amendment of the law

Jim Cunningham Excerpts

Tuesday 25th March 2014 Commons Chamber

[Rachel Reeves]

The compulsory jobs guarantee, which will last for the full five years of the next Parliament, will be based on what we have seen with the jobs growth Wales programme, whereby 80% of the jobs are in the private sector. A couple of weeks ago, the shadow Minister for employment—my right hon. Friend the Member for East Ham (Stephen Timms)—and I visited a software company in Cardiff that had taken on 12 people through jobs growth Wales. It had made a huge difference to those young people, giving them hope and opportunity. The Government carp at our policies to get young people back to work, yet under them long-term youth unemployment has more than doubled. That is the Secretary of State’s record under this Government.

If the Chancellor really wanted this to be a Budget for savers, he would cap fees and charges on pensions and require insurance companies to provide free independent brokerage, as Labour has called for. Why did the Chancellor not do those things? It is because he is strong when it comes to standing up for the rich, but weak when it comes to standing up for the poor.

[Mr Jim Cunningham (Coventry South) (Lab)]

Does my hon. Friend agree that one of the biggest indictments of this Government and the Budget is the way in which they have adjusted taxation such that women will fund the bulk of the £14 billion the Government have to save? Women will have to save £11 billion—that is an indictment of this Government.

[Rachel Reeves]

My hon. Friend makes an important point: women are disproportionately hit by the changes introduced by this Government and are struggling with the rising cost of living more than anybody in this country. Moreover, the increasing costs of child care under this Government are making it harder for working parents, particularly working mums, to go back to work and make the contribution we need to the economy.

Four years ago, this Government said that debt would fall and that living standards would rise, yet the reverse has happened. They have broken their promise to balance the books by 2015 and they are set to borrow £190 billion more than they had planned. National debt is rising this year and it will rise next year and the year after that. There is more borrowing, more debt and more welfare spending under this Government.

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[Mr Jim Cunningham (Coventry South) (Lab)]

The tragedy of the hon. Member for Enfield North (Nick de Bois) is that he actually believes what he said. I think that we need to be a bit more realistic now. For the past four years, we have heard the Conservatives blaming the previous Labour Government for the economic recession—[Interruption.] If Members want to follow North Korean doctrines such as that of the “Dear Leader”, they should just carry on, but let us get a little bit real.

The recession started in America. I am sure that my colleagues remember Lehman Brothers and Fannie Mae. In this country, we had a problem with Northern Rock, which the Labour Government tried to address. All of this talk about us running up a deficit is nonsense. Basically, we had to save the banks. When the Labour Government came to power in 1997, they cleared the national debt. They inherited the policy of 50p of every pound paid in tax going to pay off the national debt; crumbling schools; patients waiting for treatment in hospitals on trolleys; and declining manufacturing, especially in Coventry and the west midlands. Coventry was losing thousands of manufacturing jobs a week, and household names such as Standard Triumph were disappearing. I am sure that my colleagues remember that.

The previous Tory Government attempted to rebalance the economy. They moved from manufacturing for export to the service industries, which led to the crisis of 2008. When we left office, we still had our triple A rating. We had introduced low interest rates to help families and pensioners and quantitative easing to help the economy and we had bailed out the banks to protect savings. Growth was returning. We had persuaded George Bush, an American Republican conservative President, to pump billions into the American economy.

When the present Government were in Opposition, they said that they would maintain our spending levels. They opposed freedom for the Bank of England and said that the economy was over-regulated and that they wanted to cut red tape. That was their solution to a worldwide crisis that started in America and spread across the world. Their plan was to pretend that it was confined to Britain so that they could blame the previous Labour Government and justify breaking their election promises to the British people.

We must remember that 13 million people are still living below the poverty line in the UK and that 350,000 people used a food bank last year. Energy prices are high, housing is inadequate, wages are low and the Government are offering nothing at a time when many people are suffering. The Government have very little to offer.

My first major problem with the Budget is that it is extremely unfair to our young people—a group who have been undervalued and forgotten by this Government. The Government should be ashamed of how they have simply abandoned a whole generation, who will suffer the most during this recession. Some 282,000 people under the age of 25 have been jobless for a year or more. That figure is at its highest since 1993 and has almost tripled since 2008. More than 900,000 young people are still out of work. That is a serious problem and the Government seem completely complacent about it.

The Government are pleased about the employment picture, but they have not considered the experience of young people in this country. What about young people who can find only part-time work? What about young people who have work, but in a different field from that in which they are trained, or for which they are overqualified? The Local Government Association has warned that a third of all young people will be out of work or trapped in underemployment by 2018 if we are not careful.

A young person’s first job is just a statistic to this Government, but someone’s early career can make a huge difference to their life. For someone who went to university, studied hard and hoped for a job in a particular field, it can be highly disheartening to work in a non-graduate job or a completely unrelated field. Nearly half of recent graduates are in non-graduate jobs. That can be a blight on their future in competitive industries.

Similarly, when people are burdened with financial pressures, being able to find only part-time work is a problem. We are talking about hard-working, driven young people who want to get on but instead spend their whole lives in jobs that are well below their capacity. Yet the Government smugly pat themselves on the back for the employment figures.

Our young people are being abandoned. If the Government do not see that as a serious problem and begin to take action, we are looking at a lost generation. That reminds me all too well of life for young people under Thatcher.

The Government’s flagship Youth Contract has been declared a failure by their own advisers and the Work programme is finding work for only one in six of the long-term unemployed. That is simply not good enough. Labour’s compulsory jobs guarantee scheme, which would be funded by a tax on bank bonuses, would ensure a paid job for every young person under 25 who was out of work for more than a year.

It looks to me as though the Government have given up on young people, perhaps because they think that they have not forgotten about tuition fees, or perhaps because they know that Labour will give the vote to 16-year-olds and they will not. Either way, they have simply decided that the youth vote is not worth chasing and they are going after pensioners instead. That is disgraceful. Young people are being forgotten. A Government should be a Government for everybody, not just for the people who might vote for them or the people who they are afraid might vote for the UK Independence party. That is no way to run an economy.

The Budget does shockingly little to address the fact that women are so unfairly hit by the cuts. Women are bearing the brunt of the cuts and the Budget is no exception.

[Mrs Mary Glindon (North Tyneside) (Lab)]

Women form the majority of employees in the public sector, so the cuts to that sector are doubly affecting women. Does that not show that the Government are going about this in an unfair way?

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[Mr Cunningham]

I agree with my hon. Friend. The majority of jobs created that are part time and have limiting career prospects have gone to overqualified women. Since 2010, male unemployment has decreased by 17% whereas female unemployment has risen by 7%. Disgracefully, women still tend to have lower end-of-career salaries than men and so often have lower pensions. Women are under-represented in the Government and that shows in their policies. What in the Budget will address that?

I want also to raise my concerns about local government finance. I have raised the issue on a number of occasions, but I cannot stress enough how much it matters. It needs to be made clear that a crisis is coming in many local authorities. Coventry city council has already lost approximately £45 million in core Government grant in the past three years and has had to implement a significant savings programme to minimise the impact on front-line services. That has, of course, put a huge strain on services. Coventry will face a—

[Madam Deputy Speaker (Dawn Primarolo)]

Order.