(12 years, 5 months ago)
Commons ChamberWe have worked very hard to freeze the EU budget during the last couple of years and avoid the very large increases that both the Commission and the European Parliament have sought. We are now beginning the very important negotiations on the next multi-year budget framework, and our objective is to deliver the best deal for the British taxpayer and make sure that unnecessary money is not going over to Brussels.
T10. Written answers to my hon. Friend the Member for Rutherglen and Hamilton West (Tom Greatrex) reveal that the nationalist Scottish Government have made no approach whatever to the UK Government on membership of the Bank of England’s Monetary Policy Committee. Does the Chancellor think that Scotland would have more influence on monetary policy as part of the UK or outside the UK using sterling as a foreign currency?
The hon. Lady refers to just one of a number of shambolic statements made by the Scottish National party since it launched its campaign for independence a few weeks ago, and not just on the Bank of England, but on financial services regulation. She makes the point very powerfully indeed that Scotland is “better together” as part of the United Kingdom. We have greater strength together as part of a more credible economic unit and part of the shared monetary policy of the Bank of England. All that would be jeopardised if Scotland were ever to become independent.
(12 years, 7 months ago)
Commons ChamberWest Dunbartonshire is the most difficult local authority area in the whole of the UK in which to find a job, yet the Scottish National party Government have refused us any help and refused to meet me. Have this Government also abandoned West Dunbartonshire or can we expect help to do one thing—to create jobs?
It is disappointing to hear that members of the Scottish Government have refused to meet the hon. Lady to discuss the help they could provide to her constituents. This Government’s actions—the youth contract, in particular—will be of significant importance to many young people in her constituency. In particular, there are the additional jobs subsidies available to businesses to take on young unemployed people in her constituency. I hope she will welcome that and promote it to businesses in her area.
(12 years, 8 months ago)
Commons ChamberLike so many in the country, I had hoped for a Budget that would put jobs and growth first. Instead, again, we have been left with one that puts the few above the many, and the millionaires above the millions, and that does nothing for my constituents—those looking for work and those in work whose living standards are being squeezed and, in some cases, slashed. More than 4,000 people are out of work in West Dunbartonshire and, only last week, we had the shock of being named the most difficult local authority area in the whole of the UK in which to find a job, with 31 people chasing every vacancy. This Budget does nothing to help those people.
The Government have taken jobs out of my constituency, through the moves on the Driver and Vehicle Licensing Agency and jobcentre staff, and now they want to close our Remploy factory. Not only that, but they are cutting tax credits, housing benefit and opportunities for people to get back to work. Fuel costs and energy prices are rising, and the Government sit on their hands and do nothing. But with so much of the Budget leaked in advance, there was very little news left on Budget day, except for the granny tax. What is the message there? It is work hard, pay your taxes, plan for your retirement and then lose out to this Government.
Instead of recognising that government has a role to play in spreading wealth and economic prosperity to all parts of the United Kingdom, and supporting public sector jobs in constituencies such as West Dunbartonshire, the Chancellor’s plans for regional or localised pay will exacerbate the problem of wealth being concentrated in the south-east of England, with pay being driven up there and down everywhere else. The answer to the problem of low wages is not to help to drive them down.
The Prime Minister visited West Dunbartonshire on Friday. He visited Aggreko, one of six companies in Scotland in the FTSE 100 and a world leader in temporary power generation. I am delighted that he did so, because it is an excellent company, but I am very disappointed that he did not stop for an extra 15 minutes to talk to some of my 4,000 unemployed constituents whom this Government are hurting. If he could give us just a little notice the next time he visits, we will have a whip round and perhaps get access to some of his time.
