(1 week, 6 days ago)
Commons ChamberI absolutely agree with the hon. Gentleman. The technology we will put in place will be precisely so that we drive down not only fraud but errors in the system. He will know, for example, that we are trialling a new system for carers in which we text them if they are about to go over their allowance, so that we do not have the scandalous overpayments that caused such a problem under the previous Government.
The second major reform that we will bring in is our plan to get Britain working again. Our White Paper, which will be published in the coming weeks, will bring forward the biggest reforms to employment support in a generation, backed by an additional £240 million of investment. This will help us meet our ambition to achieve an 80% employment rate and to turn what is in reality a Department for welfare into a genuine Department for work. First, we will create a new jobs and careers service, overhauling our jobcentres so that they no longer focus predominantly on monitoring and assessing benefits but are a genuine employment service working with employers, colleges, public services and local leaders to help people to get work and get on in work.
Secondly, we will devolve powers to Mayors and local areas to join up the fragmented patchwork system of employment, skills and, crucially, health support to drive down economic inactivity and drive up employment, boosting jobs and growth in every corner of the country—because the man, or even woman, in Whitehall does not know what is best in Leicester, Liverpool or Leeds. Last, but by no means least, we will bring forward our new youth guarantee, so that every young person is earning or learning—no ifs, no buts—because we do not accept having a generation of young people without the skills or jobs they need to succeed, and we will never write off young people before they have even begun.
Our determination to help people get work and keep work does not stop there. I know only too well from my constituents and my friends how often women in their 50s and beyond are now caring for elderly and disabled relatives but wanting to work at the same time. I am proud that we are giving family carers the biggest ever boost to the amounts they can earn while still receiving carer’s allowance. That will allow them to increase their hours to the equivalent of 16 hours at the national living wage, so that they can balance work and family life. This comes on top of the independent review into the scandalous overpayment of carer’s allowance that I have already announced, led by the former chief executive of Disability Rights UK, Liz Sayce, to ensure that we learn the lessons from what happened so that it never happens again. As a lifelong champion of family carers, I am proud that we have made that announcement. Our plan to get Britain working is crucial to driving up opportunity and driving down poverty—a key priority of this Labour Government.
The fact that over 4 million children are now growing up poor, with more than 800,000 living in households forced to rely on food banks, is a stain on our society. My right hon. Friend the Education Secretary and I have already set out the framework for our bold, ambitious, cross-Government strategy to tackle child poverty. We will publish the results in the spring, but we will not wait to act, particularly for those facing the deepest poverty.
We have extended the household support fund and discretionary housing payments, with an additional £1 billion this year, so that local authorities can help families and pensioners who face the greatest hardship. Furthermore, we have introduced our new fair repayment rate to cap the level of debt repayments that can be taken from universal credit, putting an average of £420 a year into the pockets of 1.2 million of the poorest households, which will lift thousands of children and families out of poverty. When I was chair of Feeding Leicester, food banks told me that debt driven by universal credit deductions was one of the biggest reasons why people had to use food banks, which is why I know this is such an important change.
We are also substantially increasing the income of pensioners who have worked hard all their lives and who deserve security in retirement. Our commitment to the pension triple lock throughout this Parliament means that spending on the state pension is forecast to rise by over £31 billion. This includes a more than £470 rise in the new state pension from next April.
Unlike the previous Government, who left over 800,000 pensioners missing out on the pension credit to which they are entitled, we are delivering the biggest-ever drive to increase uptake. For the first time, we are contacting 120,000 people on housing benefit who may be eligible for pension credit and, to guarantee even greater uptake, we will merge pension credit and housing benefit for new claimants from 2026. The Conservatives first promised this in 2011, but they never delivered. That is the difference a Labour Government make.
There is still much more to do, but this Budget starts to turn the corner: fixing the foundations of our economy and public services, driving up opportunity and driving down poverty in every corner of the land. We are honest about the challenges we face and optimistic about the opportunities ahead. This is a real plan for real change. I commend this Budget to the House.
Order. Members can observe how many people want to speak in the debate, so following the completion of all Front-Bench speeches, I will impose an immediate six-minute time limit to start with. I call Gill Furniss.
Back in July Britain voted to turn the corner on 14 years of failure at the hands of the Conservative party: 14 years of unfunded tax cuts for the wealthiest, 14 years of austerity that left working people to pick up the bill and 14 years of our public services crumbling. This Budget is a breath of fresh air that delivers on what people voted for, with £1.4 billion to rebuild schools, £30 million for breakfast clubs and an extra 2 million NHS appointments.
Today I want to speak about an issue that is very close to my heart: further education. Before entering Parliament, I worked in further education and saw at first hand the transformational impact it can have. I have seen adults of all ages, some of whom have struggled with even basic literacy and numeracy, make major strides forward and go on to university and high-quality jobs. A thriving FE sector is also vital to meet the challenges of the future. Decarbonisation and new technologies, like AI, are already revolutionising our workforce, and the CBI has found that nine in 10 people will need to reskill in this decade alone. We are in the midst of a skills shortage, with businesses struggling to fill highly skilled positions and instead recruiting from abroad. These are no longer the skills of the future but the skills of today, and we already have the infrastructure ready to go to meet the challenge, with hundreds of colleges filled with thousands of experts teaching countless subjects.
My constituency is home to two exemplary FE institutions: the Sheffield college and Longley Park sixth form. I pay tribute to all their staff, who go above and beyond to give students the best support possible. There are exciting developments happening in Sheffield. The Sheffield college will soon open its new advanced technology centre—a state-of-the-art facility that will play a key role in meeting the skills needs of employers, accelerating our green skills strategy, and supporting growth in the local and regional economy. The success of the sector is all the more impressive when we consider the funding challenges it has endured. On the last Government’s watch, spending per college student fell by 5% in real terms, but this Government have shown that they understand their value, and I am so pleased to see in the Budget the commitment of an extra £300 million for further education.
This Government are filled with expertise in further education. I am delighted to see Baroness Smith of Malvern appointed as Minister for Skills. Her wealth of knowledge and experience means that she will be a strong voice for the value of further education in the skills agenda. I also welcome the steps that the Government are taking to deliver on our manifesto commitment to create a flexible growth and skills levy; the investment of £40 million will help to ensure that apprenticeships, with decent employment at the end, are available for people of all skillsets.
Employers have long called for reform of the apprenticeship levy, which many have found to be inflexible and unfit for purpose. We need a new system that works for employers and workers alike, and which has further education at its heart. I am pleased that this Government are taking immediate action in this area and backing it up with real investment. This will be a major step forward in a new relationship between employers, the workforce and further education—all working together to build a workforce that is fit for the future.
This Government’s steadfast focus is delivering economic growth in every corner of the country—something that has been lacking in my constituency for far too long. I look forward to the establishment of Skills England to help upskill the workforce nationwide, working alongside our fantastic further education sector to succeed.
(1 month ago)
Commons ChamberIndeed, I did. Business wants the Government to take a pragmatic approach, not an ideological approach, to our relationships with our main trading partners, and that is exactly what our new Government are doing.
I am pleased to report that we are not resting on our laurels; far from it. On Sunday, the Business Secretary announced the launch of an industrial strategy advisory council, which will be chaired by Clare Barclay, the CEO of Microsoft UK. The Business Secretary also announced our modern industrial strategy Green Paper, setting out eight growth-driving sectors: advanced manufacturing; clean energy industries; creative industries; defence; digital and technology; financial services; life sciences; and professional and business services. This is not about picking winners; it is about building on the UK’s unique strengths and untapped potential to enable our already world-leading services and manufacturing industries to adapt, grow and seize the opportunities to lead in new and emerging industries.
At the summit, the Prime Minister set out the Government’s commitment to a pro-growth approach to competition and regulation, to create a dynamic business environment that will strengthen our foundations and help deliver our growth mission and industrial strategy. As investors made clear, they have a choice of where to invest. We must not rest on our laurels; we must make sure that we forge ahead with these policies, because we need investors to make a positive choice to invest in our country. As one private sector speaker said at the summit, we do not want investors just to invest; we want them to place a big bet on investing in the UK.
The Chancellor also confirmed two new innovative measures to ensure that our public finance institutions can better catalyse billions of pounds in private investment. We turbocharged the UK Infrastructure Bank to become the national wealth fund, which will have £27.8 billion to catalyse investment that would not have otherwise taken place. We have also launched the British Business Bank’s new pathfinder British growth partnership, a vehicle to crowd pension fund investment and other institutional investment into venture capital funds and innovative businesses.
