Ministerial and other Maternity Allowances Bill

Baroness Harman Excerpts

2nd reading & 2nd reading: House of Commons
Thursday 11th February 2021 Commons Chamber

[Ms Harriet Harman (Camberwell and Peckham) (Lab) [V]]

I strongly support the Bill and everything that has been said so far by the Minister, by my hon. Friend the Member for Leeds West (Rachel Reeves) in an excellent speech, and by the Chair of the Women and Equalities Committee. I also fully support everything said by the hon. Member for Truro and Falmouth (Cherilyn Mackrory).

The Bill formally recognises that women now play an invaluable role in public life and that women have babies, and that we should support them and not downgrade them when they do. It is true that it has taken forever for us to get here, but better late than never. I do think we must give the Government credit for bringing the Bill forward, because they could have tried the fudge, favours and verbal behind-closed-doors promises that were the best that women Ministers could have hoped for in the past. The Bill sends a big and important public signal of valuing women’s work and recognising their commitment, including at the highest level. The Government have done the right thing by the Attorney General and women Cabinet Ministers; now they need to put right the completely wrong situation for the rest of the women in this country.

Women are doing an amazing thing when they have a baby. It takes a huge toll on a woman’s body to carry a baby, and it is the most demanding thing to care for a new baby, and yet we punish them by cutting their income and making them insecure at work. Statutory maternity pay is only £152 per week—less than half of what people get on the national minimum wage—so the woman’s income is clobbered just when she needs to be spending more. Honestly, if men had babies, do we really think that maternity pay would be so insultingly low? Not a chance. The law allows a year for maternity leave, but many women are forced to go back way before that, and before they feel they or their baby are really ready, because they simply cannot afford not to, or they fear—with justification—that they will be downgraded or even sacked if they take more than a few months.

We are here in Parliament to do the hugely important job of being an MP, but we have an additional responsibility as women in Parliament to fight to improve the lives of women in this country. Therefore, as I give the Attorney General my genuine and warmest best wishes for her second baby, I am counting on her, when she comes back, to be an outspoken champion in Government of the maternity rights of all women.

Select Committees

Baroness Harman Excerpts

Tuesday 4th July 2017 Commons Chamber

[Mrs Maria Miller (Basingstoke) (Con)]

I want to make a short speech in support of the motion moved by my hon. Friend the Deputy Leader of the House. I welcome the fact that the Government have decided to make permanent the Women and Equalities Committee. The Committee made a recommendation to that effect before the general election, and my right hon. Friend the Member for Aylesbury (Mr Lidington) had undertaken to put it on a permanent footing, which I really welcome.

The Women and Equalities Committee has proven its worth. The scope of the work undertaken has covered everything from looking at transgender rights for the first time, and having them debated on the Floor of the House of Commons, all the way through to looking at the impact of Brexit on equalities issues. I am also glad that the Committee has retained its name, as set out in the motion, because the issues that it looks at, which are the responsibility of Ministers, are women’s issues and equalities issues.

Before I draw my comments to a close, I want to raise two points, about which other former Select Committee Chairs may equally well have questions. First, I very much want to know from my hon. Friend the Deputy Leader of the House whether the financial support for Select Committees will be sufficient for the scrutiny that will be required of Government policy at such an important time in our Parliament’s history. We need to make sure that Select Committees, including the Women and Equalities Committee, have the financial and manpower resources that they require.

Secondly, I want the proceedings of Select Committees to be treated with respect. There is a need for Committees to be able to sit, perhaps in protected time, while the House is sitting, so that they are not unnecessarily curtailed or interrupted, particularly when they are gathering evidence. There is also a need for Select Committees, such as the Women and Equalities Committee, to have a role in taking the work of this Parliament around the world, and they should be able to do so with the help and support of the Government and Opposition Whips.

I will close by reiterating my thanks to the Government, who have done more than any other to support the establishment of a scrutiny Committee for women and equalities, for which I think they should be applauded.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

rose—

[Pete Wishart (Perth and North Perthshire) (SNP)]

rose—

--- Later in debate ---

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

I thank the Deputy Leader of the House for bringing this motion to the House. I strongly support it. In particular, I welcome putting the Women and Equalities Committee on a permanent footing. I was Leader of the House back in the day, and I should have done it. I find myself slightly baffled but congratulate him on bringing it forward. All credit to the Government for doing that.

The Women and Equalities Committee was first established in 2015. With women from both sides of the House—and indeed three men—on the Committee, it has covered a wide area of work, from Brexit negotiations to women being forced to wear high heels. It has more than showed that it justifies being put on a permanent footing alongside the other Select Committees, not least because of the strong and committed leadership given to it by the right hon. Member for Basingstoke (Mrs Miller) in the two short years she has been chairing it.

