Defending Public Services

Mike Kane Excerpts

Monday 23rd May 2016 Commons Chamber

[Ian Blackford]

My hon. Friend is correct: we need to invest in our children and in our productive potential, giving life chances through opportunities, which are badly missing from this Government’s approach.

Imran Hussain, the director of policy for the Child Poverty Action Group, said:

“There is a disconnect between what the government is doing and saying. You can’t spread life chances when child poverty is expected to rise steeply.”

He said that there was

“very little evidence about poverty being caused by addictions or family breakdown”.

Recent Office for National Statistics figures show the true scale of poverty in the UK, with almost a third of the population experiencing poverty at least once between 2011 and 2014. The Institute for Fiscal Studies analysis of February 2016 found that absolute child poverty is expected to increase from 15.1% in 2015-16 to 18.3% in 2020-21. We do not want lectures from the Conservatives on improving life chances; all the evidence shows that exactly the opposite is happening.

What would it take for the Conservatives to wake up to the reality that increased child poverty is a direct consequence of their austerity agenda? Their attempt to disguise cuts with this life chances agenda is transparent. If the Government want to lift children out of poverty and give them an equal start in life, they must reverse their punitive cuts and be more ambitious about tackling in-work poverty.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

The hon. Gentleman is making a powerful case against austerity, with which I agree, but the SNP Holyrood Administration in Edinburgh is forcing £130 million of cuts on Glasgow City Council, which covers one of the poorest areas in the country. How does that measure up with what he has been saying?

[Ian Blackford]

One of the things we have done since being in government in Edinburgh since 2007 is to protect local government. What we face is the consequence of the cuts that have come from Westminster. I am delighted that an SNP Government have, through the council tax freeze, saved individuals in a typical band D house £1,500—protecting the individuals, while at the same time protecting the budgets of councils. That is what the SNP Government have done in Edinburgh.

In Scotland, the SNP Government have protected public services, despite the cuts to the Scottish budget. With cuts to Scottish public services handed down from the Chancellor of the Exchequer, lacking in compassion and empathy, the poorest and the weakest in our society are paying the price for Tory austerity.

The SNP has put forward a credible, progressive alternative to the Queen’s Speech, proving once again that it is the only real opposition to the Government in the House of Commons. [Interruption.] In our dreams? Well, let us see what the Labour party is offering. We got nothing from the Leader of the Opposition last week, and we certainly got nothing from the Labour Front Bench. It is little wonder that Labour has fallen in the polls, and fallen to become the third party in Scotland. That is the reality: no hope, no vision, and no agenda from today’s Labour party.

Although the debate could be characterised as focusing specifically on defending public services, to my mind, and those of my colleagues, it should be seen in a much wider context. The SNP has published its own Queen’s Speech, which offers hope to the people of Scotland. It says that we should aspire to do better, and that we need to create the circumstances that will allow us to deliver sustainable economic growth, thus enhancing life chances for all, while at the same time recognising the necessity of investing in and enhancing our vital public services.

Our manifesto, like our Queen’s Speech, recognised the necessity of driving down debt and the deficit, but we would not do that on the backs of the poor and at the cost of our public services. We recognise not only that austerity is a political choice, but that its implementation is, in itself, holding back not just growth in the economy, but the potential of so many people throughout the United Kingdom. Cuts in public services withdraw spending from the economy, and that undermines our moral responsibility to deliver public services that support people and give them opportunities to return to work, as well as the vital support network that allows communities to function effectively.

The attacks on services for the disabled, women and young people are a result of the Government’s programme, which holds people back from making a full contribution to society. What we in the SNP have, by contrast, is a strategy that will enhance life chances for people in Scotland and throughout the United Kingdom. It is a progressive agenda, which recognises the responsibility of Governments to show leadership in creating the architecture that will deliver sustainable economic growth. That means investing for growth, delivering stronger public services, driving up tax receipts, and cutting the deficit. Our strategy is an appropriate response to the circumstances in which we find ourselves, but it also acknowledges the circumstances in which many Governments in the western world find themselves.

