Achieving Economic Growth
Nadia Whittome Excerpts(2 years, 6 months ago)
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Rachel Reeves
My hon. Friend is absolutely right. That is the Tory growth penalty—the effect of the lack of growth in the economy. Average earnings are £11,000 less than if growth had stayed at the same rate as under the last Labour Government.
My hon. Friend mentioned a hundredfold increase in food bank use. This is not normal; it is the consequence of Conservative Governments’ choices. Meanwhile, what have we heard in recent weeks? We have heard suggestions from Ministers about what people can do in their own lives to deal with the cost of living crisis. The Prime Minister thinks that a 77-year-old pensioner who rides on the bus all day to keep warm should be grateful for her discounted fares; the Environment Secretary has lectured people struggling with the cost of food, telling them to “buy own brands”; and the Secretary of State for Levelling Up, Housing and Communities has treated the need for an emergency Budget as if it were an audition for a comedy club. Another out-of-touch Minister has told people, just this week, that if they are struggling financially they should simply work more hours or get another job—as if it were as easy as that. The Chancellor continues to insult the public’s intelligence by suggesting that a compulsory £200 loan—a loan that must be repaid—is somehow not a loan, and now blames a computer system for his decision not to help the least well-off. What planet are they on?
Nadia Whittome (Nottingham East) (Lab)
Does my hon. Friend agree that given that wages have been falling for the last 14 years and inflation is now at 9%, or 11% for the poorest families, there is an alternative to people’s wages being squeezed—that the Government could squeeze profits instead? Shell and BP raked in more than £12 billion in the first three months of this year alone, and it is shameful that every Conservative Member voted against a windfall tax yesterday when they had the chance to support it.
Rachel Reeves
Conservative Members voted against the windfall tax not for the first time, not for the second time, but for the third time. Every single Conservative MP opposed what they know is the right thing to do. A Labour Government would tackle the cost of living crisis head-on. We would introduce a windfall tax on oil and gas producer profits to cut household bills by up to £600, a home insulation policy that would save millions of households up to £400 a year, and a discount on business rates for high street firms funded by a tax on the online giants. Perhaps the Chief Secretary can tell us in his speech why the Government will not abolish the unfair, outdated and unjustifiable non-dom tax status, and use that money to keep taxes on working people down.
Finally, Labour would put a stop to the Chancellor’s fraud failures, which allowed £11.8 billion of taxpayer funds to go criminal gangs, drug dealers and worse. We would claw back every penny of taxpayers’ money that we could, because the public are sick of being ripped off and they want their money back.
We are now in the worst of all possible worlds, with inflation high and rising, and growth low and falling—in other words, there is stagflation. This Conservative Government must address the underlying weaknesses in our economy, which are the result of years of Tory failure. Growth has stagnated, not just this year but over the last 12 years, falling from 2% on average under the last Labour Government to just 1.5% a year in the decade leading up to the pandemic.
The Conservatives have failed to work with British industries—employers and trade unions—to create the economic growth that would benefit everyone, and for 12 years that approach has sown chaos and uncertainty, making it impossible for businesses to invest with confidence. Now the UK economy has the worst growth projections of any G20 economy but one: Russia.
Damian Green (Ashford) (Con)
It is a pleasure to follow the hon. Member for Glasgow Central (Alison Thewliss).
I rise to support many of the Bills in the Queen’s Speech. In particular, I wish to support the contention that slow growth is the long-term bane of the British economy, going back many decades, so I wholeheartedly welcome the fact that the Chancellor has made raising productivity, and therefore growth, his main task. The urgency of the task is only amplified by the scary inflation that we are currently experiencing. He is absolutely right to emphasise that as the central purpose of his chancellorship. In his excellent opening speech, the Chief Secretary made the point that there are three pillars to the Chancellor’s approach. I was going to mention five; I hope the number having gone up so quickly is not another sign of rapidly rising inflation.
