UK Economy

Debate between George Osborne and Wes Streeting

Wednesday 29th June 2016 Commons Chamber

[Mr Osborne]

We are going to face some big questions about providing support to the institutions, regions and sectors that have been receiving European Union assistance, most notably the regional support that has been provided to areas such as south Wales, the ongoing support that the EU provides for research in our universities and the support for our farming community. We in the House of Commons are going to have to address all those issues in the coming months and possibly beyond. However, at the moment we remain a member of the European Union—I shall talk about the procedure for our departure in a moment—and the European funding and grants will continue to be made. We are looking specifically at areas where questions have been asked about long-term uncertainty in relation to particular projects, and I will keep the House updated. This is a challenging question, which we have to answer, and we are looking at it very intensively now. But at the moment nothing has changed and we remain a member of the European Union.

That brings me back to the question of trying to resolve as quickly as is practical the uncertainty about the new relationship we are seeking with the European Union and our European neighbours. We need a bit of realism and we need to offer reassurance. It is apparent that the uncertainty will be fully resolved only when we as a country have negotiated an agreement with our European partners on the relationship we now want to have with them. We know what the broad options are. The Government spelled them out and set out the different relationship models over the past few months in the Treasury and Cabinet Office papers that were produced in advance of the referendum. We could join the European economic area, like Norway; we could forge a new negotiated bilateral agreement with the EU, like Canada; we could adopt the Swiss model; or we could rely on World Trade Organisation rules.

As the Prime Minister set out at this Dispatch Box, the Government have established a new unit at the heart of Government made up of some of the best civil servants, reporting to the Cabinet, that will help us as we make that decision. I stress, however, that Members of Parliament and other organisations can feed in to the work that is taking place, so that we have the fullest possible information on the decision that we will have to take collectively as a Parliament on our new relationship with Europe.

My view is clear that we should move towards an arrangement that provides us with the closest possible economic ties with our European neighbours. Close to half of our exports go to the EU and millions of jobs are supported by our trade with the EU. Leading industries, such as car manufacturing, farming and our services industry, are reliant on that relationship, and we should be moving towards an arrangement under which—if we reach it and can negotiate it—the trade of both goods and services, including financial services, is as free as possible. In the meantime, returning to a point I made earlier, UK firms continue to have exactly the same status as any other EU firm. Business continues in the City and elsewhere, including for euro-denominated trading in our financial markets.

However, I am a realist—we have to be realistic about this—and we must acknowledge that we cannot have all the benefits of the EU without accepting any of the costs and obligations. It will be for this Parliament to decide what the accommodations and compromises should be.

[Wes Streeting (Ilford North) (Lab)]

So much of the leave argument was predicated on shifting our focus to the world beyond Europe. If the Chancellor agrees with that assumption, we need to ensure that we can get there. Given that Heathrow expansion would deliver a £16 billion privately financed shot in the arm, up to £211 billion of economic growth—predominantly outside the south-east—180,000 jobs and 10,000 apprenticeships, I urge the Chancellor to commit to giving Government Members a free vote safe in the knowledge that there will be sufficient votes on the Opposition Benches, irrespective of whipping arrangements, to deliver that result.

[Mr Osborne]

We await the work that is being done on air quality around the airport. When we discussed the matter some months ago, people were a bit dismissive, but to be fair to the new Mayor of London, he raised air quality issues during the London mayoral contest that resonated with voters’ concerns—the hon. Gentleman would know that as a London MP. Before Parliament makes a decision, it is important that we have addressed the issues, concerns and questions about air quality. It will be nothing new if I tell the House that the decision will be controversial when we come to take it, so it is important that no one cries foul over the process. We can then make a decision on the merits of the case. People know my view, which is that we need additional runway capacity in the south-east of England, but where that capacity should come from must be a matter first for the Government and then for Parliament.

Budget Resolutions and Economic Situation

Debate between George Osborne and Wes Streeting

Tuesday 22nd March 2016 Commons Chamber

[Mr Osborne]

Let me make a little progress and then I will take more interventions. It is a classic socialist illusion to think that we can solve all society’s problems with taxes on the very richest, and it is the age-old excuse for not managing public spending or welfare costs. That brings me to a central point that I want to make to the House today: there is not some inherent conflict between delivering social justice and the savings required to deliver sound public finances—they are one and the same thing. Without sound public finances, there is no social justice.

[Wes Streeting (Ilford North) (Lab)]

rose—

[Mr Osborne]

I will give way in a moment to the Member for the taxi business.

It is the easiest thing in the world to do this job and say yes to every new demand for Government spending and to please all the people all of the time, but we know where that leads. We know that because before me we had a Chancellor who spent a whole decade going around the country saying yes to even more spending and ever higher welfare bills, and we know what happened then: it brought our country to the brink of collapse. That was not compassion; it was economic cruelty, and the people who paid the price are those who always pay the price when Government spending gets out of control and welfare bills spiral. It was not the politicians at the time who paid the price—no, they are happily sitting on the Opposition Benches; it was the poorest who paid the price and the most vulnerable who suffered. Those people lost their jobs and had their livelihoods snatched from them, and those are the people I am fighting for—real, decent, hard-working people, not numbers on a Treasury spreadsheet: people whose lives would be impoverished, and whose hopes and aspirations would be crushed, if we had gone on spending more and more than the country earns. Getting things right for those people is what I am all about, and that weighs on every decision that I have taken as Chancellor over the past six years. Those are the people whom we in the Conservative party have been elected to serve.

[Wes Streeting]

The Chancellor rightly talks about learning lessons, but it is also important to have clarity about the future. The Government line seems to be that there are no plans to further reduce the welfare budget, but yesterday the Secretary of State for Work and Pensions said in the House

“we will not be seeking alternative offsetting savings”,

and that

“the Government will not be coming forward with further proposals for welfare savings.”—[Official Report, 21 March 2016; Vol. 607, c. 1279-86.]

