Welfare Benefits Up-rating Bill

George Freeman Excerpts

Monday 21st January 2013 Commons Chamber

[Stephen Timms]

My hon. Friend says that the change is 13p week, which is a derisory amount.

[George Freeman (Mid Norfolk) (Con)]

Will the right hon. Gentleman give way?

[Stephen Timms]

No—I will make progress before I give way again.

The Bill was designed by the Chancellor to promote his party’s narrow interest. Like a number of the Chancellor’s efforts of that kind, it has not worked out as he hoped, but let us be clear that the Government have restricted uprating to 1% for the coming year without a Bill and did not need a Bill to restrict uprating for future years. The Chancellor thought he could boost his party’s standing if he introduced a Bill, so we have one. Coalition Ministers are here to help advance the Chancellor’s cause.

In particular, it is ridiculous to announce now—before we know anything about the future course of inflation—by how much benefits will be uprated in more than two years’ time, which is well after the general election. The Opposition therefore reject the proposal to restrict the uprating of social security benefits and tax credits to 1%. As I have said, in our view, uprating should be in line with inflation and assessed, as it always has been, at the end of the preceding year.

The Secretary of State claimed in his speech on Second Reading that, as part of employment and support allowance, the support group is protected, but it is not. The Secretary of State said that people who are not in the support group will find that they are affected. That is true, but people in the support group will be hit as well. Citizens Advice has worked out that a lone parent with three children who is in the support group will lose £600 in 2015-16 because of the exponential way in which the Bill will grind down the incomes of people who are already hard-up. We will come back to that.

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[Stephen Timms]

The time to announce how benefits would be uprated for next year is later this year in the normal way. The time for the following year is the end of next year. We reject the Bill, which is the Chancellor’s partisan and unprecedented device to set out the trajectory for two years’ time, before we know anything about the future course of inflation.

Ministers still say that they are committed to eradicating child poverty. It says so in the coalition agreement. That commitment is clearly now fictitious. The Bill is simply incompatible with that commitment. Ministers should stop pretending. They have given up on reducing child poverty. They have not just given up on publishing the numbers as they used to do: they have given up on delivering the goal as well. Now they are implementing policies that will force child poverty up.

[George Freeman]

Given that the last Government spent £150 billion on tax credits and achieved a 6% reduction in child poverty, does the right hon. Gentleman think that lifting 350,000 out of child poverty for a £2 billion investment in universal credit represents good value for money?

[Stephen Timms]

The policies of the previous Government reduced the number of children below the poverty line by 1.1 million. The policies of this Government are set to increase it by 1 million by 2020. That is a shameful record.

What we will have from April is a toxic combination of policies that will cut the highest rate of income tax and real-terms cuts in benefits and tax credits. Some 8,000 people who earn over £1 million a year will get a tax cut in April averaging more than £2,000 a week. Someone receiving the adult rate of jobseeker’s allowance will receive 71p a week. People are getting angry at what the Government are doing.

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[Charlie Elphicke]

The hon. Gentleman well knows that this Government have taken many people on low incomes out of tax altogether. That is not something that his party did. Labour froze the personal allowance and, over time, had more people in the tax system relatively speaking. We have taken people out of tax, because we do not see the point in taking money off people in taxes and then handing their own money back to them. It is better not to take it off them in the first place.

The key point is that the Opposition are proposing to impose a cost of £3.5 billion. I ask them: where are they going to find the money? How will they pay for their spending pledge? If they want to pay for it through more borrowing—which always seems to be their policy—all they will do is raise interest rates for hard-pressed mortgage holders, small businesses and borrowers.

[George Freeman]

Is not the truth that the Opposition’s opposition to this Bill would cost the average family £5,000 extra in debt? Does my hon. Friend agree that there is no money growing on trees—we pay for that either in debt or in tax—and that the Bill is a sensible measure, as debt simply holds more families back?

[Charlie Elphicke]

I absolutely agree with my hon. Friend. The Labour party just thinks that we can sink further into a sea of debt. We have to call time on that. We have to get control of our public finances and our private finances, and restore sound money once again.