On top of the pillars that the Chief Secretary mentioned, I would add and commend the idea, which was in the Queen’s Speech, of spreading economic activity and opportunity all across the country. If all the UK was as productive as London and the south-east, UK GDP would be boosted by some £180 billion—as the hon. Member for Glasgow Central (Alison Thewliss) mentioned, many figures flying around today, but that is a very significant and simple one. We would all—all over the country—be significantly richer if we could make the less productive parts of the country as productive as the most productive parts. Therefore, those bits of the levelling-up Bill that are about spreading activity and opportunity are central to the success of our economic policy over the next couple of years. We may wish to return to the planning parts of that Bill in a later debate.
Skills, as the Chief Secretary to the Treasury mentioned, are essential, so I very much welcome the Schools Bill. School education is about much more than preparing for economic life, but consistently higher standards in our schools will give us a more productive workforce, and therefore greater wealth and, in the end, more leisure time. It is one of the bases on which we need to build not just a healthy society, but a healthy economy.
Science and technology, which my right hon. Friend did not mention, is the other element that I would add. Again, successive Governments, going back more than half a century—as far back as Harold Wilson—have emphasised the need to harness science more effectively to give us a long-term advantage in a competitive world. One thing we have learned over those many decades is that it needs to be done in a focused way. In that regard, the genetic technology Bill is particularly welcome. It covers one specific, but hugely important, area in which we ought to have an international advantage and that we should wish to exploit.
My right hon. Friend mentioned infrastructure. In a week in which we have seen Crossrail operating, we should all celebrate the fact that we can, even if slightly belatedly, build grands projets in this country. I hope that the transport Bill, when we see the details of it, will encourage not just Government activity but innovation, which is hugely important and the fifth point that my right hon. Friend mentioned. Innovation is the most difficult thing to legislate for. It requires an attitude of mind, a culture, that grows from a tax system that encourages risk taking, an education system that provides the necessary skills, and the opportunities for people to make a difference, particularly in their own area.
Nadia Whittome
On that point, does the right hon. Member agree that climate education in schools—from primary through to secondary and vocational courses—is essential if we are to meet our legally binding targets of net zero by 2050?
Damian Green
I am sure that, like me, the hon. Lady spends a lot of time visiting schools in her constituency. I am struck not only by the standard of teaching in that area, but by the enthusiasm and engagement of young people on that issue, which is very important.
I am afraid, however, that the Government’s legislative proposals threaten to take us in the wrong direction in another innovative sector in which Britain is world class: the creative industries. Any Government would want to support, encourage, and, above all, listen to those industries when considering the future, but in that regard I have reservations about the media Bill. The Government’s own White Paper on broadcasting, “Up Next”, which was published last month, says:
“The UK’s creative economy is a global success story, and our public service broadcasters (PSBs) are the beating heart of that success. They produce great British content loved across the UK and the world over. The government wants it to stay that way.”
Good, so do I, and so do millions of people who value the BBC, Channel 4, as well as ITV and Channel 5; they all do a good job. What worries me, looking at the White Paper and the announcements made, is that the Government’s warm words are not matched by sympathetic actions. Let us take Channel 4 first. The Government had a consultation. There was an overwhelming desire to keep the ownership situation as it is, and that was ignored. In ignoring the consultation, the Government have argued that Channel 4 needs borrowing powers so that, in the end, it does not have to rely for borrowing on the state. Channel 4 has come up with a suggestion for a joint venture that would enable it to stay with its current ownership regime, but still access private capital. That was ignored. Instead, the Government insist on carrying on with privatisation.
If we care about a successful sector—the creative sector is successful and the many small businesses that make programmes for Channel 4 are particularly successful—we should listen to it when it tells us how best to strengthen it for the future. As a Conservative, I find it extraordinary that we have a Conservative Government who are saying, “The gentleman from Whitehall knows best” and that they are deciding how best to run this part of the sector, ignoring the small businesses that make it up. I thought that listening to small business was a core Conservative aim, but we seem not to be doing so.
