Department for Education

Emma Reynolds Excerpts

Tuesday 26th February 2019 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

It is a great pleasure to speak in this debate. One of the reasons I decided to go into politics was that I saw in our country that inequalities later in life stem from the fact that a child from a poor background is less likely to go on and do well in school than one from a richer background. I will reiterate some of the figures that the right hon. Member for Harlow (Robert Halfon) used about that. Some families in our country are able to spend more on school fees for their children per year than many people earn in salaries. I know that many Members speaking in this debate are motivated by the same thing—they want to improve education across the board, but particularly for children from deprived backgrounds. That is why I want to start with the point made powerfully by the Chairman of the Education Committee—we are lucky to have him—about FE funding, because it is often overlooked in these debates.

We talk about schools and we talk about early years, and I want to talk about those two things as well, but I want to start with FE funding. The Institute for Fiscal Studies recently produced a report saying that further education was the “biggest loser” in the cuts to education. I know that the Secretary of State is very passionate about learning from other countries, such as Germany, but if we are serious about putting our mainstream education and our vocational education on the same footing and valuing both equally, we really need to look again at further education funding.

The principal of the City of Wolverhampton College tells me about the funding pressures he is under, as are the other Black Country colleges in Dudley and Walsall. We have some really fantastic colleges in our region, but we know that their funding has been frozen for far too long. National funding rates for 16 and 17-year-olds have stayed at £4,000 per pupil since 2014; they have not increased in line with inflation. For 18-year-olds, the rate has been frozen at £3,300 per pupil.

I say this because I think the Ministers sitting on the Treasury Bench know about the cost pressures. I served in a Committee on a statutory instrument with the Minister for Apprenticeships and Skills, where we talked about how we could make provision for colleges that find themselves in a position of insolvency. Well, that tells us everything, doesn’t it? We have not had that until now, but the Government have felt they had to make provision for it. I really think we need to think again about the funding for these colleges.

I know that many of my constituents feel they do not want to stay at school, but want to go to college and perhaps study a more vocational course, and Wolverhampton college has some fantastic vocational courses. However, even though there are cost pressures on schools—the Chair of the Public Accounts Committee, my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier), set those out very eloquently—they are nothing compared with the cost pressures on further education colleges. I am trying to strengthen the arm of Ministers, and I implore them to put more pressure on the Treasury and to make some different decisions about the amount of money going to these colleges.

My second point—I have in a way done this the wrong way around by starting off with the older category—is just to urge the Government for some clarity on the funding for maintained nursery schools. I have three maintained nursery schools in my constituency, and I am lucky that I have so many. They provide outstanding and good education, and they are a trailblazer for the rest of early years provision in my area. They can help children with special needs in a way that other early years provision is not able to do. I have seen at first hand some of the work they do with some of the most deprived children, and also with some of the children who have the most acute needs in my constituency.

It pains me to hear from those maintained nurseries that, because their teachers do not know what is going to happen beyond 2020, there is a real concern that some of the staff may well leave, as they have mortgages and things in their own lives they have to plan for. I really implore Ministers to hurry up with the assessment that I understand the Government are doing on the value for money of maintained nurseries. I can tell them that, in my own constituency, they are great value for money, and they will hear that from other Members across the House. Maintained nurseries need clarity, and they need it sooner rather than later. I hope that, at some point in the next few weeks or months, we will get that clarity.

My final point is about school funding. I am concerned about the real-terms cuts in school funding. I understand the Chair of the Education Committee when he says that we just argue to and fro, which I do not want to do, about figures and whether schools are really that badly off or not. I was very interested to hear his comparison with the NHS plan. I would certainly welcome a more long-term plan for schools in our country. Some primary schools in my constituency are telling me they are having to lay off teaching assistants and, in some cases, teachers because of pressures on their budgets.

I urge Ministers to look at this again, because unless we can provide a world-class education for our young children, we will not only fail to close the inequalities in our society; we will not thrive as a country because, as has already been said in this debate, this issue relates to productivity, to how we attract investment and to our overall prosperity.