We have committed to bringing forward a tax road map, long demanded by businesses across the economy, at the Budget. This will give businesses the certainty and predictability to plan for the future. As the Chancellor has already made clear, we will cap the rate of corporation tax at 25% for the duration of this Parliament. Gone are the days when a Government—the previous Government —would announce a decrease in corporation tax, then announce an increase and then, months later, reverse the decision again at the next fiscal statement. We want to ensure that businesses have predictability. We have also said that we will maintain our capital allowances offer, with full expensing and a £1 million annual investment allowance.
We will also reform and turbocharge the Office for Investment, which will sit under our new joint Treasury-Department for Business and Trade Investment Minister, Poppy Gustafsson, the founder and former CEO of Darktrace. This is a clear demonstration of the Government’s commitment to better serving the needs of investors and breaking down the silos between Departments, which have too often prevented transformative Government policy.
We are determined to drive the transformational investments that the country so desperately needs to fulfil its economic potential. Such measures, introduced within just 100 days, show that this Government are not just about warm words; we mean business, in every sense of the phrase.
This week’s summit was a major vote of confidence in the UK’s economic future and in this Government’s commitment to realising it. The investments and partnerships forged at the summit will have lasting impacts, driving growth, innovation and sustainability for years to come. It was not just a one-off event; it was a first milestone in our ongoing work to build a deep and meaningful partnership with business, drive economic growth and create good jobs for working people up and down this country at all levels of society. As we move forward, let us work together across the House to ensure that the benefits of these investments are felt by all our citizens across every region of our great nation.
Before I finish, I want to say that the particular highlight of the summit for me was the evening reception at St Paul’s, at which His Majesty the King was present and at which many of us were delighted to hear Elton John, who had some very warm words to say about our new Government. He said something like, “We’ve been in the doldrums for the last few years, but now we have a new Government under the leadership of a new Prime Minister and things are looking up.”
As the Chancellor made clear in her closing speech at the summit, since taking power this Government have put unlocking private investment at the heart of everything we do. Our investment summit demonstrated our commitment to growth and that the UK is once again open for business.
I would not necessarily say “following the election”, but, generally, we should be very positive about our economy. I set out earlier some of the economic conditions that would make it conducive to invest in the UK, and we should be proud of that situation. I welcome the Minister’s comments about the change of priorities of the British Business Bank, specifically in relation to the pathfinder initiative. That piece of work was started by my hon. Friend the Member for Grantham and Bourne (Gareth Davies) when he was in the Treasury. Again, that will help to ease the flow of finance into our SMEs.
As I look, with a mixture of sadness and joy, at the now redundant Conservative party manifesto, I can see that there were some really positive ideas in there about easing finance for SMEs. In particular, I am referring to things such as regional mutual banks, which is a policy that the Labour Government should adopt, and the open finance and smart data revolution for our economy, which could transform the opportunities of SME finance, making it much easier for SMEs to shop around. However, the key thing that I would reiterate to the Minister and her team is that they need to make sure that we have stability in terms of not just work, but business taxation, capital gains tax, and business relief. I say no to a jobs tax, but, yes to stability and business taxes. I say no to taking us back to the 1970s, by giving unions more power, no to doom and gloom, and yes to a positive and optimistic view of the UK’s future in the world.
I call Jade Botterill to make her maiden speech.
I welcome the Minister to her place. I also thank her for her support when she was not in this place and I was further back on these Benches, and we worked together on some of the issues under focus today.
We Liberal Democrats want Britain to be one of the most attractive places in the world for business to invest. We want to see responsible, sustainable businesses investing in tackling the climate emergency and creating jobs, growth and wealth, some of which should be invested into our health, education and public services. I welcome the Government deciding to hold an international investment summit within their first 100 days. It sends an excellent signal to the world that UK plc is open for business, and we Liberal Democrats welcome and support that move.
We welcome, too, the announcements about the revival of the industrial strategy and a new strategy for the British Business Bank. We look forward to scrutinising those plans as a constructive Opposition. However, we also know that this Government have to rebuild not only the economy, but our country’s reputation.
It is an enormous relief that some of the dark days of the last Government are—I hope—behind us. We had the tweeting diplomacy of two former Prime Ministers, which made us look like a small country on the international stage. We had the half-baked Brexit deal, which has wrapped up small businesses in red tape and reams of paperwork. We had the rolling back on net zero and the flip-flopping fiasco on HS2, which created uncertainty, scared off investors and put the jobs of the future at risk. We also had the sheer incompetence of a Government who had forgotten how to negotiate. In my former role as my party’s health spokesperson, talking to some of the pharmaceutical companies involved in the voluntary scheme for branded medicines, pricing and access negotiations, it became patently clear that many were putting their investment abroad and not in this country. That investment was lost on the Conservatives’ watch.
Even though I welcome many of the things that the Labour Government have proposed and are bringing forward, there are some notable gaps, and it is on those gaps that I wish to focus. We know today’s debate is about international investment, but I urge the Government to think about local investment in this country too. Small businesses are the engine of growth and the backbone of our economy. They are the heartbeat of our communities, but they are really struggling to invest. There is one major reason for that: the broken business rates system. It is absolutely absurd that small bricks and mortar businesses on our high streets up and down the country see their business rates going up while Amazon warehouses see their business rates going down. It is a disgrace. I urge the Labour Government, in the strongest possible terms, to make the Budget this autumn the final one in which business rates are a permanent feature. They should be scrapped and replaced with a commercial landowner levy. I urge the Labour Government to act on that as soon as possible.
To make it even worse, we know that in many parts of the country, where high streets are not in a good state, there are small businesses that want to invest in good environmental things. They want to invest in solar panels, insulation, ventilation and bike sheds—things that would be good for business and create a sense of community, tackle the climate emergency and improve the public realm. Yet if they invest in those things, their business rates can go up. That is absolutely nuts, and I urge all colleagues to get behind my call to make the upcoming Budget the final one in which business rates are a permanent feature.
The other point I will talk about is skills. The Government have talked a lot about investing in infrastructure, housing and big things that we can build, but skills are so important. In my constituency, we have a phenomenal organisation called GEM Cable Solutions, a leading defence and aerospace company that makes bespoke cables and fibre optics using precision manufacturing. That means individual people making handmade cables that are flying things into space—it is extraordinary. But can the company get the highly qualified engineers that it needs in this country? No, it often cannot, because we are competing on the international stage for some of the finest engineering talent. At the same time, under the last Government, the company could not get that talent from abroad either, so I urge the new Government to bring forward a skills strategy as soon as possible, consult with other parties, and ensure that our small businesses can get those skills.
My third point is about the climate jobs of the future. I know the UK Infrastructure Bank has been rebranded the National Wealth Fund, and has attracted £7.3 billion in funds already. I would be grateful if the Minister could confirm whether the new wealth fund will have an explicit remit to support the UK’s transition to net zero carbon emissions. Finally, it is no secret that Brexit has wrapped up our small businesses in red tape, and that they are dealing with reams of paperwork. We have to remove as many trade barriers to our small businesses as possible. I urge the Government to bring something forward on that front as soon as possible.
Yes, the Government—I have picked up that habit from my hon. Friend and I do apologise.
I am impressed by what has been achieved at the international investment summit. Within weeks of allegedly receiving the worst economic inheritance of any incoming Government since the second world war, Labour has supposedly secured billions of pounds of investment. That is frankly unbelievable, and not because I doubt our country’s ability to attract investment. Britain is a tremendous place to invest, as a wealthy, free, fair and talented nation where people can do business and thrive. That is why Britain’s foreign direct investment stock grew to more than £2 trillion throughout successive Conservative Governments—more than France, Germany and Italy combined. My scepticism is about the idea that the Government, who appointed a Minister for Investment only four days before the summit, secured every penny of the investment. As anyone in business will tell us, the devil is in the details, and a quick inspection will confirm that most of the investment was in progress thanks to the last Conservative Government.
Let us look at clean energy, for example. Britain secured much of the investment that the Government claim credit for thanks to a Conservative policy: contracts for difference. Without that market mechanism, under which investors bid for a guaranteed price, we would not have secured as much investment as cheaply for bill payers. It is why we have the world’s four largest offshore wind farms off our coast, why renewables generate 44% of our electricity today compared with 7% in 2010, and why the UK was able to close its last coal-fired power plant this year. That is a Conservative record, as much as Labour might envy it.
