Finance (No. 3) Bill

Debate between Mary Glindon and Lord Beamish

Tuesday 3rd May 2011 Commons Chamber

[Mr Jones]

I would not want to stray too far down that avenue, but it does say something about the pettiness and smallness of our present Prime Minister, whereas the previous incumbent is not only respected in financial circles but has proven ability to do the job. Pettiness is one aspect of this Government but another part of their mantra is that they must sound tough. They won an election by sounding tough, but they have not followed it through when it comes to banking regulation.

The right hon. Member for Wokingham spoke about banking regulation. He is no longer in his place, but he used a wonderful phrase about his being in favour not of less regulation, but of “better and less regulation”. My hon. Friend the Member for Wansbeck (Ian Lavery) touched on whether the previous Government should have regulated the banking sector more. In hindsight, I think yes, they should. I think we all accept that; it is not an admission of failure to concede that. We also need to remember who else at the time was arguing, along with the right hon. Member for Wokingham, for less regulation and less red tape in all areas, including banking. The answer is, the Conservative Front-Bench team—those same Conservative Front Benchers who were arguing for the same spending levels that we had right up to 2007, although that seems to have been forgotten about in the revisionist history that has developed since they gained power with the Liberal Democrats last May.

The Government’s bank levy is estimated to bring in £2.5 billion a year—less than Labour’s bank bonus measures, which according to the Office for Budget Responsibility brought in £3.5 billion. We should not forget that the cut in corporation tax in 2011-12 will give the banks £100 million in tax relief, but that at the same time local government is being asked to make cuts. My own county council, for example, is going to lose 40% of its budget—£125 million—over the next four years as a result of the unnecessary austerity measure proposed by this coalition Government.

[Mrs Mary Glindon (North Tyneside) (Lab)]

On a day when a leading economist has said that affordable income is falling by 2% and that the average family will be worse off by £780, it falls on the Government to support this amendment and show some care for the people who are working so hard out there and suffering while the banks are simply laughing all the way to the bank!

[Mr Jones]

My hon. Friend makes a very good point. One of this Government’s favourite soundbites is that “We are all in it together”, but it is quite clear that we are not all in it together. When bankers are claiming bonuses such as the ones we know certain individuals have got, it is just mind boggling to think about what could be done with the money.

Amendment of the Law

Debate between Mary Glindon and Lord Beamish

Wednesday 23rd March 2011 Commons Chamber

[Mr Jones]

Something that the central office spin machine does very well, and which Thatcher did, is somehow to compare the national economy to somebody’s personal expenditure. Can we afford to borrow at the moment? Yes, we can. Borrowing to invest in infrastructure and other things is the right thing to do, and is exactly what we were doing in government. We are increasingly borrowing not to invest in the economy and infrastructure and to add to the country’s economic power, but to support unemployment. That is exactly what the Major Government found in their dying days.

It is important to recognise that unemployment in the north-east has reached 10.2%, and that is before the real effects of the public expenditure cuts work their way through. The idea of economic zones or business development zones, or whatever they are called, was announced in the Budget, along with the local enterprise partnerships. One North East was very successful in regenerating the north-east economy. It actually moved the economy away from the public sector and grew the private sector. It had real money. It had £180 million a year, and worked with the local university sector and local authorities to spend European regional development funding. The LEPs have no money attached and the regional growth fund has £1.4 billion to be competed for around the country. Today, we have the enterprise zones.

[Mrs Mary Glindon (North Tyneside) (Lab)]

The Government have said that they want enterprise zones to support real growth and long-term sustainability. Does my hon. Friend agree that the announcement of an enterprise zone for Tyneside means little for growth or sustainability when the Transport Secretary has said that he will not provide funding for the much-needed upgrade of the A19 Silverlink interchange, which businesses have told politicians is essential for the economic development of Tyneside and the wider region?