Oral Answers to Questions

Emma Reynolds Excerpts

Monday 19th November 2018 Commons Chamber

[Amber Rudd]

I very much look forward to my visit to Stirling. My hon. Friend has made a good point; work is the pillar of a strong economy and a strong society. We believe that work should pay, but we need a welfare system that helps people into work and then supports them when they are in work. Universal credit will result in an extra 200,000 people moving into work and will enable people to work extra hours during the year, empowering a great working nation.

[Emma Reynolds (Wolverhampton North East) (Lab)]

I welcome the new Secretary of State to her position.

Regrettably, unemployment in Wolverhampton is going up and the numbers in my constituency remain stubbornly high. What are the Government’s policies and what are they going to do to bring down unemployment in areas such as mine?

[Amber Rudd]

The best way to bring down unemployment is to have a strong economy. The Government are focused on making sure that that is what we deliver, but I also hope that the roll-out of universal credit, with the benefit of work coaches, will help the hon. Lady’s constituents to find the work that they want to do.

Universal Credit

Emma Reynolds Excerpts

Tuesday 16th October 2018 Commons Chamber

[Alok Sharma]

I would be happy to hear from the hon. Gentleman about where he has found that his constituents have issues getting on to universal credit, and I will take up those individual cases.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Can we take it from the Minister’s answers to the questions of my hon. Friends the Members for Redcar (Anna Turley) and for Sheffield South East (Mr Betts) that he is admitting to the House that people are being made worse off as a result of universal credit?

[Alok Sharma]

I have said that under universal credit we have a system that is finally delivering for the most vulnerable and for taxpayers, that is sustainable and that—above all—is helping people into work. That means that people get into work faster, they stay in work longer and, really importantly, they earn more.

Oral Answers to Questions

Emma Reynolds Excerpts

Monday 21st May 2018 Commons Chamber

[Sarah Newton]

I thank my hon. Friend for that question. I can absolutely assure him that there will be no need for new face-to-face appointments or assessments.

[Emma Reynolds (Wolverhampton North East) (Lab)]

I have been helping identical twins who have the same genetic condition, which involves learning disabilities and associated health problems. Both were assessed for PIP at different times by different assessors. One was granted PIP and one was rejected. The case has now been resolved, but can the Minister not see that the system is totally unfit for purpose and needs overhauling?

Oral Answers to Questions

Emma Reynolds Excerpts

Monday 17th October 2016 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

Youth unemployment in Wolverhampton remains stubbornly high despite recent progress. City of Wolverhampton Council is running an excellent project to help young people back into work, which is part-funded by the European Union. The Secretary of State and I campaigned to remain in the EU. Can he guarantee that such projects will be funded by the Government once we leave?

[Damian Hinds]

As the hon. Lady knows, a statement has been made about the European social fund and what happens to projects at different stages. I commend what is happening in her constituency and welcome the fact that in Wolverhampton North East youth unemployment has fallen by 54% since 2010.

Oral Answers to Questions

Emma Reynolds Excerpts

Monday 28th January 2013 Commons Chamber

[Esther McVey]

I remind the hon. Gentleman that the definition of “household” has been in place for some time, so what has happened has always been in place. As the Secretary of State said, there are many exemptions from the cap. Working with the discretionary payment, we can work together to get this right.

[Emma Reynolds (Wolverhampton North East) (Lab)]

14. What steps he is taking to address long-term unemployment.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

There are a range of measures in place to tackle long-term unemployment, including the Work programme. Last week’s unemployment figures show a fall of 5,000 in the number of people who have been unemployed for more than a year, and a fall of 10,000 in the number of people who have been unemployed for more than two years.

[Emma Reynolds]

According to the House of Commons Library, there has been a 45% increase in the number of people unemployed over the last 12 months. When will the Government get a grip on this issue, and why will they not take up Labour’s compulsory jobs guarantee?

[Mr Hoban]

When the hon. Lady’s party was in government, the number of people in long-term unemployment doubled, but this month we have seen a reduction in the numbers of people unemployed for more than one year and for more than two years. I would have thought she would be welcome that. It demonstrates that ours are the right actions to tackle the problems of long-term unemployment.