The Government have done the easy bit in tallying the figures and taking credit for someone else’s work. Admittedly, that is a harder task when No. 10 is in such disarray and the Minister had only two days to prepare for the summit. In fairness, only time will tell if the summit was a success and the relationships built there lead to more investment beyond what was already on its way. But that is the hard bit, because to secure more investment and compete globally, Britain needs to be light on regulation and low in taxes. Although the Prime Minister talked about removing “needless regulation” and being “open for business,” his Government’s actions say otherwise. Despite Labour’s explicit manifesto pledge not to increase national insurance, the Chancellor is drawing up plans to hike the tax for employers. Make no mistake: that would be a tax on jobs, and would make it more expensive for firms to hire, which would impact on businesses big and small, including in my constituency—from Bombardier in Biggin Hill to pubs and cafés in Hayes and the Churchill theatre in Bromley.
The tax hike may fall on employers, but working people will pay the price as job opportunities shrink and pay rises are limited. The hands of businesses will be tied further by what the Government themselves brand the biggest increase in employment regulation in a generation. While the Government plan to tax jobs and pass French-style union laws, a Cabinet Minister took a more explicit anti-business approach. The Transport Secretary admitted that she has been boycotting a ferry company for two and a half years, and encouraged others to do the same. While the Prime Minister glad-handed investors— promising less red tape and openness to business, and was careful to mention tax only once—his Government are delivering exactly the opposite.
Britain faces a more significant problem: keeping up as technology advances. Leading on artificial intelligence, quantum, engineering biology or semiconductors is vital to our future prosperity and security, but we face considerable challenges in doing so. For example, Britain is home to the largest number of foundational models and generative Al start-ups in Europe, but we lack the compute power that we need to build and run Al models. The previous Conservative Government recognised that problem and planned to build a new supercomputer in Edinburgh 50 times more powerful than our current top-end system, but Labour has now cancelled that £800 million investment. That is yet another example of Labour’s actions not matching its rhetoric.
The Government cannot be in favour of growth while cancelling investment. They cannot cut regulations while planning huge increases in red tape for employment. They cannot support jobs while preparing to tax their creation. And they cannot claim to have the worst economic inheritance while copying and championing the work of their Conservative predecessors. If the Government do not get their story straight, investors will almost certainly stay away.
I call Callum Anderson to make his maiden speech.
It is with deep humility that I rise for the first time in this House as the Member of Parliament for the new Buckingham and Bletchley constituency, and I am pleased to contribute to this debate. I congratulate my hon. Friends the Members for Ossett and Denby Dale (Jade Botterill) and for Congleton (Mrs Russell) on their excellent speeches. Their constituents are fortunate to have such formidable representatives.
I should of course begin my remarks by paying tribute to my two direct predecessors. In Iain Stewart, this Chamber had a calm, measured advocate for the former Milton Keynes South constituency who, among other things, consistently championed better transport connections for the city and the United Kingdom more broadly. I also thank the now hon. Member for Mid Buckinghamshire (Greg Smith), whose kindness and generosity I have valued as I have navigated these early months in Westminster. They followed in the footsteps of John Bercow, who served as the Member for Buckingham for 22 years, and Dr Phyllis Starkey, who served as the last Labour Member of Parliament for Bletchley, as part of Milton Keynes South, for 13 years. They all exemplify what it means to be a dedicated public servant, and I will do my utmost to meet their standard.
Although Buckingham and Bletchley is a new constituency for this Parliament, it is in fact a reunion of old friends. For nearly a century, those communities were connected as one, but in 1983, Milton Keynes, along with Bletchley, had the temerity to split away and flourish into the formidable modern city that it is today.
Although the towns of Buckingham, Bletchley and Winslow are different in character, all have deep-rooted, rich histories. And between those towns lie many villages, breathing life into the heart of our constituency. Be it Westbury, Quainton, Stewkley or Nash—I could go on—all contribute to the fabric of our collective identity, and I must never forget Tattenhoe in Milton Keynes. Although each community is unique, they share common values: a deep sense of civic pride, patriotism and a belief that opportunity should be available to everyone if they work hard. I pledge to serve each of them with the same level of diligence, be they urban or rural and regardless of their size or affluence.
One of the great privileges of representing Bletchley is that I carry the legacy of Bletchley Park and the remarkable codebreakers who worked there in the 1940s. The ingenuity and tireless efforts of those brave women and men—including Alan Turing, a very British hero—who together uncovered key strategic military plans of the Nazis, not only shortened the second world war and saved countless lives, but laid the foundation of today’s technological age. That is why Bletchley Park remains an iconic institution of national and global significance, and why it was such a fitting host for the AI summit last year.
That legacy of technology and creative thinking remains at Bletchley’s core today. As we speak, the South Central Institute of Technology is inspiring the next generation, providing young people with the skills to thrive in the digital age. The expertise does not end there: the University of Buckingham is innovating in higher education, enabling students to pursue accelerated degrees and equipping them with the agility and knowledge to navigate an ever-changing world.
Just as Bletchley and Buckingham lead in education, Silverstone—of which the southern half of the track is located in my constituency—leads on the world stage for motorsport. It convenes the best drivers, including our very own Sir Lewis Hamilton and Lando Norris, alongside cutting-edge engineers, technologists and designers. Silverstone is where the pinnacle of innovation meets the thrill of competition, and inward international investment has been pivotal to achieving that status. From Formula 1 teams to global technology giants, international investors are choosing Britain because they see a country where creativity, innovation and entrepreneurship can flourish.
But the value of international investment is not just financial; it is also a vote of confidence in us—in our workforce, our infrastructure and our unique creative spirit. It strengthens our relationships with key global players, ensuring that we continue to be the country that others seek out for collaboration, whether in emerging fields such as artificial intelligence or established ones such as financial services and advanced manufacturing. That is why this Government’s achievement in securing the commitment of £63 billion of private investment, 10% of which will help turbocharge Britain’s AI capacity, is so important. I congratulate my right hon. and hon. Friends across Government on their hard work to secure that historic investment.
But, Madam Deputy Speaker, the Buckingham and Bletchley constituency offers so much more. Farmers and rural businesses across north Buckinghamshire work tirelessly to feed our nation, using the latest methods to produce high-quality food while safeguarding our local environment, as I saw at first hand when I met the Edgcott and Winslow Young Farmers earlier this summer. I am committed to being their advocate in the House, ensuring that they receive the support and recognition that they deserve.
If the House will indulge me for a few more moments, I want to close my maiden speech by thanking the people who believed in me and supported me on my journey to this place. First and foremost, I owe an unpayable debt to my mother, who brought me up alone in a council flat and sacrificed everything to help her son reach heights that neither of us could have dreamed of 33 years ago—be that the City of London or the home of our democracy—and whose simple values of hard work and quiet perseverance taught me that everyone has value and deserves respect. Her example has been a guiding light to me, and for that I will be forever grateful. There are so many others to whom I also owe so much, be they family members, my partner of 10 years, or my friends of 15, 20 and 30 years—all of which I mention to warn my constituents that I generally invest only in the most long-term of relationships.
It is on that note that I wish to address the young people in the towns, villages and city that comprise the Buckingham and Bletchley constituency: regardless of who your parents are, where you come from or what you look like, never stop believing that if you work hard, anything in Britain is possible. Every moment I am granted in this place will be spent working towards ensuring that you have the power to write your own life story and live the life that you have imagined for yourself on these islands of ours. That is the Britain I believe in, and the one I will be fighting for.
Thank you, Madam Deputy Speaker. I start by congratulating my hon. Friend the Member for Buckingham and Bletchley (Callum Anderson) on his powerful maiden speech. I am not sure that when he and I attended a Birmingham University Labour Students meeting back in 2009, either of us anticipated that we would be making our maiden speeches in the same debate.
I want to start by saying what an honour it is to stand here as the Member of Parliament for Banbury. As a Banbury lad who has never sought to represent anywhere else, I want to repeat what I told residents on the doorstep during the campaign: this is the job I have always wanted. To everyone who helped make that happen, I can only say thank you. I also want those residents to know that now I have this job, I promise that I will work hard every day to deliver for them, whether they voted for me or not.
What makes this an even prouder moment for me is that I stand here as the first Labour Member of Parliament for the Banbury constituency. Until 5 July, the constituency had remained in the hands of one party for 102 years. But change is something that Banbury—the largest town in Oxfordshire—has got used to over recent years. For those who do not know, the Banbury constituency is at the furthest point north in the south-east region, encompassing not just the town of Banbury but the towns of Chipping Norton and Charlbury, as well as countless villages and rolling countryside.
Banbury is a beautiful part of the world to live in and represent. It is most famous for our nursery rhyme, known across the English-speaking world:
“Ride a cock-horse to Banbury Cross,
To see a fine lady upon a white horse;
With rings on her fingers and bells on her toes,
She shall have music wherever she goes.”
