Education and Local Government

Mike Amesbury Excerpts

Tuesday 14th January 2020 Commons Chamber

[Mr David Davis (Haltemprice and Howden) (Con)]

The first thing to say is that I will not focus solely on education today. As you know, Mr Deputy Speaker, I always focus on my favourite line in the Queen’s Speech, which is the last one:

“Other measures will be laid before you.”

It gives us the option of talking about whatever we like. I should also, en passant, like to say a personal thank you to the Secretary of State for his announcement of the extra funding for special needs. He may know that I have a special interest in this, a personal interest, and this funding will go to a very important sector.

This Queen’s Speech was the longest ever Queen’s Speech I have known in terms of duration. At the beginning of the debate on the Queen’s Speech before Christmas, my hon. Friend the Member for North East Derbyshire (Lee Rowley) said that these had been “troubled times” for Parliament. But that is always the case when this country faces a point of inflection and a change of historic position. Our nation now faces a reset moment on a par with 1945, when the Attlee Government came in, and with 1979, when the Thatcher Government came in. Both of them had enormous national problems to solve, and we are in the same position. Thatcher’s revolution, controversial as it was, was above all a revolution of expectations, in which the United Kingdom once more realised it was able to stand on its own two feet. In truth, we are facing something similar today.

However, in the next decade, Brexit will not be the biggest challenge to the UK Government and our nation. Fast globalisation of trade and massive technological change will create bigger challenges and bigger opportunities even than Brexit. In the past 30 years, that globalisation has raised half the world out of poverty, but that trend is not secure. We as a nation need to be ready to act, both politically to ensure that free trade remains central to the world’s economic operating systems, and commercially to seize the advantages in that for ourselves. Brexit is the catalyst in that process; it is not the outcome. Brexit by itself is not enough. To exploit the opportunities given to us by Brexit, we need to overhaul British society and the British economy. That is the challenge in front of us.

High-quality public services, education, healthcare, social support and the rule of law are vital parts of a decent society, but the Government can provide them only if they have the resources to pay for them. That is our first challenge, and the fundamental weakness in all the Opposition arguments so far today. The reason why Labour lost hundreds of thousands of votes in the north of England is that nobody believed it was able to pay for its promises. The public were right, as always, and the Labour party was wrong.

So what will dictate whether we are able to meet our own aims for our society? The key issue that determines the affluence of citizens, the delivery of public services and even the level of opportunity in society is one boring technical term: productivity. From shortly after the war in 1948, when they started measuring it, until 2008, productivity in this country—whether it was total productivity or labour productivity—grew by 2.25% a year. It bounced around a bit, but never by very much. It grew by 2.25%, year on year, every year in the 60 years from 1948 to 2008. Since 2008, it has been at 0.5%.

[Mike Amesbury (Weaver Vale) (Lab)]

On that point about productivity, people in my constituency and constituencies across the country cannot get trains or buses because the infrastructure has been decimated. That is because it has not been invested in for the past 10 years or so, and that has a real impact on productivity up and down the country. How are the Government going to address that?

[Mr Davis]

I will come directly to the hon. Gentleman’s question later in my speech. He is exactly right in one respect: that is a contributory factor for productivity. But he should not look just at the past 10 years if he wants to comment about our infrastructure. The most used phrase by George Osborne when he was Chancellor was to say, while pointing at Gordon Brown, that he never mended the roof when the sun was shining. That is exactly what happened through those Labour years: profligate spending—poor spending, inadequate spending —that nevertheless did not provide the services that we needed.

Now, what has been the effect of that change in productivity? What is the size of the impact? Had productivity continued at the level it had been for the previous 60 years, had we not had the financial collapse, which happened largely under the watch of the Labour Government and the earlier Clinton Administration in the US, then wages, income and the economy would have been about 22% bigger than they are today. The tax take would have been higher, the deficit would have been easier to pay off, austerity would have been more manageable and shorter. All those things stemmed not just from the crash, but from the damage to our ability to recover from the crash as productivity was allowed to collapse. This dramatic and apparently permanent reduction in productivity has had spectacular consequences across the whole of society and the entire economy, and that is what we have to solve.

The productivity problem is a universal problem. No productivity means no progress. How do we deal with that? The answers include education, skills, training, research and investment, and of course, as the hon. Member for Weaver Vale (Mike Amesbury) rightly said, infrastructure. If we are to reset our economy and our society, we must be unflinching in our analysis and in the critique of our own past as well as those of the other parties.