Business and the Economy
Debate between Neil O'Brien and Jeevun Sandher(2 weeks, 3 days ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Dr Sandher
I give way first to the hon. Member for Angus and Perthshire Glens (Dave Doogan).
Neil O’Brien
The hon. Member talks about deindustrialisation. Can he remind me what happened to the manufacturing share of the economy under the previous Labour Government? Did it go up?
Dr Sandher
Manufacturing has been falling in this country since Margaret Thatcher came to this place. The lack of manufacturing jobs, and the inability of graduates to get a decent job in this country, is precisely why they are turning away from democracy itself. More than that, the UK has suffered the fastest deindustrialisation in western Europe.
Dr Sandher
In a moment. On top of that, young people cannot move out: some 40% of 18 to 35-year-olds live at home with mum and dad. Each of them is now turning away from democracy.
Neil O’Brien
I want to continue on the subject of deindustrialisation. Is it not the case that the manufacturing share of the economy dramatically fell under the previous Labour Government and then stayed the same under the last Conservative Government?
Dr Sandher
Luckily, I will come back to reindustrialising the economy and what the Labour Government are doing right now, but let me turn to the motion at hand, which does not really add up, taking each point in turn.
The motion speaks of employment. Employment, including youth employment, is higher than it was at the July election. More people are entering the labour market, and fewer people are off sick. That is because we are getting waiting lists down.
The motion speaks of business closing down. Over 230,000 businesses have been created—a net increase of 10,000. We have made a permanent 40% reduction in business rates for high street shops. Page 4 of the impact assessment of the Employment Rights Bill, of which we Labour Members are incredibly proud, states:
“The package will be significantly positive for society (i.e., the benefits will outweigh the costs)”.
It goes on to mention
“a direct and positive impact on economic growth”.
Pro-worker, pro-business, pro-growth—that is the record and legacy of this Labour Government.
Where we differ entirely and fundamentally from the Conservative party is that we do not believe that it is simply business owners and entrepreneurs who create wealth and growth in this country. Every worker—ever nurse, doctor or teacher—creates wealth in this nation. It is a joint enterprise between capital and labour to produce more. That is where we are. A stronger nation is one where each person does well, and that is the country that we are creating—in stark contrast with what the Conservative party left us.
To get everyone to live a decent life, we need to get costs down. Opposition Members have spoken about inflation. A third of today’s price increases come from energy costs. Why? It is because we depend on natural gas, which sets our price 98% of the time and is 50% to 75% more expensive than wind and solar. That is why we are investing in clean energy—cheaper and secure energy in the long run, not just for the next five or 10 years. We also have some of the highest childcare costs in the world. The Chancellor has put more money into childcare so that everyone can get the care they need and get their bills down.
We are creating good jobs for non-graduates—that goes to the point made by the hon. Member for South West Hertfordshire (Mr Mohindra)—as well as building 1.5 million homes, establishing Great British Energy and implementing the warm homes plan. For young people—our generation—we are building homes so that they can move out of mum and dad’s. That is how we create a better and stronger nation in which each of us can do well—stronger because we produce more, stronger because we have a stake in each other’s wellbeing, and stronger because we have a shared sense of purpose.
These are some of the most dangerous times in our country for almost a century. A third of people cannot earn enough to live, and non-graduates and the young see no prospect of being able to earn a decent life and are turning away from democracy. What was despair and despondency is now becoming anger. We are now up against those whose only answer is to tear everything down, to blame someone else for all our problems. They seek to create division, and a divided nation is a weaker one. That division leads to anger and sometimes, as we saw last summer, to violence. We meet this moment with decency and determination. We meet it by creating a stronger nation, in which every single one of us can earn a decent life.