Banbury’s history is more than that, though; indeed, it is more than just the town itself. The constituency reflects our country’s history, including in its foundations and its landscape. We have the neolithic and bronze age Rollright stones; the settlement on the edge of Chipping Norton left to us by the Romans; the Norman castle mound at Deddington; and Broughton castle which, as well being a stunning late-medieval stately home, is likely to be recognisable to many Members as the setting for TV’s “Wolf Hall”, and the films “Shakespeare in Love” and “Three Men and a Little Lady”. I was once told that one of the only request to film there that the owners declined was when the studio wanted to paint it pink, which was probably wise.
In the village of Wroxton, where I went to school, we have the former home of Lord North. He is also buried in Wroxton, giving us something that not all constituencies have: the resting place of a former Prime Minister. Bliss Mill, Tooley’s boatyard and the Oxford canal are all remnants of the area’s growth during the industrial revolution.
But the most colourful time in our history is undoubtedly the civil war, when Banbury itself was on the side of the roundheads, despite its castle—right in the middle of the town—being on the side of the cavaliers. The people of Banbury were so unmistakeably puritan that a poem was written about it:
“To Banbury came I, O profane one!
Where I saw a Puritane-one,
Hanging of his cat on Monday,
For killing of a mouse on Sunday.”
More happily, “the Puritans” is the nickname for the only supporter-owned football club in Oxfordshire, Banbury United.
I mention all this not just because I am really proud of where I call home and its role in our past, but because I want the House to understand what the Banbury constituency is all about. Although it did not change hands politically between 1922 and 2024, change did come to Banbury in a big way. Old industries such as making cloth in Chipping Norton or aluminium in Banbury went, while new ones such as logistics with companies such as DHL and TWE Haulage, food processing with Fine Lady Bakeries and Go Fresh, and high-end mechanical engineering with the Haas Formula 1 team and Prodrive came in instead. Other industries, such as brewing, moved within the constituency. We can no longer get a pint in a Hunt Edmunds pub, but Hooky beer from Hook Norton is on sale across the United Kingdom.
The building of the M40 in many ways permanently changed Banbury from a small, semi-industrial market town into something completely different. Thousands of new homes have gone up as our area has become increasingly attractive for commuters to Oxford and London, but we still have a council waiting list that has quadrupled in a decade and a private sector that cannot meet the need. Meanwhile, vital infrastructure such as schools, roads and health services have failed to meet demand, posing fair questions from the community for those, like me, who support the Government’s ambitious house building agenda.
While they have changed, Banbury, Chipping Norton, Charlbury and the villages of north and west Oxfordshire have not lost their sense of community. The community united across political divides, and none, in defence of our local Horton General hospital when it was faced with downgrading, successfully fighting it off in 2008 and less successfully in 2016.
As the use of food banks grew in the years after 2010, people across the area came together to help support those in need. For example, the Chippy Larder in Chipping Norton has become a much-loved community resource. Food security in Banbury cannot be considered without mentioning our rural farming communities and perhaps the most famous farm in the country: Clarkson’s farm. For all the entertainment that the series has provided, for me the most important aspect of it is the light that it shines on the huge challenges faced by our farmers, and not just in the Banbury constituency but throughout the UK. I hope that the Government’s programme to support them will relieve many of the burdens that have made farming so challenging for so long.
Southill Solar farm on the edge of the Wychwood forest near Charlbury provides community owned power to 1,200 homes. That is another reason I am so passionate about this Government’s exciting agenda on renewable energy.
Then there is the volunteer driver service in Banbury, taking the elderly or those less able to hospital and GP appointments at nominal rates. Throughout the pandemic, as in other places, people across Banbury worked hard to help those less fortunate during that most testing of times. Banbury’s community, led by some of its many thousands of Polish citizens, got together again to gather supplies to support the Ukrainian civilians fleeing that conflict, while welcoming others into their homes and communities.
On that note, I pay tribute to my predecessor, Victoria Prentis. Although there was much in the campaign that we disagreed on, this side of the House was united with the Conservative party in support for Ukraine. I pay tribute to Victoria’s decency and her clear compassion for humanity, exemplified as much by her taking a Ukrainian refugee into her home as by her nine years of service to the community.
As for myself, I stand here in support of this Government and their mandate for change—something that Banbury has a history of embracing. Before I finish, I want to thank my family for their support, in particular my wife who, despite having multiple sclerosis, remains the strongest, most steady and most stable woman I have ever met. I stand here as someone Banbury born and bred, ready to build a better Britain and a better Banbury, and I am determined to do it.
Thank you, Madam Deputy Speaker. I am grateful for the opportunity to make my maiden speech today. I congratulate my hon. Friends the Members for Ossett and Denby Dale (Jade Botterill), for Congleton (Mrs Russell), for Buckingham and Bletchley (Callum Anderson) and for Banbury (Sean Woodcock) on their excellent contributions today—my thanks to them all.
It is the honour of my life to have been elected as the Member of Parliament for Bangor Aberconwy, and I offer my heartfelt thanks to everyone who supported me on my journey to this place: to my partner and my two kids, who I will not name—because my entry into the world of politics has already caused them enough embarrassment as it is—to my brother Mike, my sister Pam, my nieces and nephews, and all my friends back home; and to my dad, who is watching from the Gallery today, something that would never have been possible were it not for the incredible staff of Ysbyty Gwynedd, who have saved his life on more than one occasion.
I want to thank my incredible campaign team, my agent Jim Hoey and Ken Stevens. I also pay tribute to the late Councillor Bill Chapman, who is very sorely missed. Without his encouragement much earlier in my career, I would not be here today.
Bangor Aberconwy encompasses the former constituency of Aberconwy, as well as parts of what were Arfon and Clywd West. I thank all three of my predecessors, and their staff, for all their work in the support of local residents. Robin Millar served as the Member for Aberconwy from 2019. I know that his work supporting hoteliers during the pandemic was very much appreciated. David Jones served as the Member of Parliament for Clywd West and served in the role as Secretary of State for Wales during his time here. Hywel Williams served as the Member of Parliament for Arfon and the previous Caernarfon constituency for over 23 years—a Member who was and still is very well respected by the communities that he served.
I also pay special tribute to Betty Williams, who served as the Labour MP for Conwy from 1997 to 2010. She is a real Labour legend who is still remembered with huge fondness locally. If I can be half as good an MP as Betty was, I will be doing okay.
I have listened to many maiden speeches and noted that there is hot competition for whose constituency is the most beautiful in all the land—I am sorry, but game on! Bangor Aberconwy includes the seaside resort of Llandudno, the historic town of Conwy, Betws-y-Coed, Bangor pier, the Carneddau mountains, the Dyffryn Ogwen valley—too many beautiful places to name. I must, of course, mention my hometown of Penmaenmawr, which was the favoured holiday destination of Prime Minister William Gladstone, and my adopted home of Llanfairfechan.
I have noticed, too, that it is customary to elaborate on one’s political roots—childhood memories of being dragged along to party meetings or folding leaflets at the kitchen table—but I am afraid that was not me. Politics was not really discussed in our house. For our family, direct action meant going out with a bucket and torch to rescue frogs. Largely thanks to my mother, my formative years were spent bird watching, pond dipping, bat counting and on long mountain walks. My mum knew the value of our natural world and how vital it is that we protect it. I will make it my mission in this place to do so in her memory.
When I was 11, my mum’s life changed. She enrolled on an access course, did A-levels, then graduated with a degree in botany—no mean feat with three young kids. The fact that she was able to access higher education is testament not only to the last Labour Government, but to the grit and determination of working people in our community.
To understand why is to learn the founding story of Bangor University: 140 years ago tomorrow, on 18 October 1884, Bangor University opened its doors to its first ever cohort of students. Bangor University, the first in north Wales, was not founded by rich benefactors or philanthropists, but quarrymen and farmers who believed in the transformative power of education. They set aside money from their wages every week because they knew then, as we know now, that education is the way to get on in life. Our story is one of resilience and of people who believe in supporting each other.
All across Bangor Aberconwy, you will find incredible people who work hard day in, day out to support others in our community—people like Jaynie Black and the volunteers at Ty Hapus; Ginnie Rogers and the Friends of Mostyn Street; Brenda at Hope Restored; the wonderful women I met last week at Dyma Ni Befriending; Pobl i Bobl; Maes Ni; Hwb Ogwen; our food banks, our churches and our mosques; and our town, city and community councillors. There are too many to mention, but we owe them all a huge debt of thanks. Diolch o galon i chi gyd. [Translation: Heartfelt thanks to you all.]