The Chancellor’s plans are bad for our economic prosperity, and I live in hope that one day the Secretary of State for Scotland, and perhaps the Chief Secretary to the Treasury, will do the right thing, stand up for the people they represent and oppose these plans. One of the first things the Labour party did after coming to government in 1997 was to deliver devolution and the Scottish Parliament, which should give Scots protection from the worst excesses of the Tories while ensuring that Scotland remains a strong part of the United Kingdom. What is the Scottish National party doing now that it has a majority in the Scottish Government? I am very disappointed that SNP Members have not been in the Chamber today. There is no doubt that my constituency is suffering; it has the highest number of jobseekers per vacancy and the second highest youth unemployment rate in Scotland, but just in recent weeks we have been excluded from the Scottish Government’s new enterprise zones and allocated exactly no money from their youth unemployment strategy fund. I really hope that my eyes are deceiving me and that the allocation of that grant is not linked to the upcoming Scottish elections. For too long, the SNP has been promising that everything would be fine if Scotland were to separate. The truth is that the SNP is not helping the people of West Dunbartonshire now and will not do so in the future.
Finally, I wish to say that this Government are, unfortunately, as blinkered as the Scottish Government when it comes to their plans for broadband. Yet again, they are overlooking areas such as mine, which is not a city and not a rural area; yet again, it is falling between the cracks.
(12 years, 12 months ago)
Commons ChamberThe Chancellor is wrong to deny that the Government’s policies are making long-term youth unemployment worse. It is up by more than 80% since the start of this year. Would he now like to apologise for scrapping the future jobs fund?
As I said, the future jobs fund meant that 50% of people who went on it were unemployed within 12 weeks. The right hon. Member for South Shields (David Miliband) was very honest in saying that this Government did not create the problem of youth unemployment. Frankly, if we had more honesty from the shadow Chancellor, he would have a bit more economic credibility. I cannot help noticing that the British public think that the right hon. Member for South Shields would do a better job as shadow Chancellor than the man opposite jabbering at me.
(13 years ago)
Commons ChamberThat is right. We have a significant new entrant in the financial services market that is prepared to buy Northern Rock, to invest in the future of the operations in Gosforth and to provide job security there. It is a vote of confidence. It demonstrates that there are people out there who want to be part of our financial services market and who want to offer a good deal to consumers.
Can the Minister guarantee that the Government will get back the £150 million that they are lending to Virgin and, if so, when?
What we put in place with Virgin Money is a capital instrument which is an important part of its financing structure, and the terms of that instrument will be set in place shortly. It is important to recognise that we want to see a well capitalised bank there. The FSA will look very carefully at the structure of Northern Rock and its ownership. As I said, Virgin operated a business model whereby it has capital levels which are much greater than those of some of its peers. That is a welcome sign that Virgin takes financial stability very seriously indeed.
(13 years ago)
Commons ChamberI will not give way again; I have given way a few times.
I must tell the House what motorists and families in my constituency tell me about the high price of fuel and how it is impacting on them. They, like the constituents of many right hon. and hon. Members, are suffering because they have had pay freezes and, in some cases, pay cuts, because of inflation, and because they have had to cope with large rises in electricity and gas prices. So spiralling fuel prices are starting to impact on their quality of life, and on their ability to survive in these difficult times.
More than one constituent has told me recently that they have had to choose between doing regular maintenance on their vehicle and filling it up every month to get to and from work and to pick up the kids. We have to look at the impact, because our constituents have only so much to spend on motoring every month and every year, and, if we do not do something to help them soon, they will have to find savings elsewhere, and that could affect road safety.
The hon. Gentleman is making a good argument for bringing down fuel prices. Will he therefore support Labour’s plan to cut VAT?
I am sorry, but the hon. Lady’s argument would have more strength if her party had done something to cut fuel duty when it was in power.
In the few minutes that I have left, I will raise an issue of particular importance to my constituents.
(13 years, 8 months ago)
Commons ChamberAs the hon. Gentleman knows, and as I have demonstrated in the past, I have great sympathy for the Isle of Wight and indeed for the Cornish Isles of Scilly, so I hope that this will extend to them as well.
May I suggest that the Government put in place a maximum percentage that can be taken at the pumps in taxation, or at the very least a desired percentage to be taken in taxation, just as the inflation rate seems to be a desired rate and a target for the country? I say that because in the UK 62% of the price of petrol is duty, which is the highest level in Europe—the lowest level in Europe is 46%. May I also ask the Government to examine the fuel distribution network, because many people have long had deep concerns about profiteering between refineries and retailers in what seems to be a very opaque business model? We have to ensure that any gains we make in the—so far promised—rural fuel derogation are felt at island pumps and are not snaffled away elsewhere.
