Opportunities for the Next Generation

John Redwood Excerpts

Tuesday 13th September 2011 Commons Chamber

[Mr John Denham (Southampton, Itchen) (Lab)]

I beg to move,

That this House believes that young people face a more uncertain future which may not offer the increased opportunities and prosperity enjoyed by their parents and their grandparents; notes that, following the Government’s decision to cut public spending too far and too fast, it has targeted young people with cuts, resulting in nearly one million young people not in education, employment or training; further notes with concern that there were no university places for around 100,000 applicants this year, that tuition fees are trebling, university places will be cut next year and many universities will lose popular courses; highlights that the proportion of apprenticeship places for 16 to 18 year olds has decreased by 11 per cent., new apprenticeships are providing mainly short-term training for older workers, the Future Jobs Fund has been scrapped, the apprenticeship guarantee abandoned, Education Maintenance Allowance ended, homelessness has risen and homebuilding is at a 90-year low; believes the Government must take action to secure business growth to create opportunities for young people; resolves that the Government should repeat the bank bonus levy to create over 100,000 jobs through a youth jobs fund, to build 25,000 affordable homes and to support business through increased funding for the Regional Growth Fund; calls on the Government to expand apprenticeships for young people and to ensure that public sector contractors offer apprenticeships; and further calls on the Government to enact a temporary VAT cut to boost consumer spending, business confidence and support the UK’s high streets.

The motion is in my name and those of my right hon. Friend the Member for Leigh (Andy Burnham) and others. I thank the Minister for Further Education, Skills and Lifelong Learning, who has given his apologies for his absence this afternoon, which is for understandable reasons. I see that the Secretary of State for Business, Innovation and Skills is not here to answer the debate; he seems to be curiously reluctant to answer when I introduce Opposition day debates, but no doubt he is trying to work out how to be selected as the coalition candidate for Richmond at the next election.

We British people have always been confident that each new generation will do better than their parents and their grandparents. There have been wars and economic crises, and individual families have had their ups and downs, but what my right hon. Friend the leader of the Labour party calls “the promise of Britain” has held true. Parents have been able to say, “Our children have had more opportunities, a better education and a higher standard of living than we had.”

However, Members on both sides of the House will know that confidence in that British promise has never been more shaky, knowing that the average age of a first-time buyer is approaching 40, and that there are 1 million young people not in employment, education or training. At the same time, we have all heard young people asking whether the cost of a degree is worth it, and what the alternative would be. We have all heard parents asking how this country will pay its way in a fiercely competitive world, and what young people will do. Only a quarter of parents and grandparents questioned by YouGov believed that their young would be better off than they were.

Today, the Opposition are asking the House to focus on things that the Government should and should not have done, but let us be clear: the challenges did not suddenly emerge from a blue sky at the last election. The Minister for Universities and Science advocates the view that over decades, the older generation has in some way stolen the future from young people, and that we have so rigged the rules of the game throughout our lives that the young have only half a chance—I apologise if I paraphrase cruelly. We hear similar views across the political spectrum. Whether or not we share them—I have very strong reservations—it is clear that the generation now in power has a huge responsibility to young people, and that the changes that are needed in our economy and society are profound. Those changes will take leadership, which Labour will offer, over many years.

However, I would not be doing young people any favours if I pretended that it was only in the past year that everything had gone wrong.

[Mr John Redwood (Wokingham) (Con)]

In his motion, the right hon. Gentleman states that one problem is that the Government have cut

“too far and too fast”,

but in their first year they increased spending by 5.3%, or £32 billion, and every extra pound that they spent was, of course, borrowed. How much extra would he have wanted to spend?

[Mr Denham]

We know that the Government aim to cut sufficiently fast to eliminate the deficit in four years. Our judgment was that the right balance between dealing with the deficit and sustaining jobs and growth would be to halve the deficit over a similar period. That allows us to say not that there would never be any cuts in public expenditure, but that there would be a very different trajectory to public spending. For reasons that I will give, that difference of choice would have made a big difference to the young people of this country.

I have acknowledged that some of the problems are deep-seated and long-term, but today’s Opposition day debates focus critical attention on the Government’s actions. The charge is clear: the Government’s economic policy has directly made the lives and prospects of young people worse. They have not hit young people along with everyone else; they have chosen—I think “chosen” is the right word—to single out young people and to make their lives and prospects worse.

[Mr Denham]

We will have the opportunity in a few moments to see whether that last claim is accurate, although I think that the hon. Gentleman might be disappointed. On the question of apologies, though, we did not hear yesterday an apology from the Conservative party for urging the Labour Government to deregulate further and faster in the financial services sector. The right hon. Member for Wokingham (Mr Redwood) was one of those producing Conservative party policy documents in that vein. I think that we should hear a little honesty from the governing party.

[Mr Redwood]

Will the right hon. Gentleman give way?

[Mr Denham]

I will have to give way on that point.

[Mr Redwood]

As the right hon. Gentleman should know by now, the report that I co-authored stated clearly that the Government needed to regulate the cash and capital of the banks more strongly than they did. Had they done that, they would have been in a much better place.

[Mr Denham]

But the problem did not come from the cash or the capital; it came from the complex financial instruments that were not being properly regulated, as we discussed yesterday. However, I am trying your patience, Mr Speaker, so perhaps I should make some progress.

The Government have chosen to single out young people and make their lives and prospects worse. In June I visited the Bombardier factory in Derby and talked to three young apprentices. I asked them how they saw their future in the company. “To go as far as we can,” said one. Mr Colin Walton, the chief executive officer, used to be an apprentice. That is what the promise of Britain was all about: if someone wanted to get on, they could. We all know what happened, though. The Government missed the chance to reopen the Thameslink contract, despite the many changed circumstances. It was a disastrous failure of will and responsibility, and the dreams of those apprentices now hang by a thread.

The decision to tackle the deficit by cutting spending too far and too fast has had predictable results. The economy was growing a year ago, but today it is choking.