I am sure nobody will be saying, as some will be saying outside, “It’s all not necessary. We are all equal now.” While I wish that were the case, it is certainly not true. We have made rapid and immense progress, but there is still much further to go. Despite having a woman Prime Minister, most decisions are made by men, whether commercial decisions, or decisions in the private sector or the public sector. We have only to look at the Brexit negotiating team. God help us! There are eight of them—seven men and one woman. I ask myself, “Why on earth couldn’t they have selected that team on merit?”

Select Committees are Members working together across the House, not because we are all the same—we have profound differences in the different parties—but in recognition of the fact that it makes sense to work together when we agree, and no sense not to. Both sides of the House have expressed a commitment on childcare. I know a number of Select Committees will be concerned about that, but let us see how it is working out in practice. That is an issue for women because of the remaining, persistent unequal division of labour in the home.

There is, rightly, a shared commitment across the House to tackle domestic violence. The daily toll of black eyes, punctured lungs and broken ribs, and the weekly toll of murdered women, shames our society. We need to be certain that things are not set back; that cuts to the police, courts, councils and the Crown Prosecution Service do not make women less safe.

I think there is a shared commitment across the House on women’s income inequality. In 2005, women’s income on average per year was 55% of men’s. By 2010, it had risen to 70%. I suspect, however, that it has now stalled. I would like a gender impact assessment to be brought forward to the House at the same time as the Red Book and the Chancellor’s Budget statement.

I know we have a shared commitment across the House to tackle rape and sexual offences, but we all know that most sexual offences are not reported. We know the fear that she will be blamed prevents many women going to court, letting alone giving evidence. I hope that across the parties we can change the law to make it clear that past sexual history is not relevant to whether one has consented in a particular case. Past sexual history should never be dragged through the courts. I hope we reverse the Ched Evans ruling.

There are more women in this House than ever before—208—and I am especially proud of the 119 Labour women MPs. I warmly welcome all of them, the newly elected and the re-elected. In the House as a whole, however, we are still outnumbered two to one. We also last less long than our male colleagues, not because we are not as tough, durable or excellent as the men—clearly, we are—but because we are more likely to represent marginal seats. The turnover of women is therefore higher than that for men, so women are outnumbered not only numerically but in seniority.

I think the Women and Equalities Committee will show women in this House working together to highlight persisting inequalities and to insist that we make more progress. I am therefore very pleased to support the motion.

[Andrew Percy (Brigg and Goole) (Con)]

I had not intended to speak to the motion, but I heard the speech from the right hon. and learned Member for Camberwell and Peckham (Ms Harman) and while I agree with some of what she had to say I want to pick her up on one or two points.

Before I do that, I want to start by agreeing with the comments made by other Members, in particular the hon. Member for Perth and North Perthshire (Pete Wishart). I hope we can approach the new arrangement of a balanced Parliament in a sensible and less partisan way, particularly when it comes to the Standing Committees and the work of Select Committees. That will, of course, be the responsibility of the Members who sit on the Committees. I hope that is how we will progress. It is important to get the Committees established, the Chairs in place and the members elected. From my time serving on the Northern Ireland Affairs Committee, the Health Committee and the Regulatory Reform Committee, I know how valuable the work can be. I am not making a pitch to be Chairman of any of those Committees, by the way. I just want to make that clear, Mr Deputy Speaker. It is important that they are established and fulfil their scrutiny role.

I also agree with a great deal of what the right hon. and learned Member for Camberwell and Peckham said with regard to the Women and Equalities Committee. I am very proud that the Committee has been established under a Conservative Government. I am very proud not only that it is the Conservative Government who have a female Prime Minister—the second one, of course; women in the Labour party do not do quite so well at getting elected leader—but that we have put the Women and Equalities Committee on a permanent footing.

All I would say is that when we talk about equalities, it is not just about gender. Many of us who come from non-traditional, poorer backgrounds think that the House is not always representative of those of us who come from more challenged backgrounds. Replacing a man with a middle-class or upper middle-class woman does not, perhaps, do a great deal for equality. We should always be cautious—[Interruption.] The right hon. and learned Lady does not like the point I am making, but it is important that when we talk about equality it is not just about gender; it is about people’s backgrounds, including where they come from and even their work history. I suspect that if I had stood up and made the disparaging comments that she made about the Brexit negotiating team—at least they seemed to come across as slightly disparaging—but I had made them about a team consisting of seven women and one man, she would be on her feet having a pop.

[Ms Harman]

rose—

[Andrew Percy]

Of course I will give way.

[Ms Harman]

I agree with the hon. Gentleman that there is of course a major issue of class inequality in this country. That is why I would like the Government to implement clause 1 of the Equality Act 2010, which requires all Government Departments and public organisations to take into account the importance of narrowing the gap between the top and the bottom in all their public policy and operational decisions. If the Government care about class and income inequality, they should implement that clause.