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[Mr Redwood]

I am rather pleased that our benefits system is a lot more generous than those afforded in eastern Europe, but I also want to make sure that we do not open ourselves up to paying a large number of benefit bills to people from more or less anywhere in the European Union who come here because they have worked out that we have a generous system compared with theirs. That would seem extremely unfair, very tough on British taxpayers and ultimately self-defeating, because people who were working hard and had talent and enterprise would say, “I can’t afford to pay the tax rates in Britain to pay for benefits for everybody else, so I’ll go somewhere else to do my work.”

[George Freeman]

My right hon. Friend made an interesting and important point about eligibility. Does he agree that one of the most pernicious legacies of the last Government was that their tendency to hand out, increase and widen the eligibility for welfare payments has meant that, when the payback comes, the most vulnerable people in our society tend to be hardest hit? We are doing everything we can to target benefits at those who need them most. For example, there are 600,000 disability claimants. Increasingly, we know that small groups of people desperately need the benefits but that many receiving them do not.

[Mr Redwood]

I quite agree. I would like to see a more generous regime for disabled people, as my hon. Friend rightly says. To pay for that, I have come up with suggestions both on getting more people back into work, which is the best way, and on dealing with the issue of eligibility so that only our own deserving cases get the generous treatment that we rightly expect.

In summary, the policy is not easy. Ministers have to watch to make sure that it does not become unintentionally more penal. We want much more work on the side of promoting jobs and growth because we come here to eliminate poverty, not to make it worse. It is also time for the Opposition to join the serious conversation about how we tackle these obstinate and difficult issues, given that the high-level aims—getting rid of poverty and making it more worth while to work—are, mercifully, shared across the House.

Oral Answers to Questions

George Freeman Excerpts

Monday 5th November 2012 Commons Chamber

[Mr Hoban]

I would be grateful if the hon. Lady supplied me with the evidence she mentions. There are clearly situations in which people go straight into the support group without undergoing a work capability assessment. It depends on the information supplied when they originally make the application.

[George Freeman (Mid Norfolk) (Con)]

T8. The scandalously high rate of youth unemployment was perhaps one of the previous Government’s worst legacies, and my constituents warmly welcome the creation of 1 million new jobs and 600,000 apprenticeships. Does the Secretary of State agree that in rural areas young jobseekers face particular challenges in accessing small, fast-growing companies in the rural economy, and will he join me in supporting the local voluntary big society initiative launched by The Norfolk Way—it started a work club and enterprise bursary in which local entrepreneurs support jobseekers—in Mid Norfolk last week?

[Mr Duncan Smith]

I pay tribute to the work that my hon. Friend does in his area. I absolutely agree with and support what he says. It is really interesting that youth unemployment was rising in the previous Government’s last six years, even in a time of growth. They fiddled with the figures so that anybody who was unemployed for more than 10 months went on a course; most of them ended up returning to unemployment, where they started from zero again. The then Government deliberately and falsely capped the figure. We are honest about it and tell the truth.

Oral Answers to Questions

George Freeman Excerpts

Monday 25th June 2012 Commons Chamber

[Maria Miller]

The hon. Gentleman will know that we are in the middle of a commercial process, and therefore I do not know the answer to his question. However, I hope that as a result of the work being done we can, as Liz Sayce’s recommendations suggest, set those factories free from Government control. I remind him of the comments made by the right hon. Member for Neath (Mr Hain) back in November 2007:

“The reality is that without modernisation Remploy deficits would obliterate our other programmes to help disabled people into mainstream work.”—[Official Report, 29 November 2007; Vol. 468, c. 448.]

We agree with that statement.

[George Freeman (Mid Norfolk) (Con)]

The Labour party has been critical of the proposed regionalisation of benefits. Will the Secretary of State remind the House which senior politician first recommended the idea?

[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.

