Budget (North-East)

Debate between Ian Swales and Pat Glass

Tuesday 17th April 2012 Westminster Hall

[Pat Glass (North West Durham) (Lab)]

I congratulate my hon. Friend the Member for Gateshead (Ian Mearns) on securing the debate, which has allowed so many hon. Members from the north-east to talk about the impact of the Government and the Budget on our region. It is disappointing that we have such a poor turnout among Government Members—one Tory MP and one Liberal Democrat MP. That is less than 50%. It is amazing to hear them speaking with one voice—“We are all Tories now”—and to hear the Liberal Democrat MP defending the 50p tax rate, the granny tax and tax cuts for the rich. Either the Liberal Democrat hon. Members have Stockholm syndrome, or they have no principles and never did. I think that we would all say yes to that.

The Prime Minister, before the 2010 election, talked a lot about the need to rebalance the economy from the south to the north and for the north-east to be less reliant on public sector jobs. However, if we have seen any rebalancing of the economy at all, it has been from the north to the south. Public spending cuts have had a massive impact on jobs in the north-east in particular. The north-east now has the highest unemployment rate of all the northern regions at 10.8% and has received higher than average cuts to local government grants and services. In my constituency, unemployment has doubled since 2010. The hon. Member for Stockton South (James Wharton) said that unemployment has fallen in the region. I do not know what he defines as the north-east region, but it certainly does not cover the area that I represent. Youth unemployment in my constituency is now dangerously high, and the Minister needs to be aware of that.

I can tell the Minister that despite a lack of growth in the economy generally since 2007, there have been some areas of real growth in the north-east. I visit companies in my constituency all the time, and there has been something of a renaissance in engineering and manufacturing, but at the high-level specialist bespoke end of the market. In those areas, manufacturers have told me that what they needed from the Budget was more highly skilled toolmakers and specialist engineers, to enable them to take on more of the work that is out there. The Government failed to deliver that in the Budget.

Chemical companies in my constituency have also told me that they have full order books but need more highly skilled chemical engineers to take on more of the work that is out there. The Government’s shabby excuse for an apprenticeship programme will not deliver the skills that those companies need. The Government again failed to deliver on that in the Budget. Other companies—good companies with good products—are struggling.

[Ian Swales]

Does the hon. Lady agree that nothing done three weeks ago will deliver a chemical engineer to a company tomorrow and that the previous Government’s failure to deliver the skills agenda over the past 10 years is the problem for manufacturers and engineers in the north-east?

[Pat Glass]

The Budget is a good opportunity and a good place to start, but if this is going to be done, now is the time to start. Did we see that? No, we did not.

Good companies with good products are struggling to get investment. They tell me that, despite the Government’s rhetoric, banks are refusing to invest in good companies that would give a good return. Banks still prefer to spend our money in the speculative markets, risking it, because that brings high rewards and gives bankers bonuses. The Government failed to do anything about that in the Budget.

I am on the doorstep all the time, knocking on doors. When people open their doors, I do not have to say anything: they tell me that the message from the Budget is that the Government are giving tax cuts to millionaires at the expense of pensioners. The Government do nothing and have been a disaster for the north-east region. If they cannot do something about that now, as my hon. Friend the Member for Gateshead said, they need to move over and allow a Government who are interested in the regions to take over.