[Andrew Percy]

I could not agree more. That was why, when I was a schoolteacher, before being elected to Parliament, it irked me so much that under the Government of which the right hon. and learned Lady was then a member, the gap between the top 10% best-performing and the 10% worst-performing schools widened, and social mobility decreased. I am simply saying that I do not think it helps the case for equalities to stand up and make what I thought were belittling and insulting comments about a particular negotiating team on the basis of its gender.

I agree more generally with what the right hon. and learned Lady said about the work of the Women and Equalities Committee under the chairmanship of my right hon. Friend the Member for Basingstoke (Mrs Miller), but I hope that when it is established—as, of course, it has been in the past—its members will also understand that this is a huge subject, and that huge inequalities have existed for many decades both within and without the genders. As I have said, the Committee is doing an important piece of work, but it will be better if those who pursue the agenda of closing the gap do not make inflammatory or divisive comments on the route to that end.

Good Parliament Report

Baroness Harman Excerpts

Wednesday 2nd November 2016 Westminster Hall

[Kirsty Blackman]

I will come to that. First, I am going to talk about some of the recommendations in the report and the reasons why they are so good. I will also talk about a few things that are not in the recommendations but that I feel would have benefits—job sharing is one of those.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

I, too, commend the hon. Lady for securing this debate and for what she has said about the report. On the point she so strongly made about her being a young person in Parliament, a mother of young children and a woman living miles away from her constituency, does she agree that essentially what is important is that people such as herself can be in Parliament to make it more representative and fundamentally do the job that it is supposed to do? We therefore need her and others to get over those barriers so that Parliament can be the sort of institution that it needs to be for this country.

[Kirsty Blackman]

I absolutely agree and will say why Parliament being representative is so important. Part of it is so that we can inspire people, so that young people who look at Parliament are not as disengaged as some currently are. A lot of young people look at Parliament and think, “There’s nobody there who’s like me”, or, “There are not enough people there who are like me. I can never achieve that.” If young people do not see people like themselves in Parliament, why would they bother to become engaged? Why would they think, “I can become an MP”, if we are not living that and showing that, and if we are not destroying the barriers I have mentioned, so that they can become Members of this Parliament or of others?

The other reason why it is really important that this place is representative is the role that we have as Westminster parliamentarians in a world-leading Parliament. We have not done very well recently at being a world- leading Parliament. I am quite embarrassed to go into Commonwealth Parliamentary Association meetings or Inter-Parliamentary Union meetings to talk to groups of parliamentarians from other countries and tell them about how wonderfully democratic Westminster is, because it is not. There are too many issues with this place, so that I find it really hard to say to people from other Parliaments, “You should follow our rules”, because our rules are not great.

If we were genuinely reforming this place and if we were genuinely a 21st century Parliament, it would be much easier for us to work with other Parliaments, help other Parliaments and trailblaze. If we were such a Parliament, that would be a better place for us to be.

I will go through some of the report’s recommendations and say why they are important. One of the first recommendations is about standards of behaviour. That recommendation is really important, not only because of the farce that is Prime Minister’s questions but because of some of the quieter things that people do not hear so much about. Some of my colleagues have had their outfits commented on by male MPs. That is not appropriate. People should not be making odd comments about outfits. That behaviour is not tackled enough in the House of Commons and there is not enough of an argument made when people face that kind of behaviour. Not enough people are standing up about it.

The next recommendation I will discuss is collecting statistics by gender and other characteristics. Basically, the intention behind that recommendation is that the Speaker should keep account of how many people are speaking, what percentage of women are speaking, what percentage of women are asking questions in debates and what percentage of people from working-class backgrounds are asking questions in debates. It is all well and good to get us elected to Parliament but if we are encountering barriers, or if our Whips Office does not let us talk often enough, for example, or if we are not managing to catch the Speaker’s eye, or if any of those types of things happen, they are issues. If we examine the statistics and try to work out what barriers are in place, we can work out how to overcome those barriers. Such statistics would be really useful information for us to have in the future as a House, so that we can consider tackling those issues.

The biggest section in the report is on procedural and timing changes, which would make the biggest difference. There are a huge number of recommendations. One of them is that the Government should announce recess dates at least one Session in advance, which is about making business in the House of Commons a bit more predictable. We had the ridiculous situation this year when the Whitsun recess in May was not announced until February or March. We did not know when the summer recess would be. People in the House of Lords could not tell their staff when their summer holiday would be.

In some ways, it is all well and good for MPs—we signed up to this—but for the staff, it is not fair and there is no good reason behind it. The only reason it happens is that the Government do not want to cede power. I am not blaming this Government any more than previous Governments. All Governments have been in control of the recess dates. It would be easy for them to announce the recess dates a bit further in advance than they currently do. Even if they said we will definitely be off for the whole of August and then tinkered with the other dates a bit later, that would be helpful. A move towards explaining the recess dates further in advance would be better for everyone.

