(3 days, 19 hours ago)
Commons ChamberMy hon. Friend is absolutely right to raise this issue. What the National Audit Office found in its report was not only an appalling process of decision making by members of the previous Government, but a grotesque waste of £15 million of taxpayers’ money—just like the waste of £60 million at RAF Scampton. In contrast, the new Government are determined to cut asylum accommodation costs by stepping up decision making, reducing the backlog—
(3 weeks, 1 day ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
For too long, smuggling gangs have been undermining our border security and putting lives at risk, which is why the new Government have made it a top priority to address the crisis we inherited. Let us be clear about what that crisis entailed: small boat crossings in the first half of the year at their highest point on record, and over 100,000 arrivals in the five years prior; over 200,000 cases stuck in the asylum system, costing the taxpayer billions in support; and £700 million spent on a gimmick that sent just four volunteers to Rwanda.
When we entered government, we said it was time for grip, not gimmicks, and that is exactly what we are delivering. Since July, we have established the border security command, headed by experienced police chief Martin Hewitt. In the King’s Speech, we set out our intention to bring forward legislation to give the border security system stronger powers to investigate and prosecute organised immigration crime. We are recruiting 100 new specialist agency and investigation officers at the National Crime Agency to target and dismantle the criminal networks behind this phenomenon. We have also announced an extra £75 million to bolster border security, bringing our investment in the border security command over the next two years to £150 million. This Government’s border security funding boost will go towards a range of enforcement and intelligence activities and capabilities including covert technology as well as hundreds of staff and specialist investigators as we crank up the pressure on the smuggling gangs.
This is an international problem requiring international solutions. Since the general election we have intensified co-operation with partners overseas. We recently struck a new anti-smuggling action plan with G7 partners and the Prime Minister and Home Secretary both attended the Interpol general assembly in Glasgow on Monday to press the case for a much stronger and more integrated global response to organised immigration crime.
As well as tackling the issue upstream, we have taken action to speed up decision making and stepped up returns of those with no right to be in this country. The result of all this action is 9,400 returns since this Government took office including a 19% increase in enforced returns and a 14% increase in returns of foreign national offenders.
Sticking plasters and gimmicks have failed. The smugglers and traffickers have been getting away with it for far too long. It is time to show them we are serious, not with words, but with action. The security of Britain’s borders is paramount and under this Government it always will be.
Yes, I agree wholeheartedly. The issue here is dealing with cross-border organised immigration crime. To do that, we have to talk to our international allies and co-operate with them across borders. That is exactly what the creation of the border security command will do, both operationally and politically, and we will see the results.
The shadow Home Secretary’s record in office is a matter that we may well keep coming back to. I agree with the observations that my hon. Friend makes.
(6 months, 2 weeks ago)
Commons ChamberWe now come to the temporary shadow Minister. I wish the shadow Secretary of State, the hon. Member for Leicester West (Liz Kendall), a speedy recovery, and look forward to seeing her in the House. Angela Eagle, welcome back.
Thank you very much, Mr Speaker. I am sure that the shadow Secretary of State is making a good recovery—she is probably watching us even now, in between her physiotherapy.
Is it not the case that on this Government’s watch, food bank usage has doubled for pensioners, and over 2 million pensioners—nearly one in five—are now living in poverty? That figure is not stable; it is rising, so what is the Minister going to do about it?
(10 months, 3 weeks ago)
Commons ChamberFurther to that point of order, Mr Speaker. Normally business statements allow Back Benchers as well as Front Benchers to ask questions of the Leader of the House. This is a difficult precedent because it does not give the Back Benchers a voice. Saying that it is just a matter of convenience for amendments is not good enough when the Government are in charge of the business and could have done this in a more organised way to give everybody a say. I think this is a deplorable development.
In general, I would expect the House business to be announced via a statement or in response to the business question. It would of course be in order to ask questions about the timetabling of this business during Thursday’s business statement, but you have made the point and at least you have got it on the record. Let us move on.
(2 years ago)
Commons ChamberExcuse me! Secretary of State, I thought you were in charge of levelling up—it doesn’t look that way with that score!
I would have informed the House of that, had the Secretary of State not got there before me. After promising to match EU structural funds in the Government’s manifesto, and then taking £1 billion a year out of them for the replacement shared prosperity fund, how can the Secretary of State claim to be levelling up when his Government have presided over a net loss in funding across the country, including in the north-west, which stands to lose £206 million under the shared prosperity fund, which the Government have failed even to inflation-proof?
