John McDonnell
Main Page: John McDonnell (Independent - Hayes and Harlington)Department Debates - View all John McDonnell's debates with the HM Treasury
(4 years, 10 months ago)
Commons ChamberI beg to move amendment (g), at end add
‘but respectfully regret that the Gracious Speech fails to rebuild the UK economy, tackle the housing crisis, further pushes public services into crisis and contains no vision to bring this divided country back together; call on the Government to bring forward a plan to rebuild the economy so that it works in the interest of the many, not just handing out rewards to those at the top; and further call on the Government to address the climate emergency by bringing forward a green industrial revolution to decarbonise the economy and boost economic growth.’
Mr Speaker, may I just say this? This is the last time that you will be chairing a day of the Queen’s Speech debate, and I may not get the opportunity in other tribute debates to say this. It has been a privilege to serve in this House while you have been Speaker. Thank you.
I listened to the Prime Minister introducing the Queen’s Speech. What I always find most startling about the Prime Minister is his ability to create his own truth and, when confronted with any reality that contradicts his truth, to bluster his way through. I believe he believes that, with a combination of bluster and the occasional pretentious use of Latin, he can always avoid confronting reality or answering for it. So, if we can achieve anything in today’s debate, let us at least try to confront the reality of what some of our people face and assess whether the announcements in the Queen’s Speech in any way meet those challenges.
On the economy, the Prime Minister referred in his speech to “economic success” and “free market success”. He also said:
“in important respects this country is the greatest place to live and to be—the greatest place on earth.”—[Official Report, 14 October 2019; Vol. 666, c. 19.]
I think many of us feel that way, but I just wish it was the same for everyone. For so many of our people, tragically, it is not at the moment. There is a multitude of statistics evidencing just how far the Prime Minister is out of touch and how he appears to have no understanding of what our people have gone through over nearly a decade. Let me start with three stark examples of what the austerity the Conservative party has inflicted on our people has meant and continues to mean, and which I deeply regret were not addressed in the Queen’s Speech.
First, on infant mortality and child poverty, earlier this month, the British Medical Journal published a research project into infant mortality. Declines in infant mortality have been reversed for the first time in 100 years. The research found that, between 2014 and 2017, there were 570 excess infant deaths. The research concluded that 172 of those infant deaths were associated with the increase in child poverty. Out there, there are nearly 200 families who are grieving as a result of the Government’s austerity policies. There is nothing in the Queen’s Speech—nothing—that will tackle the poverty affecting 14 million of our people, and nothing that will tackle the poverty that 4.5 million of our children are being brought up in, or help the 125,000 children who are forced to live in temporary accommodation. There is nothing to address the £3 billion funding gap local councils face in trying to provide the services needed to support those very families. I will not forget, and many Labour Members will not forget, that this is a Government who have closed over 500 Sure Start centres, the very institutions we founded to support those families and to prevent infant mortality and morbidity on the scale we have seen.
Let me take the second example of what the Tories have done to our people. Earlier this month, the Office for National Statistics reported a record number of deaths of homeless people in England and Wales in 2018. Last year, 726 homeless people died. That represents the highest year-to-year increase since data was first collected. The Government have cut £1 billion from support to the homeless since 2010, so it is hardly surprising that rough sleeping has risen by almost 165%. In London, rough sleeping has more than tripled since 2010. Again, there is nothing—nothing—in the Queen’s Speech to tackle the scourge of homelessness.
My third example is the distance between what the Government claim and what employment and wages are like in this country. The Prime Minister claimed that
“we have unemployment at its lowest level since 1974”.—[Official Report, 14 October 2019; Vol. 666, c. 22.]
The reality is this: more than 3 million people are missing from the unemployment rate because they report themselves as “economically inactive,” we have over 2.5 million people counted as employed even though they work fewer than 15 hours a week and there are 3.7 million people in insecure work.
