The Economy

Lindsay Hoyle Excerpts

Tuesday 11th December 2012 Commons Chamber

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I remind hon. Members that we will start with an eight-minute time limit on speeches.

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[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I call Kwasi Kwarteng.

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[Mr Michael Meacher (Oldham West and Royton) (Lab)]

I think this is the most extraordinary rewriting of economic history I have ever heard in the Chamber. The hon. Gentleman has not once mentioned the banks and the financial crash. Does he not realise that the public sector deficit in 2007, just before the crash, was about 3%? It only rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The hon. Gentleman will have no time to answer you, Mr Meacher, and I am sure that you want an answer.

[Kwasi Kwarteng]

The right hon. Gentleman has talked me out and I must end my speech, but I am happy to discuss the banks with him at any time. My point today is looking at—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order.

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[Chris Kelly (Dudley South) (Con)]

Thank you, Mr Deputy Speaker, for calling me to speak in this important debate, not least because I was otherwise due to serve on a Public Bill Committee. I draw the House’s attention to my declaration in the Register of Members’ Financial Interests.

I will restrict my remarks to how I see the autumn statement benefiting and assisting the economy in my own region. Many businesses across the west midlands are set to benefit from the plans laid out by my right hon. Friend the Chancellor last week. The 368,000 small businesses in the region, including many in my own black country constituency, will benefit from the business bank, which brings together existing Government finance plans and uses £1 billion to stimulate the market for long-term capital. The decision to increase the annual investment allowance limit from £25,000 to £250,000 for two years, in addition to an extra £25 million per year for UK Trade and Investment’s assistance and guidance on exports, will be of great help to an area such as mine, which is crammed with small and medium-sized engineering and manufacturing firms. In addition, the scrapping of the 3p rise in fuel duty, which means that fuel prices will be 10p lower than they would have been under the plans of the Labour party, will help ease the strain of transport costs for small and medium-sized enterprises.

My right hon. Friend the Chancellor has demonstrated once again that Britain is open for business. The reduction in corporation tax to 21% from April 2014 means that the UK will have the lowest corporation tax in the G7. It is worth noting that the total amount raised in corporation tax for the year 2011-12 was £43.4 billion—20% higher than it was for Labour’s last year in office. Lower corporation tax is working. It is resulting in the higher yields that the Treasury needs, while also contributing to increased private sector investment and employment.

Prior to the autumn statement, the black country chamber of commerce, which has many members in my constituency, called for my right hon. Friend the Chancellor to support a pro-business environment. In response to the measures announced by my right hon. Friend, the chamber’s president, Paul Bennett, welcomed his actions to get British business growing:

“The Chancellor’s Statement was encouraging for businesses and many of our members concerns seem to have been addressed”.

Meanwhile, Mark Hastings, the director general of the Institute for Family Business, described several of the measures as “encouraging”. This qualified support reflects the attitudes of many of the business people whom I have spoken to recently in my own constituency—they recognise that this Government are on their side—and of those in the family business sector, in which I am involved as the founder and chairman of the all-party group on family business.

It is pleasing to see the Chancellor building on this Government’s support for British businesses. Last year, we saw an increase of 250,000 in the number of private businesses, which included 226,000 new small businesses, a good proportion of which were in the west midlands. It is obvious, but still worth pointing out, that every successful large employer in the private sector started off as a small start-up. Even JCB, which was started by the inspirational J.C. Bamford and which I have had the privilege of visiting in Rocester, was once a small enterprise in a small shed. I refer the House to my declaration in the register relating to the last election.

This Government are cutting red tape and making it easier for budding entrepreneurs in this country to set up their own businesses, and that is clearly being borne out by the figures. All of that is in marked contrast to the previous Labour Administration, who introduced the equivalent of six new regulations for every single working day they were in power. It is estimated by the British Chambers of Commerce that those new regulations have cost British businesses almost £77 billion since 1998.

Last week, the Chancellor announced further support for local enterprise partnerships, which the Government created. That is the right approach because it promotes local growth by ensuring that Government spending is aligned with the priorities of local business communities. We have an excellent LEP in the black country, which is ably chaired by the no-nonsense Stewart Towe of Hadley Industries. I am confident that the Government’s approach will help to create the conditions that will enable the private sector to get on with creating more jobs in the black country.

The Government are continuing to demonstrate that they are not afraid to take tough decisions in the face of tough economic times. A clear message is being sent out that Britain is open for business and that Britain has a pro-business Government.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Before I call the new Member for Rotherham, I remind everybody that this is a maiden speech.

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[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Before I call the hon. Member for Croydon North (Steve Reed), I remind hon. Members that this is his maiden speech.

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[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Before I call the hon. Member for Middlesbrough (Andy McDonald), I remind hon. Members that this is his maiden speech.

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[Gordon Birtwistle]

Once again, I agree with the right hon. Gentleman. It is always a great moment when the right hon. Gentleman rises and speaks in this Chamber—even though he has only just turned up.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

On a point of clarification, Mr Binley is not a right hon. Member. He has been in the Chamber a little longer than suggested, too.

[Gordon Birtwistle]

I apologise. The hon. Member for Northampton South (Mr Binley) must have been so quiet that I had not seen him in his place.