(3 years ago)
Commons ChamberOn a point of order, Mr Speaker. We have just heard the Minister say that there are no minutes of this so-called courtesy call. Can you tell us what we, as Members of the House, can do on learning this through this House, given the astonishing nature of the revelation that the Minister has just made that there have been meetings with no minutes? These are official meetings that involve Government Ministers, and she is unable to locate a copy of what happened at a meeting that clearly took place.
In all fairness, the Minister should be given time. There are Parliamentary Private Secretaries here, and I am sure that they will have heard and will try to get an answer to the question if we do not have that information. I would expect Government meetings with other people present always to be minuted. If they are not, it opens up another question. I do not want that question to be opened up, as I would prefer it to be answered. Therefore, I am sure that, at some point, we will get that answer. It is a fair point to be made, but in fairness to the Minister, I do not want to end up with a frenzy. Hopefully, some information will be fed back to her—I am looking to the Parliamentary Private Secretaries behind her to see whether it can be fed in at the moment.
(3 years ago)
Commons ChamberThank you for your ruling, Mr Speaker. It is always a balance in this House as to whether one tries to answer as many questions as possible, which is, I think, the better way of conducting the debate.
A letter was sent to me yesterday by union representatives about the importance of maintaining independent and impartial investigations into misconduct. The standards system stands in contrast to the Independent Complaints and Grievance Scheme, which has an appeal panel, chaired by a High Court judge. That is for the very reason that all parties referred to the scheme must have total faith in it. It has been absolutely essential in achieving positive cultural change in this House precisely because of its rigorous, judicial processes, transparency of operation and evident commitment to natural justice and the right to appeal. The House should be proud of the ICGS system, and it owes a debt to my right hon. Friend the Member for South Northamptonshire for its establishment. It is clear that we can learn many lessons from its operation, and I would encourage the Select Committee to look to the ICGS system, with its benefits of judicial experience, as an example of how a process of independent adjudication can be set up effectively.
In summary—I was expecting a “Hear, hear” for that, Mr Speaker, as I am coming to my conclusion—there are numerous problems with the operation of the standards system, a fact that has been highlighted by the concerns of Members across this House in this particular case and others. Given these concerns, I think that it is only right that consideration of this report be paused until our standards system can be reviewed. Therefore, I will support the amendment so that the new Committee can consider whether Members should have
“the same or similar rights as apply to those subject to investigations of alleged misconduct in other workplaces and professions, including the right of representation, examination of witnesses and appeal”,
and whether this case itself should continue through any reformed system recommended by the new Committee.
Members must act when we see a situation arise that we do not believe to be compatible with the principles of natural justice. This is about the process and not the individual case, but when considering this report how can one not consider the great sorrow that my right hon. Friend the Member for North Shropshire has suffered? The suicide of his wife is a greater punishment than any House of Commons Committee could inflict. As we all know:
“The quality of mercy is not strained.
It droppeth as the gentle rain from heaven
Upon the place beneath. It is twice blessed:
It blesseth him that gives and him that takes”.
It is in this way that the House should consider this case and standards more widely. The system must provide justice tempered by mercy, for mercy is essential to justice.
On a point of order, Mr Speaker. The Leader of the House appears to have spent this whole time supporting the amendment and has not actually moved the motion that he was meant to be moving.
I think the Leader of the House did move the motion, although I agree that it was a variation. I want the shadow Leader of the House to put the other case now. I call Thangam Debbonaire.
(3 years, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you, Mr Speaker, for granting this urgent question. It has taken me nearly 30 years, but I now find that I agree with the right hon. Member for Wokingham (John Redwood) in his question. This is serious. As an Opposition, we cannot look in detail at the slew—the blizzard—of Budget announcements that have been going on week after week, because we do not have the OBR report and we do not have the detail. This is treating parliamentary democracy with utter contempt and the Minister should be completely ashamed of himself. He should have come to this House and apologised. His boss should have come to this House and apologised.
(3 years, 4 months ago)
Commons ChamberI hope that I will get an equally happy response to my question. The Secretary of State has said that he is anticipating as many as 100,000 covid infections daily. If that were actually to happen, according to his figures how many people would he expect to be hospitalised, and how many would he expect to develop long covid as a result?