The Government have received over £4 billion from the mineworkers’ pension scheme, despite not having paid a penny in. With retired miners getting by on a pension of, on average, £84 a week, does my right hon. Friend agree that it is time for the Government to listen? This Queen’s Speech should announce a review of the scheme so that miners and their widows get a fair deal.
Madam Deputy Speaker, I know that large numbers of Members are seeking to make speeches—I will take a number of interventions, but I will protect the time as best I can for others to speak.
Let me give my hon. Friend this assurance on that critical point: in our last Labour party manifesto, we promised that we would review the mineworkers’ pensions scheme—it is dear to my heart, because I was one of the administrators of the scheme soon after I left university, when I worked for the RMT—and we will review it because we want to lift miners and many miners’ widows out of the poverty that they now live in. We give that commitment.
I mentioned insecure work. There are now about 900,000 people on zero-hour contracts—up by 100,000 from a year ago—and real wages are still below pre-crisis levels. The Government like to talk about wage rises and wages rising at their fastest rate in a decade. It is a bizarre claim, because the Government have been in charge of the economy for the last decade, suppressing wages all through that period. According to the Financial Times, the UK was the only major economy where growth returned but wages fell. According to TUC calculations, since 2010, average pay has also fallen for 7.7 million low to middle-income earners, and 11.5 million middle to high-income earners. It is extraordinary that that was not even acknowledged in the Queen’s Speech—that we now have a low-pay, insecure-job economy that this Government have created over the last decade.
What my right hon. Friend’s wonderful speech is proving is that Government priorities make a difference. The previous Labour Government lifted millions and millions of children out of poverty, and the Government’s priorities since 2010 have plunged them all back in again.
Let me put on record that we pay tribute to Gordon Brown for the work that he did during that period. He committed himself to lifting children out of poverty and, my God, he delivered it.
I am listening with great interest to what the right hon. Gentleman is saying. I do not share his perception of the economy and I am wondering whether he still believes that Venezuela offers a better economic model than that of my hon. Friends on the Front Bench.
I said that I would limit interventions, but I accept that they can often be a job application, so I do not want to limit this job creation scheme that we are creating here—I wish the hon. Gentleman well in his future career.
The scale of human suffering and hardship inflicted on our people over the last nine years is never mentioned by the Government. The reason is that they would have to explain why our people have endured so much. They would have to admit that austerity was never—as we have said, and let us repeat it—an economic necessity; it was always a political choice. The choice the Tories took was that the bankers—their friends, many now populating the Government Front Bench—would never have to pay for the crisis that they had caused through their speculation. Instead, they determined—[Interruption.] The Chancellor of the Exchequer says, “You caused it”—this is the man who was selling the CDOs through Deutsche Bank. Deutsche Bank was a major contributor to the economic crisis that we faced—they have a nerve coming here blaming others, when they caused it. They determined that they would not pay for the crisis, but that the rest of our society would. They also took the view that they would never let a crisis go to waste, so they used it as the excuse to cut the taxes of the corporations and the rich. They have made £47 billion in cuts to our public services and, on their plans, they will have given away £110 billion in tax cuts to the corporations by 2022.
The right hon. Gentleman pointed to the fact that it was this Government who bailed out the banks when, actually, the Asset Protection Agency was set up by the Labour Government.
I say to the hon. Gentleman, who I have a lot of time for: it is best to listen to what I have said before he intervenes, because he did not, I think, accurately report what I said.
No, I will press on. The hon. Gentleman will have the opportunity to speak.
The Government have made £47 billion in cuts to our public services, they are giving away £110 billion, and to ramp up the profits of these corporations, they have sold out our public services to them: £9 billion-worth of contracts in health and social care were handed over to private companies this year. Outsourcing under this Government has been exposed this week for the racket it is. A report by the think tank Reform showed that outsourcing contracts wasted £14.3 billion of taxpayers’ money in the last three years. Nothing in this Queen’s Speech even acknowledges these rip-offs, let alone promises action to reverse them.