Will there be further welfare cuts or not? What is the answer? The Chancellor has not offered any clarity this afternoon.

Oral Answers to Questions

Debate between George Osborne and Wes Streeting

Tuesday 1st December 2015 Commons Chamber

[Mr Osborne]

My hon. Friend has been a powerful advocate of the Skew Bridge project, and we have discussed it on several occasions. Of course, the devolution of business rates will help that project not only succeed, but make a big contribution to the local economy.

[Wes Streeting (Ilford North) (Lab)]

Given the answer to my hon. Friend the Member for Wirral South (Alison McGovern) and given that the Chancellor has not met a single one of his own targets on economic performance, is he intending to go on and on, to the delight of the Home Secretary and the Mayor of London?

Spending Review and Autumn Statement

Debate between George Osborne and Wes Streeting

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

My hon. Friend is absolutely right. He represents some remarkable people who keep us safe, working at GCHQ in Cheltenham. I was very pleased to meet him at GCHQ headquarters last week, with local businesses that are growing cyber-business in Cheltenham, creating jobs and making sure that GCHQ is not just a source of jobs in the public sector in Cheltenham but jobs in the private sector. The new cyber-innovation centre and the work we are going to do in Cheltenham will only go from strength to strength.

[Wes Streeting (Ilford North) (Lab)]

In 2007, Martin Lewis of moneysavingexpert.com and I were asked by David Willetts to lead an independent campaign for student finance information, and we agreed on the basis that we thought it would be better that people were able to make an informed choice and not be deterred from studying. Imagine my disappointment, then, at finding on page 93 of the book that student finance repayment conditions are not only being changed regressively but applied retrospectively. Not only do I regard this as a personal betrayal, but how can any applicant trust the information they are given by Government at the point of application? Furthermore, what message does the Chancellor think he is sending to the nursing profession and aspiring nurses that they should pay for the privilege of a profession in which they have to work incredibly hard for not particularly good pay? What an absolute outrage—he should apologise to students and to nurses.

[Mr Osborne]

One would not have guessed from the hon. Gentleman’s outburst that it was a Labour Government who introduced tuition fees and a Labour Government who introduced top-up fees. I think it is perfectly—[Interruption.] The truth is this: Labour Members got into opposition, they became completely irresponsible, and they have no economic plan and no economic credibility. Part of that was opposing the very student fees that they had themselves introduced when in government. The changes we are making to student fees enable us to expand student places. They not only remove the cap on nurse training places, whereby at the moment over the half the applicants are turned away, and as a result hospitals have to rely on agency staff and nurses from overseas, but expand student places across our universities in all disciplines. I would have thought that the hon. Gentleman, as a former head of the National Union of Students, would welcome that.

Oral Answers to Questions

Debate between George Osborne and Wes Streeting

Tuesday 27th October 2015 Commons Chamber

[Mr Osborne]

This House of Commons voted three times for the changes that were rejected by the House of Lords. I am sure that we look forward to the support of the Scottish National party on that constitutional question. I would make this point to the hon. Lady’s constituents: we need to have a welfare system that works. We need to move to a lower welfare, higher wage economy. We do that by introducing the national living wage and having a welfare bill that the country can afford. That is the best thing we can do for the security of the people she represents.

[Wes Streeting]

If the Chancellor had listened to the evidence from the outset, he would not be in this mess. If his Back Benchers had voted with their consciences, there would be an alignment of opinion between this House and the other place. Instead of manufacturing a phoney constitutional crisis, why will he not put his toys back in the pram and appreciate that he needs to go back to the drawing board with his failed policy that hits working people the hardest?

[Mr Osborne]

We will deliver the welfare savings that we were elected to deliver in this Parliament. We will help people in the transition to that lower welfare, higher wage economy. I remember a time when the Labour party used to support moving from welfare to work; it has entirely abandoned that approach. We will be the party that stands up for working people, and working people need controlled welfare and a country that lives within its means.

Greece

Debate between George Osborne and Wes Streeting

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

I agree with my hon. Friend that countries need to pay their way in the world. Britain had a budget deficit of more than 10% when the Conservative Prime Minister came to office five years ago. As a result of the action we have taken—universally opposed by the forces opposite—we have made the UK much more secure to deal with these sorts of shocks, but the job is not finished and I am sure my hon. Friend will be in his place on Budget day as we set out the steps we are going to take to finish it.

[Wes Streeting (Ilford North) (Lab)]

Given the seriousness of the situation and the impact that a Greek exit from the euro would have not just on the eurozone economies but on ours, too, is not the Chancellor slightly embarrassed by the unnecessarily partisan tone he is taking in some of his replies? Will he say a bit more about the protections he is considering in order the limit the exposure of British businesses and people with interests, including family interests, in Greece?

[Mr Osborne]

I would not regard it as partisan to point out that we need to reduce our budget deficit, make sure our banking system is properly capitalised and have a more competitive economy. If the hon. Gentleman takes that as a partisan comment, that is more of a reflection on his party than on mine.

Oral Answers to Questions

Debate between George Osborne and Wes Streeting

Tuesday 16th June 2015 Commons Chamber

[Mr Osborne]

I agree. That is why I was recently in both Derby and Birmingham after the election stressing that there is a massive potential for the midlands to be this engine of growth, and I am sure Lichfield will be a key part of that engine.

[Wes Streeting (Ilford North) (Lab)]

T9. I am sure the Chancellor agrees that pro-business parties are pro-European parties, so when will he come off the fence and confirm that he will be leading the charge for Britain to stay in Europe?