Living Standards

Debate between Liam Byrne and Baroness Bray of Coln

Wednesday 30th November 2011 Commons Chamber

[Mr Byrne]

My hon. Friend is absolutely right—and that is why unemployment is set to spiral over the course of this Parliament, with £24 billion on the benefit bill, which means a £1,000 extra bill for every household in this country.

[Angie Bray (Ealing Central and Acton) (Con)]

As I have found before, the right hon. Gentleman does not like history. The fact is that a note was left saying, “There’s no money left,” and that had consequences. This country is living and breathing the consequences of how Labour managed the budget. We are in deficit, which is why we talk about it so often, and it is about time the Labour party recognised the consequences of the way in which it managed this country’s finances.

[Mr Byrne]

Perhaps the hon. Lady’s memory of history is suddenly faltering, because she should surely remember that in the Chancellor’s emergency Budget, borrowing turned out to be £20 billion less than my right hon. Friend the Member for Edinburgh South West projected when he was Chancellor. Unlike his, the Conservatives’ borrowing forecasts have come in £158 billion higher than originally projected. That means thousands of pounds more for every household in this country—and of course, the price of the consequences is being paid by the hon. Lady’s constituents. More than 7,000 families in her constituency are now seeing their tax credits cut to pay the higher bills of higher unemployment.

Youth Unemployment

Debate between Liam Byrne and Baroness Bray of Coln

Wednesday 9th November 2011 Commons Chamber

[Mr Byrne]

My hon. Friend is absolutely right.

Under the Labour Administration, youth unemployment was 300,000 lower on average than under this Government today, even while the economy is supposed to be in recovery.

[Angie Bray (Ealing Central and Acton) (Con)]

I recall writing a letter to my local newspaper in November 2009 berating the then Labour Government, whom the right hon. Gentleman served, for a 59% rise in the latest unemployment figures. Although he does not want to talk about history, does he accept that context is very important and that his own Government had a lot to answer for in relation to youth unemployment?

[Mr Byrne]

Let me remind the hon. Lady that under the previous Government, even at a time of recession, youth unemployment and long-term youth unemployment were coming down. That is because in the face of a crisis we chose to act. The question that she has to answer—

Welfare Reform Bill

Debate between Liam Byrne and Baroness Bray of Coln

Wednesday 9th March 2011 Commons Chamber

[Mr Byrne]

I am afraid that the Secretary of State has still not provided an answer to my question—he still cannot tell us how he will encourage people to save. Tuition fees have trebled, and people in my constituency are asking, “How on earth do we encourage our young people to go to college, and how on earth can we afford to get our young people into university?”—[Interruption.] I know the Secretary of State does not have those challenges to face, but thousands of people in our constituencies need to save to get their kids to university. The regime that he is proposing will strip in-work benefits from them, kicking the ladder away from aspiration in our country.

[Angie Bray (Ealing Central and Acton) (Con)]

Surely the right hon. Gentleman must recognise that tuition fees are not payable until such time as people come out of university and earn a salary of £21,000 or more. His argument is a red herring.

[Mr Byrne]

I do not know what the hon. Lady’s constituents are saying to her, but many in my constituency live in fear of debt—they want not to burden their children with debt, but for them to get a first-class education, so that they can contribute to the future of our country.

The wider point that is emerging is that we do not know enough about how the Bill affects families and savers, but there is also a question over how it will affect the self-employed. Over the last few weeks, we have heard a great deal of pitch-rolling from the Chancellor and the Prime Minister, who are now worried about the damage that their last Budget did to our economy. All of us hope that the Chancellor can upgrade his growth forecast at the forthcoming Budget after doing so well over the last year, and the Prime Minister is now promising that his next Budget will be the most pro-growth Budget in the universe. He told his spring conference:

“At its beating heart this is still a party of start-ups, go-getters, risk-takers…We’re the party of practical men and women, people with a passion and a mission to build a business and see it grow...We are the party of enterprise.”

No doubt, then, the Bill is part of that plan—no doubt the Bill will make it simpler, easier and more encouraging for people in this country to start a business and to make that entrepreneurial leap. Well, my hon. Friend the Member for Stretford and Urmston (Kate Green) asked the Secretary of State about the self-employed on 9 February. To be fair to him, I think he recognises the problem. Surveying the position of the self-employed, he told her that

“we are conscious that that area is the slight blip in the system.”

This is what the blips in the system at the Federation of Small Businesses told me yesterday. Mike Cherry, the FSB national policy chairman, said:

“We are concerned that the Government has assumed that entrepreneurs with a new business will be paying themselves…and will therefore lose all benefits under the Universal Credit system…A measure such as this simply creates yet another barrier towards self-employment which is particularly unhelpful at a time when we are relying on the small business sector to grow the economy”.

So much for the party of enterprise.

--- Later in debate ---

[Mr Byrne]

Not at all. The point that we are making is about the way in which this reform has been adopted and steamrollered through, and about the lack of consultation between the Department for Communities and Local Government and the Department for Work and Pensions. This has been so mismanaged that many people—the Mayor of London, Shelter, the Secretary of State for Communities and Local Government—are now saying that the cost of housing benefit could go up. Surely that is not the DWP’s intention. We need a bit more detail about a policy that might actually deliver the necessary savings on housing benefit.

[Angie Bray]

I was recently talking to some constituents in Acton, and I discovered that these proposals for changes to housing benefit are among the most popular proposals that the Government have introduced. My constituents like the idea that it pays to work, and that those on benefit will not be able to afford better houses than those in low-paid work can afford. They also wonder why it has taken so long for any Government to introduce a measure that is simply fair, regardless of the money it might save. They wonder why the Labour Government never did anything about this when they had the chance to do so.

[Mr Byrne]

I am sure that the hon. Lady will have set out, with equal eloquence, the view of the Mayor of London that the measures might actually cost more taxpayers’ money than they will save.