I found nothing either in the Queen’s Speech that addresses the scandal of the industrial scale of tax avoidance and money laundering that is staining the reputation of our country. Today, Transparency International published its report “At Your Service”, which shows how
“UK service providers have been involved in some of the most egregious cases of corruption in our time.”
From the looks of this Queen’s Speech, the Government will continue to do nothing about it. The registration of overseas entities Bill, which will create a register of controlling owners of overseas legal entities that own UK land, is nowhere to be seen in the Queen’s Speech, three and a half years after the Government first committed to it.
We are at the tail end of what has been nearly a lost decade for our country—a near decade of the grotesque mismanagement of our economy by successive Conservative Chancellors; I am on my third in three years. The New Economics Foundation has shown that austerity has suppressed growth by almost £100 billion—that is more than £3,600 per household. After nine years of stuttering growth, GDP even went backwards in the last quarter. Public debt was meant to peak at 70% of GDP in 2013-14, only for it to rise to 86% of GDP in 2018-19. For all their stale claims of reducing the deficit, the reality is that the Conservatives have simply shifted that burden on to the shoulders of headteachers, councillors, NHS managers and police chiefs. These are the people who have had to make the tough decisions, not Ministers, and who have had to face up to the undermining of their services by these cuts.
Part of the testament to the Government’s failed fiscal strategy has been the litany of fiscal rules, invented, published, broadcast widely and then quietly and embarrassingly dropped. Within weeks, we hear that a new fiscal rule—probably largely stolen from us—will be announced in the Budget. I should say that we may have a new fiscal rule because we cannot be sure: only yesterday, despite the Chancellor announcing the Budget and its date, other Government sources were briefing that it was off. We have a Chancellor whose staff are sacked and escorted by armed guard out of their office, without his being told, and now Cummings is possibly cancelling his Budget. I give a word of advice to the Chancellor and his colleagues: get a grip on Cummings before he does any more damage to our country.
Apart from Budget making, one of the vitally important responsibilities of the Chancellor is to ensure that the Government and this House have the fullest information before them when considering legislation or issues impacting our economy. It is therefore extraordinary, and I think a dereliction of the Chancellor’s duties, that he—unlike his predecessors—has refused to publish a detailed economic impact assessment of the Government’s Brexit proposals. Studies of similar proposals have indicated a hit to the growth of our economy of between 3.4% and 8.1%. Even the lower range of that hit will have a severe impact on our people’s jobs and living standards, and on the economy overall. Surely it is only reasonable for Members to have a degree of information and analysis from the Chancellor’s Department before they make this momentous decision.
In their most recent manifestos, both the main parties committed themselves to respecting the outcome of the referendum. We do and we will, but, as we made clear on Tuesday, the House will not be bounced into an unrealistic and unfeasible timetable for considering and scrutinising such a critically important piece of legislation. That is why the Leader of the Opposition and Labour’s Chief Whip met the Prime Minister yesterday to offer a genuine compromise and to agree on a proper timetable that will allow, in the normal manner, proper scrutiny of the Bill and the opportunity to promote, debate and determine amendments. The Opposition have set out their views on the parts of the Bill that it wishes to amend, but of course we accept that it will be the House that decides. As always, we must accept the will of the House, even if, on many occasions, we disagree with it. It is a pity that the Prime Minister does not adopt that attitude.
There is an opportunity here for us to demonstrate to our people that Parliament can and does work. If we can demonstrate civility and a rational process in the House, we may be able to help to overcome some of the division and, indeed, bitterness that have set in within our own society.
I thank the shadow Chancellor for giving way. It is very generous of him.
The Labour party’s policy of a four-day week will reduce the earnings of the poorest workers in the country. Those are not my words, but the words of a Labour peer, Lord Skidelsky.
Lord Skidelsky’s report suggests a 32-hour week—not a four-day week—but one without loss of pay, which will be achieved over a decade as a result of our investment in the economy to increase productivity.
