Budget Resolutions
Matt Western Excerpts(1 week, 1 day ago)
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Matt Western (Warwick and Leamington) (Lab)
Here we are three years on from the Tory Truss kamikaze Budget. It is worth recalling just how bad that was—absolute carnage, with interest rates rocketing and mortgage market mayhem, and people and businesses left to pay for the Conservative chaos. That 49-day con trick was an ideological experiment that will scar this country for many years to come. It is worth remembering that their catastrophic failure was hailed by the hon. Member for Clacton (Nigel Farage) as
“the best Conservative budget since”
the 1980s. So much for economic illiteracy! There is clearly much to be done in our schools.
It remains for this Labour Government to clean up the mess of the last Conservative Government. It was not just the Truss Budget; successive Conservative Budgets failed the public, whether it was with the lowest investment levels in the G7 despite having historically low interest rates, or with stagnant wages and flatlining productivity.
Jim Dickson (Dartford) (Lab)
One of the things the Chancellor was clear about in her speech was the way we need to continue to build capital investment to improve the long-term growth rate of the economy. Does my hon. Friend agree that projects such as the lower Thames crossing, which will hugely reduce congestion and poor air quality in my constituency and create thousands of jobs and new opportunities for business, are great for our economy?
Matt Western
I absolutely agree with my hon. Friend. That was one of the great failings of the last 14 or 15 years; when interest rates were at record lows, that was the time as a nation to invest in our infrastructure. Any business would have done that. Unfortunately, that did not happen.
Returning to productivity, if we had continued at the same rate as when the Labour Government left office, the average worker would be making £5,000 extra per year. That is the loss in productivity we face. This past 15 years we have seen national debt rocket—from 2010 to 2024, it increased by a third—leaving us paying more on debt interest than on defence. That is the reality.
I recognise what the Chancellor is doing, and I congratulate her on her determination in delivering for the British people. As she said, it is a Budget that addresses the most important and pressing issues for people up and down our country, so I am encouraged by the proposed changes in business rates, whether that is for the hospitality sector—our pubs, cafés and so on—or small retail, and also by the taxation on dividends. It cannot be right that unearned income pays considerably lower tax than earned income.
The Budget today has made some difficult choices, but we can tackle these problems and address the concerns of our constituents and the problems facing businesses. We need to recognise the deep structural problems that undermine our economy, and without a doubt the biggest worry for my constituents is the cost of living. Despite inflation having fallen, the price of goods is 28% higher now than in 2020. The weekly food shop, for example, is now 37% higher than just five years ago. Given that, I am pleased to see the announcements on the cost of living set out today: the £150 saving on energy bills, the train fares freeze, the freezing of fuel taxation, support for childcare and the increases in the living wage. It builds on the progress we have already made, with wages having risen more in 10 months under this Labour Government than in 10 years of the Conservatives.
Let me turn to the automotive sector, which is really important for my constituency of Warwick and Leamington, where thousands are employed either by companies such as Jaguar Land Rover and Aston Martin or in the supply chain. I am proud of the support that the Government have already set out. We have delivered £2.5 billion under DRIVE35—a bold industrial strategy that provides clarity and long-term direction for industry —as well as a £1.5 billion loan to protect the Jaguar Land Rover supply chain. In addition, the US trade deal is huge for this country, as is the India trade deal. The additional £1.3 billion for the electric car grant is very welcome, as is the additional £200 million for EV infrastructure.
As chair of the all-party parliamentary motor group, I have heard concerns from the industry about the 3p mileage tax on EVs. I hope that the additional support for vehicle purchase, along with the infrastructure grants, will help to offset that, but we must not allow a repeat of what happened in New Zealand, which saw a significant reduction in take-up and demand.
I welcome the fact that the Government’s plans to change the employee car ownership schemes have been put on hold. They would have cost the industry £1.5 billion and risked 5,000 jobs. I thank the Treasury team for listening to Members, given the important role that those programmes play in vehicle manufacture and in meeting manufacturers’ zero emission vehicle mandate targets over the coming years.
I will focus—perhaps unusually in this place—on the productivity problems facing the UK. Since 2009, productivity has flatlined. The previous Government failed people and businesses. How can UK productivity have fallen so far that it is now 20% lower than that of the United States and Germany, and 12% lower than that of France? I have never believed that productivity is a puzzle; for me it is about fair employment rights, addressing the casualisation of the workforce, incentivising investment and improving on skills delivery. I welcome the measures aimed at young people, including the free apprenticeship training for SMEs and the youth guarantee scheme.
If we are to improve productivity, we need people to be fit to work. That is why sorting the NHS workforce, ending the strikes and getting people back into work has been so important. The initiative providing 30 hours of free childcare has released young parents back into the workplace—again, improving productivity. All that, along with restored stability and international credibility, means that investment is flowing back into the British economy.
Since July of this year, the Government have secured over £250 billion of investment in high-growth sectors, supporting 45,000 high-quality jobs. That is in additional to the increased capital spending of £107 billion laid out by the Chancellor at the previous Budget, and a National Wealth Fund equipped with £28 billion to catalyse investment. That is all incredibly significant.