I have already said my constituency is 500 miles away. I have to fly to get here. I cannot get the train. Some of my colleagues from Glasgow and Edinburgh occasionally get the train, but I am three hours past them. My constituency is really far away. The lack of business predictability means that my flights are more expensive. I am costing the taxpayer more money because I do not know when the Government will have votes far enough in advance to book anything. If I had more predictability —if the Government parted with that information a little further in advance—that would be cheaper for the taxpayer, which surely would be a good thing.

The thing about business predictability is that the Government do not have to go the whole way. They do not have to say, for example, “We will definitely be having Third Reading of the housing Bill on 15 November.” What they could say is, “That day will definitely be Government business, and that day will definitely be Back-Bench business.” That much they could tell us a good month in advance, and it would help with the cost and constituency engagements. If there is a vote on a Wednesday night, I cannot get home, and my constituents lose out on my presence. If I had a better understanding, because the Government told me further in advance, it would be better for my constituents and for taxpayers’ money.

One of the other recommendations is to abolish the party conference recess and sitting Fridays. We have been over the issues with private Members’ Bills in the past few weeks. There has been uproar about the way they work. I understand that some Members are particularly positive about the way private Members’ Bills work because they relish the opportunity to talk them out, but for me, being so far away from London, sitting Fridays mean I have to commit too much of my week to being here. I cannot just pop home of an evening to a constituency engagement. I already have problems representing my constituents as well as I would like, and committing to sitting Fridays makes things even more difficult. It is not just me. I am speaking from my point of view, but many colleagues are affected, whether they are in Scotland, Wales or Northern Ireland. For anywhere without very easy access, sitting Fridays are hard.

There are a couple of other things in the report about procedure and timing changes. It suggests that when the restoration work goes ahead, a couple of things should be trialled. One is remote voting, so that Members on the Parliamentary Estate can vote remotely. I am from Aberdeen. The previous Member for Aberdeen South was Anne Begg, who uses a wheelchair, and she missed a vote because the lift did not come. How was it fair for her constituents that she could not physically be there because the lift was not working? She should not have been in that position, and the ridiculous voting system we have continues to make the situation worse. Remote voting on the Parliamentary Estate would be an interesting thing to trial. I am not sure exactly how it would work, but we should look at trialling it.

Another trial suggested in the report is a new format for PMQs. There is a lot of agreement in all parts of the House that PMQs is not the best way to showcase our Parliament. I do not know how we could do it better—less bad-tempered, less vicious and in a more collegiate manner—while still holding the Government to account, but I am pretty sure that the current system does not work very well.

The last thing on procedure and timing changes is dress codes. We have some bizarre rules about dress codes in “Erskine May”. Women are allowed to wear hats and men have to wear jackets and ties unless the Speaker tells them that they can take them off. In the midst of summer, the Speaker rarely tells Members that they are allowed to take their jackets off. That does not seem all that fair.

Oral Answers to Questions

Baroness Harman Excerpts

Thursday 3rd July 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)]

The National Audit Office conducted an inquiry. I am confident that BT is doing its job incredibly effectively. We are passing a total of 20,000 premises a week with broadband, and that figure will soon be up to 40,000 a week. More than £60 million has been allocated to Lancashire and more than 130,000 homes there will get superfast broadband as a result.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

The evidence before the Leveson inquiry laid bare the pain and suffering caused to victims of press abuse. The press felt they could act with impunity as there was no proper complaints system, and all parties in both Houses agreed to a new system of independent self-regulation for the press. Will the Secretary of State join me in welcoming the appointment of David Wolfe as chair of the recognition board for the new press complaints system? Does he agree that the rest of the board should be appointed as soon as possible, and will he join me in encouraging the press to establish and put forward for recognition a Leveson-compliant, independent regulator so that there is an effective complaints system that is independent of both politicians and the press?

Oral Answers to Questions

Baroness Harman Excerpts

Thursday 1st May 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Culture, Media and Sport (Mr Edward Vaizey)]

Commercial radio is vitally important both locally and nationally. Some 35 million people listen to commercial radio every week, and UK radio revenues continue to increase. We have seen the launch of the first national talk radio station, LBC, and digital radio is vital to commercial radio’s future. I know that the Secretary of State is keen to meet commercial radio operators as soon as possible.

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

I add my congratulations to the right hon. Member for Bromsgrove (Sajid Javid) on his promotion. His elevation to a seat at the Cabinet table sends out a strong signal that in this country, our politics must be for people from all communities, all ethnicities and all walks of life, and I wish him well in his job.

As the right hon. Gentleman takes over leadership of this important Department, we will be urging him to fight hard for the arts and to promote the crucial role that the BBC plays in the cultural life of this country. I want to ask him about young people and music. Creativity is being squeezed out of the curriculum; fewer pupils are taking music at GCSE and A-level; music services have been cut by almost 30%; and now the Department for Education wants to cut a further 12% of music resources available to schools through the education services grant. Will he intervene with the Education Secretary and make the case for music in schools?

