(1 month ago)
Commons ChamberIt is an honour to follow the hon. Member for Romford (Andrew Rosindell), even though I fundamentally disagree with everything that he said. I know that he will take that in the right spirit. I congratulate all colleagues who made their maiden speeches. The speeches were fantastic and moving, and I wish them all a really wonderful time in this Parliament and, I hope, Parliaments to come.
Progressive Governments are judged on whether they deliver higher standards, and I welcome the direction of travel that our first woman Chancellor took yesterday. It is good to hear that for the first time, the cost of living will be taken into account when calculating the national minimum wage. I also welcome the step towards a single adult wage rate, with 18 to 20-year-olds receiving a 16.3% increase. I hope that those kinds of revisions will continue. Those are valuable examples of the change that a Labour Government will make to low-income households.
A key feature of this Budget is that it can safeguard existing jobs in the north-east and help to create new well-paid jobs for the people I represent. One of the biggest sectors in our north-east industrial base is the offshore energy sector—that is, oil and gas companies that work in the North sea, and the associated supply chain. We are proud to have those jobs in my constituency, and we must anchor them here in the UK and avoid their being attracted overseas. Last year, in Newcastle upon Tyne East and Wallsend, the offshore sector added £2 million in gross value added and supported thousands of jobs. That is just a snapshot from the region, where the sector contributed £416 million and more than 4,500 good jobs overall. I am pleased that my right hon. Friend the Chancellor recognises the reality: that oil and gas will be essential to our economy and for energy security for decades to come, especially given that if we misstep, we will simply have to rely on imports, which are more expensive, have a higher carbon footprint and do not deliver any tax yield.
This Government have committed to ensuring that the North sea is managed in a way that does not jeopardise jobs and continues to attract necessary investment, with the delivery of net zero and energy transition being an exciting prospect. A successful home-grown energy transition has the potential to deliver the economic growth that the country needs. I know that the oil and gas sector and its representative body, Offshore Energies UK, found yesterday’s Budget encouraging. They are grateful for the positive engagement from the Secretary of State, the Chancellor of the Exchequer and the Exchequer Secretary over the summer. They recognise that the energy profit levy served a purpose, but the commitment to looking at unwinding it, and to finding a new permanent regime, can give companies and investors the confidence that they need to invest in our UK.
I look forward to helping Ministers succeed, but I will of course also hold them to account. I will also hold the industry to account on its commitment to support workers, deliver a fair transition and provide retraining and working standards for all. The trade unions are keen and willing to play their part. Offshore Energies UK estimates that with the right investment environment, UK offshore energy companies could invest £200 billion in home-grown energy this decade alone, supporting the UK to reach 50 GW of wind and 10 GW of hydrogen, reducing reliance on oil and gas, and allowing us to scale up to at least four carbon capture and storage clusters by 2030—an exciting prospect indeed.
Moving away from the economy and on to local government, I welcome the 6% real-terms increase in spending on SEND and alternative provision. The SEND system is broken. In my constituency, children have been held back from flourishing and reaching their true potential. The £865 million to help plug deficits is a movement in the right direction. I urge the Chancellor to build on that moving into the spending review in the spring.
Today, Longbenton councillor Karen Clark has been selected as Labor’s candidate for the North Tyneside 2025 mayoral election. Karen welcomes the Chancellor’s historic Budget and looks forward to promoting its promised investment for local government during her forthcoming campaign.
On social security, the reduction in the deductions cap will help to minimise the financial impact of debt repayments, with those benefiting keeping an extra £420 a year. It is a smart, fiscally neutral way to help reduce negative household budgets and raise living standards. However, the commitment to deliver the Conservative plans to reform the work capability assessment and to deliver the inherited savings has worried many with limited capability for work and work-related activity. I hope the House will be given time to examine and debate that when the proposals are outlined in greater detail.
As the chair of the responsible vaping all-party parliamentary group, I have concerns about the announced tax on vaping liquid from 2026. There are still 6 million smokers who have yet to make the switch to vaping, and a tax on vaping will only serve to discourage those smokers to quit. The vaping tax proposed by the Chancellor is unsustainably high, at 22p per ml of vape liquid. It will make the UK’s tax one of the highest in Europe. The tax will also hurt working people throughout the north-east who rely on vaping to keep them off cigarettes. Currently, many stores sell vaping liquid for refillable devices for 99p. Under the Chancellor’s proposals, that will increase by 267% to £3.64. Access to vaping liquids is not driving youth vaping—the Government are already looking to address that through the Tobacco and Vapes Bill. I fear that the tax on vapes will hurt people who have made the decision to switch from smoking to the less harmful alternative—a decision that has already saved the NHS tens of thousands of pounds per person.
Yesterday’s Budget has renewed the hope of ordinary people that the future can be different—a Labour Budget for lower-income households, working people and children. Our public services can be rebuilt, living standards can begin to turn around, and our politics can deliver progress again.
(4 months, 1 week ago)
Commons ChamberThis is my first but I suspect not my last exchange with the hon. Member. I have not seen a specific breakdown of this figure for Northern Ireland, but I can tell him that we take relations with Northern Ireland extremely seriously. That is why the Prime Minister went to Northern Ireland, as well as Scotland and Wales, on the weekend after the general election.
Yesterday, I met the civil service unions together with the new Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Queen’s Park and Maida Vale (Georgia Gould). We had a very positive discussion covering a whole range of issues. I made it clear that the days of Government Ministers waging culture wars against civil servants are over. Instead, we want a civil service that is motivated, valued and helps the Government to deliver their priorities. On the specific issue of pay, the Government will have more to say on civil service pay before the summer recess.
In 14 years, the Tory Government did nothing to tackle the ludicrous situation whereby there are over 200 pay bargaining units for civil servants across all Government Departments and agencies, a highly time-consuming and inefficient process that generates unfair pay disparities between people doing near-identical jobs in different Government offices. Will the Minister take this opportunity to look again at whether pay bargaining can be consolidated across the civil service, and will he agree to meet the Public and Commercial Services Union to discuss the advantages of such reforms?
We do value civil servants, and of course we want all public servants to be properly and fairly rewarded. As with any public expenditure, what is spent on pay has to be balanced against other priorities and fair to taxpayers as a whole. On meeting the PCS, yesterday, I met the general secretary of the PCS, as well as other civil service unions. I hope for a fruitful dialogue with them. Departments do have flexibility on pay. They can direct pay towards the needs of their own workforces. As I have said, we will have more to say about civil service pay before the summer recess.