(4 years, 1 month ago)
Commons ChamberOrder. The hon. Members for Wallasey (Ms Eagle) and for Stoke-on-Trent North (Jonathan Gullis) can both be quiet. I want to get on with the business, and I do not want one person to start to entice others. Let us see whether we can make some progress. Let us have a good, well-mannered debate, as that might be helpful to this House.
(4 years, 7 months ago)
Commons ChamberThank you, Mr Speaker.
Last Sunday, the UK and 18 other G20 countries endorsed a comprehensive communiqué on covid-19 and future global pandemic preparedness. That much-needed action plan was then effectively vetoed by the USA as part of its unfounded attack on the World Health Organisation. Given that the Prime Minister is reported to have spoken to Donald Trump yesterday, can the First Secretary of State assure the House that Britain believes that the World Health Organisation is critical to the future of global health security, and that this country will not be drawn into the US President’s disgraceful vendetta against the World Health Organisation?
(8 years ago)
Commons ChamberOrder. If the Minister is not going to give way, the hon. Lady will have to sit back down.
Order. If the Minister wishes to give way, he will do so. The bottom line is that the hon. Lady is quite right to ask him if he will do so, but we cannot have people standing up and shouting—[Interruption.] We do not want people on one side saying no and people on the other side saying yes. The bottom line is, I want the Minister to get to the end. He may give way if he wishes to; otherwise, he should carry on.
(9 years, 4 months ago)
Commons ChamberI thank the right hon. and learned Gentleman for accepting my goodwill, at least. We are in a more complex position than we needed to be in because of the way in which the Government have chosen to proceed on this difficult issue. In my view, cross-party consensus leads to more sustainable and long-lasting solutions.
(9 years, 8 months ago)
Commons ChamberOn a point of order, Mr Deputy Speaker. It has just come to my attention that the Government have tabled a motion for debate on the final day of this Parliament, with no notice whatever to myself as shadow Leader of the House. The motion proposes changes to the way in which the Speaker is elected—procedural matters in the House—with no consultation with Her Majesty’s loyal Opposition and no consultation with the Chair of the Procedure Committee, for debate in only one hour tomorrow. Is this in order? Do you believe that the procedures of this House should be bandied around by the Government in this way, and that we should have surprises delivered to us in this manner on the last day of the first ever fixed-term Parliament? The motion attempts to influence the results of the first thing that will happen in the next Parliament, with no chance for large numbers of Members who had no knowledge that this was happening to participate.
It is a business matter for the Government, as the shadow Leader of the House is well aware. Rightly or wrongly—whichever the House may decide—a business motion was agreed to yesterday, as I understand it, and as we know, business of the House is decided by the Government, not by the Chair, so it is not a matter for the Chair.
(10 years ago)
Commons ChamberWe are already doing some pre-work, before the election. We want this to happen very quickly after the election, and want to be ready to come forward with some views after proper conversations with people from across the entire country. We are looking at models such as the Scottish constitutional convention and the Irish constitutional convention, which happened after the crash. There are good models out there that we can use to bring about a process that would give a new settlement the legitimacy it deserves. [Interruption.]
Order. The shadow Deputy Leader of the House needs to stop enticing colleagues to speak. I want to hear the shadow Leader of the House.
I will get on with that later, Mr Deputy Speaker.
Our amendment, had it been selected, would have brought about proposals that would meet the scale of the challenge and unite the country through conversation and consensus; that is exactly what we would seek to do.
When the Prime Minister appeared on his front step just hours after the result of the Scottish referendum was announced, his intention was not to bring our country together, but to try to find a new way to divide us with his partisan suggestion of English votes for English laws, which he appears to want to apply to Finance Bills. Instead of behaving like a Prime Minister, he behaved like a man concerned only with his own narrow party interest who was running scared of the UK Independence party.
The need for a distinct voice and identity for the English is something that I understand, but the issue is much wider than who votes on what, and in which way, in this House; today’s debate has demonstrated that. Look at what this Government have done to make worse the problem of unfair access to resources. They have instigated huge cuts to local authorities in England, and they have hit the poorest areas hardest.
The effect of the Barnett formula distribution pales into insignificance compared with what has been happening in local government allocations. My local authority will have suffered a 57% cut to its 2009-10 budget by the end of this Parliament, which is a loss of over £700 per household. While the social safety net is torn away in the Wirral, Surrey Heath has received an increase of £25 per household. With their modest announcements on some cities, the Government have come very late to any thought of meaningful devolution of power to the English regions. Indeed, they have centralised power quite significantly, beginning with the complete dismantling of the regional development agencies.