[Sajid Javid]

I thank the right hon. and learned Lady for her warm welcome. The work that she did when in government, especially on equalities, has had a lasting impact and I welcome much of it. Music and arts in schools are important, and I have already had a discussion with my right hon. Friend the Secretary of State for Education on that issue. Action that we have already taken, such as ring-fencing funding for music in schools, is very helpful, but I want to see whether there is more we can do.

Amendment of the Law

Baroness Harman Excerpts

Monday 26th March 2012 Commons Chamber

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

Let me begin with a double congratulation: to the Secretary of State and Lucia on the birth of their daughter, and to the shadow arts Minister and Rachel on the birth of their daughter. I congratulate both Members on their new babies, and also on taking paternity leave, which is a thoroughly good thing—mind you, I imagine that the Secretary of State feels well out of the debate today. Clearing up after a baby is much easier than clearing up after the mess of this Budget.

This is a Tory Budget, backed by the colluding Lib Dems—two parties that told us they were coming together in the national interest. How can it be in the national interest to fail on jobs, to fail on growth and to fail on fairness? Let us tell it how it really is: two parties coming together to give a tax bonanza to millionaires and a kick in the teeth to pensioners.

This is a Budget built on economic failure, with more than 1 million young people looking for work, economic growth at just half what can be seen in the US and the Government set to borrow £150 billion more than planned. What was needed was for the Government to come up with a Budget for jobs and growth, and they have failed.

It is good that today’s debate is focused on the creative industries, because they must be at the heart of economic growth in the future. We are good at them; they put Britain on the map; we are renowned for our arts and our culture, our film, TV and video games and our music, design and fashion. There is huge potential for growth there—growth in jobs, in exports and in contributions to gross domestic product. We needed the Government to come up with a plan for jobs and growth in the creative economy, but they have not.

The Government announced a tax break for high-end television, animation and video games, but these measures are strangely familiar. As my hon. Friend the Member for Bassetlaw (John Mann) said, it is something of an “homage” to the policies of the last Labour Government. It was, of course, the Labour Government who introduced the first tax breaks for the creative industries with our film tax relief, which has been hugely important for getting films made in Britain, helping our pioneering special effects industry and backing our studios such as Pinewood and Shepperton. The only original film policy this Government have come up with is axing the Film Council.

As for the tax break for video games, who first proposed this for the games industry? It was Labour.

[Mr Vaizey]

To continue the “homage” theme, it was the policy of the last Labour Government to merge the Film Council with the British Film Institute.

[Ms Harman]

But certainly not to do what this Government have done—without any consultation or any discussion at all. We certainly promoted the film industry.

To return to the tax break for video games, we first proposed a tax break for the games industry, and we put it in our Budget in 2010, but what did the Tory Chancellor say in his very first Budget? He said that

“we will not go ahead with the poorly targeted tax relief for the video games industry.”—[Official Report, 22 June 2010; Vol. 512, c. 175.]

And what did he do? He axed it. For the UK games industry, it could have been game over. He is introducing the tax relief now, but this misjudgment and delay have come at a price. Our video games industry was the third biggest in the world and has now fallen to the sixth. Many jobs have been lost, with nearly half going abroad to countries such as Canada, lured by its tax relief.

This policy, then, is not an original; it is a cover version—and like most cover versions, just not as good as the original. Although tax credits are worth while on their own, they are not enough to ensure that Britain fulfils its potential as a global hub for the creative industries. Just as this Government do not have a plan for jobs and growth in the economy, they do not have a plan for jobs and growth in the creative industries.

Where is the long-awaited communications Green Paper? The Minister did not say a word about it—not one word. Perhaps it is still waiting for some high-level policy input from a premier league Tory donor.

Where, too, is the action on protecting intellectual property? This is a fundamental issue for the creative industries—the bedrock of the knowledge economy. A tax break helps to boost investment, but more investors would be more confident if they knew that the product to which they were committing was not vulnerable to theft on an industrial scale. If an industry has been given a tax break, it makes it even less sensible to stand by and watch any of the value drain away through IP theft. The last Labour Government recognised that, which is why in 2010, we passed the Digital Economy Act with cross-party support. It needs to be implemented now. We already have the Digital Economy Act; it would be good to go with it. Professor Hargreaves has conducted another review of the same issue, but what the industry and economy are crying out for is action.

[Mr Don Foster (Bath) (LD)]

I have listened to a lot of drivel in my time, but is the right hon. and learned Lady seriously telling me that she recommends going ahead with all aspects of the Digital Economy Act when Ofcom has shown that part of it was simply unworkable, as Liberal Democrats pointed out during the passage of the Bill?