--- Later in debate ---

[Emma Reynolds (Wolverhampton North East) (Lab)]

T6. Further to the questions from my hon. Friends the Members for Newcastle upon Tyne North (Catherine McKinnell) and for Birmingham, Selly Oak (Steve McCabe), I still do not understand why the Government are, in effect, targeting and discriminating against nearly 500,000 women, 500 of whom are in my constituency—one of them is my mother—or why they think this is fair, given that men of exactly the same age will get a higher pension. It is not fair, but is it legal and will the Government reconsider their proposals?

[Steve Webb]

Just to be clear, when the hon. Lady says that a man born on the same day will get a higher pension, that is simply not necessarily the case. People are wrongly comparing the £144 flat rate with the £107 basic pension, plus a variable SERPS—state earnings-related pension scheme—pension, so the figure might be higher, but it might be lower. The new system is not more generous overall than the one it replaces. All I would say, through the hon. Lady to her mother, is that a man born on the same day as her mother will draw his pension significantly later, so she will have the benefit of that pension for perhaps up to two years more than a man born on the same day.

Oral Answers to Questions

Emma Reynolds Excerpts

Monday 25th June 2012 Commons Chamber

[Mr Duncan Smith]

I understand that it was the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), who actually called for a debate, but as soon as we got a debate he told us that we were debating the wrong thing, which is rather strange.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Many of my constituents have raised concerns with me about the forthcoming bedroom tax, especially given the lack of affordable alternative housing in Wolverhampton. Specifically, can the Secretary of State reassure me that individuals or families with disabilities who are in adapted housing, and who have waited some time to secure it, will not be subject to reductions in their housing benefit as of April next year?

[Chris Grayling]

We have ensured that local authorities have a substantial amount of money in discretionary funds to take into account the kind of situation that the hon. Lady describes, but the reality is that in the social rented sector we have about 1 million spare rooms, and at a time when people are queuing up on waiting lists throughout the country, it makes no sense for the taxpayer to pay for that.

Amendment of the Law

Emma Reynolds Excerpts

Tuesday 29th March 2011 Commons Chamber

[Mr Duncan Smith]

Indeed. My hon. Friend is, as ever, right.

It is worth reminding—

[Emma Reynolds (Wolverhampton North East) (Lab)]

Will the Secretary of State give way?

[Mr Duncan Smith]

No. I am going to make some progress, because Mr Speaker has already told us that we need to let others speak.

Let me remind Labour Members that they were the ones who let the bankers rip as they pleased, leading to a 10-year spending spree that sent personal debt to the record level of £1.3 trillion. They let public spending rip, too, but Members should not take my word for it; strangely, Tony Blair—not now spoken about much on the Labour Benches—said that

“from 2005 onwards Labour was insufficiently vigorous in limiting or eliminating the potential structural deficit.”

Insufficiently vigorous? That is possibly the biggest understatement that I have ever read. The reality is that they did nothing at all about controlling the deficit, so it is small wonder that the No. 1 priority for this coalition Government was to get the finances straightened out, and my right hon. Friends the Chancellor and the Chief Secretary are doing just that.

[Emma Reynolds]

rose—

[Mr Duncan Smith]

I will give way to the hon. Lady, and then I am going to make some progress.

[Emma Reynolds]

Why, then, did the right hon. Gentleman’s party pledge to match our spending plans right up until the start of the financial crisis?

[Mr Duncan Smith]

What we are dealing with here—[Hon. Members: “Ah!”] I will tell Labour Members what the big “Ah!” is. It is “Ah, who were in government for the past 12 years?”, it is “Ah, who left us with the worst structural deficit?”, and it is “Ah, who left us with massive debts, rising youth unemployment and a total shambles from which we are going to have to pick up the pieces?”

