National Insurance Contributions Bill

Heidi Alexander Excerpts

Tuesday 23rd November 2010 Commons Chamber

[Heidi Alexander (Lewisham East) (Lab)]

I want to make only a brief speech and, like some other speakers, plan to limit my remarks to part 2 of the Bill, which deals with the national insurance holiday for businesses that start up outside London, the east and the south-east.

A national insurance holiday for some new businesses but not others is misguided. I have two main reasons for believing that. First, there is the basic issue of fairness. Under the Government’s proposals, a new business setting up in Leamington Spa, for example, could benefit from savings of up to £50,000 in its first year of operation, but the very same business starting up in my constituency of Lewisham East would get nothing. The businesses might be exactly the same and they might employ exactly the same number of people and have exactly the same turnover and profit margins, but one stands to get a kick-start of thousands of pounds in its first year and the other does not. I cannot help but think that that is blatantly unfair.

New businesses in Lewisham struggle to survive at the best of times: only 59% are still operating after their first three years as opposed to a UK average of 65%. If we add into the mix the state of the economy in Lewisham, we see that the policy seems even more misguided. The claimant count in my constituency has risen by 2% in the last year, whereas in Leamington Spa it has fallen by 25%.

The shadow Minister, my right hon. Friend the Member for Delyn (Mr Hanson), has already spoken about what the policy is meant to do. The stated aim of the payment holiday is to encourage the creation of private sector jobs in regions that rely on public sector employment. Presumably, that is an attempt to do something to offset the huge job losses that the Government are choosing to inflict on councils, police forces and primary care trusts up and down the country. So, one might be forgiven for thinking that the policy would apply to those areas that have the highest proportions of their work force employed in the public sector. One might think that the holiday would apply to the same areas as those that are eligible to bid for the Government’s new regional growth fund, but, no, that would be a logical step. Instead, the Government have decided to exclude London from their national insurance holiday and thereby exclude many communities that are highly dependent on public sector jobs—the very communities that are grappling with the uncertainty that the Government’s approach to public services has created.

Let us take as an example the area I represent in south-east London. The public sector accounts for 38% of all jobs in Lewisham, a figure that is 11% higher than the national average. If we take the boroughs of Lewisham, Southwark, Lambeth and Croydon together, we realise that the public sector work force amounts to 185,000 people, significantly more than the public sector work force of the whole of Tyne and Wear.

Lewisham also has more people chasing local jobs than almost anywhere else in the country. In October, there were more than 587 vacancies in Lewisham compared with 9,475 jobseeker’s allowance claimants. Let me again compare the situation with that in north Warwickshire, where there were 1,507 vacancies in October and 1,018 people looking for work. I accept that the labour market works very differently in London from elsewhere, and I am all for people getting on their bike, the bus or the train to get a job. Indeed, that is what most of my working constituents do every day. However, the fact that Lewisham has more people chasing local jobs than virtually anywhere else in the country says something very important about people’s experience when they go to the jobcentre in my constituency. For every job in Lewisham there are 16 people claiming JSA. Every week, without fail, I have someone asking me to help them in their search for work. These are not workshy individuals, but people who desperately want to get a job to provide for their family. The jobs are not there at the moment.

By not providing the same concessions to businesses in Lewisham as to new businesses elsewhere in the country, the Government are effectively limiting the prospects for my constituents who want to find work. Let us not forget that even in London it is necessary to stimulate employment in the sub-regional economy. Public sector jobs are often local to where people live, so mums and dads who face being made redundant by local councils will be keen to find local work that will fit around their caring responsibilities. Why are the Government intent on making it harder for them to find work in new private sector enterprises by excluding London start-ups from the national insurance concession?

Lewisham is part of London but its streets are not paved with gold. This is where the Government have gone wrong. Not all London is like Notting Hill. Yes, London has the City and is home to Canary Wharf, but it also has some of the most desperate examples of poverty in the UK. One in five Londoners earns less than a living wage and in inner London 20% of the population has 60% of the total income. The worst-off of the richest 10% of Londoners have wealth 273 times greater than that held by the best-off of the poorest 10%. The fact that London is home to the country’s major financial centres should not mean that my constituents are disadvantaged or that if they want to set up a business, they are treated as second-class entrepreneurs. It should not mean that hundreds of people who are fearful of losing their job in the public sector should have a lesser chance of getting a job in a new business start-up because of where they live.

In London, we know that an axe has been taken to the London Development Agency and that councils across the capital have lost local authority business growth incentives scheme money, which many ploughed back into supporting local businesses. We also know that the VAT increase will hit many small businesses very hard. Now, to add injury to insult, the Government want to support new businesses only in other parts of the country. That is not fair, it is misguided and I urge the Government to think again.

Economic Affairs and Work and Pensions

Heidi Alexander Excerpts

Tuesday 8th June 2010 Commons Chamber

[Heidi Alexander (Lewisham East) (Lab)]

I am very grateful for the chance to speak in this debate, and I congratulate the many hon. Members who have made their maiden speeches. The knowledge and passion with which everyone has spoken is testament to the talent and commitment that exists in this House.