We in the SNP are ambitious for Scotland. That can, perhaps, best be evidenced by the programme of Nicola Sturgeon’s Government. That programme will tackle the attainment gap, while also focusing clearly on using what powers we have to influence innovation, recognising that there is a twin track: tackling attainment must go hand in hand with improving skills, enhancing capability, and creating competitive opportunities in the global marketplace.

We have focused specifically on export capabilities in key sectors. The manufacture of food and drink continues to be our top export sector, accounting for £4.8 billion in revenues. The value of our food and beverage exports, excluding whisky, rose from £755 million in 2013 to £815 million in 2014, an increase of 8%. In 2014, Scotch whisky exports reached £3.95 billion, accounting for 21% of the food and drink exports of the whole United Kingdom. Scotland has shown the way in increasing its export capability, and driving investment and jobs into our economy. That plays to our key strengths, and our reputation as a provider of high-quality food and drink. It is also based on segments of the market that offer long-term growth opportunities.

We need to tackle the relative decline of manufacturing in our overall economy that hampers our ability to meet the challenge of delivering prosperity. Growth sectors in the economy, such as biotechnology, can deliver opportunities for jobs and growth. We need a strategy which focuses on manufacturing growth that outstrips the service sector in terms of value added to our economy. That is not to downplay the desire to achieve growth in services, but to recognise that we have an imbalance in our economy that hampers our ability to maximise opportunities for all our people.

We cannot decouple a debate about defending public services from the wider economic agenda, because they are so completely intertwined. We need a well educated, healthy population who can rely not only on our education and health services but on our ability to deliver effective childcare, for example. When Conservative Members talk about small government, they reject the vital role of the state in providing much of the support that allows all of us to achieve our potential.

This Queen’s Speech is a missed opportunity to deliver a programme that could offer so much more to those who aspire to a healthier, wealthier and fairer society. We need to tackle inequality, to improve living standards for ordinary workers, to create a fairer society and to strike an effective balance between prosperity and investment in the public services that underpin a successful society. Today, we are moving away from that.

There is an increasing disparity between executive pay and rates of pay in the mainstream, leading to increased calls for action by shareholders and ultimately to stronger action if moderation cannot be achieved. With wage growth outpacing productivity growth, there are legitimate concerns about the sustainability of real wage growth and, as a consequence, taxation receipts and the ability of the Government to meet their targets, with all that that would entail for the public finances and, no doubt, for investment in our public services.

In short, to secure our public services, we need to tackle the shortcomings of the Government’s economic strategy. Of course we would invest for growth and create opportunities for investment by the private and public sectors, resulting in greater confidence and growth outcomes. Confidence and growth, on the back of modest investment in our public sector, would see the debt and deficit come down, by contrast with policies driven by this Government’s ideological desire to achieve a budget surplus at any cost. The logic behind that desire to achieve a budget surplus almost irrespective of economic circumstances beggars belief. If the Chancellor misses his growth forecasts, as has been the case on numerous occasions, his office can make the strategy work only through tax rises or, more predictably, cuts to public spending.

The trouble with this strategy is that we are now six years into it and it is not working. The squeeze on public spending is hurting and damaging services. Those of us who are old enough to remember the Thatcher Government elected in 1979 will recall the line from the Government that “if it’s not hurting, it’s not working”. Patently, it is hurting and it is not working—[Interruption.] It might have been John Major, but it is the same old Tories. The strategy is harming the life chances of people in Scotland and the rest of the UK.

Let me return to the Queen’s Speech and the future of the NHS. We strongly disagree with the UK Government’s moves to charge visitors to this country to use the NHS. NHS Scotland will not charge overseas visitors if they need to visit A&E or a casualty department if it involves a sexually transmitted disease or HIV or if they are sectioned under the Mental Health Act. That is the right thing for anyone to do in a civilised society.