One of our biggest challenges was getting to grips with the welfare system, which many Members on both sides of the House will recall. Spending on working-age welfare increased by some 50% under Labour, from £48 billion to £73 billion in real terms. People talk about the problems of increasing welfare spending in difficult times, but let me remind the House that that increase took place during a period of growth. Notwithstanding that extra spending, improvements were quite poor. The universal credit is about getting the incentives right. That is the sort of reform that we have to bring through, recognising that people have to see the financial benefits from taking up employment, and simplifying the byzantine benefits system that we inherited. Alongside it, the Work programme is about supporting people to be work-ready so that British business no longer has to look abroad when it wants to commit to bringing in employees.

We are finally getting to grips with a housing benefit system that has been allowed to run out of control. The failure to reform housing benefit has left us in the absurd situation whereby some benefit claimants can claim up to £100,000 a year to live in large houses in expensive areas. The local housing allowance formula was behind all this madness. I remind Labour Members that it was their Government who introduced the local housing allowance, which pumped fuel into that growth. The difference between the average award under the LHA and under the older schemes for private deregulated tenants that it replaced was an additional £10 per week, or about 10%. As a result, the costs of housing benefit rocketed from £14 billion in 2005-06 to £21 billion in 2010-11. Left unreformed, the housing benefit budget was projected to reach £24 billion in 2014-15. That is, frankly, unsustainable and unacceptable to hard-working British taxpayers.

Housing benefit is an issue on which Labour Members have shown themselves at their very worst. First, we got ludicrous claims about social cleansing from central London, whipping up fury and fear. [Hon. Members: “That started with you.”] No, it started with them, and I know exactly who it was. Then, on top of that, we were told that the real reason was that we are a Government bent on some kind of plan for ethnic cleansing. Labour Members are not averse to a bit of dog-whistle politics when it suits them, scaring some of the most vulnerable people in society and leading them to fear what is coming next.

The problem is that the Labour Government had over 10 years to get to grips with the welfare system, and literally nothing was done about it—it was fiddle, more fiddle, and more expense. The Office for Budget Responsibility has confirmed that as a result of the changes to expenditure that we brought through, we remain on track to eradicate our structural deficit over the course of this Parliament.

It is important, too, to reflect on how the Budget for growth has gone down with people. Sir Martin Sorrell says:

“The coalition from the very beginning had said it was crucially important that Britain had a competitive tax landscape. They've gone further than I expected on corporate”

tax

“and also on personal taxation.”

He went on to say that

“it looks as though we will make that recommendation”

to return his company’s headquarters to the United Kingdom. That is a real endorsement.

A letter in The Daily Telegraph yesterday from 39 leading venture capitalists stated:

“These changes are a shot in the arm for enterprise. Thanks to them Britain is being positioned as a world-class place to launch new businesses. Now British entrepreneurs and those relocating to Britain will find it easier to raise the funds they need to do what they do best: create and expand world-beating businesses.”

John Cridland, the CBI director general, said:

“This Budget will help businesses grow and create jobs. The chancellor has made clear the UK is open for business.”

--- Later in debate ---

[Emma Reynolds (Wolverhampton North East) (Lab)]

There seems to be agreement across the House that one of the main lessons of the global financial crisis is that we need to rebalance the economy. In my view, the major objective for the Budget should have been precisely that, because it is the only way to drive sustainable growth and job creation. There are two major ways to do that, and correspondingly two tests that I set the Budget. First, it should rebalance the economy away from an over-reliance on financial services, and secondly, it should reduce the regional economic disparities in our country.

On the first test, we should recognise that our country has a proud history of making things, and we remain the sixth-largest manufacturing country in the world. Manufacturing growth is currently outstripping growth in the service sector. In my constituency, which is part of the black country—once the beating heart of the industrial revolution—manufacturing still accounts for one fifth of jobs. The aerospace cluster in my constituency is thriving, although against a backdrop of a worrying overall rate of 8% unemployment. One company in that sector, Goodrich, is currently on a recruitment drive, creating 100 new jobs. At the end of his Budget speech, the Chancellor said that he wanted to give meaning to the words, “Made in Britain”, but if the Chancellor wants goods to be made in Britain, why did he slash capital allowances in his emergency Budget in June and use the £2.7 billion to deliver a cut in corporation tax, as set out on page 44 of the Red Book? This transfer will disproportionately benefit the banks at the expense of manufacturing. How is that consistent with the Chancellor’s desire to prioritise manufacturing?

