I thank the noble Lord for the practical and interesting example he has shared with the House. I am pleased that the Government are committed to preventive diplomacy such as mediation, and are working closely with the most reverend Primate the Archbishop of Canterbury to enhance the UK’s work in this area. The UK believes that mediation requires a concerted approach from a range of actors. These include regional and sub-regional organisations, civil society, religious leaders and the meaningful participation of women. The Government are happy to facilitate a telephone conversation between the most reverend Primate and the leader of Nigeria’s Muslims, should he require such assistance.
My Lords, I am the president of the Institute for Jewish Policy Research. We have conducted a survey about anti-Semitism among young Jewish people in every EU state. Sadly, we have discovered that nearly half of all those young people have suffered from some form of anti-Semitism activity over the past 12 months. The UK has the second-largest Jewish population in the EU and it is clear that the leadership required to combat anti-Semitism has to start at the top. I therefore salute those members of the Labour Party in this House who signed the letter published in this morning’s Guardian to try to deal with anti-Semitism in the party. The Government of the United States have appointed a special envoy to deal with global anti-Semitism, Mr Elan Carr. Will the United Kingdom Government consider doing the same?
The noble Lord depicts a troubling scenario in the result of the survey to which he referred. I assure him that the Government are committed to combating anti-Semitism both internationally and domestically. At an event at the United Nations General Assembly last September, my noble friend Lord Ahmad reaffirmed the UK’s commitment to education and dialogue to combat the scourge of anti-Semitism in all its forms. Where we are aware of or witness it, it behoves us all to stand up, call it out and condemn it without equivocation.
My Lords, why the focus on employment? I have always considered this to be central to our country’s success and quality of life. This fact was brought home to me by my right honourable friend Robert Halfon MP, who, having lost Harlow by 97 votes in 2005, went on to win well in 2010. He is disabled and not mobile. He told me the story that during his campaign he had to have a new tyre for his car. As he was waiting in his car, a large, heavily tattooed tyre-fitter came up to him with the greeting, “Oi! Are you the Tory? I want a word”. Rob admitted, with some temerity, that he was the candidate. “Well,” the fellow said, “I am voting for you lot this time”. “Why is that?” asked Rob. He replied, “Because I’ve got a job”. Jobs are central to our economic success.
This is a time when capitalism itself is being questioned and the siren song of socialism rings out from the party opposite—or, if not exactly from the noble Lords opposite, certainly from some of their colleagues in the other place. Frankly, I was horrified to read John McDonnell’s comments in the weekend press that he wants to replace capitalism with a system of common ownership and businesses run by workers’ votes. He has said publicly that his job is “to overthrow capitalism”. I hope all speakers will distance themselves from this aspiration as, meanwhile, Conservatives continue to believe that the market economy and the jobs it creates provide the best route from poverty to prosperity.
We have today 32.7 million reasons to be cheerful; that is the number of people currently in work, earning a wage, providing for a family and contributing to a community, which is 354,000 more people than a year before and the highest number since records began in 1971. The female employment rate stands at 71.8%, the joint highest on record, and the unemployment rate is currently down to 3.8%, the lowest since 1974—a remarkable achievement and cause for some optimism, as the UK continues to work through this difficult period for its political economy.
I called this debate for two reasons. The first is to celebrate these numbers, and I hope noble Lords will join me in so doing. The other is to probe them, to make sure that we are doing everything we can to future-proof our labour market, drive up the quality of work, create more high-paying jobs and, of course, increase productivity—something I feel sure that the noble Lord, Lord Haskel, will focus on—to improve the UK’s ability to compete globally. And there is more cause for optimism. To those who say these are the wrong sorts of job, either low quality or low wage, I would draw noble Lords’ attention to a recent report from the Resolution Foundation, which found that the proportion of workers on low wages is now at 17%, its lowest level since 1980. When this is combined with the Government’s progressive approach to tax policy, taking low-wage earners out of tax altogether, the picture is a compelling one for social mobility.
The shadow Secretary of State for Business recently described this as a “time of low wages”. I believe she could not be more wrong. That said, there are some underlying issues which we need to address to ensure that we drive up employment numbers and productivity, and that wages continue to grow. To their credit, the Government commissioned a review to look at the changing labour market. The Taylor review was quick to highlight the success of high employment and, as we have seen, that success continues apace. But it also concluded that there were:
“a number of persistent weaknesses in the UK labour market, particularly real wage growth and productivity performance”.
The Government have now responded, and I would be grateful if my noble friend the Minister could provide further updates in her remarks today. Since publishing the Good Work plan, the Government have moved to address wage growth and unfair working practices, to ensure in particular that agency workers receive the same wages as permanent staff doing equivalent jobs and more clarity from agencies on their entitlements. Indeed, the plan offers a comprehensive package to address unfairness, transparency and enforcement to help protect workers, and I commend it accordingly.