Meanwhile, Labour Members have been proposing the biggest devolution of power ever to the English regions. After the McKay commission reported on the West Lothian question, the Government’s own press release said:
“The Government is giving serious consideration to this report. Given the significance of the recommendations for both England and the UK as a whole, it is right to take the time required for a thorough and rigorous assessment.”
That welcome and sensible approach was thrown over on the morning after the referendum. I hope that we can see it reasserted in the months ahead.
Labour has a proud record of constitutional reform achieved by trying to find cross-party consensus. We devolved power to cities as well as nations. We passed the Freedom of Information Act and the Human Rights Act. We began the process of Lords reforms, and I hope that we will be able to finish it by establishing a senate of the nations and regions. We understand that there is more to the debate than just English votes for English MPs; it is about how our democracy works and how we can rebuild trust in it.
I urge Members to vote against the motion because of its reference to a review of the Barnett formula, which would go against the promises that were given to the Scottish people before the referendum. There is an exciting possibility of progressive change ahead and the prospect of a radical improvement in the way the UK is governed, which would take power and accountability closer to the people and renew our democracy. I believe that we should seize it.
(10 years, 8 months ago)
Commons ChamberI will be quite honest: I do not treat what you have said as a point of order. There is no record of the vote as yet, and we will have to wait and see.
Further to that point of order, Mr Deputy Speaker. This is now the second time the House has debated this issue on a Back-Bench motion, with overwhelming votes to stop the cull. What good is it having debates in Parliament if the Government are wilfully staying out of the Lobby, not involving themselves in voting for the policy that they are pursuing in the country, and taking no notice whatsoever of votes of this House. Is not this making this House an irrelevance?
I can understand that frustration is being shown at this time, but I am not in a position to offer any more advice.
(13 years, 9 months ago)
Commons ChamberOrder. We are in danger of going off into past subjects. The hon. Lady may be tempted to answer, but we have to deal with the Bill before us and not with speculation in a newspaper about bullying. I think that we will stick to the Bill.
Thank you, Mr Deputy Speaker.
Let me be the first to say that the Opposition support an independent OBR, so long as it is indeed independent. In that respect, the OBR has some ground to make up and some points to prove after its very difficult start in life. Initially it was located a few doors down from the Chancellor in the Treasury and consisted entirely of Treasury civil servants. Its much vaunted “independence” was utterly compromised in June last year when it was unwisely bounced into the politically convenient early publication of employment forecasts, suspiciously just ahead of Prime Minister’s Question Time—the Minister did not refer to that incident. The forecasts themselves turned out to be controversial and the OBR ended up looking more like an offshoot of the propaganda machine inside Conservative central office than an independent and trusted forecasting organisation. Sir Alan Budd, the interim head of the OBR, announced his shock departure shortly afterwards. We may well have to wait until he writes his memoirs to find out exactly what really happened.
Order. We are getting tempted once again. If Members stick to the Bill, that will be helpful.
There is a difference between having an economic policy that is put into place directly after a general election, when manifestos said one thing and the Government did another, and responding to a crisis that very few people saw coming and that threatened the entire infrastructure of the global banking system. There are obviously differences between those situations, but I respect the hon. Gentleman’s expertise in financial matters, particularly regarding the City.
The Government have chosen to cut public expenditure faster and deeper than any other country in the industrialised world except Iceland and Ireland. They have chosen to announce the deepest cuts in public spending in the UK since the second world war. Nine months into the life of this Government there is still no sign of any plan for jobs and growth, but sensible people know that without a plan for jobs and growth it will not be possible to get the deficit down as the OBR predicts it should come down. Meanwhile, the cuts are beginning to bite and the OBR has forecast that more than 330,000 public sector jobs will be lost. Some 10,000 police jobs have been announced as going so far, and there are reports that 250 Sure Start centres will close. Unemployment, which had begun to fall, is now rising again and inflation, which was low and falling when we left office, is now rising. All that is before the effects of the Government’s ill-advised decision to increase VAT. Growth has stalled.
Order. Hon. Members have been tempting us away from the Bill, but I am sure that the hon. Lady wants to stick to it. We do not want to be tempted through further interventions, so if she will keep to the Bill, that will be helpful.