The tax reliefs that the Chancellor announced last week are a flimsy sticking plaster for the much deeper wound he left in June. In the words of the Institute for Fiscal Studies, the Chancellor is

“giving with one hand and taking away with many others”.

The same is true of the Government’s local enterprise partnerships, which they trumpet as an innovative scheme. I want to pay tribute to those businesses in the black country that have successfully formed an LEP, but again the Government have given a false prospectus to these businesses. They tell people to apply for the regional growth fund, but it is a tiny pot of money—one third of what was available for regional development agencies—and is said to be over-subscribed by 10 to one. The Government know that it will leave many more disappointed than successful among those who have applied.

The regional growth fund comes nowhere near filling the hole left by the very successful regional development agency, Advantage West Midlands, which was mentioned by my hon. Friend the Member for Birmingham, Erdington (Jack Dromey). Once again, the Government give with one hand, but take away with the other. I would like to think that the enterprise zones will in reality deliver what the Government claim they will deliver, but I am worried because even the Conservative Chairman of the Treasury Select Committee, the hon. Member for Chichester (Mr Tyrie), warned last week that they risk distorting activity and adding no new jobs. The risk is that they will simply incentivise existing businesses to move into a low-tax zone without employing more people. Britain needs job creation, not job relocation.

On the second test, there needs to be a rebalancing of economic wealth across our nation as a whole to reduce growing regional disparities. Globalisation has brought many opportunities to the UK, but all too often the communities in the midlands and the north have borne the brunt of the risks and insecurities of globalisation, while the rewards have tended to flow to London and the south-east. Unemployment in my constituency is 8%—double what it is in the south-east—and we are losing 300 jobs at New Cross hospital and 500 jobs at Wolverhampton city council. And this is just the tip of the iceberg. The Chancellor is taking a reckless gamble by expecting the private sector to pick up the pieces of his massive public sector cuts. He is driven by an ideological commitment to a smaller state. The Budget crucially fails to redress the growing economic disparity between the south-east and the rest of the UK. Areas such as the west midlands need more stimuli for the private sector than other areas. For example, the decisions about the regional growth fund need to prioritise areas hit hardest by the global financial crisis.

The Budget fails both my tests: of rebalancing the economy towards manufacturing, and of redressing growing regional disparities. We want to see more goods made in Britain, but the Chancellor’s actions do not match his rhetoric, and in fact run contrary to it. With growth down, unemployment rising, youth unemployment at a record high and consumer confidence sinking, households are seeing their living standards falling as prices outstrip wage increases. The Chancellor should have had the humility to realise that his cuts are too deep and too fast, and that his massive private sector gamble simply is not working. My constituents are bearing the brunt of his reckless Budget.

--- Later in debate ---

[Mr Ellwood]

I did not receive my invitation. Perhaps I shall find it in my office when I go back there.

The bottom line is that we inherited an economic nightmare—the worst of the messes in the G20. The gap between the richest and the poorest had grown since Labour came to office, and the size of government had bloomed. In the past decade, the civil service had grown by an additional 800,000 people. I have no idea what those people actually did, but they were in addition to those who were running the country a decade earlier. That is the bloated government that we need to try to get rid of. There was also a culture of encouraging people not to work. It was never easier than under Labour to do nothing and get paid for it. Those are the kinds of issues that we need to tackle.

The number of regulations introduced under Labour was astonishing. We are now faced with about 21,000 regulations, of which about 10,000 were created by the last Government. As I said earlier, Labour was planning huge cuts, had it won the election; it just did not say where they were going to be made. Had it won, it would have received a lot of the grief that we are receiving today, because it would have had to implement very much the same measures that we are implementing.

Looking back at the legacy that we left Labour, we can see that there was an unbroken period of growth from 1992 to 2008. We had growth up to the economic downturn in 2007. The deficit in 1997-98 was £15 billion. By 2007—before the economic downturn—it had already increased to £33 billion. We were not living within our means.