Living Standards

George Freeman Excerpts

Wednesday 30th November 2011 Commons Chamber

[Mr Byrne]

I am afraid that the hon. Gentleman is simply wrong. Youth unemployment was coming down before the election; it has now gone through the roof, since his party took office. It is now up through the 1 million mark for the first time. Long-term youth unemployment in this country is up 83% since the start of the year. He would surely admit that that is a badge of shame for this Government, and demands much more urgent action from them.

[George Freeman (Mid Norfolk) (Con)]

rose—

[Mr Byrne]

I will give way to the hon. Gentleman, and then I will make a bit more progress.

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[George Freeman]

Does the Opposition spokesman agree that his authority to talk about this subject would be heightened if it were not for the fact that during the previous 10 years, before his party lost office, youth unemployment rose to a quarter of a million—and that was during a boom? His authority to talk about this is hugely reduced by that track record.

[Mr Byrne]

Youth unemployment came down to record lows under the Labour Government. It was coming down before the election, because we chose to act. Now the key back-to-work scheme for young people has been taken off the shelf for the past year and a half. What is the result? Youth unemployment in the hon. Gentleman’s constituency is going up. He should explain that to young people in his constituency, and he should apologise to them. The back-to-work scheme set out by the Deputy Prime Minister last week is not even planned to come into place until next April. That shows how much his party cares about getting young people back to work.

Amendment of the Law

George Freeman Excerpts

Tuesday 29th March 2011 Commons Chamber

[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.

[George Freeman (Mid Norfolk) (Con)]

Does my hon. Friend agree that the honest answer to the question put thrice by the hon. Member for Wolverhampton North East (Emma Reynolds) is that if we were guilty of anything, it was to fall for the same lie that the British public fell for—to believe that new Labour had become the party of economic competence and that in government it could be trusted with the public finances?

[Kwasi Kwarteng]

My hon. Friend is exactly right. I think there was an element of delusion in the country inasmuch as people believed that Labour could be trusted with the economy. That was clearly not the case. Older voters I speak to in my party association and more widely in Spelthorne remember the appalling legacy of the 1970s, when exactly the same thing happened. None of this is new; we have seen it all before. Exactly the same thing has happened 30 years later: Labour came into power, made all sorts of spending commitments with the best intentions, but found that we had run out of money. It was that simple. On that note, I urge the House to vote in favour of the Budget motions.

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[George Freeman (Mid Norfolk) (Con)]

“Rescue, rebalance and recover”. No, Mr Deputy Speaker, I have not got hold of a copy of the late George Best’s doctor’s notes, nor a copy of the advice from the right hon. Member for South Shields (David Miliband) to his younger brother after a mauling at Prime Minister’s questions. I refer to the three words that the Chancellor used at the beginning of his Budget statement last week, which are so important in setting out its significance: “rescue” because the coalition has had to rescue the British economy from a debt crisis that would have seen our interest repayments rising to £70 billion a year; “rebalance” because the Labour party has tested to destruction the thesis that a modern economy can be driven through public spending and an unsustainable boom and bust; and “recover” because without a private sector-led recovery, we are condemned to a decade of stagflation.

Having listened to the debate yesterday and today, I must say that Opposition Members still do not seem to have got the two real golden rules of modern economics. The first is that every pound they commit at the Dispatch Box, claiming it as their own, has to be earned by the private sector before it can be spent on public services. The second golden rule, which we proved in the ’80s and must now prove again, is that cutting taxes on business increases the amount of money available to us in this House.

The truth is that, like a gambler forced to come home one day and ’fess up to his sad family that he has not been working but living off debt and gambling with his credit card, the British economy must now be weaned off the unsustainable boom that was fuelled by cheap credit under the Labour party. As in our personal lives, crises are always opportunities. The Budget was significant to me for this reason above all: it set out carefully the steps towards a sustainable recovery and the rebalancing of our economy. “What”, I hear Opposition Members ask, “will this rebalanced economy look like and where will the jobs come from?” Let me try to explain.