(14 years, 4 months ago)
Commons ChamberIt is too late to object now, so let us proceed.
Clause 4 ordered to stand part of the Bill.
Clause 5
Power to repeal high income excess relief charge
I beg to move amendment 60, page 3, line 9, at end add—
‘(4) An order under this section may only be made once the Treasury has published a report, including—
(a) the outline for the proposed replacement arrangement for the provisions contained in Schedule 2 to the Finance Act 2010;
(b) a distributional analysis showing the likely impact of the proposed replacement arrangement; and
(c) the revenue implications of the proposed replacement arrangement.’.
The amendment seeks to delay the making of any order under clause 5 until the Treasury has published a report that outlines the proposed replacement for the provisions in section 23 of, and schedule 2 to, the Finance Act 2010, a distributional analysis of the impact of the proposed arrangement and the revenue implications of the replacement provisions themselves. Clause 5 creates a power to remove the paving legislation that would have enabled the so-called high income excess relief charge to be levied in time to be collected in April 2011. That was legislated for in section 23 of, and schedule 2 to, what I suppose we must now call the first Finance Act of 2010, given that we look to be on course to pass three of them this year. I never thought that I would be comparing Finance Acts to buses—none come along for ages and then three come along at once—but it looks like 2010 is going to demonstrate the similarity. We are only in the middle of discussing Finance Bill issues in this Session, and obviously we will resume with part two later in the year.
(14 years, 4 months ago)
Commons ChamberWe have had an interesting debate. We just heard from the hon. Member for Morecambe and Lunesdale (David Morris) the most amazing reason why debate in the House should be curtailed that I think I have ever heard used in a democracy. I hope we are not going to hear more arguments that debate in the House should be curtailed because of the cost, as that seems rather odd.
I begin my response to a long and illuminating debate by adding my congratulations to those who made their maiden speeches. The hon. Member for North East Cambridgeshire (Stephen Barclay) gave an extremely entertaining speech about the history of his constituency. He told us that it was better known as the fens, which sounds a lot more exciting than its current name, which if I may say, is rather boring. He then spoke of the history of drainage in the fens and many of the issues that he is confronting as a newly elected Member. I wish him a long and happy membership of the House. He certainly made a good impression with his maiden speech.
My hon. Friend the Member for Scunthorpe (Nic Dakin) also made an extremely accomplished maiden speech this evening, paying suitable tribute to both his predecessors, Elliot Morley and Ian Cawsey. He displayed a passion for the constituency that it is now his privilege to represent. He lives there and clearly loves it, and I am sure that we will hear many more such contributions from him.
The hon. Member for Ipswich (Ben Gummer)—a chip off the old block—made a characteristically good maiden speech, as did the hon. Member for Weaver Vale (Graham Evans). The latter paid a tribute to his predecessor that Labour Members appreciated. I congratulate all hon. Members who made their maiden speeches tonight. I am not sure how many more maiden speeches there are to get through, but I have always enjoyed listening to Members’ first contributions to the House. After many years of listening to such speeches, I have not lost my enthusiasm for them.
The debate was initially joined enthusiastically and with a great deal of energy, but that energy petered out on the Government side of the House halfway through the evening. Instead of the usual to and fro of debate, there was no sign of anyone on the Government side willing to stand up to defend the Finance Bill. Government Members ran out of steam and stopped participating. As the Bill goes to Committee and Report in the next couple of weeks—unusually, that will take place completely on the Floor of the House—I hope they will show a little bit more stamina than they managed to show today, when the debate was somewhat one-sided.
The right hon. Member for Wokingham (Mr Redwood), whom I no longer see in his place, is one of life’s optimists. He told us that we are all far too pessimistic about the state of the economy. To listen to him, one would not have thought that his right hon. and hon. Friends on the Treasury Bench had spent the past few weeks driving down confidence in the economy with the scaremongering tactics they have been using to justify the measures in the Budget.
We then heard from the hon. Member for Dundee East (Stewart Hosie) on behalf of the Scottish Nationalists, who is a long-standing and experienced contributor to Finance Bill debates. I have served on many Finance Bill Committees with him and, as always, he brought his astute experience and forcefully expressed opinions to the debate. He was especially exercised about the increase in VAT in the Bill which, he said—I have to say I agree with him—contradicts the fairness theme that is purported to run through the Budget. He described it as unforgivable and economically foolish.