[Ms Harman]

But it needs to be implemented now, with a clear timetable and a code of conduct so that notification letters can be issued. We want the Government to show leadership by ensuring that search engines such as Google play their part, and, if there is no agreement, to carry on and legislate in the forthcoming communications Bill.

Where is the action on young people and skills in the creative industries? The future of our creative economy is built on our young people—young people who are consumers, and many of whom want to work in those industries. We must ensure that there are opportunities for creative development from primary school to the workplace, but the signs are not good. Creativity is being stifled in schools, and since last year the number of applications for degree courses in creative arts and design has fallen by 27%. We all know why that is: it is because of the Liberal Democrats’ shameful betrayal on tuition fees. The Liberal Democrats were meant to be a brake on the Government—remember that?—but it is obvious that they have zero influence on policy. Perhaps they just did not have enough money to buy dinner with the Prime Minister.

Where is the action on access to finance for the creative industries? London is a global financial capital and Britain’s creative industries are world leaders, yet they struggle to obtain the finance they need to grow. Most creative businesses are small or medium-sized, and they need the banks to lend to them to help them get started and grow. However, as has been pointed out by the British Chambers of Commerce, credit easing

“will not help the smaller, younger, and high-growth firms that have trouble getting credit in the first place.”

Operation Merlin figures show that banks are still failing to meet their lending targets. Net lending to small businesses fell by £10 billion last year. Banks must start lending to creative businesses rather than throwing money away in bankers’ bonuses, and the Government must start making that happen rather than throwing money away on tax cuts for rich bankers.

[Alun Cairns (Vale of Glamorgan) (Con)]

The right hon. and learned Lady says that creative industries are struggling to gain access to capital. Will she give us a specific example?

[Ms Harman]

There are many. We need only listen to all the arguments throughout the industry, whether they concern films, video games or music. If the hon. Gentleman does not realise that small and medium-sized businesses are having trouble obtaining loans so that they can start up and grow, he does not realise what is going on in the real world.

Where is the regional strategy that supports the creative industries all over the country, not just in London? The Government have abolished the regional development agencies, they have cut local government, and they have squeezed the BBC, which is bound to hit the independent sector that it supports. The Culture Secretary says that philanthropy will make up for his cuts. If that is his policy, how does it accord with the announcement in the Budget of a cap on tax relief for charitable donations? Was the Secretary of State consulted? Did he even know about it?

There is even more bad news for the arts. Not only have the Government cut the Arts Council’s budget by 29%, but they have now sacked its chair, Liz Forgan. That was a petty political act, and I am disappointed that the Minister did not take the opportunity to pay tribute to Liz Forgan. Those in the arts sector feel that she was doing a tremendous job for them, particularly in managing incredibly difficult cuts, and I want to pay tribute to her today.

Key to a regional strategy is a truly national broadband infrastructure. A digital economy needs digital infrastructure—

[John Mann]

Before my right hon. and learned Friend moves on to the subject of digital infrastructure, may I ask whether she is as disgusted and shocked as I am by the news that in 12 minutes’ time the Bassetlaw Youth Theatre will give its last performance because it has been cut by the Tories on Nottinghamshire county council, who have failed to invest in young people and their future? People who could have had a vocational future in the creative industries have had it taken away tonight by the Tories.

[Ms Harman]

I am very sad indeed to hear that. Although the Government have squeezed councils, Labour councils up and down the country are determined to do what they can to protect the arts in the community against a Government who are cutting while telling them that philanthropy can step in and take the place of funding, which it will not.

[Mary Macleod (Brentford and Isleworth) (Con)]

Will the right hon. and learned Lady give way?

[Ms Harman]

I am going to get on with my speech now, because I know that many other Members wish to speak.

Key to a regional strategy is a truly national broadband strategy. There is a growing digital divide between the haves and have-nots—between urban areas with superfast broadband and rural areas with none. That is from the party that said it cared about rural areas. In Labour’s digital Britain strategy, we guaranteed 2 megabit broadband speeds to the whole country by 2012. The Tory Government scrapped that, and now it will not happen until at least 2015. The Government boast of the £100 million for its super-connected cities, re-announced from the autumn statement, and the £50 million for a second wave of smaller towns and cities, but that will not happen until 2015, if then. The Government can talk about ultrafast and superfast and hyperfast and megafast all they like, as the Ministerdid, but what is happening is the creation of a digital underclass—those in rural areas, the unemployed, and older people, who are already so squeezed by this Budget and by this Government.

For many, broadband access will be made all the more difficult by cuts to libraries. According to the Chartered Institute of Library and Information Professionals, almost 600 libraries are threatened by this Government. Where does that leave the Government’s “race online” campaign, which is supposed to be about libraries playing a key role in getting people online? The Government should tread carefully here: it is a well-known fact that libraries are very popular with many older people—unlike the Chancellor of the Exchequer.

