Achieving Economic Growth

Harriett Baldwin Excerpts

Wednesday 18th May 2022 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I beg to move amendment (w), at the end of the Question to add:

“but respectfully regret that the Gracious Speech fails to bring forward immediately an emergency budget to tackle the cost of living crisis or to set out a new approach to the economy that will end 12 years of slow growth and high taxation under successive Conservative Governments.”

We meet today when inflation has hit its highest level for 40 years. Every pound that people had last year can purchase only 91p-worth of goods today; that is what inflation of 9% means. Our country has a cost of living crisis and a growth crisis, with prices rising, growth downgraded and no plan for the future. None of this, though, is inevitable. It is a consequence of Conservative decisions and the direction they have taken our economy in over the past 12 years.

The Government are increasingly a rudderless ship, heading to the rocks, while they are willing to watch people financially drown in the process. Where is the urgency and the action? The time to change course is now. We need an emergency Budget to deal with the inadequacy of the Chancellor’s spring statement, with a windfall tax to help to get bills down and to help families and pensioners to weather the storm. On the day that inflation has reached a 40-year high, the Chancellor is missing in action. As energy bills and anxiety levels soar, the response from the Government diminishes in comparison.

[Harriett Baldwin (West Worcestershire) (Con)]

The hon. Lady asks where the action is. Will she accept that today £150 is going into the bank accounts of people in council tax bands A to D from councils across this country?

[Rachel Reeves]

The action that Labour proposes is a windfall tax to take up to £600 off people’s bills. As the hon. Lady knows, energy bills have gone up 54%, by an average of £693. With all respect, £150 just does not cut it.

Labour first proposed a windfall tax on 9 January, more than four months ago, and what was the first response from a Conservative Minister? It was to insist that a windfall tax would be unfair because Shell and BP were “struggling”. North sea oil and gas producers are making £32 million a day in unexpected profits. Meanwhile, parents trying to pay their bills are going without food so that their children do not miss meals—that is struggling. We now know that each and every day the Conservatives delay introducing a windfall tax, families and pensioners are forking out £53 million more in their energy bills.

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[Hilary Benn]

I can only report what I was told by the farmer on Monday. He has relied over the years on workers who have come from eastern Europe, and he says, “They’re just not coming in the same numbers, and that’s why I can’t pick my crops.” That is the point I am making.

[Harriett Baldwin]

The right hon. Gentleman had the pleasure, as I did, of having lunch with some senators who were visiting here from France. I believe he was at the very conversation where they said how difficult it was for them too to find seasonal agricultural workers, because of the disruption caused by the pandemic.

[Hilary Benn]

Undoubtedly, disentangling the impact of the pandemic and other factors is continuing work; the Office for National Statistics makes that point when it publishes the statistics. However, there is no doubt at all that the change in the visa regime being operated by the Home Office now is having an impact on British farmers, and that was the point I was trying to make. I long for the day when these things—

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[Harriett Baldwin (West Worcestershire) (Con)]

It was interesting to listen to the hon. Member for Rhondda (Chris Bryant). Although I will not be joining him in the Lobby this evening to vote down the entirety of the Queen’s Speech, including the economic crime and corporate transparency Bill, which is what he is choosing to do, I will say that he made his points forcefully and well. However, I endorse the Chief Secretary’s comments when he ran through the range of important Bills that are included in the Queen’s Speech.

We were all shocked and taken aback today by the headline rate of inflation reaching 9%. It is a sobering moment, which many hon. Members have noted, so I start by saying that I think our Chancellor has been an unlucky Chancellor. He has had to face a pandemic, he has had to face war, and now, due to the consequences of that evil war, he has to face the inflation that is harming everyone in the United Kingdom in their pocket. None the less, I believe I am right in saying that my constituents feel very lucky that they have had this Chancellor throughout these difficult challenges, because he was so quick to provide help during the pandemic. The furlough scheme, the small business income support scheme and the culture recovery fund, to name just three, were gratefully received by constituents during the pandemic, and it is thanks to his plan for jobs that yesterday we saw the foundation of what we all want to achieve through economic growth: quite remarkably low unemployment in this country—the lowest since 1974.

There were other remarkable things in yesterday’s jobs announcements, such as a record high number of vacancies. I think I am right in saying that it is the first time the number of vacancies has exceeded the number of jobseekers in this country. The plan for jobs has worked well, as has the help the Chancellor gave throughout the pandemic, so today, as we face this high inflation rate, we are in a position to say that we have a strong job market.

It is also worth noting that this month marks the 25th anniversary of the independence of the Bank of England. I will strike a consensual note by saying that that was a really good policy decision. We must all reiterate the importance not only of the Bank of England’s independence, but of its achieving the 2% inflation mandate. It is incredibly important to our constituents that we have low inflation to form the foundation for achieving economic growth.

It might surprise Opposition Members to hear this, but I think a windfall tax—

[Stephen Kinnock (Aberavon) (Lab)]

Is a great idea.

[Harriett Baldwin]

Well, I think a windfall tax that helps the lowest-income households is the right approach, and that is the approach that the Government are already following. There is already a windfall tax on the oil and gas sector: whereas most corporations in this country pay 19% corporation tax, those in the oil and gas sector pay 30% corporation tax and 10% windfall tax on top of that. There has been a windfall to the Chancellor from the price of oil and gas having risen so much, and he has rightly spent that windfall on people in the lowest-income households. Just this week, people in council tax bands A to D in my constituency will receive a £150 cash grant in their bank accounts. In a couple of months’ time, in July, there will be a hike in the national insurance threshold that will put a further £330 a year into the pockets of those who pay national insurance. We have also heard about the £200 to smooth the impact on household bills.

