The Economy

Mike Wood Excerpts

Wednesday 18th November 2015 Commons Chamber

[Mike Wood (Dudley South) (Con)]

As a fan of “Yes, Minister”, I shall start by congratulating the Opposition on their brave decision to choose this subject; given the Labour party’s abysmal record in this area, that is perhaps courage verging on chutzpah.

In May, voters in a majority of constituencies around the country endorsed the difficult decisions taken by the previous coalition Government to get the economy back on track, and placed their faith in the Conservative party to secure the economy and to take the further difficult decisions in a fair way to secure that recovery.

It is disappointing that the Opposition motion omits the real progress that has been made over the past five years in improving people’s opportunities and giving a brighter outlook for working people in Britain. We have 2 million more people now in work; that is many, many more families with the security of a job and a steady income. We have secured 2 million more apprenticeships since 2010, with 3 million planned for this Parliament, meaning that ever more young people will have the skills that they need for future work. The Government are also doubling free childcare to 30 hours a week and introducing the national living wage.

[David Rutley (Macclesfield) (Con)]

Earlier in the debate, the hon. Member for Hayes and Harlington (John McDonnell) was quick to say that the £9 national living wage was inadequate, but did not point out that the Labour manifesto set a target of only £8. Did my hon. Friend find that outrageous?

[Mike Wood]

I certainly did not find it surprising. As we knew at the time of the election, the £8 that the Opposition were proposing was probably lower than the minimum wage was scheduled to be by 2020 anyway, but the additional national living wage will mean a real increase in the incomes of the lowest paid families in Britain.

I am sure many of us remember the times when those on the Opposition Front Bench were making funny hand gestures to indicate that somehow the economy was flatlining. They are not doing that so much any longer, because the only thing that is now flat is inflation. With inflation at close—

[Several hon. Members rose—]

[Mike Wood]

I had better continue, as a number of Members wish to speak.

With inflation close to, or even under, 0%, the household budgets of families in my constituency and elsewhere in the country are going further, meaning further security. This benefits the whole country, including my constituents in Dudley South.

I represent a west midlands constituency and I have in the past heard many people in Dudley South say that it has seemed that the midlands has been ignored. It certainly felt like that under the last Labour Government. For every 10 private sector jobs created in London and the south, only one was created in the midlands and the north. There was no hope for millions left languishing on benefits; in fact, many people on certain benefits were, sadly, more likely to stop claiming those benefits because they had died than because they had found a job that meant they no longer qualified for them. That was unacceptable, and the action taken by this Government has meant that has been turned around, so people can have more hope and better opportunities.

The Economic Secretary rightly said that the country has faced low productivity for many years. I hope we would all agree that the key to tackling the productivity gap is rebalancing the economy so that it is not over-reliant on any one region. The Government’s devolution and cities agenda is essential to unlocking the full potential of the whole country and closing that productivity gap.

I was delighted that only yesterday the Chancellor and the Business Secretary were in the west midlands announcing a new £1 billion devolution deal—a devolution revolution that will mean the west midlands has the budgets and powers to make a real difference for people in the county and can tackle the productivity challenge and the skills gap that has held it back for many decades. That should be commended, rather than prompting the condemnatory motion tabled by the Opposition. This is not just about creating jobs; it is about hopes and opportunity, and that is why I will be opposing this motion.