However, while the plan works to establish parity between agency workers in both pay and treatment, it says little about how we can drive wages up in the round while boosting productivity. The Chancellor, in his Spring Statement, referred to low wages and low productivity as “the twin demons”, as well he might. We are now seeing progress on low wages but can it be matched by progress in productivity? We now have a £37 billion national productivity investment fund, which I hope will go some way to address this. Investing in road, rail, airports and fibre-optic broadband must surely help with productivity. Upgrading our infrastructure is often overlooked and is overdue. Will the Minister offer a progress update on the deployment of this much-needed capital?
I would like briefly to return to a theme I have raised in this House before: whether our current measure of productivity has kept pace with the modernisation our economy has undergone. Services, not manufacturing, are now the mainstay of our economy, yet in my opinion they are still not properly accounted for in the metrics. We may be doing better than the headlines suggest. Also, as I have argued here before, full employment is bound to impact negatively on productivity as we employ the least productive people. I still do not like the measures used, particularly that of output per hour; it is misleading and bound to be an estimate, whereas the only hard figures that the Government publish, and which we can totally rely on—namely, tax receipts and employment rates—show a much better, if not rosy picture.
One thing we cannot do is punish and undermine those who do more than anyone to further the cause of employment: namely, businesses and entrepreneurs. Without a policy platform that supports business, we have no hope of sustaining near-full employment and continuing to drive up wages and productivity. Yet, strangely for an organisation that purports to care deeply about the least well off, Labour’s policy towards business would hurt those very people by killing jobs. I am talking about the policy of drastic hikes in corporation tax, a tax ultimately borne by workers through lower wages, and the leader of the Opposition’s pledge to reverse what he calls,
“tax giveaways on capital gains tax”.
It is telling that the Labour Party is often confused by tax, thinking of it as the Government’s money to give away when in fact, of course, it is individuals, entrepreneurs and businesses who create that wealth in the first place. Such tax hikes—that is what they are—would hurt investment and, through that, ultimately impair job creation and punish workers.
Likewise, the proposed hikes in income tax will, I am afraid, drive out employers, as will the reversal of two important measures: first, the changes made to allow employers to hire people knowing that, if it does not work out, they can be released; and, secondly, the changes to employment tribunal fees. I cannot overemphasise the importance of the first measure. As an employer myself, I can say that looking to increase our workforce is more likely to happen if we know that we can release employees in a downturn or if a new employee is not right for the job; this can take over a year. Change the time limit from the current two years, as Labour has indicated, and there will be a sharp fall in new employment; employers simply will not take the risk.
On the second measure, as noble Lords will be aware, the Supreme Court ruling that tribunal fees cannot be charged has led to a 165% increase in the number of single-claim cases in 2018 and a significant lengthening of the time these cases take to be resolved; this is in part because the judges who are specifically trained to sit in those tribunals were themselves let go. Will the Government commit to look again at this issue?
If we want full employment, high wages and high productivity, we have to combine smart labour market reform with comprehensive and consistent support for job creators. Broadly speaking, that is what the Government have done. In my opinion, the prospect of renationalisation—so that politicians of all people, not businessmen, will again run rail, energy and mail services—threatens failure and job losses. Today, we celebrate a record number of people in work and a record few out of it. This shows that, despite the present uncertainty, the fundamentals of the UK economy are strong. We need to ensure that everyone can secure not only a job, but a high-quality, higher-wage job that will bring prosperity to their family, their community and our country.
With noble Lords’ permission, before I sit down, I would like to remind your Lordships that this is the last parliamentary day with the current leader of the Conservative Party. My nomen dignitatis relates to the village of Hurley, which is close to the town of Maidenhead where I have lived for some dozen years, so I am honoured to have known our Prime Minister well, personally, for many years. I hope noble Lords will allow me a brief moment to express my thanks to her for all that she has done and tried to do for our country, and to express my personal view that history will record that she was dealt an impossible deck of cards but no one could have devoted more selfless effort to public service than her. She leaves her post with nine years of continuous growth, with a first quarter of growth greater than France, Germany and Spain and indeed projected growth for the rest of the year likewise. No one loves her country as she does, and very few have given as much. She has of course given us record full employment, and I salute her publicly for that.
I very much look forward to the contributions from all noble Lords today.
My Lords, I bring some news that may be joyous to Back-Benchers. It has been possible to extend the time for Back-Bench contributions to seven minutes. However, noble Lords should not think this will introduce an uncharacteristic mood of indulgence on my part; seven minutes is the limit.
We continue to encourage the US Administration to bring forward detailed proposals for a viable Israeli-Palestinian peace agreement that addresses the legitimate concerns of both parties. Insofar as further detail is concerned, since the state visit by President Trump is ongoing it would not be appropriate to comment on the nature of the conversations that are taking place. We discuss a wide range of topics with the US Administration, including the Middle East peace process, and we look forward to learning more about the US plans. Yesterday, the Foreign Secretary met with Mr Jared Kushner who, as your Lordships will be aware, is President Trump’s son-in-law and has been placed in charge of the peace plan. They discussed a range of important topics, including the Middle East.