[Emma Reynolds]

I want to put the same question to the hon. Gentleman that I put to the Secretary of State. Up until 2008, his party backed our spending commitments, so is there not a little bit of revisionism on his side of the House?

[Mr Ellwood]

I was not in government then. The spending commitments that we backed did not take into account the state of the economy at the time. They were the plans for the future, but they did not take into account the money that had been spent.

The point that I was trying to make was that, from a deficit and a debt perspective, the previous Government wasted money during the boom years. They lived beyond their means, which placed us on the back foot when the economic downturn came. Again and again, we hear Labour say, “It isn’t our fault. It was an international issue. It was the Americans. It was Fannie Mae and Freddie Mac. It was the sub-prime market.” Well, that was possibly the case at the start, but in 2007, 2008 and even 2009, I could have gone to Bradford & Bingley and picked up a 125% mortgage. That was simply wrong. We were still not in control of the situation well after we knew that things were going down the pan.

The Opposition’s approach is now based on several themes. They tell us that, 12 months ago, unemployment was falling, growth was rising and inflation was low and stable. However, unemployment was higher when Labour left office than when it came in. In fact, that has happened every time Labour has been in office. No emergency measures had been put in place. Unemployment goes up in every recession; that is one of the impacts. It was wrong of the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) to suggest that if Labour were in power now, unemployment would continue to fall. That is completely incorrect. The Opposition also talk about growth, but it is actually continuing to rise. It rose by 1.3% last year, and the figure will be 1.7% this year. That is not what we expected, but the economy is still growing faster than the EU average. Of course, 2011 is going to be a year of pain. Urgent measures have been introduced, and the VAT rise will hit us.

I do not have time to go through all the other aspects of the situation, but I will end by saying that the Budget is all about continuing to bring spending under control. It is about gaining sustainable revenues from the banks and protecting the most vulnerable in our society. It is also about a shift from big government to small government, and about providing businesses with the tax breaks and incentives to expand, to compete in new markets and to tackle the expected rise in unemployment. History will show that we came close to the economic abyss, but that this Government took the tough decisions necessary to build a strong and stable economy.

--- Later in debate ---

[Kwasi Kwarteng (Spelthorne) (Con)]

I am glad to have been called—a happy outcome for me.

It seems to me that Labour Members are ostrich-like inasmuch as they are not aware of what is going on or of what led us to the position we are in. There is always a context, and we appreciate that savings had to be made in Government spending. Everyone knows that. When we ask ourselves why we are in the position we are in, we get conflicting answers. As Government Members have said, Labour Members suggest that it was the fault of American bankers, of evil people in the City of London who were making too much money and of international business. I think my right hon. Friend the Secretary of State for Work and pensions even suggested that at some point they would blame Dr Evil. None of those reasons, however, is remotely relevant to the deficit or the fiscal situation we are in.

The simple fact is that we had a much larger deficit than any other country in the G7. These facts are known to the world. Labour Members have to accept that when they came into office in 1997, there were balanced Budgets. For four years, the then Chancellor of Exchequer essentially balanced the Budgets and it was a matter of deliberate policy in 2001 when the Labour Government turned the taps on and presided over a massive engorgement of the public sector.

It was that decision in 2001-02 that led to the position we are in now. The cause was simple: the last Prime Minister, when he was Chancellor, believed in his hubris that he had abolished boom and bust. He thought that the economy would keep on growing and that he could then use tax and other income to fund his bigger national projects and his huge public spending. What happened, of course, was that the economy stalled. The income receipts to the Exchequer stopped coming in, so we were left with this massive deficit of £160 billion—the largest in peacetime. The coalition Government came in with the principal purpose of dealing with the deficit. That has always been this Government’s purpose. It was almost a Government of national unity, with two historic parties with different views and different traditions coming together to sort out the mess that the Labour party had left behind.

