(2 weeks, 3 days ago)
Commons Chamber
Dr Sandher
I think we have to explain it to the public, although they also saw the attack on Jaguar Land Rover and they understand the attack on sea cables. They are seeing it on the news more and more often. They understand that Russia is a threat, and they see the prices at the pump.
What is far more dangerous for us is that this slow-building crisis is much harder to deal with than a rapid one. The idea that we have war in Europe is now something we accept. Since 1945, we have not really had to take on board the idea that we can redraw borders by force, that military action can once again be here and that NATO can be tested. This is a new thing for us, so we have to tell the public both that war is on our doorstep and that resilience is now far more important.
For us, there is clearly a path forward, with two sets of policies: first, make life affordable; secondly, defend our nation. In terms of making life affordable, there is an immediate challenge. We are seeing higher fossil fuel prices leading to higher energy costs at home, and food and fertiliser getting more expensive. There are ways we can get costs down, and some of them are a bit easier than others. We can invest in clean energy and we can do direct reductions in energy bills, but for other things, like food, it is more difficult for us. That is why we need the second policy. We must also create good jobs in every single part of this country, but especially in those post-industrial areas where there have not been enough good jobs for an incredibly long time. Those are the places that are turning away from us and, indeed, from most of the Opposition parties as well.
The hon. Gentleman has rightly pointed out that there is a dichotomy here. His Government have come forward with a defence investment plan that is £5 billion short. Given his esteemed career as an economist, will he tell us where that money is going to come from? What is he suggesting to his Defence Secretary and the future Prime Minister about how to stop that gap? As he rightly pointed out, the cost of living is going up for the individual taxpayer.
Dr Sandher
First, I would like to thank the hon. Member for calling me an esteemed economist while the Whips are sitting on the Front Bench. He will appreciate that I am not going to annoy any Chancellor by putting forward any kind of tax rises today, but there is a clear commitment on the Labour Benches to fund the defence investment plan. The hon. Member is right to say that, fundamentally, we need to fund defence in this country, because the only way we can prevent war, and live up to our promise to ourselves, is to ensure that we prepare for one. Part of that is about funding, which is important, but it is also about the defence economic strategy. It is not just about the munitions and drones we are producing today; it is about how we scale that up in the case of a conflict. How do we make a conflict unthinkable because people know that the British state would stand with our NATO allies to win it convincingly?
The defence chief said that we needed £28 billion for defence, but the hon. Gentleman’s Government have brought forward £15 billion, of which there is a £4.7 billion shortfall. Therein lie the gap and the problem, because there is a difference between what we will need to achieve that ability to deter and actually providing it. What are his thoughts on that?
Dr Sandher
I have every confidence that we will prevent war by preparing for it, and that we are going to fund that, but beyond the funding, which is important, how do we ensure that we can achieve the scale-up that we need? How do we show that we can defend this country? The hon. Member and I may have a back and forth, but I think we agree that we need to help to defend this nation. There are Members of this House, however—they are obviously not in their seats today—who do not feel the same way. There are Members of this House who want to divide us, who are far too pally with Putin and who want to see us become weaker and more divided, because that is how they get what they want. They are part of an unholy alliance of ethnocrats and, as we are seeing now, cryptobillionaires. They want to see anger and division on one side and tax cuts for their billionaire mates on the other. Those are the people that all of us in the House today stand against, whether they are arguing with a bin or not. This is where we are.
A House divided against itself cannot stand, and nor can our nation. The only way we can ensure that we meet the moment presented to us by this war in Iran, and indeed by all conflicts around the world, is by first making life affordable for every single person so that they have a stake in this nation, and also by securing our nation and making it safer, in order to get costs down here at home. We on the Labour Benches know now what we have always known: that the only way we can meet this moment is together, that we are more than the sum of our parts and that can we achieve affordability and security through our common endeavour. Together we will, but divided we absolutely will not.
(1 year, 4 months ago)
Commons Chamber
Dr Jeevun Sandher (Loughborough) (Lab)
Thank you, Madam Deputy Speaker, for allowing me to rise to speak to Lords amendments 1 to 19. I want to speak about what makes a good tax system and, in particular, optimal tax theory, which is a topic that is as thrilling to me as it is no doubt to the entire Chamber.
A good tax system is defined by neutrality, simplicity and stability, as set out in the Mirrlees review. A tax system designed along those three principles will raise the maximum revenue with the minimum economic impact. Each of the amendments in isolation might seem reasonable, but together they introduce individual exemptions that make our tax system less neutral, less simple and less stable. The amendments would make our tax system worse.
Today, we are discussing raising national insurance contributions from the largest employers to fix our broken public services and invest in our prosperity. Three quarters of that £23 billion of investment is from the richest 2% of businesses, while we are reducing contributions from the 250,000 smallest businesses.
The hon. Member talks about simplicity. If that is the case, why is the Government splitting the NICs? They could have introduced an increase on employees at the same time as the increase on employers, but they have decided not to do that. That would have been a simple measure to raise taxes, without creating this complication. How does that tally with his theory?
(1 year, 4 months ago)
Commons Chamber
Dr Sandher
I am sure the Government will consider these measures in the round, but more broadly, of course, it is about building many more homes. Some 40% of 18 to 34-year-olds are living with mum and dad, and we are starting to fix that in this Budget, including by providing a 20% increase in the affordable homes programme, which is a stepping stone to building 1.5 million new homes.
I am grateful to my Leicestershire colleague for giving way. He will know that housing targets and housing numbers have gone up in Leicestershire—the figures in my patch are up by 59% and 73% respectively. However, the figures for Leicester city are dropping by 31%. Why is that happening when Leicester has brownfield sites and the best connections? If we need houses everywhere, should we not see them being built in cities as well, rather than just in the countryside?
Dr Sandher
The housing formula has rightly been changed to where the need is greatest. In my constituency, for example, planning permission has not been approved to replace derelict factories on brownfield sites with new homes. I have seen too few homes being built and too many things being rejected. I am proud of this Government’s aim to build new homes, and I have full faith in the formula. We need more homes everywhere, including in both of our constituencies.
(1 year, 7 months ago)
Commons Chamber
Dr Sandher
The young and the lowest paid work in the smallest businesses. Some analysis, including that from the Institute for Fiscal Studies, does not include these measures, and does not have matched employer-employee datasets. Indeed, Paul Johnson admitted as much when he came before the Treasury Committee.
I am grateful to my fellow Leicestershire MP for giving way. One of the ways that we can judge the market is by looking at vacancies. James Reed, who runs the Reed recruitment agency, has seen a 13% drop in advertisements on the company’s website. He has sounded the alarm that that could be a sign of recession, and that is the implication of what we are voting on today. How will the measure support young people if there are no jobs out there for them?
Dr Sandher
I direct the hon. Gentleman to today’s labour market statistics. Employment is still high; unemployment is about the same as it was; and I think inactivity is falling. In the official statistics, the picture looks good.
More broadly, vacancies are not the measure that we want to look at. Instead, we want to look at the number of people in jobs. The revenue that we are raising today will be invested in actions that directly create those good jobs. The warm homes plan will upgrade 300,000 homes, which is tens of thousands of good jobs. The expansion of early years childcare is tens of thousands of good jobs. Businesses need to know that they have the healthy workforce that they need, and more people who are available to work. This is a Budget for growth and for jobs.