Elections Bill

Debate between John McDonnell and Michael Fabricant

Consideration of Lords amendments
Wednesday 27th April 2022 Commons Chamber

[John McDonnell]

That is a valid point. Rather than change legislation, which could introduce a remedy that does more harm than good, it is a matter of looking at how the existing system is working to ensure proper resources for investigation. The point that the hon. Gentleman makes about the individual—I will not name them—is about whether the sanctions were severe enough to prevent such a return. That is the way forward on all that.

The other aspect is about the list of alternative provisions that the Lords have come up with. If the Government had looked at them and said, “Okay, we’ll accept some and not others,” that would have been a better approach, because it would have demonstrated an open mind to work towards something that I think could operate effectively, even though I oppose the whole concept of the use of ID as a result of this legislation. The Government did not even do that, however. To reject the list wholesale demonstrates that they have dug themselves into a hole. I think that we will have to come back to a new piece of electoral legislation in due course that does exactly what the returning officers wanted and consolidates our electoral registration and also remedies some of the unfortunately difficult parts of this legislation.

Those difficult parts could be quite dangerous. I caution about the issue around suppression. I stood for election in my constituency in ’92 when poll tax had been introduced and 5,000 people dropped off the register there—by the sound of it, most of them were Labour voters because I lost by 54 votes. That demonstrates that, if necessary, people will drop out of the system, which worries me. It is not so much that the votes go missing but that those people become distant from the democratic process. They do not engage and, if they do not engage once or twice, it is very difficult for them to re-engage. That is why what seems like relatively minor procedural legislation could have a dramatic effect, particularly in certain constituencies, and could be quite dangerous in the hands of future Governments. I urge the Government to think again on that.

[Michael Fabricant (Lichfield) (Con)]

I am following the right hon. Gentleman’s argument with great interest. A constituent of mine wrote from a church to say that a number of her colleagues in the church are too old so they do not have passports or driving licences. I looked on the Government website and it would seem that local government can issue photo ID cards. Does he not think that to achieve the democracy that he and I want, it is incumbent on local government—although I hate to throw things at it—to ensure that such people get voter ID cards and to publicise that they are available?

[John McDonnell]

Two things on that: first, the hon. Gentleman is right to make us wary of putting even more responsibility on local government given its financial situation; and secondly, those cards have to be applied for, which is another process to go through that becomes costly. The hon. Member for Gedling intervened; it looks as though only 70% of people will actually do that, so we are still looking at a number of people dropping out of the system altogether.

That is why, with other colleagues, we are looking at what else people will have that they could use and why I thought that the list in Lords amendment 86 was constructive. There might be elements of that about which the Government think, “Well, that’s a bit iffy,” but I would rather that they had come back and said, “Well, let’s rule these ones out but accept the others.” They did not, which for me undermines their argument that they are trying to construct a legislation that will work effectively to ensure maximum democratic participation.

I am trying to be ultra-reasonable here, because people can lose their temper about this sort of legislation. My view is that whatever ping-pong takes place now, the two elements that we are talking about could be easily remedied. I want them to be dropped altogether, but if the Government will not drop them, then on the statement we should use a super-affirmative resolution process, and on the voter ID stuff they should at least look at some of the mechanisms and the list that the House of Lords has put forward, because several of the items are perfectly valid for their use. I will leave it at that.

Charter for Budget Responsibility

Debate between John McDonnell and Michael Fabricant

Tuesday 24th January 2017 Commons Chamber

[John McDonnell]

The right hon. Gentleman will recall my opposition to PFI and its failures, but let me be clear: to borrow for investment, to ensure that people have the skills and resources necessary to tackle the productivity crisis and thereby grow the economy and create the high skills and wages which mean that people can pay their taxes and fund our public services, is creditable; however, what we have seen over the last seven years is borrowing because of the failure of the Government’s economic policy.