I agree that the schools and colleges in this country must no longer downgrade apprenticeships, and must no longer say to students, “If you don’t pass, you’ll be an apprentice.” That is an outrageous statement for schools to make. It is time they woke up. I must say that it is also time that this Government’s Department for Education woke up to the fact that going to university is no longer the be-all and end-all, because there is far more to life than going to university.

I am a little upset that the Secretary of State for Education does not think a right lot about careers advice, because I believe that careers advice in schools is crucial. Young people need to be told about, and shown, what is available these days outside the school gates. The Secretary of State and his Department must realise that and advise schools that careers advice is crucial to young people’s futures. Perhaps even more importantly, it is crucial to the economy of this country, because if we do not train people for the jobs of the future, we will all go down the pan.

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[Emily Thornberry]

The fact is that 7,000 jobs have gone under this Government’s plans, and the gap between what we collect and what we are owed is estimated to be £35 billion, which is twice the housing benefit bill. Independent research commissioned by the Public and Commercial Services Union reckoned that the real figure was more like £120 billion, which is six and a half times the housing benefit bill. Whatever the true sum, the fact is that without a sufficient number of tax inspectors we cannot ensure that the rules apply to everyone. Everyone should pay tax; it should not just be for the little people. Paying one’s taxes should not be some sort of charitable gesture, and I have little understanding as to why it was seen as appropriate for this Government to continue to cut back on tax inspectors. If we are to have rules, they need to be applied. The Exchequer Secretary says that there were many processing jobs, but presumably people in that job need to make sure that the sums add up, that everything has been claimed that should have been claimed and that everything has been paid that should have been paid. Without that essential processing we will never know whether or not tax avoidance has been taking place—this is not just about major companies; it happens throughout the system. At a time like this, we need to make sure that everyone plays by the rules. If everyone does that and if the rules apply to us all and we have a fair society, we have the very one nation that Labour Members have been talking about.

Of course, the rules also apply to those who claim benefits and of course if someone can work, they must work. That is what unites this whole House. What does not unite this House is the language used by Government Front Benchers—the language of “scroungers”. Such language is simply offensive, as the highly eloquent maiden speech by my new hon. Friend the Member for Middlesbrough (Andy McDonald) so well set out. Such language is a smokescreen that covers up a great deal of what this Government are actually doing. Although they talk about scroungers and those who stay in bed, keep the curtains closed and do not go out to work—the remarks are highly offensive—they do not address the issue, which is that many, many people who are out of work want to work, but the fact of the matter is that people cannot go from welfare into work if the work is not there.

Furthermore, many of the changes that this Government are making and announced in the autumn statement will affect those very people who work. I want to go on to address the issue of not just those who are poor and not working, but that of those who are working in my constituency and are dependent on benefits. Sometimes I feel as though I live in a different world where Government Members believe that only those who are out of work claim benefits. In fact, many people who work depend on benefits. Surely that is a conundrum. Many people meet me on the street and say, “How can the welfare benefit bill be going up if a million additional people have got work?” The truth is self-evident. Many people who are now working work part-time or are self-employed rely on housing benefit and tax credits, the very things that the Minister will be cutting as a result of the autumn statement. Let us use the terms that he uses, such as the strivers. Those very strivers are having their support system cut away by this Government. Even in the hon. Gentleman’s offensive terms, that cannot be justified.

I want to talk specifically about housing benefit because the issue affects my constituents particularly. I hear Government Members say, “Why should it be that people on average earnings receive less than people on benefits?” That has a certain ring to it and I know that the Conservatives are out of touch, but surely some of them must know someone who rents a flat and who understands that housing benefit goes not to the tenant, but to the landlord. It is because rents have gone up so much in London and the south-east that the housing benefit bill continues to rise. In the past two years, private rents in London have gone up by 25%, according to London Councils. In those circumstances, how can it be justified to attack housing benefit, to put an arbitrary cap on housing benefit, or to believe that housing benefit should be the same level in London as it is anywhere else in the country? How can that be fair?

It is not the fault of my poor constituents that their rent is high. It is the fault of my Government and of Conservative Governments who did not build enough housing. There was a time when Conservative and Labour Governments used to compete with each other as to how much affordable housing they could build. In the 1970s, four fifths of the housing budget was spent on building new homes and one fifth on housing benefit. Now it is completely turned on its head and we continue to pay the price of failure. We must build more housing and we must not simply dance on a pin, analysing what affordable housing means.

The Minister represents a party that defines affordable housing as costing 80% of market rent. He and his party should get some sort of George Orwellian prize for double-speak. Eighty per cent. of market rent in my constituency could not be afforded by ordinary people in my constituency. I went on to the Rightmove website this morning and looked at the prices of three-bedroom flats in my constituency. Does the hon. Gentleman know how much the rent for a bog-standard three-bedroom flat in my constituency would be? Four hundred pounds a week. How much is the housing benefit cap? Three hundred and forty pounds a week. There was only one flat on Rightmove that was under the amount of the cap so how can people in my constituency, who will be subjected to the housing benefit cap, afford to continue to live in Islington?

There is an argument that the poor should not be living in Islington, but I respectfully disagree. My constituency should be a mixed constituency and should have rich and poor. Generations of poor people who live in my constituency should be allowed to continue to live there. Furthermore, the housing benefit cap is one atrocious measure that this Government have introduced, but we wait for the next, which is universal credit. There will be a cap of £500 a week for a four-bedroom flat in my constituency. There were 69 that were under the £400 current housing benefit—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order.