My right hon. Friend is making an excellent speech. Does he agree that perhaps one of the reasons why the Government are so anxious not to publish an economic impact assessment of their Brexit proposals is that it would show that our economy will suffer under their hard Brexit, that our public finances will suffer under their hard Brexit and that the promises that they have made about investment in our police, our schools and our health service could not possibly be met under those Brexit proposals?
Although the Government will not publish their economic impact assessment, others have made such assessments and have concluded that a hard Brexit could cripple our economy in the short and long term. We need to have a proper debate in the House to consider the consequences and discuss what amendments can be made to protect our economy.
My hon. right Friend is absolutely right about those economic impact studies. Has he had any conversations with the Welsh and Scottish Governments about the huge impact that a border in the Irish sea will have on Welsh and Scottish communities? It appears that the Government have not done so.
Is it not interesting that virtually every Government apart from this one are willing to undertake an impact assessment of some sort? What does that display? I am not usually a suspicious person, but I think we have our suspicions.
Let me say to the Chancellor that he has a role to play in shouldering his responsibility to provide us all with the fullest possible information on the basis of which we can make our decisions. That means publishing a full economic impact assessment and doing it fast, so that we can have a proper debate.
As the Government have a working majority of minus 45, it is obvious that the Queen’s Speech is little more than a pretty crude election stunt. In all their various comments in the House and the media, the Prime Minister and the Chancellor have depicted their programme as “the people’s priorities”. As a political artisan, I can admire a good turn of phrase—
I have been here for 22 years. That is a long apprenticeship—and sometimes the apprentice can point out the truth as well.
As I say, I admire a good turn of phrase, and I congratulate the creatives in whatever PR agency the Conservative Party now uses for coming up with that one—it must have tested very well in the focus groups—but that is all it is: a slogan, a turn of phrase. The reality, as demonstrated in the Queen’s Speech, is that after something approaching a decade of harsh and brutal austerity, a few cynical publicity stunt commitments to paper over the massive cuts in our NHS, schools, policing and care will go nowhere near what is needed. A slogan will not suffice.
People know—and this is relevant to the Brexit debate—that if the economy hits the buffers again, as a result of Brexit, economic mismanagement by the Tories or both, and when a choice must be made by the Tories about who will pay, they will always protect their own: the corporations and the rich.
Before he ends his speech, will my right hon. Friend say something about the impact of future cuts on women? Over the past 10 years, 80% of austerity has fallen on their backs.
I met members of the Women’s Budget Group again yesterday, and they said that 86% of cuts were falling on women. Our society remains patriarchal, and many caring responsibilities still fall to them. Cuts in social care undermine the basis of support for many elderly people in particular, and that falls on the shoulders of women. This is what austerity has done over the last nine years. We are committed to providing free personal care for everyone, and that is what we will do.
The right hon. Gentleman has said that the Conservatives look after their own, and I agree with him. That is why we have cut the taxes of 32 million working people. That is why we are cutting taxes on businesses that are generating growth and employment for the people of this country.
Tragically for so many at the lower levels, all those tax cuts have been cancelled out by cuts in benefits and the introduction of universal credit. Some of the most vulnerable, particularly disabled people, have been forced to the wall as a result of the brutal implementation of the work capability assessment and the scrapping of the independent living fund. There is a litany of attacks on ordinary working people that Labour Members should consider a disgrace.
No, I will press on. I understand that we are short of time.
The Tories will indeed protect their own. Under them, it will always be the people who are burdened with cuts in services and pay and benefit freezes. What people need now is real change. They need real change in our economy, so that we can face up to the existential threat of climate change through Labour’s green industrial revolution; real change to provide the scale of resources that our NHS, our schools and our police services need, funded by a fair taxation system in which we will tackle tax evasion and avoidance; real change to bring forward the scale of investment that our infrastructure needs to compete in the global economy and meet the challenges of the fourth industrial revolution; and real change to ensure that our people share in the prosperity that we will create through decent wages, ownership and an end to the rip-off of privatisation.
Only a Labour Government can bring about the real change that our country needs after a lost decade under the Tories. What does that say? It says that it is time for a Labour Government.