I am proud to be part of a Labour Government who are firmly on the side of working people. I am proud to be part of a Labour Government who are committed to breaking down the barriers to opportunity for young people growing up in communities like ours. And I am proud to be part of a Labour Government who understand that tackling the climate and nature crisis is not only the biggest challenge we face, but an opportunity for economic growth.
The subject of today’s debate is this week’s record-breaking international investment summit. Before coming to this place, I spent my career working with start-ups and SMEs, so I know how important economic and political stability is for business. Under this new Government, Britain is truly the best place to do business, and there is huge potential in our corner of Wales ready to be unleashed. We have a proud industrial history; a wealth of talent in science and technology; and wind, waves and mountain ranges. Everywhere you look, you will find ingenuity and innovation, and communities full of pride, purpose and potential.
To finish, I am proud of our past and I am excited for our future. Whether you live in Penmaenmawr or Pwllglas, Bangor or Bontuchel, Conwy or Cerrigydrudion, I will fight tooth and nail to bring investment to our area, while promoting our Welsh language and culture, to make sure that our young people know that these opportunities exist and are for them. There is much to do, and it will not happen overnight, but I hope to do every single one of my constituents proud.
There are no bears, I am afraid, but I will get to that.
Bournemouth will benefit massively from the innovation and investments that the investment summit has brought in. I know that my constituents will be keen to hear how our local businesses and our high street, and even their bills, will benefit from the summit.
I want to take the opportunity to pay tribute to my predecessor, Sir Conor Burns. He served the constituency for 14 years, making it his home following his election in 2010. As well as serving as a Minister, Sir Conor was passionately dedicated to our local schools, bringing in investment for their improvement and improving opportunities for local young people—a tradition I am keen to continue. Many hon. Members will also know that Sir Conor was proudly devoted to the late Mrs Thatcher. In his own maiden speech, he stood in the same place that Mrs Thatcher stood to give hers, so perhaps the greatest tribute I can pay to him would be to continue that tradition in the same place here. I wish him all the best of luck in his onward endeavours. While he and I may have differed drastically in many of our views, we are here to provide a voice for the people of Bournemouth West in Parliament, and that is a role I will continue. I want to put on record my thanks to the great people of Bournemouth West for giving me that opportunity to do so under a Labour Government.
Bournemouth is not natural Labour territory, and I am really honoured to have won the trust of the people of Bournemouth in becoming not just its first Labour MP, but its first female MP. That is a monumental sign of the real changes we have seen in the constituency that are affecting it now and shaping its future. Yes, we are a beautiful seaside town, with white sand beaches and picturesque parks—and our hotels, hospitality and cultural venues, and English language schools have attracted people for generations to visit, but also to seek a better quality of life—but there is so much more.
Bournemouth is a relatively new town, but parts of my constituency such as Kinson were mentioned in the Domesday book. Scratch the surface just a little bit, and you will find a growing and vibrant community of innovators and creatives. We have world-leading graphic effects and post-production companies. We have a vibrant community of small businesses and vibrant high streets in Winton and Westbourne, with businesses that are integrating sustainability and also community into their business models. We have a burgeoning tech sector, with leadership in fintech, gaming and active travel. We have two world-leading universities and an excellent further education college, feeding that ecosystem and making sure our young people are equipped with the digital and creative skills they need to succeed in the 21st century—and I could go on.
Of course, there are challenges. Like all seaside towns, we have seen our town centre decline. More than a decade of cuts to public services has meant that people now struggle to get an NHS dentist. Crime and antisocial behaviour are at the forefront of people’s minds as, for me, are parents who will not let their daughters go into the town centre at night. Knife crime has destroyed lives, the housing market too often locks out young people and young families, and do not even get me started on sewage.
But I feel hopeful about the future, and I feel hopeful because of the collective spirit that I see every day in my constituency, with people such as Fran and Jesse at the Henry Brown centre and Kerry and her team at the Bourne community hub working against the odds to build their communities and transform lives in neighbourhoods such as West Howe and Alderney; all the community groups and resident groups fighting hard to improve their local areas and campaigning to protect our ancient heathland and our precious coastline; and, of course, all of the businesses giving it a go, getting into our high streets and the town centre, breathing life back into empty shops and revitalising our heritage buildings.
This is all really exciting stuff and I know that, with a new mission-led Government, our town can and will be the safe and thriving hub it once was. I know that kids in West Howe can and will have the same opportunities that our young people in Talbot Woods do to get a world-class education in their schools, colleges and universities. I want graduates who fall in love with Bournemouth to find great jobs and affordable housing so that they stay and build their lives there. I want all of our businesses to thrive in the vibrant ecosystems that we are now developing, and families in Wallisdown to get the support they need in their schools and not to worry about getting a dentist or a doctor. All of our residents, regardless of age or income, should feel proud of their town and their local neighbourhoods.
Three out of four people in my constituency at this general election voted for change. They did not all vote for me, but delivering that change is a responsibility I now embrace. I want to use it to build a better politics and a fairer future where everyone feels like they have a stake. So I am very excited and looking forward to working with the brilliant people of Bournemouth West and our mission-led Government to build the shared future and reignite this sense of hope not only in our special seaside town, but across the whole country.
I congratulate my hon. Friend the Member for Bournemouth West (Jessica Toale) on her wonderful maiden speech. I know that her international background and deep expertise in international development will add much richness to our new parliamentary Labour party, and I also believe that an international background is essential to enriching the perspectives on our side of the House.
In my previous life, before coming into this place, I spent eight years interviewing the leaders of international businesses, many of whom had long-standing commitments to investment in the UK, but who repeatedly told me and my former colleagues at the Financial Times that political instability was putting them off making future investments. That is why I very much welcome the remarks of our Minister on the international investment summit and the importance of the private sector’s partnership with our Government.
The 10-year project that we have for national renewal, along with our 10-year industrial strategy, shows our commitment to long-term economic ambition and planning. I congratulate the organisers of the summit, which brought together more than 300 industry leaders and secured more than £60 billion of investment. That is 60% more than was raised last year, and it will create nearly 38,000 jobs, one of which is bringing Elton John out of retirement. Unfortunately, private investment in the UK since the global financial crisis has been much less “Rocket Man”, and more “Tiny Dancer”.
Over the last decade and a half, Britain has experienced a much larger slowdown in the growth of capital intensity than comparative countries such as the US, France and Germany, and it is that, alongside our skills growth, which accounts for our productivity puzzle. I very much welcome the appointment of John Van Reenen, the wonderful LSE economist, to our Council of Economic Advisors. He has done important work on productivity in the UK, and he suggests that our post-financial crisis fall in productivity growth is primarily due to a large fall in capital accumulation. In other words, British workers are being held back by low levels of public and private investment, and that is what our Government need to unlock to succeed in our growth mission.
We will provide stability, but stability alone is not enough. In the 21st century we must do more to provide industry and business leaders with the leadership that they require to navigate our increasingly complex geopolitical world, in which there is fragmentation of supply chains across the world, as well as the green transition. That means an industrial strategy. I welcome the publication of our Government’s industrial strategy earlier this month, and particularly the focus on life sciences as one of the key eight sectors for investment.
My constituency of Earley and Woodley in the Thames valley is a prime location for foreign direct investment, particularly in life sciences, and I am proud that the Thames valley is the fastest growing region in the UK outside London. I congratulate the Thames valley chamber of commerce, with which I have already worked in my first 100 days, on securing over the last decade more than 1,000 instances of foreign direct investment. We can measure the excitement of business and the private sector for our Labour Government by the amount of engagement I have already had from businesses in my constituency and through Thames valley chamber of commerce.
The biopharmaceutical group Lonza, which is Swiss in origin, received a grant of £30 million over the summer to expand and relocate to my constituency in the Thames valley park, which is one of three business parks in the area alongside Thames Valley science park and Green park. I recently met Bayer, originally a German company, which employs hundreds of people at its headquarters in my constituency, and contributes to crucial health and life science research in the UK.
Advancements in life sciences have fundamentally improved not just the economy and innovation of the UK, but the length and quality of life here and around the world. That is why I welcome the Health Secretary’s mission to ensure that the NHS receives the cutting-edge treatments being pioneered by companies in my constituency and beyond. Life science investment, if done correctly, can be a significant driver of growth and productivity—our central mission. I look forward very much to meeting the Minster for Industry next week to discuss how we can give full range to life sciences companies in our constituencies, and to the clinical research taking place in the Royal Berkshire hospital, which is at the forefront of much research in medical trials. That hospital will benefit greatly from private and public investment.
