Economy, Welfare and Public Services

Mark Francois Excerpts

Monday 22nd July 2024 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for that question. He speaks powerfully, and I pay tribute to his work in the last Parliament, particularly around education and skills. This is a really important point. For me, the most important pages of the manifesto that we stood on were the three grey pages at the back of it, which set out all our spending commitments and how they would be paid for. That was important, because to earn the trust of the electorate parties must be really clear about where the money will come from and what they will use it for. That is what we did in our manifesto, and it is what we will do in Government.

The shadow Chancellor made some points about GDP, comparing ours with that of other countries, but since 2010 UK GDP per capita—that is the most important measure, because it reflects how people feel and the money that they have—has grown slower than the G7 average, slower than the EU average, and slower than the OECD average. Treasury analysis that I requested when I became Chancellor shows that, had the UK economy grown at the average OECD rate these last 14 years, our economy would be over £140 billion bigger today. That could have brought in an additional £58 billion of tax revenues in the last year alone—money that could have been used for our schools, hospitals and other vital public services. Growth is about more than just lines on a chart; it is about the money in people’s pockets, and Treasury analysis shows that achieving the rate of growth of similar economies would have been worth more than £5,000 for every household in Britain.

The shadow Chancellor stood up and once again claimed that he bequeathed a great legacy. Seriously? The last Parliament was the first on record where living standards were lower at the end than at the start. The highest level of debt since the 1960s, the highest tax burden in 70 years, mortgages through the roof, the economy only just recovering after last year’s recession, economic inactivity numbers last week showing a further rise, and borrowing numbers last week showing over £3 billion more borrowing than the OBR expected—that is the Conservatives’ legacy. If that is a good inheritance, I would hate to see what a bad one looks like. I think deep down the shadow Chancellor knows that. In fact, he does know it.

Yesterday, the shadow Chancellor admitted what we all know: that the manifesto that he campaigned on was undeliverable, and the money for the tax cuts that he promised simply was not there. If he wanted to show the country that his party has listened, and learned from its mistakes, he would have used his speech this afternoon to apologise, but he did not, and that tells us everything that we need to know about this Conservative party: party first, country second; political self-interest ahead of the national interest; irresponsibility before the public good. Let me say this to the Conservative party, “We will not stop holding you responsible for the damage that you have done to our economy and to our country.” Never again will we allow the Conservatives to crash our economy. They failed this country. They shied away from tough choices, and we will not repeat their mistakes. It falls on us, this new Labour Government, to fix the foundations so that we can rebuild Britain and make every part of our country better off. We will govern through actions, not words, and we have already begun to do just that, because there is no time to waste.

Less than 72 hours after I was appointed as Chancellor, I put growth at the very heart of our work. Working alongside my right hon. Friend the Deputy Prime Minister, I set out reforms to our planning system—reforms that the Conservative party did not deliver in 14 years. Our reforms restore mandatory targets to build the homes that we desperately need, end the absurd ban on onshore wind to deliver home-grown cheap energy and recover planning appeals for projects that sat on the desks of Ministers in the last Parliament for far too long. Those are tough decisions that the Conservative party already opposes.

Why was that my first act as Chancellor? Because getting our economy growing is urgent, and this King’s Speech shows that we are getting to work.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

On the matter of mandatory housing targets, having been a constituency MP for 23 years and seen them tried in a number of different ways, may I humbly offer the Chancellor this, with all sincerity? There is such a thing as good development, but it only works if it is something that we do with people and not to people. This Stalinist approach will not work.

[Rachel Reeves]

I have been compared to a lot of things, Madam Deputy Speaker, but I have never been compared to Joseph Stalin.

Our approach is a brownfield-first approach. We will reintroduce those mandatory targets; of course it is up to local authorities and local communities to decide where the housing should be built, but the answer cannot always be no. If the answer is always no, we will continue as we are, with home ownership declining and mortgages and rents going through the roof. On the Government side of the House, we are not willing to tolerate that.

This King’s Speech shows that we are getting to work. As my right hon. Friend the Prime Minister set out, our programme for government is founded on principles of security, fairness and opportunity. Our No. 1 mission is to secure sustained economic growth in our great country through a new partnership between Government, business and working people that prioritises wealth creation for all of our communities.