On exports, as a trade envoy, I am very aware of our opportunities abroad and of the confidence that other countries have in this country—they want to invest here. In fact, we know that Britain was the fastest-growing G7 economy in the first half of this year, and that it recorded the second highest growth year on year. That is now allowing us to rebuild our public services. The NHS has already delivered 5 million additional appointments, including an extra 23,000 in my local NHS trust.
The Chancellor talked about money for defence. I would like more clarity not just on defence but on security. As chair of the Joint Committee on the National Security Strategy, I say that it is incumbent on us now to place more focus and resource in areas of resilience and wider security—and not just of our shores. We have seen cyber-attacks on Jaguar Land Rover and Marks and Spencer, for example. JLR took a £1.7 billion hit. That is what we are facing, and we must wake up to that reality and put more resource into it. That is a plea to those from the Treasury who are listening.
I have listened closely to Opposition Members, and I fear that there is a degree of naysaying. We have got growth back into the economy, and there is so much in the Budget to be positive about. We are making good progress, but we must be patient. It takes time to clear up the mess when rebuilding, but that is what we will do.
Occupied Palestinian Territories: Humanitarian Access
Matt Western Excerpts(2 months, 3 weeks ago)
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Melanie Ward
My hon. Friend knows exactly what she is talking about. I agree completely, and I ask her to convey our solidarity to the Palestine director of the World Food Programme when they meet shortly.
To state the obvious: to alleviate the suffering of a population in humanitarian need, aid workers need to be able to reach them. Too often across the world today we see aid workers being restricted from reaching people in need, something that is in violation of the laws of war. Gaza is ground zero for that.
We are all familiar with the barriers that Israel has put in place to stop aid entering Gaza. Indeed, the shadow Foreign Secretary, the right hon. Member for Witham (Priti Patel), has said that creative solutions, such as floating piers, are needed to get aid into Gaza. We also know that aid drops are deeply flawed. However, the solution to getting aid into Gaza is simple—Israel must open the gates and let it in.
Matt Western (Warwick and Leamington) (Lab)
On that point, it is quite clear, as we have seen, that the number of deaths we have seen at the food distribution centres run by Gaza Humanitarian Foundation—something like 3% of the total number of deaths—is an outrage. Does my hon. Friend agree that restoring an orderly supply of humanitarian aid is critical?
Melanie Ward
My hon. Friend is absolutely right; I will come on to say more about that issue.
China Audit
Matt Western Excerpts(5 months, 1 week ago)
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Mr Lammy
Let me express my respect for the right hon. Gentleman’s expertise on the China threat. I acknowledge that he is subject to sanctions; I have consistently raised that point with China, noting that it recently lifted sanctions against Members of the European Parliament. I pressed it recently to do the same for Members here. Let me assure him that there are no grubby deals on any issues, and certainly not on the embassy; I reject any suggestion to the contrary. He describes the context on China. I refer him to page 28 of the strategic defence review, which summarises the challenge better than he did. It states that China is
“a sophisticated and persistent challenge. China is increasingly leveraging its economic, technological, and military capabilities, seeking to establish dominance in the Indo-Pacific, erode US influence, and put pressure on the rules-based international order.”
We agree.
Matt Western (Warwick and Leamington) (Lab)
I thank my right hon. Friend for his statement. I am the first to recognise, along with him, the need for pragmatism on this issue. He speaks of our closest allies. In Washington a couple of weeks ago, I heard about the Americans’ real concerns about the super-embassy in London. They are banning Chinese electric vehicles because of their autonomous and connected nature, which is an extraordinary move to consider making. I recognise that there is an economic need, but there is obviously political pressure as well. Can members of the Joint Committee on the National Security Strategy, which I chair, have access to the confidential documents, so that we can be clear-eyed about what we face?
Mr Lammy
I am grateful for the work that my hon. Friend does in this area, but I must maintain that there has not been that access under any Government, other than for those on the Intelligence and Security Committee, who have access to high-classification documents, and for Privy Counsellors, who have access to conversations with the Government and officials that they pledge to keep secret. The Government cannot abandon those principles, which have consistently served us well for many years under many Governments.
Political Prisoners
Matt Western Excerpts(5 months, 2 weeks ago)
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Several hon. Members rose—
Matt Western (in the Chair)
Order. I would like to get everyone in with about equal amounts of time. Hopefully, we can do so with four minutes each.
Several hon. Members rose—
Matt Western (in the Chair)
Order. We will now formally make speeches four minutes long.
Several hon. Members rose—
Matt Western (in the Chair)
Order. I am afraid I am going to have to reduce speeches to three minutes.
Gaza: UK Assessment
Matt Western Excerpts(6 months, 2 weeks ago)
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Mr Falconer
We have supported airlifts in the past, as I am sure the right hon. Lady knows, and we were glad to work with our Jordanian partners on that question. I have to be straightforward with the House: given the scale of need in Gaza, we should not be displaced from the central question, which is ensuring that the road crossings open. That is the only way to get aid in at the scale required.
