(11 years, 5 months ago)
Commons ChamberThe hon. Gentleman makes a good point. Chancellors sometimes glance back at the effect of their Budgets with rose-tinted glasses instead of seeing the real effects of their economic policies, including the decisions made in 2010, 2011 and 2012.
I congratulate the Government on moving their rhetoric to the right place: suddenly, words such as “growth” and “investment” are as prominent in their lexicon as they always should have been. However, as my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) has pointed out, their promise on infrastructure spending is to spend tomorrow—most of it in 2014, 2015, 2016 and even 2017—rather than now. It is spending decisions taken now that will have an impact on the lives of people today, rather than waiting and hoping for things that may happen at a future date.
Boosting growth and living standards this year and next year would bring in more tax revenues and reduce the scale of the cuts needed in 2015. Taking action now to boost economic growth—by, for example, bringing infrastructure plans forward so that they happen now rather than tomorrow—would make a real difference. That is why the new clause would be helpful: it would test the impact of the spending round on tax receipts and, as my hon. Friend has said, do so in time to make any necessary adjustments to improve not only the economy, but people’s lives and living standards.
The figures revealed by the Government last week showed another cut of 1.7%—or nearly £1 billion—to capital investment in 2015-16. One would not have thought that to be the case on hearing the announcement, but having looked at the plans I know that that is what they reveal. Capital spending is down by 1.7% in education, by 2.3% in defence and by 17.6% in the Home Office. In the Department for Communities and Local Government, including housing, it is down by a massive, staggering 35.6%, and by 57.6% in the Department for Culture, Media and Sport. Those are large figures and we need to know whether their impact on the economy’s behaviour will be beneficial or, as I fear, not.
The coalition has more or less mirrored the capital spending plans of the former Labour Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), so is the hon. Gentleman saying that he was wrong in his allocation of capital spending?
If we move away from the rhetoric and look at the facts, we will see that in their first three years this Government have spent £5.6 billion less in capital investment compared with the plans they inherited from Labour. That amounts to a £5.6 billion cut to spending that would have taken place had this Government continued with the plans they inherited from the previous Government. What has happened illustrates the importance to the health of the economy of continuity in large infrastructure projects. It is difficult to get that right between the parties, but we must recognise that there are plans for infrastructure spending so that the tap cannot be turned off easily, as the Government did with the Building Schools for the Future programme. If that programme had been carried forward, it would have assisted economic development, as well as continuing to revolutionise the learning environment of children up and down the land.
In the three months to April 2013, output in the construction industry was 4.7% lower than in the same period a year earlier. Construction output is down by 11.2% since the 2010 spending review. Construction—that energetic sector that drives the economy—continues to struggle. That is why we need to check, three months down the line, the effect on the economy of the decisions that are being made today to ensure that we are moving in the right direction.
The volume of new construction orders fell by 10% between quarter 4 of 2012 and quarter 1 of 2013. That is a massive dip. The number of new orders for infrastructure fell by 49.8% over the same period—the largest fall since 1987. The value of public sector infrastructure orders fell by £2 billion between quarter 4 of 2012 and quarter 1 of 2013. Those are significant contractions of demand in the economy.
That clearly has an impact on jobs. At the end of the day, jobs are what transform people’s lives. There is unanimity about that across the Chamber. The construction sector has lost 84,000 jobs since the Government came to power. That has an impact on the well-being and quality of life of individuals, as well as on the economy and the livelihoods of people beyond the construction industry.
There is much more that I could say, but I will return to the essence of this simple, helpful, concise new clause. I can see no argument for the Government not accepting it. It would help us all if they accepted it gracefully so that we can move forward together in harmony.
(12 years, 6 months ago)
Commons ChamberThat is an interesting point. On the way down on the train this morning, I was reading a report on the experience in Northern Ireland. It said that it was difficult to envisage the changes being pushed through uniformly in a short period. A longer period of introduction would therefore be better for all concerned.
I am pleased to serve under your chairmanship, Ms Clark.
I shall speak briefly, mainly to underline the importance of getting the change right. Given that there is cross-party consensus on the introduction of individual voter registration, it ought to be possible to carry it out in a way that minimises and manages risk, avoiding the negative consequences that we can foresee. The debate has made it clear that one of the foreseeable consequences of getting it wrong is that fewer people will be on the register, although they are still eligible. The change must be managed to take account of people who are not sufficiently on the ball to get their registration in place.
I do not see what the rush is. It is better to implement the change carefully and with consideration and get it right than rush it and find the numbers on the register falling off a cliff edge, as my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards) said. If we get it wrong, the number of people participating in very significant future elections will drop substantially. Any significant drop would be a travesty of our democracy. We therefore need to work together to prevent such a drop.
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I thank the hon. Gentleman for securing this important debate. Before my elevation to this place, I used to work for the citizens advice bureau movement, and I saw how debt problems had risen significantly in our community. The hon. Member for Makerfield (Yvonne Fovargue), who is present, surely shares that viewpoint. Is it not the case that those debt management companies often target the most vulnerable in society, and that their plans are doomed to fail, which is why we need regulation of the sector, and especially of debt sharks?
Although there is some good practice, which we need to recognise and celebrate, a number of DMC practices identified by the CAB cause me great concern: cold-calling and aggressive marketing; charging up-front fees for services that fail to materialise; or poor advice in some cases, particularly when other debt remedies would be more suitable for a client’s circumstances.
(14 years, 1 month ago)
Commons ChamberThe hon. Gentleman makes an important point about the potential for organisational chaos in 2015 and about participation in those elections.
From the perspective of candidates, another argument against the five-year fixed-term UK Parliament and the clash with devolved Administration elections is that political parties in those countries will need to find suitably more candidates to contest those elections—probably about 90 in Wales, if the Con-Dem Government have their way with the boundary changes enacted in the Parliamentary Voting System and Constituencies Bill, and about 180 in Scotland.
The hon. Gentleman makes a lot of pertinent points about the difficulties in Wales in particular. Can he enlighten us on what consultation has taken place with the devolved Assemblies on these proposals?
I can answer the hon. Gentleman’s point simply: hardly any.
Returning to the point about candidates, I am confident that my party will have no difficulty in finding quality candidates the length and breadth of Wales, although it might be a different matter, of course, for smaller parties, such as the Liberal Democrats. However, ensuring quality coverage, so that the electorate can become familiar with the people, and not only the party, for whom they are voting, will be doubly difficult if they are all fighting for air time.