Businesses do not exist in isolation, and what makes some countries prosper is the strength of their institutions. Responsible and highly productive businesses wish to retain their skilled workforces, who require countries with well-functioning public service provision, infrastructure and accessible housing. Those companies want political stability and a regulatory framework that works for business, workers, and the consumer. That is why Labour’s pitch to business does not end with the international investment summit, but continues with legislation that the Government are passing, such as the Employment Rights Bill. Providing the foundations for businesses to thrive means fixing the foundations of our economy and society, and that is what I am proud to say our Labour Government will do.
I call Kanishka Narayan to make his maiden speech.
I start by noting that we have on the Government Front Bench two Ministers who split their time between Departments. One is at the Treasury and the Department for Work and Pensions, and the other is at the Department for Energy Security and Net Zero and the Department for Business and Trade. That just goes to show that we have a joined-up, mission-led Government who are trying to move away from working in silos and to have a shared ambition, and that is to be commended.
We are here today to talk about investment, which is obviously about money, but it is also—I would not want to lose this—about people. It is about skills, expertise, experience, opportunities for learning, better jobs, dignity at work, feeding families and enabling the maximum amount of prosperity. We should hold on to those things, because they are what our constituents want and what they send us to this place to deliver.
That said, investment is also about the money. The £63 billion truly is a record-breaking amount, and I commend our mission-led Government for securing it. It is the clearest sign that global businesses are backing the British economy and working people under this new Labour Government. That money could have gone elsewhere, but it is coming to our country, for all the reasons I just described. It is coming here because the country voted for change to achieve stability. In the last 14 years, we have had little to no growth, with billions of pounds of taxpayers’ money wasted and a huge black hole in our finances. The country was left vulnerable to the worst cost of living crisis in a generation, and our Government was forced to spend £94 billion on household support because we were so exposed to fossil fuels.
That is why I am particularly pleased that so much of this investment is going towards clean energy. For example, some of the £2 billion from Octopus Energy will be used to build four new solar farms across Bristol, Wiltshire, Essex and the East Riding of Yorkshire, powering up to 80,000 homes. Those investments will improve our local economies and communities.
I feel sad and wrong saying this, but we have been talking about Elton John, and nobody else has made the inevitable point: sorry seems to be the hardest word, but we are not hearing it said, either in jest or in sincerity. As I look at the Opposition Benches, which are deserted, I wish that Conservatives could speak up on behalf of British business—[Interruption.] I do apologise to the hon. Member for Grantham and Bourne (Gareth Davies). Perhaps he will find the hymn sheet to sing from—the one about being in favour of British business and investment. Perhaps he will also say sorry, much as it is the hardest word—I have said that twice now.
As I said, neither this debate nor these investments are just about the money. Hopefully, nearly 38,000 people across the UK, including in my home of Bournemouth East, will begin new jobs as part of the green transition that our country so desperately needs and that our industrial sector has been crying out for. To that end, I very much welcome the publishing of the Government’s Green Paper on their 10-year industrial strategy, which we have already heard about.
In the short time I have been a Member of Parliament, the Government have committed to strengthening Britain’s industrial base—in both the service and manufacturing industries—to create good, well-paid jobs in not only the green sectors we have today but those of the future. With the right policies, the Government can supercharge investment in clean energy industries across the UK, from the industrial heartlands of the north to the thriving finance sector in Bournemouth. This is about more than just creating green jobs; it is about the revitalisation of entire regions and ensuring that every corner of our country benefits.
I have been fortunate this week to spend time with investors, businesses and working people at three events in London, and the relief is palpable. I have listened to investors talk about how they have been holding on to money because they have been craving regulatory certainty; planning reform; the building of homes for their workers; an NHS that can fix those workers, who they need at their workplaces but who are at home unwell, because of mental ill health, musculoskeletal problems or worse; and the certainty from Government that would remove the barriers to growth, so that the investments they make extract a dividend for not just their companies but our wider economy. When Members hear that the investment we are talking about was lined up before the general election, they should not believe it. It came forward after the general election, because businesses now have a Government who are committed to putting in place the infrastructure and changes needed for our economy to grow now and into the future.
We know the benefits of action, and we know the costs of inaction, because we are bearing those costs now. Working together, Government, investors, working people, our trade unions, and businesses will achieve energy independence and security. We will achieve falling and lower bills. We will achieve good jobs and pride in our communities. Together with our mission-led Government, we will achieve a growing and improving economy and way of life.
(2 months, 1 week ago)
Commons ChamberBefore we start, I inform the House that I will bring in the Secretary of State at the end of the debate. I call the shadow Secretary of State.
1.30 pm
I beg to move,
That an humble Address be presented to His Majesty, praying that the Social Fund Winter Fuel Payment Regulations 2024 (SI, 2024, No. 869), dated 22 August 2024, a copy of which was laid before this House on 22 August, be annulled.
The Labour party—the Government—said in the general election that it would bring in a new style of politics; politics centred on integrity and transparency. So it was that during the election, we held them to account and pressed them on tax, among other matters. We will find out, with the Budget at the end of next month, whether they were telling the truth—I have my suspicions. But we have already discovered one thing right now. We also pressed them on the winter fuel payment, from which millions of pensioners benefit up and down the country. Why? Because the Conservative party stands four-square behind our elderly. We believe that they should have security and dignity in their later years.
We received cast-iron assurances from the Labour party. In fact, the then shadow Chief Secretary to the Treasury, the right hon. Member for Bristol North West (Darren Jones)—[Hon. Members: “Where is he?”] That is a good question. He said when pressed that the Labour party had “no plans” to do anything in respect of the winter fuel payment. Indeed, Labour candidates up and down the country gleefully pointed to their manifesto as having no mention of doing anything on this particular matter. But look at what has happened in a matter of a few short weeks. What happened to integrity? What happened to transparency? They went out of the window—broken promises already. The special contract that Labour sought to have with the British people based on integrity and decency has been smashed into a million pieces.
What is the impact of these measures? To a degree, we do not know—I will come to that—but we do know that nine out of 10 pensioners will lose the winter fuel payment of up to £300 at a most difficult time of year for millions of them, and a time when the energy price cap is going up by 10%. There is a suggestion from Labour Members that somehow only the wealthy—the millionaires—are affected. Far from it: two thirds of pensioners living below the poverty line will have this benefit removed. [Interruption.] Labour Members do not like hearing it. The 880,000 pensioners who we know are eligible for pension credit but are not yet receiving it will also suffer—[Interruption.] Labour Members chunter from sedentary positions, but although they say that they will have wonderful campaigns to get everybody who is entitled on to pension credit, in reality, even if they did so it would cost the Exchequer £3.8 billion, which is over twice the money that they say they will save. It is an absurd policy that their own plans are actively working against.
The haste with which this has been carried out is simply jaw-dropping. We do not have any impact assessments.
Does the shadow Secretary of State agree that if a local council had run its finances into the ground, in the way that his party did to the country’s finances with a £22 billion black hole, he would have called in the commissioners in the morning and instigated swingeing cuts? Can I ask him—[Interruption.] Given that that is the case, and that he now seems to have decided that his party no longer cares about balancing the books, will he apologise—
Thank you, Madam Deputy Speaker. That slightly lengthy question might be better addressed by way of a rather lengthy letter to the leaders of Birmingham city council.
Of course, all politics is about choices, and what this Government have done is cave in to their trade union paymasters. They have settled way above inflation. Junior doctors—22%. Train drivers—14%. They have stood up for their trade union paymasters on the backs of vulnerable pensioners, and that is not right. If it is not the case that the trade unions are running the Labour party, hands up everybody on the Government Benches who has not received money from the trade unions for their campaigning or their private office. [Hon. Members: “One!”] One person. Therein lies the truth about who is running the Labour party.
Of course, we have seen all of this before. Under the last Labour Government, we had the 75p pension increase, we had Gordon Brown’s stealth tax on private pensions—£118 billion in total—and was it any surprise that we ended up with the fourth highest level of pensioner poverty across the whole of Europe?
I could speak forever about the challenges that the last Government left. I have spoken about the NHS, but let us take the dire state of our train services. The previous Government refused to engage and stop the strikes, which meant that anybody travelling had no certainty about whether they could get to everything from work to a family funeral. Lives were put in havoc, so it is absolutely right that we begin to set right the chaos that the last Government left. Yes, there is a cost to that, so the challenge for my right hon. Friend the Member for Leeds West and Pudsey and this Government is how we address that, making decisions that will build up the future of Britain in the way that we all want to see.
