The Economy and Living Standards

Ian Swales Excerpts

Thursday 12th June 2014 Commons Chamber

[Ian Swales (Redcar) (LD)]

In 1997 the Labour Government were elected to the theme tune “Things can only get better”, but in my area they were about to get a lot worse. The Teesside Development Corporation was immediately scrapped and after 13 years of neglect, Redcar and Cleveland was judged independently to have the weakest economy in the country, and Middlesbrough had the second weakest.

Now with a successful local enterprise partnership, Government money pouring in, unemployment in my constituency down by 916 in the last year and manufacturing up, we can see the fruits of some investment coming through. Tonight when I get off the train I will be going past the new £39-million biologics manufacturing centre near Darlington station and on Monday we will be signing the Tees valley city deal, which I hope will act as a brake to those Labour people who think the Tees valley should always be run from Newcastle.

The Government are making the wealthy pay more. Against any year under the last Government, the wealthy are paying much higher taxes on their income, capital gains, pension contributions and spending. This week we passed clause 110 of the Finance Bill, which holds the inheritance tax threshold at £325,000.

I will just make a few comments about the Opposition amendment. We cannot take any lessons about house building from a party that reduced house building to the level of the 1920s by the time it left office and took 421,000 social houses out of circulation while the waiting lists were going up by 740,000—it is a shameful record. Labour also thinks we can make the energy industry more competitive by freezing prices, but unfortunately that will freeze investment and freeze out new entrants. I have tried in vain to find an organisation outside the Labour party that thinks the energy price freeze is in the interests of consumers. I will gladly take an intervention from anyone who can name such an organisation.

I support the living wage and helped to launch a campaign in Parliament. The Living Wage Foundation has praised the Liberal Democrat tax cut of £700 because it makes the living wage more achievable. The living wage is worked out from a net figure, so tax reductions do help. Interestingly, the Opposition amendment mentions the 10p tax rate. I would have thought they would want to bury that, as it reminds people that they doubled taxes for some of the lowest-paid people in this country. They mention vocational arrangements, and it is truly a scandal that our young people are so poorly educated that the NHS, engineers and many others have to go outside the country to get their employees. I am pleased that this Government are doing something about putting that right.