We know what fuel tax is doing to people’s pockets on a daily basis up and down the land: it is affecting the poorest more, as this is a highly regressive tax. In areas such as mine, where wages are below the national average, the cost of living is higher and fuel poverty is high—my constituency has the highest in the land—the regressive nature of this tax is really felt. The tax pulls money out of the economy from families, businesses and individuals, and from local authority budgets and health board budgets. Clearly we need help and I ask the Government to provide it in tackling fuel tax and in taking the foot of high fuel tax off the neck of the islands’ economy.
When I last spoke in the House on this matter, on 7 February, I said—I have checked the Hansard record—that fuel was £1.44 a litre. My office in Stornoway tells me that it is now £1.48 a litre, and I shudder to think what it might be the next time I speak on this issue in the House, because the cost seems to be going in one direction. Before the staff at Benbecula airport correct me, yet again, on the price, I point out that the price in Uist will inevitably be higher. I understand that the price in Uist and Benbecula is more than £1.50 a litre. Consistently, throughout the length of my constituency, we are paying the highest fuel tax in the UK. The simple re-announcements of the intention to have a rural fuel derogation without any change coming at the island pumps are greeted with nausea by my constituents, who are tired of hearing pious words and are instead looking for pious actions.
Can the hon. Gentleman explain to my constituents why his party is interested in giving help only to Scots in rural areas and not to people in my constituency?
I will indeed. I imagine that in West Dunbartonshire the price of fuel is 15p to 20p a litre lower. How I wish we could enjoy the prices of West Dunbartonshire. I also wish that the hon. Lady could express some sympathy for the voters, constituents and people of the Western Isles who have suffered higher fuel prices than many other areas in the UK as a result of the policies of successive Governments.
For the purposes of clarification, let me assure the hon. Gentleman that fuel in West Dunbartonshire is currently £1.36 a litre for unleaded and £1.43 for diesel—not far behind the prices he quoted for his area.
I have every sympathy for the people of West Dunbartonshire—those are high prices—but with our prices of £1.48 and £1.50 a litre, I wish that we could enjoy prices such as £1.36 a litre. If I went back to the Outer Hebrides tomorrow and announced a price of £1.36, I would be regarded as some sort of hero, but unfortunately I cannot do that. I have sympathy with the hon. Lady but I am afraid that she must reciprocate and understand the problems that come when fuel poverty is higher, the cost of living is higher and wages are lower. The pilot project in the Outer Hebrides and other islands in Scotland is the right way to go. If it is a success, I hope we can extend it. I find the lack of sympathy from Labour Members about the problems in the Outer Hebrides somewhat distressing.
(13 years, 8 months ago)
Commons ChamberI am delighted to speak in this debate, which is an important opportunity to highlight the real difficulties faced by people the length and breadth of the country as a consequence of the record price of fuel at the pumps and the squeeze that is being forced on people’s incomes by the Government. Those issues, along with the reckless pace of public spending cuts, are the concerns most widely raised by people in my constituency, and it is easy to understand why. The area has significant economic challenges, which are being made much greater in the current climate by the Government’s approach to the cost of living.
Unemployment in West Dunbartonshire is higher than across the rest of Scotland and the UK. According to the latest figures, published today, the local claimant count has risen to 6.5%, compared with 4.3% for Scotland and 3.8% for the UK as a whole. Recent analysis of pay across Scotland has highlighted that wages in West Dunbartonshire are 11% below the Scottish average, and of course unemployment and low pay have a clear relationship with poverty. West Dunbartonshire has a disproportionately high number of people living in deprivation, and people living there have a disproportionately low life expectancy. I say that not with pride, but to try to communicate to the Government the challenges found in areas such as mine—challenges to which they have seemed impervious, particularly in this debate.
West Dunbartonshire has a high percentage of people employed in the public sector. Of course, the Government are slashing jobs in the public sector; they seem to believe that the private sector will magically rush in to fill the gaps in employment. The last thing any business needs to contend with at the moment is record fuel prices. Far from growing the private sector, they may mean that even more people lose their jobs. Just this afternoon, the owner of a delivery business in my constituency contacted my office to outline the impact of record fuel prices on his business.