Let us go from the abstract to the concrete. If this legislation goes through, which I hope it does not, Channel 4 could be bought by a big US player, in which case let us look in five years’ time at how much quirky, different, and innovative UK-based content is being made for Channel 4, particularly as it happens outside London and the south-east, outside the traditional broadcasting areas. It is also possible that ITV will buy it, which will mean a reduction in competition in the TV advertising market. Again, speaking as a Conservative, I thought that competition was one thing that we believed in and wanted to encourage.
Beyond Channel 4, the Government plan to move onto the BBC. They are rightly consulting on the future funding of this hugely important national institution, but it is slightly difficult to take a consultation seriously when, at the outset, the Secretary of State has announced her conclusion, which is that the licence fee has had its day. It is an arguable position, but it is unarguable that it makes the whole consultation look like a sham. The Digital, Culture, Media and Sport Committee, of which I am a member, looked at this issue last year and, broadly speaking, concluded that for all the disadvantages that it has—we know what they are—the licence fee was the least bad option for the coming years. Let us have a proper debate on this hugely important and complex issue, and not a sham consultation where the verdict has been given before the evidence has been considered. Again, let us listen to the voices of those who have made our creative sectors such a big economic contributor to the country and something to be really proud of in modern Britain.
In conclusion, there is very much that I welcome in the Queen’s Speech, but I hope the Government will listen on some issues, because, otherwise, there is a danger of stifling growth in one of our best economic sectors. Britain needs a thriving creative sector and the creative industries need a Government who will support and nurture them by creating a regulatory climate in which they can thrive, creating jobs and wealth, and also experiences and memories that the British people will share with each other. I am sure that this House will help the Government achieve that end.
Nadia Whittome (Nottingham East) (Lab)
This is a Queen’s Speech that provides mediocre answers to the wrong questions. The Government acknowledge that there is a cost of living crisis, but they do not want to do anything about it. They acknowledge that there is a housing crisis, but they are not willing to control rent so that people can afford to live in their homes. They acknowledge that energy is expensive. But do they want to talk about meaningful price caps? Do they want to talk about retrofitting or insulation? Did they vote in favour of a windfall tax to lower bills when they had the opportunity yesterday? No, no and no.
This is a Government who tell us they want action on the climate crisis, and then, when a protest movement comes along to demand just that, introduce legislation to have them sent to jail. They want to invest, they tell us, in the future. But the Conservatives have been in power for 12 years and they have cut the public sector to shreds. Wages will be lower in 2025 than they were in 2008, when I was 12 years old. Since they came to power, the number of people on zero-hours contracts has risen more than fivefold. All of this happened on their watch—and are they going to reverse it? No.
In 2010, the Trussell Trust handed out 48,000 food parcels. Last year, it handed out 2.1 million. Meanwhile, Britain gained a record number of billionaires, between them owning £597 billion—about triple the annual operating budget of the NHS. That is the dynamism of the market for you—the kind of dynamism that makes an elderly lady sit on the bus all day to keep warm because she cannot afford to heat her home. We need a publicly owned energy system that delivers cheap, green energy; an above-inflation rise in the minimum wage; at least the restoration of the £20 universal credit, but really a reversal of all the benefit cuts since 2010; and rent controls.
Finally, I would like to address the disgrace of explicitly excluding trans people from the so-called ban on conversion therapy. Once again, the Government acknowledge that there is a problem, but will they extend the protection of the law to those who need it most—young trans people, half of whom have attempted suicide by the time they reach the age of 26? No. So transphobic parents will still be able to hire someone to psychologically abuse their child in an attempt to stop them being trans, and this practice will still be perfectly legal. What kind of message does that send to young trans people fighting to survive? We need a Government who are on the right side of history, but instead we have a Government of pound-shop authoritarians made on the playing fields of Eton and in the Daily Mail’s wildest dreams. They know there is a problem, but what they cannot do is recognise the truth—that the problem is them.