In the past seven years, the Government have actually cut investment, and the consequences of insufficient investment are painfully clear. Austerity measures and low investment have fed directly into what the Governor of the Bank of England has called a “lost decade” for earnings. Productivity growth has stagnated, as even the Government’s own industrial strategy White Paper acknowledged. I share the Chancellor’s concerns: every hour worked in Britain now produces a third less than every hour worked in the US, Germany and France. We have been arguing that case at least since I became shadow Chancellor, but we had no acknowledgment of it from the Government until yesterday.

With that record of under-investment, it is no use those on the Government Benches talking about a post-Brexit Britain taking on the world. An economy with low productivity can compete only on the lowest common denominator, and that means, as has happened, slashing wages and salaries and hacking away at social protections, such as the NHS and pensions. This is the grim reality of the Conservative’s low-investment, low-productivity, low-wage economy, and it can easily get worse. For some on the Government Benches, an economy shorn of basic protections in the workplace, with rock-bottom wages and social spending provisions stripped to the barest minimum, would be a desirable goal. We have had a glimpse of that future in the Chancellor’s own threats to turn Britain into a tax haven. Even to hold out this prospect is to admit that the Government have no better plan than the steady management of decline.

[Michael Fabricant]

I have been in opposition, so I understand what the right hon. Gentleman is doing, but there has to be a little reality in his speech. We are the fastest-growing economy in the G7. Like him, I have been to France, Germany and Spain. Is he aware of the rates of unemployment in those countries?

[John McDonnell]

Let us look at what is happening outside in the real world. We welcome the growth in employment, but we have also experienced the biggest fall in wages among OECD countries over the past seven to 10 years—the figure of 10.4% is matched only by Greece. One in five employees in this country were low-paid in 2015. Mark Carney has called this the biggest lost decade for income growth since the 1860s. The number of self-employed people has increased dramatically, but on average they earn less than 20 years ago. So, yes, I welcome the growth in employment, but I do not welcome the growth in poverty pay, whether for the self-employed or those being exploited on zero-hours contracts.

[Michael Fabricant]

The right hon. Gentleman will know that the Joseph Rowntree Foundation says that the gap between the rich and the poor has actually reduced since 2010. In addition, when people on zero-hours contracts were polled, more than half said that they wanted the flexibility of those contracts. Yes, people in self-employment often earn less, but it is their decision. I was self-employed when I created my own company, but I chose to do that, rather than earning more in a larger corporation.

[John McDonnell]

What we now have in our economy is a scandal of bogus self-employment. A lot of the growth in self-employment has happened on that basis, and it includes the most exploitative aspects. The hon. Gentleman mentions inequality, so let us look at some of the figures. If we use an index other than the Gini coefficient, which does not take into account the real outstripping of the super-rich, such as the P90/P10 ratio—this looks at the 10th and 90th percentiles of income distribution—we find that inequality has risen every year over the past five years. Let us look at what has happened out there in individual companies. If we compare the average total pay of FTSE 100 chief executives with that of their employees in 2015, we find a ratio of 129:1; in the mid-1990s, it was no more than 45:1. That shows the grotesque levels of inequality that result from the economy that has been created over the past seven years.

Yesterday’s Green Paper seemed to recognise the failure of previous policy, and there has certainly been a change of rhetoric. The Prime Minister has suddenly been won over by the merits of an active industrial policy. The recognition that the six previous years have failed badly is welcome, but nowhere is it clear that the Government recognise the scale of the problem. The weaknesses and inequalities in our economy stem from decades of underinvestment, when decisions about what and where to invest have been taken by too few people at the top and to the benefit of that tiny handful. That leads to an economy in which the Government are planning for more than £5,000 of investment per head in London, compared with just £413 in the north-east of England. It is an economy in which a single London capital project receives more Government backing than the whole of Yorkshire, and in which the £500 million promised yesterday for the north of England is set against £18 billion of cuts from local authority budgets since 2010.