We also heard from the hon. Member for North East Somerset (Jacob Rees-Mogg) who gave us something of a history lesson and, like so many of his colleagues, foolishly raised the spectre of Greece. They really will have to stop doing that if they are to be reasonable and responsible.
One of the more interesting speeches from those on the Government Benches came from the hon. Member for St Ives (Andrew George), whose words we listened to with extreme care given his actions so far in tabling amendments to the Bill. Clearly, he is struggling with the VAT increase. It is worrying him. He said that he did not think the Red Book was accurate in its assessment of VAT as progressive and he raised the tantalising—for me, at any rate—possibility that he might consider amending the Budget in Committee or Report on the Floor of the House. We will certainly wait to see whether he does so, and we will look carefully at the issues that he wishes to raise.
We had a series of speeches from my side of the House, beginning with an extremely eloquent contribution from my hon. Friend the Member for Warrington North (Helen Jones), who talked about how regressive the VAT increase will be. She also said that the banks were being treated softly while industry was being treated relatively badly by the proposals in the Finance Bill.
We also heard from my hon. Friend the Member for North Durham (Mr Jones) and my right hon. Friend the Member for Oldham West and Royton (Mr Meacher), both of whom had pertinent critiques of the Budget judgment and the strategy implied by the Bill. We heard a tour de force from my hon. Friend the Member for Eltham (Clive Efford), who understandably had a go at the Liberal Democrats for their twisting and turning on VAT. He had some words to say about the Office for Budget Responsibility, which I will come back to.
We heard a superb speech from my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont)—[Interruption.]
Order. There are too many private conversations going on and it is difficult to hear. We are getting near the end and I am sure that hon. Members can wait a little longer.
Thank you, Mr Deputy Speaker. I was just mentioning the speech by my hon. Friend the Member for Cumbernauld, Kilsyth and Kirkintilloch East—I cannot pronounce the name of his constituency very well, but it is definitely in Scotland. He made a superb speech about the political nature of economics and the attempts that have been made to hide what are basically political choices by describing them as economic imperatives that are somehow objective. He exposed what he called superstitions and myths around that whole area and demolished a lot of the arguments that the Government have been making to justify the Budget judgment in the Finance Bill. In particular, he talked with great wisdom about the paradox of Government thrift, which he pointed out is completely unlike budgeting for households. I look forward to many more such contributions from him as the Bill goes through its stages on the Floor of the House.
My hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) also made a good contribution, which I particularly welcome because I enjoyed canvassing with her during her election campaign. She is already well-loved, liked and respected in her constituency. She asked an important question that the House would do well to bear in mind as we consider the policies and legislation before us: where is the justice in the Budget measures, which will hit the poorest hardest? My hon. Friend the Member for Wansbeck (Ian Lavery) pointed out the perverse glee he perceived among Liberal Democrat and Conservative Members over the pain that will be inflicted through the Budget and this Bill. His speech demonstrated the human face of public sector workers, many of whom have found their reputations decried in the newspapers, and the jobs and the contribution that public sector workers make to our society belittled.
My hon. Friend the Member for Bishop Auckland (Helen Goodman) observed that the Budget judgments are very optimistic on jobs and, in particular, growth prospects, and she highlighted the impact on work incentives of some of the policies and Budget changes in the Red Book.
Thank you, Mr Deputy Speaker. I am trying to put the idea of well-refreshed ejaculations firmly out of my mind.
I was about to discuss the analysis by Howard Reed of Landman Economics and Tim Horton of the Fabian Society of the progressive or regressive nature of the Budget. They calculated the effect of the entire package, not just the tax changes. They included the distribution of the billions of pounds of extra spending cuts that had been announced, and then added an assumption of 25% cuts in departmental budgets. Their calculation showed that the combination of all the measures announced in the Budget that this Bill begins to enact will take £1,514 from the bottom 10% of households, which is fully 21.7% of their income. In sharp contrast, the richest 10% will experience an annual loss in income and services of £2,685, which is the equivalent of just 3.6% of their income. If there were 40% cuts in departmental budgets, as was briefed by the Chancellor and Chief Secretary at the weekend, the figures would be grimmer still.