This was a Budget that failed on jobs, failed on growth and failed on fairness, especially for older people. How can it be fair to give a £40,000 tax cut to millionaires and pay for it by taking £3 billion from pensioners? There is no justification. There can be no excuse. The Government’s claim that this is not a cut but a “simplification” is an absolute joke. They have invented a wholly new meaning for the word, but perhaps we should all go along with it: when I went to the hairdresser on Saturday, I asked for a simplification and blow dry, and yesterday I failed to persuade my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) to simplify the lawn. But when it comes to simplification, the Culture Secretary had better watch out—I have heard that there are many on his side who would love to simplify his Department entirely.

Despite the fanfare ahead of this Budget, it has turned into a disaster. They wanted the centrepiece of the Budget to be “Downton Abbey”, but it turns out to be more like “Titanic”: the rich get the lifeboat, the rest sink or swim. This was a Budget that rearranged the deckchairs but did nothing for jobs and growth; a Budget that was based on economic failure and grossly unfair. Goodbye to detoxification: this Budget tells us everything we need to know. The clocks may have gone forward yesterday, but this Government have turned the clock back: wrong choices, wrong priorities, wrong values—same old Tories. The only people to benefit from this Budget were those rich enough to buy access to the Prime Minister.

[Several hon. Members]

rose—

Budget Resolutions and Economic Situation

Baroness Harman Excerpts

Tuesday 22nd June 2010 Commons Chamber

[Ms Harriet Harman (Camberwell and Peckham) (Lab)]

The Chancellor of the Exchequer has delivered his Budget. It is his first Budget, but we have seen it all before. This is a Tory Budget that will throw people out of work, will hold back economic growth—[Interruption.] Read the book! This Budget will hold back economic growth, and will harm vital public services. Yes, it is the Chancellor’s first Budget, but it is the same old Tories, hitting hardest at those who can least afford it and breaking their promises. This is true to form for the Tories, but it includes things that the Liberal Democrats have always fought against. Surely they cannot vote for this.

The Chancellor says his top priority is to cut the deficit. In order to get the deficit down, we need to keep economic growth up and we need to keep unemployment down. Today’s Budget—[Interruption.] Read the book! Today’s Budget is bad for growth, and that will make it harder to cut the deficit.

The new Office for Budget Responsibility has said in its report today that because of this Budget, growth next year will be lower than it would have been under our policies to support the economy through difficult times. It has revised growth for next year down from 2.6% to 2.3% because of the harm that the Chancellor’s Budget does. He said he was going to tell it straight, but the Chancellor has not told it straight today on jobs. Today’s Budget is bad for jobs and that, too, will make it harder to cut the deficit. The OBR forecasts on page 84 of its report that the price of the plans he has set out today in his Budget is tens of thousands of people out of work. [Interruption.] I say to hon. Members, look at the OBR report last week and compare it, on the International Labour Organisation unemployment and claimant count, with the forecast as a result of this Budget: tens of thousands more people out of work, and unemployment higher next year and every year of this Parliament. For people affected, this is a high price to pay, and it is equivalent in scale to putting every working man and woman in the city of Coventry out of work; that is the scale of the changes on jobs. And it is counter-productive. Private sector jobs will not spontaneously emerge as we see fewer people employed in public services. This Budget will hit private sector jobs as well as public sector jobs.

The reality is we do not get borrowing down by pulling the plug on support for businesses. We do not get borrowing down by throwing people out of work and on to the dole. [Interruption.] Look at the forecasts! We do not get borrowing down by stifling economic growth. This reckless Budget’s short-sighted approach will jeopardise the recovery and make the deficit worse, and when we do that, we end up with more tax rises further down the track, and it is unfair.

It is unfair on young people who need help to get work and get a decent start in life. The Government have scrapped the future jobs fund before it has even been formally evaluated, but every young person helped into work shows its value. It is unfair on the regions, whose manufacturing industries will suffer. They have cancelled the loan to Sheffield Forgemasters; they have snatched away the chance of new jobs. It is unfair on families: cuts to the value of child benefit; cuts to the disability living allowance; cuts to help for the jobless; ending the health in pregnancy grant; cutting the Sure Start maternity grant; ending free swimming; and cutting back free school meals. It is also unfair to older people, who will have to pay higher VAT and will have less money to spend in their local shops.

The Chancellor tells us that his plans are fair: that the rich will pay most. That is not true. As the Prime Minister himself said of VAT:

“it’s very regressive, it hits the poorest the hardest. It does, I absolutely promise you”,

and as the hon. Member for Bermondsey and Old Southwark (Simon Hughes) rightly pointed out last week, VAT “penalises the poor”.