We will fix the foundations of our economy so we can rebuild Britain and make every part of our country better off. There are a number of important pieces of legislation in the King’s Speech that will help us to grow the economy. In this speech, I will focus on three in particular: the Budget Responsibility Bill to restore economic stability, the national wealth fund Bill to drive investments and the pension schemes Bill to reform our economy. Those Bills speak not just to our programme for government, but also to trust in politics. They show that we will govern as we campaigned and that we will meet our promises to the British people.

In the election campaign, I said the first step we would take would be to restore economic stability, because stability is the precondition to a healthy, growing economy. It is how we keep taxes, inflation and mortgages as low as possible. After years of irresponsibility, we are putting our economy on firm ground once again. We introduced the new Budget Responsibility Bill on Thursday to deliver on our manifesto commitment to introduce a fiscal lock so that I can keep an iron grip on our country’s finances.

--- Later in debate ---

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Thank you, Mr Deputy Speaker, for kindly calling me to contribute to this important debate on the King's Speech, after 11 very good maiden speeches and 11 very promising—even fabulous—starts to parliamentary careers. Those who have been in this House a little longer will know that our great friend the late Sir David Amess, whose plaque now rightfully hangs on the wall, had a great talent for managing to combine a very large number of topics into one speech. I lack Sir David’s skill, so I will seek to confine my remarks this evening to three topics, all development related.

The first topic relates to an expansion in medical capacity for the NHS, and specifically to proposals to expand the Jones family practice in Hockley. I declare an interest: my wife Olivia has worked in the NHS for nearly 20 years. In essence, the plan is to expand the practice, with a first-floor extension to create eight new GP consulting rooms and additional training facilities. Rochford district council recently approved planning permission for the extension, and the senior partner, Professor Dr Mahmud, and his active practice management team are now seeking approval from local NHS bosses to support the scheme.

It is my intention as the recently re-elected local MP—for which I am very grateful to my constituents—to lend weight to these positive proposals. They are designed not just to expand capacity, but hopefully to provide training places for graduates from the new medical school at Anglia Ruskin University in Chelmsford. For the record, I have also been working for some time to try to expand Riverside medical centre in Hullbridge, and I will be pursuing that with the NHS as well.

Secondly, the town of Wickford has suffered a dearth of supermarket capacity in recent years. My constituents endured something of a perfect storm last year when the Aldi supermarket was closed, while at the same time the old Co-op nearby has effectively stood semi-derelict for three years. During that supermarket vacuum, my constituents were forced to fall back on the small Iceland in the high street and Wickford market.

I was very pleased to reopen the enlarged Aldi last autumn, and it is now doing a brisk trade. However, the Co-op still remains undeveloped and, while boarded up, is occupying valuable spaces in the town’s principal car park. It is a long and complicated saga. Suffice it to say that the site was bought several years ago by a development company named Heriot, which originally came up with a plan in conjunction with the supermarket chain Morrisons to redevelop the store, with an underground car park and some flats above. I always had doubts about the commercial viability of those proposals, especially the underground car park, and the scheme collapsed some months ago.

Nevertheless, Heriot is working on what might be called a plan B, and for some months has been in what it describes as “advanced talks” with another major supermarket chain. For commercial reasons Heriot asked me not to name the supermarket in this speech, something I have agreed to respect—although I have to say that the name of the company in question is now effectively an open secret, and was even being reported back to me on doorsteps by my Wickford constituents during the general election.

I spoke to the directors of Heriot in advance of this debate, who assure me they are seeking to bring their commercial negotiations to a conclusion as soon as possible. They are well aware of my frustration at these three years of delay, which I conveyed to them again this morning, and they have asked me to relate that they realise that my Wickford constituents have already waited a long while for a new supermarket. That is an issue I campaigned on heavily at the general election, so I hope Heriot will be able to announce something definitive this summer. My message to Heriot is simple: “You have had more than enough time—get on with it.”

Finally, over two decades I have seen examples of both good and bad development in my constituency. Young people cannot live at home with their parents into their 50s and 60s, so it must be possible to build some houses in a sustainable manner to meet the housing need. Crucially, however, the infrastructure required to accompany them has to be built first. To put it another way, from long experience, if development is to be successful—and it can be—as I said earlier, it has to be done with people, rather than to people. The proposals at a place called Dollymans Farm in my constituency, which I was re-elected with a mandate to oppose, are precisely the opposite of that. We all want to find somewhere suitable and appropriate for people to live, but we have to do that in the right way.