Matt Western (Warwick and Leamington) (Lab)
Things should have been clear at the outset when Yoav Gallant, the former Israeli Defence Minister, said that Israel will “eliminate everything”. Some 18 months and 52,000 deaths later, Israel Katz, also a Defence Minister in Israel, stated that blocking aid was being used to “pressure” Hamas, making starvation an openly stated Israeli weapon of war. Elimination, eradication or genocide—as Tom Fletcher said, can this Government now urgently act to prevent it?
Mr Falconer
My hon. Friend asks important questions, and I have been clear from this Dispatch Box, and I am clear again, that aid must not be used as a pressure tool, it must not be used as political leverage and it must not be used as a military tactic.
Israel: Refusal of Entry for UK Parliamentarians
Matt Western Excerpts(7 months, 3 weeks ago)
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Mr Falconer
As I have said, the Opposition should give this issue long and hard consideration. It should not be a complex question for this House, given the circumstances of events this weekend.
Matt Western (Warwick and Leamington) (Lab)
Had this been the right hon. Members for Salisbury (John Glen) or for New Forest East (Sir Julian Lewis), I would have stood in support of them, as I am sure many colleagues would have done too, because this issue affects us all. I therefore find the Leader of the Opposition’s comments extraordinary. We must not forget that my two hon. Friends were granted visas to enter the country by an ally. Does my hon. Friend agree that this was a showcase event that was designed to intimidate, threaten and silence this place?
Conflict in Gaza
Matt Western Excerpts(8 months, 2 weeks ago)
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Mr Lammy
If those are the words that were used last night, and I have not seen them all, then I condemn them categorically from this Dispatch Box.
Matt Western (Warwick and Leamington) (Lab)
I thank the Foreign Secretary for his update. What we are seeing is clearly appalling. The signals coming from Defence Minister Katz are absolutely clear: the Israeli Government seek the total destruction of Gaza and they see the occupation of west bank as their objective. The leverage over Netanyahu’s Government is from Ben-Gvir and Smotrich, so my question is simple. Other than once again reviewing all the arms licences, and perhaps withdrawing them, and putting in place sanctions against Israel, what leverage do the UK Government have over Israel in this circumstance?
Mr Lammy
I cannot comment on future sanctions designations, but I refer my hon. Friend to the sanctions I announced back in October raising concerns in particular about settlements and settler violence, particularly in the west bank. I condemn the expansion. We have seen more expansion this year than in any other year. I want to reassure him that we keep sanctions closely under review.
Israel-Gaza Conflict: Arrest Warrants
Matt Western Excerpts(1 year ago)
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Hamish Falconer
The comments of Finance Minister Smotrich have been condemned in this Chamber before, and we can reiterate that condemnation. As the hon. Lady would expect, however, we cannot comment on sanctions that may or may not be under consideration in the usual way.
Matt Western (Warwick and Leamington) (Lab)
I am no friend of Hamas, but we must remember that Prime Minister Netanyahu promised us intelligence-led precision attacks in Gaza. We have seen daily violation of international law, 43,000 people killed, restrictions on food and aid, and 136 journalists killed. I welcome the Government’s announcement about respecting the ICC’s decision, but may I urge them to consider using all levers, including sanctions against two Israeli Government Ministers, the settlers in the west bank and other organisations operating therein?
Hamish Falconer
I will not comment on what sanctions may be under review, for reasons that are well established, but I draw my hon. Friend’s attention to the sanctions that we took in October against Israeli settlers and organisations involved in both breaches of international law and violence in the west bank.
Israel and Gaza
Matt Western Excerpts(1 year, 4 months ago)
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Mr Lammy
I am grateful to the hon. Lady for her remarks; I welcome her, the Green party’s representative for North Herefordshire, to the House.
As I said in my remarks, this is one of the toughest neighbourhoods in the world. Israel is surrounded by people who would see its annihilation—it is being attacked by the Houthis, Hezbollah are firing missiles and Hamas want to wipe it off the map. For those reasons, it would not be right to have a blanket ban between our countries and Israel; what is right is for me to consider in the normal way the issues in relation to offensive weapons in Gaza, following the quasi-judicial process that I have outlined.
Matt Western (Warwick and Leamington) (Lab)
I welcome my right hon. Friend to his place and congratulate him, on behalf of my constituents in Warwick and Leamington, on giving priority to this issue. I commend him for today’s announcement. The restoration of funding to UNRWA is long overdue; as we have heard, many other nations did this many months ago. Given its importance in the supply of 60% of aid and 50% of food into Gaza, the 70 trucks a day we have heard about are way insufficient—an estimated 500 are needed.
My right hon. Friend may be aware of the Oxfam report showing that the IDF has almost systematically weaponised water in Gaza; there has been a 94% reduction in the water supply, to just five litres per person per day. My right hon. Friend spoke about dysentery and polio. What does he believe the UK can do to assist the restoration of the water supply in Gaza?