The Budget again contains the seeds of the recovery: in the enterprise investment scheme reforms, in the venture capital trust reforms and in the encouragement for investors putting their own wealth at risk to start small companies, it will first be an enterprise recovery. In the emphasis on the clean economy, high-technology jobs and life sciences, it will secondly be a smart-growth recovery. And in the emphasis on corporation tax reductions and sending a signal around the world that this country is open for business, it will be a global and export-driven recovery.

Nowhere will that be cheered more loudly than in my constituency, Mid Norfolk, and my region, East Anglia, a region that for 30, nay 40, years has been treated by London Governments as nothing more than a commuter reservoir to feed the London economy. Our area has huge resources in offshore energy, in high-tech engineering at the Hethel centre, in the headquarters of Lotus, in Norwich research park, a global centre of food science and agriculture, in the university of East Anglia, a leading, world-class centre of climate science, and 40 miles down the road, in what the Americans would term one cluster, Cambridge university, with all its strengths in science and research. How woeful that over the past 30 or 40 years we have treated the area as a commuter reservoir.

Well, the people of East Anglia are ready to rise to the challenge, and with the investment in infrastructure that this Government have laudably managed to secure from a difficult financing settlement, in terms of dualling the A11 and the money announced last week for regional rail, we finally have some hope that our area will be able to stand again and lead the economic recovery as we have in the past.

Norfolk, as Members will remember and not need me to remind them, was the county that gave us the agricultural revolution, our finest military hero and our first Prime Minister, but it is a county that has been left behind and failed by the model of state dependency which the Labour party has pursued. In championing the high-technology and life science potential of our area, I draw attention to the Register of Members’ Financial Interests. I am proud to have entered the House after a 15-year career helping to start some of those businesses and to help entrepreneurs to take the risk of creating new businesses.

In closing, I want to concentrate on the laudable support given to the life sciences. As we think about the markets throughout the world in which we have the chance to grow our economy, we should look no further than the recent Foresight report, which drew attention to the fact that the world’s population will rise to 9 billion. With that rise will come huge markets in food, medicine and clean energy. Those are the markets of tomorrow, the markets in which this country has the potential to lead; and those are the markets for which this Budget will begin to sow the seeds of a sustainable recovery.

The significance of that point is not just economic. The Budget last week set us on the road to a recovery that we can be proud of—a recovery that will give this country back a sense of purpose throughout the world. What finer mission is there than to be a small nation putting its experience in science, trade and enterprise to the benefit of people in the developing world, giving them the hope that there is a model for them and that they do not have to take 200 or 300 years to reach the privileged position that we have reached? It is therefore with huge pride that I support the Budget and commend it to the House.

Jobs and the Unemployed

George Freeman Excerpts

Wednesday 7th July 2010 Commons Chamber

[Mary Creagh]

My hon. Friend makes a good point, and many skilled IT workers and other professionals will lose valuable public sector contracts as the so-called bureaucratic back-office functions are scaled back.

One of the ways in which the Minister proposes to help the unemployed is by laying off 2,000 jobcentre staff in the next few months. It takes a particular sort of genius to do that in a recession, and I bow to the greater knowledge of the Conservative Members. How will they help people back into work with fewer people on the front line?

[George Freeman (Mid Norfolk) (Con)]

rose—

[Mary Creagh]

I will give way to the hon. Gentleman; perhaps he can tell me.

[George Freeman]

I thank the hon. Lady for giving way to the greater prowess on this side of the House. I appreciated her comments earlier about the importance of the private sector. The fundamental truth in this debate is that the private sector does something that the public sector does not—it pays for the public sector. It pays for itself and its profits pay for the public sector. The hon. Lady nods, which is nice to see. As she worked in the private sector helping small businesses, does she agree that the biggest fear of people in the private sector is not cuts to the public sector, but the threat of a rising debt crisis with interest payments alone—now she shakes her head—forecast to rise to £67 billion a year? The effect that that would have on the sovereign debt crisis and the threat of rising interest rates could plunge this country into a serious economic crisis.