It is a very simple narrative, but because of all the obfuscation and the deliberately misleading comments of Labour Members, all that has been forgotten. My constituents are all too well aware of the mess that Labour made. In fact, one man said to me, “Well, we have seen it all before; exactly the same thing happened in the 1970s. Labour comes in and makes all sorts of spending commitments, and we run out of money.” It was that simple—and exactly the same thing has happened in Labour’s last two years in power. Blaming the global crisis for what was essentially decisions taken by the Labour party in government is entirely wrong.

[Emma Reynolds]

Does the hon. Gentleman blame Labour Members for the recession in Germany, for the recession in France, for the recession in the United States and for the recession in other parts of the world? How can he stand up and say it was all our fault? It was a global financial crisis.

[Kwasi Kwarteng]

Let me point out to the hon. Lady that in Germany the deficit to GDP ratio was 3.3%; our deficit to GDP ratio was 12.8%. That differential had nothing to do with the global crisis; it had everything to do with spending commitments made on the Treasury Bench when the hon. Lady’s party were in government. It is a deliberate obfuscation to try to blame the sub-prime crisis in America and all the rest of it for decisions taken by her party in government. It is like a magician’s trick: one always tries not to let the audience focus on what is actually being done. That is what magicians do, and it is exactly the sort of tactics that Labour is employing. As I say, it is trying to obfuscate and shift the blame for decisions that it made.

I think it is a scandal and an insult to the intelligence of Members generally that Labour Members are still in denial about the mess they created and the errors they made, which were based on hubristic assumptions about the economy growing for ever and ever. We all remember the former Prime Minister himself saying that there was an end to boom and bust. What does that mean? Anyone who says “an end to boom and bust” genuinely believes that there will be no downturn and so makes spending assumptions on the basis that money from income receipts will keep coming in. That is absolutely crazy.

[Emma Reynolds]

I ask the question for the third time in this debate, as I have yet to receive an answer from Conservative Members. Why on earth did the Conservative party back our spending plans right up to the start of the global financial crisis? This is revisionism by the hon. Gentleman’s side; it is his side that is being ostrich-like, not ours.

[Kwasi Kwarteng]

With respect to the hon. Lady, that is entirely irrelevant. Her party was in office; her party had the ultimate responsibility for the government of this country—not only in 2007, but for the 13 years before the last election. It is a strange paradox that when Labour Members got into power in 1997, they did the right thing. They balanced the books; for four years, we were not running deficits, as they stuck to our spending plans. The Chancellor was prudent; “prudence” was his favourite word. Then, all of that was deliberately swept away, and they went on a mad spending spree, which directly caused the deficit and the savings that have to made now.

Oral Answers to Questions

Emma Reynolds Excerpts

Monday 28th March 2011 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

Will pensioners be worse off or better off should income tax and national insurance be combined?

[Steve Webb]

Obviously, this idea is at a very preparatory stage, but my right hon. Friend the Chancellor has made it clear that pensioners will not simply face an increase in overall tax as would be the case if the two tax rates were simply added together. The idea is in its very early stages, a lot of preparatory and consultative work is going on, and I am sure that the Chancellor is entirely mindful of the points that the hon. Lady raises.

Oral Answers to Questions

Emma Reynolds Excerpts

Monday 14th February 2011 Commons Chamber

[Steve Webb]

One thing we are considering is whether the data we hold about people can be used better. We are therefore undertaking a modest research study, drawing on data that my Department and Her Majesty’s Revenue and Customs hold to see whether we can identify people who look as if they ought to be getting pension credit but who are not doing so. We will then make automatic payments to them, and test how that works over a pilot period, on which we will report in the summer.

[Emma Reynolds (Wolverhampton North East) (Lab)]

Rumour has it that the Minister believes that introducing a universal pension will be a solution to many of the problems in the pension system. If that is the case, why has he not published the Green Paper we were promised in December? Is it because he is facing some resistance from the Treasury?

[Steve Webb]

I am grateful to the hon. Lady for raising that point. I can do no more than quote my right hon. Friend the Chancellor, who told the House in November:

“The Treasury is working with the Department for Work and Pensions on potential pension reform that could simplify pensions and provide a boost to pensioners for many years to come.”—[Official Report, 16 November 2010; Vol. 518, c. 726.]

How right he was.