We also need to address the issue of taxation. The biggest challenge in our taxation system is that those who face the greatest financial challenges often face the biggest challenges of all, because the greatest cliff edges in our taxation and benefits system affect not those who are starting to earn and accumulate wealth, but those who are most financially challenged. For those at the margin, we keep coming across examples—this is not the only one—where the marginal costs of a slight improvement in income can drastically outweigh that improvement, whether that is tax thresholds being frozen or the issues we have seen with child benefit. There are many more examples, and the debate we are having today is one of those. The solution is not to duck or defer the need for tough choices, so, for the record, I will be voting with the Government. Equally for the record, though, I want this Government to commit to tackling those cliff edges, because that is what progressive policy—including taxation policy—looks like.
Like many Members of this House, I know from bitter experience that rushed laws tend to be bad laws, so I do not expect some Houdini-like solution to be announced from the Front Bench by my right hon. Friend the Member for Leicester West (Liz Kendall) in her closing speech. Instead, I expect and trust that she will consider removing those chains of poverty as a key mission for this Government in a thoughtful, carefully planned way; one that is tied up with the next Budget but goes way beyond it.
I also know, as will many Members, that there are technical challenges in making changes. Look at what has happened with child benefit: the limits on income are dragging many people into tax returns, where households of the same income did or did not receive child benefit depending on who was earning the money. That is a lesson in why changes need to be made in a sustainable way and according to a plan. My right hon. Friend on the Front Bench and her colleagues have a plan, but the winter fuel allowance, which we are discussing now, is a prime example of the problems that those cliff edges create. Addressing those problems in isolation, however, will leave in place all the other cliff edges; we need to look at challenging poverty in the round.
I was honoured to be chosen yesterday to be Chair of the Treasury Committee. I do not yet have Committee members—they are yet to be elected, as is the Chair of the Work and Pensions Committee—so I cannot speak for a Committee that does not yet exist on a cross-party basis, but I will be urging the Committee to consider this wider challenge of cliff edges as a matter of urgency. I look forward to working with Ministers to find some practical steps forward.
We have to make tough choices as a Government in-year, because one of the challenges is that the hole in the public finances is not just about the hole today. In previous Budgets, decisions were made to defer spending to later years, so the real challenge is now. Too often I have seen calls for efficiency savings and cuts in-year that end up being deferred. If we look at what happened to the defence equipment plan under the Conservative Government in 2010, we see that there was a desire to balance the books. In doing so, the Ministry of Defence deferred spending—moved it to the right—which left us with aircraft carriers without aircraft and a raft of other problems. Deferring decisions and spending does not solve things, and this Government and this Cabinet are making the tough choices to make those difficult decisions in-year, because that is financially literate and the right thing to do.
I am not going to give way. I thank the right hon. Member, but I cannot because I am under strict guidance from the Deputy Speaker.
One in three pensioners living in poverty are in the private rented sector, so what are we going to do about that? Even if everyone eligible for pension credit were claiming it, according to Age UK, there would still be another 2 million pensioners slightly less badly off who will not be eligible for pension credit and now the winter fuel payment. The cut-off threshold for pension credit is just under £12,000 a year for a single person. These are not wealthy pensioners. Poverty is poverty whoever experiences it, and we know that we have 8 million working people living in poverty, as well as 4.5 million disabled people, 4 million children and 2 million pensioners. As we did in previous Labour Administrations, I know we will tackle this, but again it will not happen overnight.
Could I point out what we know about the health effects of the cold? The Lancet published a very good paper reviewing data from the last 20 years, and it showed the extra deaths—the excess deaths—as a result of cold. I could mention dozens and dozens of cases from my constituents who have written to me and who, again, are just clinging on following the last 14 years. Is my right hon. Friend the Secretary of State able to say not just what other options she may have considered for offsetting the loss of the £300, but what alternative ways there are of raising the £1.4 billion we will get from means-testing the winter fuel payment? I know how complex and difficult our economic situation is, but, please, we must protect our most vulnerable citizens.
Order. Members will have seen that there is a lot of interest in this debate, so I will impose a clear three-minute time limit from now on.
(6 months, 4 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The sitting is resumed, and the debate can now continue until 8.20 pm. I call Beth Winter to continue.
I have spoken about carer’s allowance being a poverty payment in need of fundamental reform. I want to conclude with a few general comments about social security and carers’ benefits and assistance. First, the demonisation of people in receipt of social security benefits, which are an entitlement, should stop. Only last week, we had Sunak talking about a “sick note culture”—language that is inflammatory, disgraceful and very dangerous. It will only exacerbate people’s hardship.
In Cynon Valley, high numbers of people are on social security benefits, including carer’s allowance. That is due to our industrial legacy—dirty work, with people inheriting significant ill health associated with the industry that they worked in. With the decimation of the industries, we have high rates of unemployment. Again, that has been compounded by the cost of living crisis, which is a political choice.
We need structural and transformational change when it comes to carers. We must ensure that everybody, regardless of their circumstances, is treated with respect and dignity, and that they receive the support they are entitled to. That should include a new national carers’ strategy. Apparently, we have not had a new one for 16 years, which I find quite shocking. Also, we could include being a carer as a protected characteristic under the Equality Act 2010, enhance flexible working and introduce a statutory right to breaks for people with caring responsibilities. In addition, we should ensure that social care receives sustainable and adequate funding, and that there is a joined-up approach between health and social care so that social care stops being seen as the weak relation in many regards.
Sustainable funding would ensure that people—both the carer themselves and the person receiving the care—could receive respite care and other support services. We should also explore things such as the minimum income guarantee and universal basic income. Without a doubt, however, the overwhelming evidence shows that, as a starting-point, carer’s allowance is in need of fundamental reform. Diolch yn fawr.
(11 months ago)
Commons ChamberThe Government are committed to increasing employment. Payroll employment is at a near record high of 30.2 million, which is up 1.2 million on the pre-pandemic level. The Office for Budget Responsibility forecasts that our back to work plan will see 30,000 more people in work over the forecast period.
I cannot agree with that. In fact, I point the hon. Gentleman to the figure of 371,000, which is the number of people fewer the OBR forecasts will be on those very long-term sickness and disability benefits because of the reforms that this Government are bringing in.
Last week, the Office for National Statistics published figures showing that 6.6% of people of working age in Bradford are claiming out-of-work benefits, which is the highest rate in the Leeds city region. Does the Secretary of State believe that the Government’s back to work plan is working for people in my constituency of Bradford South?
The back to work plan has billions of pounds-worth of investment behind it, including the £3.5 billion announced by the Chancellor in the spring Budget. Such things as extending restart, bringing forward mandatory placements after 18 months to ensure that people get into work and doubling universal support are important measures that will see increased numbers in work.
(1 year, 2 months ago)
Commons ChamberI welcome our three new colleagues.
The independent Office for National Statistics estimates that, notwithstanding a recent uptick, the unemployment rate is now almost half the rate we inherited in 2010 and is back to pre-pandemic levels.
With great respect, I disagree. Employment is at record levels. Vacancies have been down for the past 10 quarters. Payroll employment is at a record high. Pay is up and inflation is down. We are doing an awful lot better than that lot would.
We have seen a summer of job cuts in my Bradford South constituency, with both Morrisons and Solenis announcing major redundancies. Does the Minister agree that this shows that the Government’s plan to grow the economy is failing?
I should make the point that payroll employment is at a record high. There are 4 million more people in work than in 2010, and the unemployment rate is down to 4.2% across the UK—that is a near record low. Our jobcentres are clearly doing a fantastic job, and I fully support all the work that is going on in Bradford to try to address these issues.
(2 years, 9 months ago)
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I beg to move,
That this House has considered the cost of living in the UK.
I am delighted to have secured this debate today. It is very timely, and I honestly do not think that anything occupies the minds of constituents in North Ayrshire and Arran or indeed any other constituency more than this issue. It affects everyone. Everyone has noticed that their monthly outgoings are rising. Energy costs are up. Food prices are up. Fuel prices are up. Clothes prices are up. In that context, it is no surprise that consumer borrowing is also up, which will throw many into unsustainable debt as they struggle to keep up with essential bills. There can be no doubt that we are caught up in a genuine, biting cost of living crisis. It is simply not good enough that while our families, our communities and our pensioners are suffering, the Government are eating themselves alive over whether the Prime Minister knew he was actually at a party when he attended a party at the address where he lives.