[Mary Creagh]

I thank the hon. Gentleman for his point. We are in danger of rehearsing the arguments that we had at great length on the Finance Bill last night. I chose not to speak in that debate, because otherwise it might have dragged on even later than it did. However, I do not think that someone running a corner shop in south Wales is worried about the interest payments on Government debt. Interest rates on Government debt are historically low, and the repayment period here for such debts is, at 14 years, longer than in the US and Greece.

Government Members need to be very careful about the shroud-waving that they have done in connection with the Greek fiscal deficit. The UK is in no way comparable to Greece, which is an island economy based on tourism—[Interruption.] If the hon. Member for Beverley and Holderness (Mr Stuart) listens, he might learn something. Greece has 178 different public sector pensions, and none of them is funded. In addition, matrilinear succession means that the wife inherits when a man dies, and that the daughter inherits when the widow dies. Trying to compare Greece to the UK is absolute madness.

[George Freeman]

Will the hon. Lady confirm first of all that I did not mention Greece? She has mentioned pensions, but the second thing that concerns the private sector is unfunded public sector pension liabilities, which also saddle the private sector economy. She seems to talk as though the public sector can somehow carry on spending money, but it is the private sector that has to pay for it.

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[George Freeman (Mid Norfolk) (Con)]

Thank you, Mr Deputy Speaker, for the opportunity to make my maiden speech in this important debate about jobs and unemployment. I take my seat in the shadow of three eminent predecessors, all of whom have been gracious enough, with some help from the Boundary Commission, to cede portions of their constituencies to the new Mid Norfolk constituency. They are my hon. Friend the Member for Broadland (Mr Simpson), who represented Mid Norfolk with great distinction, my hon. Friend the Member for South Norfolk (Mr Bacon) and the former Member for South West Norfolk, all of whom are held in the highest esteem locally and in this House.

Mr Deputy Speaker, you are no doubt thinking, “Where is Mid Norfolk?” Indeed, its boundaries have baffled many of its constituents since being redrawn. Centred on Dereham, the ancient heart of Norfolk, it includes the three market towns of Attleborough, Watton and Wymondham, and 110 charming villages. I should like to take the House on a quick—130-mile—tour that I have had the great pleasure to make by bicycle in stages over the past three years, in the spirit of past parliamentarians, such as most famously, William Cobbett, on horseback, and more latterly my hon. Friend the Member for Penrith and The Border (Rory Stewart), on foot. Following the instruction of the former Member for Chingford, and more recently the example of my right hon. Friend the Prime Minister—perhaps the only time that they have agreed—I opted to go by bike.

We start at The Crown in Colkirk, the northernmost point and only a few furlongs south of the magnificent Fakenham race course. We then pass through Beeston, home of a new micro-brewery and the excellent “Worth the Wait” ale, which I hope the House might feel is worth a glass after my maiden speech; Dereham, the capital, which received its charter in the 16th century; Swanton Morley, the home of the Light Dragoons, whom I know the House will want to thank for their brave service to our country; Hingham, the home of Abraham Lincoln’s family and the relaunched Lotus motor racing team; Wymondham, with its famous abbey, crucible of Robert Kett’s revolution and home to Wymondham college, a rare state boarding school, and Wymondham high—two of the top state schools in the country—Attleborough, home of Banham Poultry, our largest local business, and Liftshare, the world’s fastest-growing car-share company, set up in a former turkey shed by a local entrepreneur; and Watton, heart of the Wayland valley and home of the famous horse fair.

Eschewing the metropolitanism of Norwich, Fakenham, Thetford and Swaffham, which guard its perimeter, Mid Norfolk is the rural core of this most rural and historic county, a county that I need hardly remind the House has given us our first Prime Minister, Sir Robert Walpole, our greatest military hero, Horatio Nelson, and the seeds of the agricultural and, therefore, industrial revolution, courtesy of Coke of Holkham and “Turnip” Townshend. The turnip is a vegetable that has had a tricky press of late, but it is held in the very highest esteem in Norfolk.

