Finance Bill

Mike Wood Excerpts

Tuesday 21st July 2015 Commons Chamber

[Mike Wood (Dudley South) (Con)]

It seems slightly rude to intrude on the private squabbles between the Labour and SNP Front Benches, but I am delighted to speak in support of the Finance Bill, which implements many of the measures in the summer Budget.

Last week’s black country day celebrated our region’s industrial heritage, and the measures announced in the Budget will do much to develop the framework for businesses in my constituency and across the country. In Dudley South, many of the businesses that I visit are thriving, whether we are talking about Pressvess, which exports to south America and the middle east, or Mechatherm, which designs and exports foundries all the way to Taiwan. Those small and medium-sized businesses are the lifeblood of our local economy and the driving force behind securing economic recovery, increases in employment and greater prosperity for our constituents. Those businesses and others like them account for 60% of employment and almost half of turnover. The measures announced by the Chancellor a few weeks ago will ensure that such businesses can go from strength to strength and create the new jobs that our communities need—for example, the increase in the employment allowance from £2,000 to £3,000, cutting non-wage costs and making it cheaper to create new jobs and to invest in local people.

One of the first companies I visited as the local Conservative party candidate ahead of the general election makes tools and components for the aerospace and automotive industries. Among the frustrations it voiced to me was that, while it invests large amounts of money, effort, staff time and good will in apprenticeships and in training all its staff from apprentice to the boardroom, other companies seem to want a free ride on the backs of those who invest in that way. I therefore welcome the apprenticeship levy on large firms that the Chancellor announced in the Budget, because it will reward businesses that invest in their workforce and penalise those that attempt to get a free ride.

I am proud that the Government have demonstrated their recognition of people’s natural aspirations. They are on the side of people who want to succeed and make the most of their lives. It is vital that we press ahead with the economic reform we put to the country in the general election in May to ensure we secure the financial stability that safeguards people’s jobs and mortgages.

In the past few years, we have seen spending on out-of-work benefits fall to its lowest level since before the recession. The number of people in work in my constituency, and elsewhere across the country, has shot up. For far too long during the boom years before the recession, welfare spending spiralled. We know that many measures were introduced with the very best of intentions. I do not think anybody would argue with those intentions, but unfortunately it sometimes seemed as though too little thought was given to the consequences of the complexity of the systems being built.

[Andrew Percy]

I agree with everything my hon. Friend says about the complexity of the system. Does he agree that in making changes and trying to get away from the laudable aim of reducing in-work benefits, we have to be incredibly careful and ensure that the changes coming in next April do not go too far? I hope that—I am glad Ministers on the Government Front Bench will hear this—as we scrutinise the proposed reductions further, we will perhaps think a little more about the impact some of them could have on some of our working constituents.

[Mike Wood]

I am not sure that that intervention was necessarily directed at me. I agree with much of the sentiment behind it, but we have to be firm in the need to continue with reform while, as my hon. Friend says, being aware of the impact it will have. I am sure, like other hon. Members, he will have his attention drawn to that impact very regularly through his mailbox.

The consequences of the complexity of that welfare system did not help the millions who were trapped within the system, with little hope or opportunity to escape and to progress. It is important that the Government’s reforms continue to support people into work, but it is just as important to make sure that it pays to be in work. The Finance Bill moves the Government another step closer to achieving that goal. Securing our finances and ensuring welfare reform are essential to our long-term economic plan. Enormous progress has been made in the past year and in the past five years. We can see the evidence in our communities and in the employment statistics. There are more than 250,000 more people in work in the past year alone and nearly 2 million more in work over the past five years. The economy is continuing to recover and job creation is booming, which is why the measures in the Bill to secure that recovery are so important.

In my constituency of Dudley South, the claimant count has fallen by 29% in the past year, with 584 fewer people out of work and claiming benefits. Across the west midlands overall, the unemployment rate has fallen more than in any other UK region. This is not just a recovery for London and the south-east. The Government’s long-term economic plan offers the best strategy to ensure that that continues. They have shown that they have the courage to take the difficult decisions needed, and to put the measures in place to support working people. The measures we have already discussed go hand in hand with tax cuts for working people: the increases in the personal allowances rising even further than announced in the April Budget, alongside the new national living wage. A new, higher guaranteed wage will mean an immediate pay rise for 2.5 million people.

[Alison Thewliss (Glasgow Central) (SNP)]

Does the hon. Gentleman consider it fair that people under 25 will not see the benefit of that pay rise? The differential between those earning this wage at the 16 and 17-year-old rate and at the 25-year-old rate has now expanded significantly and could have a detrimental effect on their ability to live their lives.