Noble Lords will be aware of the terrible state of the healthcare system in Gaza. This is partly because in Hamas-controlled Gaza much of the reconstruction material has been misused for tunnels and the like. One thing Her Majesty’s Government could do—perhaps my noble friend the Minister could state whether they are minded so to do—is to keep an eye on the misappropriation of international aid and ensure that it is used for the purpose for which it is sent.
I thank my noble friend for that question. As he will be aware, the UK is one of the principal donors to the Palestinian Authority in respect of Gaza; at least, we direct help through agencies there to try to alleviate the conditions. We would take very seriously any suggestion or evidence that this funding was being misdirected or misused. If any evidence were available, the United Kingdom Government would want to know about that.
The noble Lord speaks with authoritative experience in this sphere. I would not want to prejudge or pre-empt the investigation which the Sri Lankan Government are now embarked on. We have to leave that to run its course and then, as I said earlier, reflect on its determination and conclusions. On the general question whether it is helpful to share security intelligence, yes, it is. The noble Lord will be aware that that is at the heart of much of our defence policy within this country. That is why we value greatly the alliances and security-sharing relationships which we have, whether it be through NATO, with allies or with our colleagues in the EU.
My Lords, while the intended targets of this atrocity were clearly meant to be Christian, the terrorist bomb does not discriminate. The Linsey family were members of Westminster synagogue, of which I am president. Amelie and Daniel shared the same classes as my children. Amelie celebrated her Bat Mitzvah just last March, reading with poise, maturity and warmth from our Torah scrolls. Daniel was especially interested in Jewish festivals. He came into our synagogue before Purim, a festival a month and a half ago, to read about Purim, to go to our library and to help our staff set up for the evening festivities. We have pledged as a community to offer our love and support to the Linsey family and to do everything we can every step of the way. The Jewish community is used to counselling mourners who have been affected by the terrorist bomb, and this is another chapter in that sad and sorry book. Will my noble friend the Minister please double her efforts to ensure that the bodies are returned as soon as possible? Last night, the families were trying to make progress. We would be grateful for any assistance that she can provide through the civil servants to ensure that that happens as quickly as possible, as required by the Jewish faith.
I thank my noble friend. His eloquent and poignant comments indicate starkly the enormity of what has happened, when children are the victims of this mindless criminality. Our thoughts are very much with Amelie and Daniel and their family. The loss of Amelie and Daniel to the family is grievous and I hope that my noble friend will convey the condolences of this Chamber to the family when he is next in touch with them. On the issue of helping to transport and return bodies to this country, yes, there is help available and if my noble friend wishes to speak to me afterwards I will see whether there is something specific I can do to assist in that respect.
My Lords, I declare an interest as the chairman of the Jerusalem Foundation in the UK. The foundation has distributed more than $1 billion for the benefit of all citizens of Jerusalem irrespective of their religion, including even the Via Dolorosa. I know Jerusalem well. There is some hypocrisy in criticising the move of the American embassy. The UK Government already have their consulate-general in east Jerusalem. Will my noble friend the Minister confirm that the UK Government have placed every other embassy in the world in the host country’s city of choice? The Jerusalem municipality led by Mayor Barkat has ensured that there has been only peaceful coexistence for many years in Jerusalem. Does my noble friend agree that Monday’s appalling loss of life in Gaza was in no small part due to Hamas enticing innocent civilians from peaceful protest to violence?
My noble friend’s illustration of the possibility for constructive and peaceful harmony in Jerusalem is encouraging. I applaud him and his foundation for what they are seeking to do. On the wider front of how we take matters forward, I go back to the point that there has to be a negotiated settlement. Where embassies are located has of course to be a decision for individual sovereign states—I have made clear the UK’s position in relation to that. Let me make it clear that we recognise the right of the Palestinians to engage in peaceful protest. There is deep anxiety that that may have been hijacked by extremist elements, which is profoundly to be regretted. Equally, we recognise the right of Israel to act in self-defence if its security is threatened.
The United Kingdom Government have opposed the settlements on the grounds of contravening international law and, in many respects, contravening international humanitarian law. These representations have been made robustly, not just by the current Government but by previous Governments. What we want to see is the creation of a sovereign, independent, democratic, contiguous and viable Palestinian state living in peace and security side by side with Israel.
Does my noble friend the Minister agree that while the rights of non-Jewish citizens are, quite rightly, better protected in Israel than in any other part of the Middle East, citizens of Palestine, to whom I believe the Question refers, do not fare so well? Does she agree that we should be addressing the concerns raised by the report from Amnesty International, which points out that Hamas has summarily executed, without trial, a large number of its opponents in Gaza?