My constituency has come of late to feel increasingly marginalised, however. Tackling that sense of marginalisation in order to unlock the talents and aspirations of its people is, and will remain, the central theme of my work as its MP. The people of Mid Norfolk feel marginalised by the decision-making process and too often forced to change in ways that they have neither chosen nor like. The small, local, voluntary and rural is all too often crowded out by the big, national, professional and urban. As reported this week, rural Britain has been especially hard hit by unemployment during this recession, and my constituency has pockets of rural deprivation which are often hidden and invisible to the passer-by. Pensioner poverty can be especially invisible.

Post offices, pubs and village shops close, while more and more people are forced to commute increasing distances from the mass housing estates that have been forced on our market towns and councils. In my three-year candidacy I insisted on another way. Opposition Members might call it a third way, but we call it the Norfolk way: a vision of a vibrant rural society based on a renaissance of rural enterprise; smaller pockets of mixed housing spread more fairly and sustainably; fast-growing small businesses and jobs back in our villages and towns; less commuting; a richer mix of ages; and blue and white-collar jobs in active communities.

Some may ask, “Where are those new jobs and businesses to come from?” Let me tell the House. Situated between Norwich and Cambridge are two of the world’s leading centres of scientific research and innovation in food, biomedicine and the clean technologies of which my hon. Friend the Member for Richmond Park (Zac Goldsmith) spoke earlier, all of which are so vital to the global challenges that we face, Mid Norfolk is perfectly positioned to become a hub of entrepreneurial activity and new jobs. With the world-leading John Innes centre, the Institute of Food Research, world-class agriculture and high-tech engineering along the A11 corridor, we can lead those new economic sectors on which we will increasingly depend.

As someone who came to politics after a 15-year career in creating new technology businesses, I hope to be able to put my experience to good use in that area. However, that revolution cannot happen without two essential things: new models of investment in infrastructure, including the A11, rural broadband and rail links, and some local leadership.

The stale post-war model of statist centralisation and dependence on the Whitehall handout has failed Norfolk and needs replacing if we are to have a sustainable recovery. The benefits of this empowerment and liberalism will not just be economic. Rural Britain is, I believe, the repository of some important virtues that our modern culture has neglected: a deep belief in self-help and responsibility; an insistence that everybody in a community has a role, and the rejection of a shallow media culture’s obsession with celebrity; and a love of the small, the different, and the local. These are qualities that are deeply rooted in the English character.

The people of Mid Norfolk sent me here to speak up for them, so I shall. My constituents, proud of those values, have found themselves increasingly powerless in the face of a tidal wave of legislation and “big government” from Europe, Whitehall, and unaccountable regional quangos. Many worry that our culture has been hijacked by an increasingly intolerant, politically correct “anything goes” multiculturalism which seems to have too little respect for the longer traditions of tolerance, personal freedom and responsibility embedded in our traditional heritage. By pumping the bellows of local empowerment, I believe that we can reignite the embers of a culture which can and should be allowed to coexist with metropolitan Britain, to mutual benefit.

At the heart of this manifesto is a big idea: that citizenship is forged not through dependence on the state as espoused by new Labour and its philosopher king, Anthony Giddens, but through the empowering act of the state granting responsibility to its citizens. That is the central idea which has brought me into politics as a Conservative, and which I am delighted is once again the idea at the heart of modern Conservatism and this coalition.

I hope that the House might allow me to close on a personal note. As no doubt for all hon. Members, taking my seat in this great House is the culmination of a long journey and a lifetime’s dream. I can recall very clearly when that seed was sown: coming here on a school trip aged 12, inspired by childhood stories of my great-uncle Gladstone. As the child of a broken and at that time unhappy home, I recall seeing the worn edges of the Dispatch Box and being struck by a deeply reassuring idea: that whoever and wherever you are in our country, there is a place where the nation takes responsibility for its affairs, a place where your problem matters, a place here, for you, whoever you are. I still believe there is no greater honour than to be sent here by a constituency to serve. I believe the public want to believe that too, and want this new Parliament to raise aloft the standard of a politics of which we can all be proud. I thank the people of Mid Norfolk for the chance to be part of that, and I thank the House for its patience this evening.

[Several hon. Members]

rose—