(2 years, 3 months ago)
Commons ChamberThank you, Mr Speaker, although I have to say that I agree with the hon. Gentleman. This is important. These are matters that are of interest to the public, and we need to treat each other with a degree of respect and dignity.
Let us come back to the Prime Minister. He broke his own laws in office and he broke international law, but the thing that ultimately brought him down was the fact that he could never, ever be trusted with the truth. That is the record, and that is now the Prime Minister’s legacy. He should not be allowed any room to rewrite that record and that legacy—even for seven weeks. It has not escaped anyone’s notice that this Prime Minister has lived his life thinking that the world owes him a living. He has not had the grace to stay today to hear the opening speeches in this debate. That tells us everything that we need to know.
The right hon. Member is making an excellent speech. The Prime Minister today spoke for 30 minutes, and not once in what could be his last speech did he make reference to the real fact that because of the political decisions that he has made, children are living in poverty, working families are using food banks and our communities have been devastated. Does the right hon. Member agree that, in his last speech, the Prime Minister should at least have had the dignity to apologise to the children in our country?
I agree with the hon. Member, and I commend him for the passion that he brings to this topic. The fact that so many people in this country are struggling, and that so many people will be struggling over the cost of living crisis, should concern us all.
(5 years, 9 months ago)
Commons ChamberLet me explain. The hon. Gentleman, in supporting a motion of no confidence against the Prime Minister, as he did, clearly expressed that he does not have confidence in the Prime Minister. What the ERG is seeking to do is to make sure that the Government deliver what it wants, which is a hard Brexit—a no-deal Brexit perhaps—against the interests of the majority of the people in the United Kingdom.
Here is the reality. Having listened very carefully to what the Prime Minister has said today, there is no change to the Government’s position. The red lines remain in place. I fear that what is really going on is that we have a Government who are seeking to run down the clock, safe in the knowledge that the withdrawal Act has gone through, and seeking to drive Parliament to the margins and to make sure that we do crash out of the European Union, with no deal as a serious prospect. All of us should recognise the risks of no deal that no sane person in this House would support. The Government should unilaterally take off the table that risk to all of us and all our constituents.
The right hon. Gentleman must agree that the Prime Minister is a record setter—record levels of poverty, record levels of homelessness and now a record defeat: no Government have been defeated by such a majority before. Perhaps not in our lifetime, but does he think that majority will ever be beaten?
I would say to my hon. Friend, because he is my hon. Friend, that we see a record level of lack of humility from this Government. He is absolutely right. We have had 10 years of austerity from this Government and people are hurting. We can see that through the poverty figures and the increase in poverty that is forecast. The harsh reality, as we know from the Government’s own analysis, is that the economy of the United Kingdom would be weaker in any version of Brexit than it would be if we stayed in the European Union. That is the fundamental point.
I say respectfully to the Prime Minister that I understand the issue of respecting the vote in 2016, but when the Government know that the economic circumstances of their citizens are going to be negatively affected, we have a responsibility to say to the people, on the basis of the information that we now have, “We have a duty to go back to you,” because nobody—nobody—irrespective of how they voted in that referendum, voted to make themselves poorer. I say with respect to the Prime Minister that it is shameful that we are not being honest with the people of this country. We need to waken up.
Let us take the announcement from Jaguar Land Rover. I know there are many reasons why Jaguar Land Rover is restructuring—we know it is to do with diesel cars and with China—but, at the same time, Jaguar Land Rover has made it absolutely crystal clear that Brexit is a fundamental issue driving that restructuring. No Government should be in the situation where they want to put unemployment on the table, with unemployment a price worth paying. That is what happened under Thatcher and this Government at their peril will take risks with the economy and the livelihoods of the people in the United Kingdom.
(9 years ago)
Commons ChamberIt is a pleasure to speak in this debate. I am delighted that we again have an opportunity to try to hold the Government to account. I thank all the speakers who have argued that the Government should change course. In particular, I pay tribute to Conservative Members who have said many wise words, but those wise words will be acceptable only if the Government listen and change tack.
Why are we discussing tax credits again? Frankly, the Government have got themselves into a mess and they need to find a way out of it. The proposals agreed in the statutory instrument and now rejected in the other place are wrongheaded and punish those who are hard-working. We all agree that work must pay, but we do not make work pay by taking money from those in work who rely on tax credits to achieve a modest standard of living.
There is no economic, or indeed moral or ethical, rationale for ripping £4.4 billion out of the tax credits programme. Let us look at and examine the impact of the changes to tax credits. Perhaps I can start with a quote from the Adam Smith Institute, which used to be much loved by Conservative Members:
“Working tax credits are the best form of welfare we have, and cutting them would be a huge mistake. The government has long claimed to want to make work pay for everyone, but cutting tax credits would disincentivise work and hurt those at the bottom of society.”