My right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper), the Shadow Secretary of State for Work and Pensions, commissioned the House of Commons Library to conduct a gender audit of the plans. It revealed that women would bear a disproportionate amount of the pain in the Budget. Of the nearly £8 billion net revenue to be raised by the financial year 2014-15, £6 billion will come from women and just £2 billion from men, despite the fact that women have considerably lower levels of income and wealth than men. The analysis does not include the impact of the savage cuts in public expenditure that the Deputy Prime Minister believes are necessary, and that are now being planned and announced. As women make up more of the public sector work force and rely more on public services, they will be hit harder by the pay freeze, hit harder by the job losses, and hit harder by the decimation of public provision for the needy, especially in their role as carers.
The Chief Secretary purported to rebut that earlier today by reading out a suggestion that the figures were not accurate because they assumed that all the family support is paid to women. It is not true that that assumption was made by the House of Commons Library. However, there are a couple of measures where the House of Commons Library has assumed 100% female receipt of benefits. That is the health in pregnancy grant and the Sure Start maternity grant.
The Conservative party and the Liberal Democrats will have to learn that merely asserting as loudly as possible that the measures in the Bill are “progressive” does not make it true. Producing a distributional table on page 67 of the Red Book which appears to show that it is progressive does not make their assertion true either, especially when the Institute for Fiscal Studies demolishes it the next day by pointing out that it included all Labour's key progressive measures enacted before the election to safeguard lower-income groups, and that it conveniently stops in financial year 2012-13, just before all the cuts to family support announced in the Budget are due to be implemented. If the Conservatives and Liberal Democrats were so confident that these measures are indeed progressive, they would commit the Government to carry on publishing those tables—[Interruption.]
Order. The House must come to order. Members are obviously coming near to the end. If we have a bit more patience, I am sure that we can move on.
If those two parties were so confident that these measures are progressive, they would commit the Government to carry on publishing those tables when the cuts really start to bite.
The huge hike in VAT is the regressive centrepiece of this regressive Budget and it features in the Bill. That is despite the fact that before the election the Prime Minister said on 23 April to Jeremy Paxman:
“We have absolutely no plans to raise VAT”,
and the Deputy Prime Minister fronted a huge VAT tax bombshell poster campaign warning about the dangers of electing a Tory Government, which still featured on his website until 9 o’clock this evening: when alerted to its continued presence by my right hon. Friend the shadow Chief Secretary, someone in the Deputy Prime Minister’s constituency finally did the decent thing and took it down.
Some Liberal Democrat Cabinet Ministers are even now trying to argue that VAT is not as regressive as they thought it was before the election. It seems that there is no limit to the depths that they are prepared to sink to justify the betrayal of their pre-election promises. VAT is regressive. It hits pensioners and those who are too poor to pay any income tax the hardest. Why then have the Government chosen to raise the bulk of their new tax revenue, nearly £13 billion, by using that tax?
We were assured that the cuts would be fairly distributed in a progressive way, but our early experience of the decisions coming out of the Treasury has confirmed our worst fears. The poorest areas have been hardest hit by cuts to discretionary programmes, which were intentionally aimed at areas in the most need.
One of the first cuts that the Government made was to the future jobs fund. That is at a time when we know, thanks to a leaked Treasury document, that the Budget measures alone will destroy 1.3 million jobs in both the public and private sectors and there are 69 students chasing every job. The prediction by the OBR that 2 million private sector jobs will be created in a mere five years is highly suspect, as an analysis by Adam Lent has pointed out. It took seven years after the 1980s recession and nine and a half years after the 1990s recession to create 2 million jobs, and we are expected to believe that the 2 million mark will be surpassed in record quick time despite the global shock of the credit crunch.
What about the sneaky little move from the retail prices index to the much lower consumer prices index as the definition used for benefit indexation? That cuts £6 billion from the benefits bill at the expense of pensioners and the poorest, the most vulnerable in our society. The delay in implementing the VAT increase will ensure that the price inflation it causes—
The right hon. Member is quite entitled to move the closure motion. It is the decision of the Chair whether to accept it, so what I would say is, Angela Eagle, I am sure you must be very near the end of your speech now.
I was talking about the sneaky little move from the retail prices index to the much lower consumer prices index as the definition used for benefit indexes. The delay in implementing the VAT increase will ensure that the price inflation it causes is not reflected in this year’s indexation cost, which is another sneaky saving from the poorest that the Government hope no one will notice.
This Finance Bill is a risky ideological experiment that will inflict real pain and suffering on those who did not cause the credit crunch. The Bill is regressive not progressive, it is deeply unfair and it is taking a huge gamble with an economic recovery that is not yet assured—we intend to oppose it.