I want to begin by saying a few words about the cost of energy. Gas and electricity bills are expected to rise significantly in April, when the energy price cap is predicted to reach £2,000 a year or £165 a month. That represents a 45% increase, although there are reports of even steeper rises. It is no wonder that National Energy Action believes that 6 million households will be in fuel poverty by April. That is a 50% increase from last year and it will hit hardest the poorest families, who spend most on energy as a proportion of their income. The reality is that wages are simply not keeping pace with the rise in the cost of living, as the Office for National Statistics has highlighted, with the Office for Budget Responsibility indicating that average real wages will be lower in 2026 than they were in 2008. Instead of a rising price cap, an emergency financial package must be introduced to support the most vulnerable and help families to cope during this crisis. The cost of living crisis is real and will only worsen as energy bills rise, alongside regressive tax hikes and inflation, pushing more and more people into poverty.
In addition the ending of the uplift to universal credit and working tax credit is imposing the biggest overnight cut to welfare in 70 years. The situation for too many of our constituents is critical. The changes to the universal credit taper rate are welcome, but they are not enough to help those who are struggling with this perfect storm of financial pressures. Let us not forget that apart from the suffering that the cut in universal credit will cause for those on low incomes, it will take £460 million out of Scotland’s economy. That money would be spent in local shops, stimulating local economies in communities in each and every town and city.
Order. I remind hon. Members that I will be starting speeches from Front-Bench spokespersons at 10.28 am and no later than that. Can hon. Members adjust their times accordingly?
(2 years, 11 months ago)
Commons ChamberThe opportunity to speak about youth hubs is too tempting. We have 150 new youth hubs across the DWP, crucially bringing together local partners from employment, training and skills to support young people. The Keighley youth hub, based in Keighley College, is a prime example, working in close collaboration with SkillsHouse, One Workforce and the community-led local development programmes. I hope that sells the youth hubs to you, Mr Speaker.
People on legacy benefits with severe disabilities are most likely to get employment and support allowance. Income-related ESA claimants may be entitled to the enhanced disability premium or the severe disability premium. Claimants may also be eligible for personal independence payments to help with the extra costs of living faced by disabled people.
I am sure the whole House agrees that a good society is one that helps those in great need. I have a constituent in great need. She was in receipt of income support and the severe disability premium, but her child is now aged five so she has been told to claim universal credit, which will cause her severe disability payment to end. What assurances can the Minister give my constituent that we are still in a good society and that, by being forced into this change in her benefits, she will be no worse off?
It would be difficult for me to comment on the hon. Member’s constituent’s precise circumstances, although I am happy to look at the case if she wants to write to me with details. As a general point, to support claimants previously entitled to the severe disability premium who moved to universal credit after a change of circumstances, there are transitional payments protections in place.
(5 years, 5 months ago)
Commons ChamberIt is a pleasure to follow my friend the hon. Member for Chichester (Gillian Keegan). My constituency ranks bottom—533rd out of 533 of all English constituencies—for school-age social mobility. Put simply, anyone growing up in Bradford South has far fewer opportunities than someone growing up in a wealthier area. Rather than just talking about social mobility in a narrow sense, I want to look more closely at how opportunity is distributed in this country. I believe that it is a structural problem that requires a structural response.
Ultimately, the key to improving life chances for everyone is to redistribute opportunity more equally. At the moment, some people and some places have more opportunities than others—opportunities to go to an outstanding school, to get into the best universities, to access high-paying jobs. This must change.
In the short time I have, I want to focus on three areas: first, how we can empower schools to improve life chances; secondly, the role and future of the Government’s opportunity areas scheme, particularly in Bradford; and finally, the vital role that further education has to play in redistributing opportunity.
I would like to start, as other hon. Members have, by commending the Social Mobility Commission for its excellent recent “State of the Nation” report, which breaks down in forensic detail the scale of the problem we face. I was pleased to attend a meeting between the APPG on social mobility, chaired by my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders), and the commission. The commission rightly points out that schools are an essential vehicle for social mobility. In fact, I would go as far as to say that schools are the essential vehicle for social mobility. Good schools, as many of us know, can turn a child’s life around and open up opportunities they never had before.
We need to empower schools to do more to improve social justice. Of course, this is partly about funding. Education cuts do not fall on children equally. We know that cuts to support staff, after-school activities and targeted interventions impact disproportionately on disadvantaged children. I am concerned about the number of children who arrive at my primary schools with severely delayed speech and language skills. Headteachers across my constituency have raised that issue with me, and I recently met the children’s communication charity, I CAN, to discuss solutions. I CAN has developed a 10-week programme aimed at four, five and six-year-olds to deliver a language boost, and it is targeted at disadvantaged children. In the current funding climate, schools will struggle to fund such vital schemes.
I now turn to the opportunity areas programme, the Government’s place-based social mobility programme, which is targeted at 12 social mobility cold spots, including Bradford. In Bradford, the scheme is focused on improving the quality of teaching, improving literacy and oracy, and widening access to good jobs. While it is too soon to evaluate properly the success of the Bradford opportunity area, I would like to make a few points. We need clearer information about where the money is being spent. I am concerned that it does not always reach the communities, including those I represent, that need it most. If such schemes are to be successful, they must be open and accountable, including to Members of Parliament, and run over at least five years, with early and regular evaluation so that we can see their real impact.
The Government should also expand cross-departmental working in opportunity areas to include the Department for Business, Energy and Industrial Strategy and the Department for Work and Pensions. Finally, we need clarity, which I hope the Minister can provide today, about whether the Government intend to continue with the opportunity areas programme beyond 2020. People in my constituency deserve a clear answer on that.
Further education colleges take on an increasing proportion of our disadvantaged young people for their post-16 education, at a time when they face severe funding shortfalls. Those Government funding cuts, coupled with an historical debt, has led Bradford College, my local college, to propose making over 130 redundancies in a workforce of around 850. That cannot be right. The Government must increase per-student funding for 16-19 education, reintroduce the education maintenance allowance and consider a student premium for disadvantaged students in FE.
A child growing up in Bradford South should have as many life chances and opportunities as a child from the wealthiest parts of the country. It cannot be acceptable that some children are born more equal than others. That will not be solved by any one policy alone. We need a wholesale response to bring about structural change to redistribute opportunity.
The hon. Members for Battersea, for Oldham East and Saddleworth and for Bedford talked about the national living wage and the inequality—[Interruption.] I am trying to address the issues that—
(6 years, 11 months ago)
Commons ChamberI thank those Members who are staying to listen to the debate. I realise that it is very late at night, but this is an important issue that affects many people—far more than we would want to be affected. Ideally, we would not be having the debate. We hoped that by now the Government would have listened to the calls for the universal credit programme to be paused so that they could learn lessons, take stock of where we are, and fix an arrangement that ought to be providing a decent service and simplifying the benefits system.
After the great war, William Beveridge declared that there were five giants on the road to reconstruction: poverty, disease, ignorance, squalor and idleness. To tackle those five giants, a new, radical response was needed—a response big enough to meet head on the challenges of the day that risked Britain’s future. Furthermore, Beveridge set a vision for a new settlement between the rights of citizens, the role of the Government, and the formation and foundation of public services. It was a balance of roles and responsibilities, rights and obligations, and an expectation that if Britain was to succeed, there must be investment in its foundations.
The challenges that face Britain today, although different, are as big. Our economy is weak and reliant on low wages, low skills and insecure employment. We might sweeten the bitter reality by making it sound cutting-edge—by calling it the gig economy rather than exploitation —or by affixing power to the workers when in fact many of them are powerless, but at its heart is a weak foundation of exploitation and low value that fails to respect a basic belief on which I was raised: a fair day’s wage for a fair day’s work.
Why is this important? It is important because people should be able to earn enough to live—not just to get by, but to be comfortable and enjoy life: to have a nice meal, a holiday, a reliable car, a decent, secure home and a healthy family, and, crucially, to live in a country that invests to ensure that the next generation does even better than the one that went before. We should have a society in which fairness runs through everything we do. There should be a balanced contribution, with equal dividends for those who pay their fair share.
Does my hon. Friend agree that the new sanctions in the universal credit system punish the working poor, especially low-paid workers?
The evidence says that—it says that working families are worse off under universal credit, and not because of its technocratic elements, but because the Government made a deliberate decision to make sure the financial crisis would be borne by those who could least afford it. They are people who are going out to work and doing what is asked of them but, as hard as they try, they cannot make ends meet because the odds are stacked against them and the Government are not on their side. That is what people in Oldham tell me, and that is what people in Oldham feel when they work very long hours and do not see the reward from doing that.