The average negative impact of the reduction in tax credits will amount to £1,300 in 2016-17, or £25 a week, off each family’s budget. In the period of Margaret Thatcher’s Government, there was the line that if it was not hurting, it was not working. This is going to hurt, and it will hurt millions of families throughout the country. Is that what we want? Is it right and is it fair? Let us have a real debate about improving living standards, but let us also recognise that we have to reverse the growing inequality in the UK. Driving sustainable economic growth and a fairer society will, as an end result, negate the need for tax credit cuts.
As always, the hon. Gentleman is making a very persuasive case. He is absolutely right that the cuts will negatively impact some of the poorest families. Does he agree that it will also disproportionately affect black and minority ethnic communities?
The hon. Gentleman often speaks up, rightly, for those in BME communities, for which I thank him. He is absolutely right: those in disadvantaged communities will feel the brunt of the cuts—and not only them, but those in constituencies up and down the land. This must be stopped to protect people throughout the whole of the United Kingdom, regardless of where they come from.
We keep hearing that we cannot afford tax credits. This is bunkum. The reverse is true: we cannot afford to impact families in the way these measures will. We all want to reduce the deficit and the national debt. We need to drive sustainable economic growth in order to drive up tax receipts and improve our financial position. We cannot do that by taking £4.4 billion out of the economy.
It is the failure to deliver sustainable economic growth that constrains our ability to reduce the deficit and the debt. If the Government’s fiscal policy had been working, the Bank of England would not have intervened to the extent it has had to during the past few years by establishing an asset purchase programme—so called quantitative easing—to the tune of £375 billion. When we talk about our debt crisis and the need to reduce spending, we seem to airbrush away the fact that we owe £375 billion to ourselves—debt created by ourselves. SNP Members understand that quantitative easing was necessary. I might add that the financial markets have benefited massively from this injection of liquidity. The FTSE 100 index was at 3,700 in March 2009 when the programme started; today it is at 6,370—a gain of 73% over six and a half years. The Bank of England has acknowledged that those with financial assets have benefited enormously from the quantitative easing programme over the course of the past six years, and 40% of the benefits of higher asset prices have gone to the top 5% in society. Do not talk to us about all of us being in this together.
This is important because the outcome—I am being charitable in using that word—of fiscal and economic policy has been to enhance inequality, and today we are being told that the poor, particularly the working poor, must pay the price of the Government’s desire to balance the books. That is unfair and it is wrong.
In yesterday’s Prime Minister’s questions, the Prime Minister said:
“printing money, hiking up taxes—we see that it is working people like Karen who would pay the price.”—[Official Report, 28 October 2015; Vol. 601, c. 340.]
I gently point out to the Prime Minister that it is his Government who, through quantitative easing, have in effect been printing money and that the tax credit cuts are in reality a tax increase for Karen and millions of others.
The point is that this is about political choice. Those who have benefited enormously from the quantitative easing programme are now getting an additional bonus for the changes to inheritance tax. The poor are getting their income cut. Where is the social justice in that? Where is the social cohesion that we should be striving to deliver going to come from?
In the spirit of co-operation, let me help the Government.
(9 years ago)
Commons ChamberMy hon. Friend is absolutely correct. We have seen growing inequality over the course of the last few years, and the Budget will only increase it.
Indeed, and I shall be saying more about that a little later. You do not fix the deficit by taking spending out of the economy. The point is that those hard-working families who receive tax credits tend to spend every penny that they get, injecting money into the local economy, paying tax, and so on.
The hon. Gentleman has rightly referred to inequality. Does he accept that these cuts will disproportionately affect the BME communities, thus increasing racial inequality?
That, too, is a very reasonable point. I think that what the Government are doing will pose real dangers to the cohesion of society.
(9 years, 3 months ago)
Commons ChamberI thank the hon. Gentleman for his question, because we need a debate about that in the House. The real reason behind quantitative easing was exactly that—to produce an increase in bank lending—but if we look at what has happened over the past five or six years, we can see that there has hardly been a significant increase in bank lending. The money has gone into the financial markets and benefited the banks and the bankers, but we as a country have not seen the benefits that we should have had. That is the reality of what has happened. The previous Government had the choice between investing in the real economy and sticking cash into the back pockets of the bankers, which is what they achieved.
Why do the Government not invest in growing the economy and supporting low-paid workers, rather than punishing them for the Government’s failure to deliver sustainable economic growth?
Does the hon. Gentleman agree that this Government need to stop persecuting the poorest in society, and instead put pressure on big business to provide a proper living wage?
Absolutely. I concur 100% with the hon. Gentleman. When we come to vote on the emergency Budget, I appeal to Conservative Members to examine their own consciences, look at the pain that will be caused if they go ahead with cutting tax credits, and recognise that we need to invest.