[Mike Wood]

The hon. Lady raises a good point, but she should recognise that while the national living wage will be mandatory only for the over-25s, that does not mean that businesses should not pay young—[Interruption.] When the national minimum wage was introduced, there was a lot of controversy regarding the under-21 rates. The evidence, however, did not back up the idea that employers who were paying the national minimum wage rate for the over-21s were necessarily paying the under-21 rate for 18 to 20-year-olds. I would certainly hope that responsible employers invest in and value their workforce, and pay them accordingly.

The introduction of the national living wage will mean that a full-time person in Dudley South will earn an additional £5,000 in wages during this Parliament alone. The living wage will provide my constituents with the financial security of being able to enjoy higher earnings and a bigger wage packet. The message is loud and clear: the Government want people and businesses to succeed, but while we want the regulation of business to be as low as possible, there is a responsibility on employers, as part of that social contract, not to expect taxpayers to subsidise low wages.

The Government were elected in May because of the prospectus we presented to the electorate, which focused on the future. The Bill continues the strategy that will deliver a more prosperous and more successful future. Only by continuing to focus on our businesses, our apprentices, our jobs and our industries can we deliver for Britain. That is what the Budget set out and what the Bill will achieve. The summer Budget and the Finance Bill build on the success of the past five years to secure a better future for Britain and for our constituents.

Greece

Mike Wood Excerpts

Monday 29th June 2015 Commons Chamber

[Mr Osborne]

To be fair to the Greeks, they have been quite preoccupied, but they have certainly not, to my knowledge, expressed any great opposition.

[Mike Wood (Dudley South) (Con)]

Would it not be devastating to the credibility of the eurozone if European institutions were seen to favour political considerations in relation to keeping Greece within the single currency ahead of basic economics?

[Mr Osborne]

I have always felt that good politics flows from good economics. Ultimately, what we all want to see are more jobs and investment in Greece and an economic policy that allows that to happen.

European Union Referendum Bill

Mike Wood Excerpts

Tuesday 16th June 2015 Commons Chamber

[Sir William Cash]

That is absolutely right. I was going to refer to that, but I am grateful to my hon. Friend for making the point.

I want to refer to what section 125 actually does say, because the proposal is to remove that tonight, in the face of our opposition. The explanatory notes accompanying the Bill state what they do:

“These Explanatory Notes have been prepared by the Foreign and Commonwealth Office…to help inform debate”

and

“in order to assist the reader of the Bill”.

However, paragraph 52 of the notes gives no explanation and simply says:

“Paragraph 25 provides that section 125 of the 2000 Act does not apply for the purposes of this referendum”,

and then mentions a consequential amendment. There is no explanation at all. That itself is a reason for our being concerned about the way this is being done.

I want to return to the question of what we are repealing. What is in the 2000 Act is very sound. It refers to

“any material which—

(a) provides general information about a referendum to which this Part applies;

(b) deals with any of the issues raised by any question on which such a referendum is being held;

(c) puts any arguments for or against any particular answer to any such question; or

(d) is designed to encourage voting at such a referendum.”

It is very comprehensive.

[Mike Wood (Dudley South) (Con)]

Does my hon. Friend share my concerns that the provisions of section 125 would allow the European Commission to make statements and publish material affecting a referendum on Britain’s membership of the EU, but would prevent British Ministers or Departments from publishing material to correct or counter such a publication?

[Sir William Cash]

Very simply, any suggestion that the European Commission or the EU should be involved in this process is the subject of another amendment I have tabled, and nor should they be allowed to make any provision by way of financing. We can debate that later.

On whether contradiction might be created in respect of the position of Government Ministers in this country, my flow has been slightly diverted by my hon. Friend’s perfectly understandable intervention, but the fact is that Ministers and the civil service are in a position under the purdah rules such that they would not be able to use the machinery of government. In relation to the EU, which I know a little bit about, the machinery of government is extensive, but there are methods that could be applied, with a sensible degree of amendment, to ensure that the restrictions on the matters to which I have referred are complied with, because this is what we are talking about; it is not some generalised assumption that Ministers are going to wander on to completely different paths.

Section 125 lists the material I have already referred to—

“general information about a referendum…any of the issues raised by any question…any arguments for or against any particular answer to any such question”

and questions

“designed to designed to encourage voting”,—

and it states that none of that material

“shall be published during the relevant period by or on behalf of—

(a) any Minister of the Crown, government department or local authority”.