It is unfair when cuts in public spending hit those people and those areas where public services and benefits matter most. The impact of the Chancellor’s changes to benefits and tax will be greatest in the poorest areas. We agree that borrowing must be brought down, but look at whom he has chosen to bear the brunt of cutting the deficit. The area most affected by his austerity policy, where people will see the biggest fall in average incomes, is Merseyside; the area least affected by his austerity policy—least affected by the fall in income—will be Cheshire. Yes, that includes his own constituency. This is not a fair Budget; it will entrench unfairness for the future.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Please wait until after the right hon. and learned Lady has spoken.

[Ms Harman]

And the VAT rise makes this a Budget of broken promises. Before the election the Prime Minister said he had no plans to put up VAT, and now, in his first Budget, he puts up VAT. During the election campaign the Liberal Democrats attacked what they called the Tory secret VAT bombshell. Little did we know that the Lib Dems had their own secret bombshell to drop on us: that they would vote for it.

The Tories present this Budget but they try to evade responsibility for it. They try to justify their broken promises, saying that things have changed—that things are worse than they realised—but what is this new information? The OBR forecasts are better than we predicted at the time of the March Budget: less borrowing than expected, and lower unemployment than expected, because of our actions.

The Government like to cite new information from abroad: the problems of Greece. Greece is in a completely different position from us: it is still in recession; it does not control its interest rates; and its debt is over 115% of its GDP. Greece is no alibi for this Tory Budget.

Nor should they pray in aid the story of Canada’s Budget cuts. Canada’s deficit reduction was taking place as Canada’s economy was boosted by strong growth in its neighbouring economy and main export market, the United States. Our export market is mainly the EU and growth there is sluggish. That is why President Obama wrote to his fellow G20 leaders this week urging them to turn away from the rush to austerity. Yes, deficits must be reduced, but we must not risk undermining the fragile global recovery. This is a Budget based on rewritten history and false excuses.

They say there is no alternative, but the truth is this is what they want. This Budget is not driven by economics; it is driven by ideology—their commitment to a smaller state. The Chancellor claims he has no alternative, but the OBR last week clearly stated that our plans would have more than halved the deficit over four years. No, this austerity Budget is their choice, and right now it is exactly the wrong choice.

This reckless Tory Budget would not be possible without the Lib Dems. The Lib Dems denounced early cuts; now they are backing them. They denounced VAT increases; now they are voting for them. How could they support everything they fought against? How could they let down everyone who voted for them? How could they let the Tories so exploit them? Do they not see that they are just a fig leaf? The Liberal Democrat Chief Secretary is just the Chancellor’s fig leaf. The Deputy Prime Minister is just the Prime Minister’s fig leaf. The Lib Dems’ leaders have sacrificed everything they ever stood for to ride in ministerial cars and to ride on the coat tails of the Tory Government. Twenty-two Liberal Democrat ministerial jobs have been bought at the cost of tens of thousands of other people’s. The Liberal Democrats used to stand up for people’s jobs, but now they only stand up for their own.

Look at the Business Secretary, the right hon. Member for Twickenham (Vince Cable). The House has noticed his remarkable transformation in the past few weeks from national treasure to Treasury poodle. They have no mandate for this Budget; this Budget has no legitimacy. Even if the Lib Dems will not speak up for jobs, we will. Even if they will not fight for fairness, we will, and even if they will not protest against Tory broken promises, we will.

We will support measures that are fair and that will help the economy. We will support the increase in capital gains tax. As the Chancellor said, it will help to stop people avoiding income tax by getting payment in capital. Such avoidance of tax is even more objectionable when we need to cut borrowing. We welcome the retention of the 50p tax rate. The Labour party was the first to call for a levy on the banks and the Government are going ahead with it. We will support that move, although I note that the banks will get a corporation tax cut to compensate them. We will support the increase in personal allowance, but the public, who will be hit by a rise in VAT, will feel short-changed.

In the face of a global economic crisis, this has been a difficult time for businesses and families, not just here but around the world. What this country needed was a Budget to support economic growth, to protect jobs and to cut the deficit fairly, but what we have got is a reckless Budget that pulls the rug out from under the economy. Predictably, the Tories do not care and are not listening. The Lib Dems are wringing their hands, and well they might, but that is not good enough. They should think about their constituents who will suffer if this Budget goes ahead. The Lib Dems should think again, but whatever they do, we will vote against it.

[Chris Bryant (Rhondda) (Lab)]

On a point of order, Mr Deputy Speaker. The Chancellor of the Exchequer said to us earlier that this country would hear the facts about his Budget straight from him at the Dispatch Box, but this morning his freeze of the civil list moneys was announced in The Guardian, his announcements on capital spending plans were in The Guardian and his proposals on national insurance, child tax credit and the VAT rise being delayed were all in The Guardian. Also, the precise figures about the changes to income tax—rising by £1,000 to £7,475—were in every single media outlet in this country. That is an abuse of the privilege of this House. Will Mr Speaker, or you on his behalf, refer this issue of the abuse of the privilege of the House to the Select Committee on Standards and Privileges?