Given all those factors, it is clear to see why people in West Dunbartonshire are struggling to afford the squeeze on their family budgets and businesses as a result of record fuel prices, rising inflation, and cuts to the help for families on low and middle incomes.
I agree with the hon. Lady’s comments on the effects of high fuel costs. Does she agree that there should be some regret for the Labour Government’s 12 fuel duty increases?
There should be regret that this Government have raised VAT to 20% with no regard for people in my constituency. Never before have people in West Dunbartonshire been forced to pay £1.36 for a litre of unleaded or £1.43 for diesel, as they do now at some local forecourts. Every time they make a trip to the filling station, they find that it costs them a bigger share of their income to fill up their car.
As we know, the recent spike in the price of fuel has been driven in part by rising world oil costs, especially as a consequence of the crisis in the middle east, but the Government have heaped unnecessary extra pain on people by hiking VAT to 20%, adding 3p to a litre of fuel. It is astonishing that the Government have acted so callously in driving up the cost of fuel, given the pre-election promises made by both the Conservatives and the Liberal Democrats last year. I am sure that I am not the only Member who saw leaflets promising action to keep fuel prices down circulated at the last election by one or both parties, although to the best of my knowledge, the Lib Dems did not even bother using their Royal Mail freepost in my constituency in the election last year.
That the price of fuel at the pumps is now at a record level as a consequence of the Government’s actions is an unforgivable betrayal, but that is of course something that we are getting used to from the Government. The attack on ordinary families’ standard of living goes much further than rising fuel prices driven by the actions of this Government. The VAT hike will cost families with children around £450 a year. Unfair cuts to tax credits, child benefit and housing benefit will further erode the incomes of families who rely on that support.
Does my hon. Friend agree that the Government have failed to recognise the impact that the VAT rise on fuel will have even on products that are protected from VAT, such as food and children’s clothing?
My hon. Friend makes a significant point. I was about to say that a number of factors are adding up to put intense pressure on family incomes. For example, 1,000 families in my constituency will lose a further £400 a year as a result of the Government’s cuts to the child care element of the working tax credit. What makes that all so much worse is that while the Government are choking off help for hard-working families and recklessly cutting jobs and services, they have given the banks a huge tax cut this year. I know my constituents find it hard to understand how that can be squared with the Prime Minister’s claim that we are all in it together—a frankly laughable claim from a Cabinet of millionaires. [Interruption.] I am sorry if Government Members do not like to be reminded of how many millionaires are in the Cabinet, but I am afraid that that is a matter of fact.
The Government have heaped pain on families, but they could have made a different choice and relieved some of that pain. As my hon. Friend the Member for Wallasey (Ms Eagle) said, the Government could use the £800 million raised from the bank levy immediately to reverse the VAT rise on fuel. Just as the previous Government often postponed fuel duty rises when oil prices were rising, as they are now, the Chancellor should look again at the Budget—that is why he should be here today, listening to the arguments—ahead of the planned 1% rise in April.
Has the hon. Lady considered that the reason the Chancellor is not here today is that he is busy trying to sort out the Budget to undo the massive financial mess left by the Labour Government and deal with their economic incompetence?
It is the duty of the Chancellor to listen to Members as he is putting together his Budget. Both he and the Chief Secretary to the Treasury should be present, listening to Members as we debate this important subject.
I have outlined a different approach, which would be the right approach. I notice that none of the Scottish National party MPs is present. Their proposal for a fuel duty cut in remote areas would do nothing to help my constituents in West Dunbartonshire. The name of the constituency may include the word “shire”, but on the whole it is not a rural area, although a small number of my constituents would consider themselves to be in a remote area. The majority of my constituents live in an urban or a suburban area and they are struggling with the record price of fuel. We need to go much further and bring down fuel costs for everyone in urban and rural areas.
I will of course support the motion in the name of the Leader of the Opposition. The Government can and must take action to provide some relief to people in my constituency and across the country. They can do this in the ways outlined today. Like numerous other Members, I urge the Chancellor to take that action and go some small way towards showing that he has not completely lost touch with the pain that British motorists are suffering.