Cost of Living: Energy and Housing
Debate between Jeremy Corbyn and Ed Davey(10 years, 9 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Davey
I am afraid that the hon. Lady is completely wrong. Higher rate taxpayers did not get the allowance increase. This is one of the fairest tax cuts, because it is focused on the low-paid and people on moderate incomes. I must say that she does not understand how the tax system works.
Jeremy Corbyn
As the Secretary of State is talking about living standards, is he proud of the fact that many people living in the private rented sector in central London and other big cities are being socially cleansed out of their homes by a combination of high rents and benefit caps? Does he not think that that is a disgrace, that those communities are being damaged and that those children’s life chances are also being damaged? Should he not do something about it?
Mr Davey
The hon. Gentleman has been a champion in the debate on housing in London for many years. I do not think that he can point to any halcyon days over the past 30 years. The cost of housing was the biggest issue when I became an MP in 1997, and for many of my constituents it remains the biggest issue. There have been changes, but many of the housing benefit changes that we have made have actually hit the landlords, not the tenants. I think that he ought to welcome that.
I am very proud of our record of helping people on low incomes, and not only the personal tax allowance increases, but the rest of our help with the cost of living—fuel duty freezes, council tax freezes, free school meals and help with child care. The coalition has listened and is helping. Of course, all those measures take time to feed through. Everyone knows that in some parts of the country people are yet to feel the turnaround, and that was always inevitable. Many people are only now beginning to experience the end of the post-recession squeeze.
I think that what is worrying the Labour party is that in 10 months’ time many more people will be feeling the benefits of the recovery and Labour’s latest economic argument on the cost of living will look ever hollower. Of course, last summer the Opposition already began to switch their economic argument again. It was not the general cost of living or general inflation that they were talking about, or the full basket of goods that people buy; it was a few specific ones. That is why we have today’s debate on energy and housing costs. They are very important issues, and my right hon. Friend the Secretary of State for Communities and Local Government will, I am sure, take on the housing costs debate. I am sure that he will cover not only our record of low mortgage rates, but our record and our plans to build more houses to reduce housing costs.
However, I want to deal with energy costs, because, unlike the previous Government, we have acted on energy bills. We have taken on the energy companies, unlike the Leader of the Opposition when he was doing my job, when he could have acted but did not. It is interesting to look at the record on energy bills. In almost every year under Labour, energy bills rose: in 2005 they went up by 12%; in 2006 they went up by 20%; and in 2008 they went up by 16%. In the previous Parliament, under Labour, energy bills rose by a whopping 63%, and Labour did nothing. Yet they lecture us. Of course, bills have also risen in this Parliament, but by 8% a year, compared with 11% a year in the previous Parliament.
Labour did act to reform the energy markets; they managed the great feat of reducing the number of energy market firms and creating the big six. In other words, they made it worse and created another mess for us to clear up. This coalition is really reforming the energy market and taking on the energy companies. From day one, we began reforming the market to create real competition, with new competitors. Twelve new independent suppliers have entered the market since 2010, and independents are topping the best-buy tables, increasing their market share from less than 1% to 5% and rising, giving people a real chance not only to freeze their bills, but to cut them.
Just look at what has been done to help people with their energy bills: Ofgem’s reforms are making bills simpler and forcing firms to put consumers on the cheapest tariffs; switching rates are increasing, with switching speeds getting faster; and Government action is taking £50 off the average energy bill. Where the Opposition wanted to legislate for a freeze, with all the impact such regulatory intervention would have on investor confidence, the coalition has worked to ensure that the Government and competition are delivering something better than a freeze. Scottish and Southern Energy, British Gas, npower, Scottish Power and EDF have all announced that they will not increase energy prices this year unless network costs go up or wholesale energy costs rise, and of course they are not.
Lawful Industrial Action (Minor Errors) Bill
Debate between Jeremy Corbyn and Ed Davey(14 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
May I say to the hon. Member for Hayes and Harlington, for whom I have the utmost respect, that he did not take interventions during his opening remarks? As many of my hon. Friends made clear, that would have assisted the progress of the Bill. I think that new politics is about engagement in debate, and I hope that he will engage in that way in future.
We need to consider the details and the rationale behind the Bill. The hon. Member for Hayes and Harlington tried to make a case for changing industrial action law. He considers the current legal framework to be intrinsically unfair and thinks that because it is complicated, it gives rise to great uncertainty and unnecessary legal challenges against trade unions. Industrial action law has been a bone of contention for most of the last century or more, and hon. Members have referred to past discussions. When we look at the history, we see many key moments. We need only think of Barbara Castle’s “In Place of Strife” to remind ourselves how divisive and politically damaging to certain Governments this issue can be. Then there was the bruising period of the 1980s and early 1990s, when the Conservative Governments of those days introduced a succession of laws to establish a new legal framework to regulate and democratise the taking of industrial action. I believe that those reforms were long overdue, but it is worth reminding the House that they were resisted every inch of the way by the Labour party when it was in opposition.
Jeremy Corbyn (Islington North) (Lab)
On a point of order, Mr Deputy Speaker. I have been trying to follow what the Minister is saying, and it appears to me—I do not know whether you have the same impression—that he is deviating a long way from the terms of the Bill. He is giving his view of the history of industrial relations in the 1980s and early 1990s, when he should be addressing whatever concerns the Government have about my hon. Friend’s Bill.