I feel incredibly privileged to be here, and I thank the people of Lewisham East for giving me this opportunity. I also thank Bridget Prentice, my predecessor. Her decision to step down at the last election came as a surprise to me, as it did to many. Anyone who knows Bridget will say that she is straight-talking, good-humoured but not-to-be-messed-with Glaswegian. As the Member of Parliament for Lewisham East since 1992, she was a fearsome advocate for our corner of south-east London. There is also huge respect for her here, as there is in the constituency, as a former Minister. She has been an enormous support to me over the past few months, and I thank her for her advice, encouragement and friendship.

When I was growing up, I never thought I would be a Member of Parliament. Yes, I thought I might be a PE teacher, or even a town planner, but not an MP. A trip down to the polling station every four or five years with my mum and dad was the limit of my political experience as a child, but I was brought up with a very strong sense of right and wrong, and a belief that with hard work and determination, I could do whatever I wanted. I am pleased that my mum and dad are here today and I thank them for all they have done for me. Given that they have sat here for seven hours, I should probably also thank them for their stamina.

I was very lucky to have a good comprehensive education, and even luckier to be a student when full grants allowed people from families such as mine to go to college without racking up enormous debts. I was lucky to have people close to me who wanted me to do well, and to complete a degree that nurtured my interest in the world around me and gave me the confidence to get on in life. It was the recognition of my own fortunate position and a desire to see the world a better place that led me into politics, to ensure that others had the opportunities that I had and to reduce the inequalities that still exist in our society. My brother often tells me to get off my high horse, but I have always wanted a job in which I can make a difference, so I guess it is no surprise that I should find myself here.

I am very proud to represent Lewisham East, which has been my home for the past eight years, and to represent a party that has brought about huge improvements in the lives of ordinary people, but I also know that my party has a significant challenge of renewal and revitalisation ahead of it. We need to listen to what voters across the country are telling us, which is precisely what I plan to do in Lewisham East.

Like many others, my constituency is one of great contrasts, from the leafy streets of Blackheath and Lee Green, through multicultural Catford, and to the homes of Downham and Grove Park. Bisected by overland railway lines, my constituency has a history of welcoming people from different parts of the UK and, indeed, the world. In her book “The Wouldbegoods”, E. Nesbit described Lewisham as a place where

“nothing happens unless you make it happen”.

More than 100 years later, I can assure the House that the residents of Lewisham East make an awful lot happen.

Although we have areas of significant deprivation, we are not deprived of ambition or community spirit. I have been fortunate over the past few years to work with many of the groups that make our corner of London special, such as the tenants’ leaders who set up Phoenix Community Housing, the Friends and Users of Staplehurst Road Shops, and the volunteers at the Rushey Green Time Bank. I could go on. I love living in Lewisham, but I also know that a lot needs to change. During the election, I met mums and dads who were concerned about violent crime and gang culture, commuters fed up with being stuck in someone’s armpit on overcrowded trains, and people who were concerned about jobs and housing and were worried about the changes they have seen in their community, but most of all I met people who were anxious about the economy, and I shall now turn to that subject.

My predecessor spoke in her maiden speech in 1992 about the scourge of youth unemployment. She called for quality training schemes and job guarantees for young people who were affected by the recession of the early 1990s. Sadly, 18 years down the line I am in a similar position as a result of the new Government’s determination to slash public spending. Axing the future jobs fund beggars belief. In Lewisham, this scheme has already created 133 jobs, with another 42 positions lined up. These are real people benefiting from real jobs, with real money going into their pockets, real experience of the workplace and real references being secured to help them get their next job. Civil servants in Westminster may tell Ministers that the scheme is not working, but I am not sure that my constituents would say the same.

Ensuring that the next generation have the right skills to access the jobs of the future is critical. Ensuring that the next generation want the jobs of the future, and believe they can get them, is equally important. It never ceases to amaze me that while Canary Wharf is only a 15-minute DLR ride from my constituency, for some kids growing up in Lewisham East it might as well be another world. How we bridge that gap is a big challenge. Excellent schools can expand the horizons of our youngsters, but I cannot help but think that mentoring schemes, such as those run by Urban Synergy in my constituency, may also have some of the answers. By providing accessible role models and giving an insight into different careers, they fire the imagination of the next generation.

If London is to improve its economic competitiveness, the underlying challenge is to tackle the huge inequalities between the haves and the have-nots. Investment in housing and social housing is very important. I look forward to hearing from the new Front-Bench team about its plans for the decent homes programme, and I hope I will soon be in a position to reassure my constituents that much-needed investment in Lewisham homes will be forthcoming.

For as long as I am the Member of Parliament for Lewisham East, I will campaign hard to secure the resources that my part of London deserves. I will fight to reduce the gap between rich and poor and I will work tirelessly to give a voice to those who are least often heard. A friend of mine recently told her three-year-old that my job was to keep everyone in south-east London happy. That is one of the most challenging job descriptions I have ever heard, but I have told her I will do my best.