals, as it is right to do, and we have welcomed the furlough, but let us be clear about the truth of the plans for public spending in future years. In the so-called unprotected Departments—in other words, the majority of Government Departments—there are cuts programmed in from April 2022. There will be further cuts to local government on top of the 50% cut that some parts of the country have already seen, cuts to the justice system, cuts to transport and cuts to the majority of Departments after 10 years of austerity. There can be no greater sign that they have not learned the lessons. We cannot build a new economic social settlement with these kinds of cuts after 10 years of austerity.

This Gracious Speech fails to meet the challenge of this moment. The Government claim to have changed and to want to offer something different. The truth is that it is a very thin Queen’s Speech from a Government in power for more than a decade. There are no measures on insecurity at work; they are not stepping up on the climate challenge; there is inadequate support for British businesses and industries; there is no plan for social care; and there is continued austerity in many areas. The country demands a Government who meet the moment, but the Gracious Speech does not remotely measure up. It has failed in the task at hand.