It could not be clearer; it could not be more sensible, more sound or more comprehensive.

--- Later in debate ---

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

I rise to support amendment 16. I also take this opportunity to pay tribute to the excellent maiden speeches we heard from the hon. Members for Morley and Outwood (Andrea Jenkyns) and for Hampstead and Kilburn (Tulip Siddiq). It is great to see members of the black and minority ethnic community participating in the politics of this country.

The Scottish National party values Scotland’s positive relationship with the European Union and the social and economic benefits that it brings to Scotland, so we will continue to make the case for Scotland’s membership, in this Chamber and beyond. I welcome the sign that this Government are possibly listening to the views of SNP Members and to the position of the devolved Governments and Assemblies across these nations. I hope that the Government’s exercise in reflection will continue throughout discussions and decisions taken on this Bill and, indeed, beyond.

Given that the Government have decided to accept that they should treat all parts of the UK with some respect, at least in relation to the Bill, I encourage them now to step fully into the light. Timing is not the only issue that unites opinion across the constituent parts of the UK. We believe that if the UK is to leave the EU, a majority not just across the whole UK but in each of the four nations—a double majority—should be required, to safeguard the future prosperity of Scotland and prevent it from being taken out of the EU against the will of its people.

It would make no sense to take such a fundamental and damaging decision without a democratic safeguard that respected the decision of voters in England, Scotland, Wales and Northern Ireland. If Scotland were dragged out of the EU after it voted to stay in, that would clearly not only cause catastrophic damage to our economy but have major constitutional implications. That view is also supported by the Welsh First Minister. Earlier this month, he joined the First Minister of Scotland in signing a statement declaring:

“Any decision to leave the EU, taken against the wishes of the people of Wales or Scotland, would be unacceptable and steps must be taken to ensure this does not happen.”

We agree, and look forward to the support of Welsh colleagues in the Lobby today.

This week has also seen debate on the Scotland Bill. Although my colleagues and I will continue relentlessly to argue for maximum powers to be transferred to the Scottish Parliament so that we can build a better, stronger and fairer society, I take the Government’s view at face value when they say they want to make the Scottish Parliament one of the most powerful devolved Parliaments in the world. If they are serious, they should accept the amendments that mirror the approach taken in some federal states such as Canada and Australia, which require a similar sort of territorial requirement on such issues. My right hon. Friend the Member for Gordon (Alex Salmond) also alluded to the USA in that context.

[Mike Wood]

rose—

[Ms Ahmed-Sheikh]

I will not give way, as I do not have much time. I apologise.

In the days before Scotland’s independence referendum last year, the Prime Minister called the UK a “family of nations”. If he means what he says, and if the Government back him, surely all members of the family should have a voice of their own. During the referendum, we were invited to lead the UK, not leave it.

Let me be clear. I welcome the constructive and positive moves—alternatively referred to as a “cave- in”—from the Government to rule out holding the referendum on the same date as the Holyrood elections next year. I am heartened that they are listening and acting, in this instance, to support Scotland’s best interests in relation to the timing of the vote. But that must be the start of the listening exercise, not the end. The House should pay careful heed.

If Scotland were to be taken out of Europe, despite voting as a nation to remain in it, that would inevitably provoke a strong reaction among ordinary voters in Scotland against the settlement that we agreed last September. The safeguards that we propose could avoid that outcome. We urge the Committee to support our amendments and I commend them to the Committee.

Oral Answers to Questions

Mike Wood Excerpts

Tuesday 16th June 2015 Commons Chamber

[Mr Osborne]

I am sorry to hear that the hon. Gentleman disagrees with the Labour civic leadership across the authorities of Greater Manchester. They are elected, of course, and the elected national Government put together this deal. It will increase accountability in Greater Manchester because there will be an elected mayor whom people can hold directly to account.

[Mike Wood (Dudley South) (Con)]

T6. The latest Office for National Statistics figures show that disposable household income was rising more quickly in the west midlands than anywhere else in the country. Will the Chancellor consider creating further local enterprise zones such as Waterfront Business Park in Dudley South to help create further local growth, opportunities and prosperity for my constituents?

[Mr Osborne]

I welcome my hon. Friend to the House. I know that he will be a strong voice for Dudley. We are looking at smaller enterprise zones that are better fitted to areas such as his, to build on the success that we have had with the bigger enterprise zones. Enterprise zones for individual towns will help the west midlands and the black country to be an engine of growth for the British economy.