I would urge every pensioner in this country on a low income to check whether they are entitled to pension credit. There are 850,000 pensioners in this country who are not claiming the pension credit they are entitled to. Can we all agree that we should encourage our constituents to claim that? It not only gives them extra cash, but means they get other benefits. There is the household support fund, which has been doubled to £1 billion. I would direct any of my constituents struggling with bills who reach out to me to ask about that fund. There is also the warm home discount, which has been increased and its eligibility has been widened. These measures are important and targeted at the lowest-income households, unlike a 5% across-the-board cut in VAT on fuel bills that would most benefit those who live in the biggest houses.

In conclusion, it does not matter how much bad luck the world has thrown at us—I think the Chancellor has been unlucky—because by doing the right thing, we can make the luck that will be a strong foundation for achieving economic growth.

Withdrawal Agreement: Proposed Changes

Harriett Baldwin Excerpts

Monday 7th October 2019 Commons Chamber

[James Duddridge]

I am not going to get into the detail of—[Interruption.] Opposition Members who have been Ministers will realise that lots of people see documents, and Ministers do not constantly want to be in the position of saying who has seen what documents, which versions and when. I will not comment on who has seen which documents or indeed on documents that I have seen or have not seen.

[Harriett Baldwin (West Worcestershire) (Con)]

I love the way that Opposition parties are implying that if only they could see these documents, they would rush to support the deal. I think the British public are now wise to the way in which Parliament has frustrated the Government’s negotiating position. Would it be possible for the Government to strengthen their negotiating hand by holding a vote on these proposals, in the way that we did on the Brady amendment in January, and show that there is a majority in this place for them?

[James Duddridge]

I think members of the public are getting wise to what is going on: this Government are trying to deliver Brexit and this Parliament, collectively, is trying to frustrate it. My hon. Friend raises the interesting solution of putting this to a vote, and I will discuss that with my ministerial colleagues.

European Union (Withdrawal) (No. 6) Bill

Harriett Baldwin Excerpts

3rd reading: House of Commons & Committee: 1st sitting: House of Commons
Wednesday 4th September 2019 Commons Chamber

[Richard Graham]

My constituency neighbour is absolutely right, but my aim is not so much to smoke out—to use his phrase—the motives and underlying thoughts of colleagues across this House, but to give all of us the opportunity to say, ultimately, what we really prefer: is it a deal or is it no deal? In that sense, he is absolutely right.

[Harriett Baldwin (West Worcestershire) (Con)]

I thank my hon. Friend for the thoughtful way in which he is setting out his case. He and I both just voted against the principle of this Bill on Second Reading, largely because we want the Prime Minister to have the strongest possible hand in his negotiations with the European Union. I shall listen carefully to the Minister’s response, but does my hon. Friend think that by agreeing this amendment tonight the House would in any way weaken the Prime Minister’s negotiating hand?

[Richard Graham]

My hon. Friend makes a very good point. One reason I drafted this very short amendment in the way that I did, with the help of the Clerks, was precisely not to take away the pads or gloves of the Government’s batsmen when they go into negotiations with the European Union, because this way would not predetermine the result of their negotiations at all. It would allow them to seek the deal that I believe—contrary to what some colleagues from the Scottish National party are saying—they are sincere about. If they were unsuccessful, it would still give the rest of us a chance to have a vote on a deal before no deal became the default option, so she is absolutely correct. This is not designed to weaken the Government’s stance in any way, but rather to allow their sincerity to give us the chance to express our view.

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[Stephen Kinnock]

I gently say to the hon. Gentleman that the meaningful votes that took place are a very different kettle of fish from what was produced by the cross-party talks. As I will say later in my speech, the cross-party talks contained a number of extremely important compromises and concessions from Labour Members. It is therefore a travesty that this Parliament never had the opportunity to debate or vote on the withdrawal agreement Bill. It is a different kettle of fish from what went before. For those with short memories, the withdrawal agreement Bill was very different from the former Prime Minister’s initial so-called “blind Brexit”—which was rejected three times by this House—because it contained 10 major concessions that gave far more clarity on the UK-EU relationship. We were not prepared to give carte blanche to the Government.

The cross-party talks gave the detail that we need. That was a direct result of the hard work of Opposition and Government Front Benchers and negotiating teams over the course of six weeks of serious talks. The concessions included a customs union compromise, with a binding vote on post-Brexit customs arrangements; a workers’ rights Bill that would guarantee that employment rights in the UK would not lag behind those of the EU; a pledge that the UK would see no change in the level of environmental protection after Brexit; a promise to seek as close to frictionless trade in goods with the EU as possible while being outside the single market and ending free movement; a commitment to having parliamentary time to allow for a vote at Committee stage on whether the deal should be put to a second referendum; an assurance to MPs that they must have the final say on the future UK’s relationship with the EU; and a promise that Northern Ireland would stay aligned with the rest of the UK on regulations and customs, even if the backstop were to come into force.

[Harriett Baldwin]

I appreciate the spirit in which the hon. Gentleman is approaching this debate and his amendments. Will he clarify whether the 10 changes that he outlines would involve changing anything in the 585-page withdrawal agreement?

[Stephen Kinnock]

The 585-page withdrawal agreement would remain intact, because those are the separation issues. All these issues relate to the future relationship, which the EU has made clear it is open to amending. The future relationship is, of course, a political declaration. The reasons why Labour Members were opposed to previous deals were that there was so little detail on the future relationship, and frankly, that we had said repeatedly that the Government should, rather than going to the wrong extreme in this debate, reach out to Labour Members. Finally, the former Prime Minister agreed to do that. We had the cross-party talks, and it is a travesty that this House never had the opportunity to debate and vote on those issues.