Living Standards

Nigel Evans Excerpts

Wednesday 30th November 2011 Commons Chamber

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I remind the House that there is a six-minute limit on speeches.

--- Later in debate ---

[Several hon. Members]

rose—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. In order to fit in more Back-Bench contributions the time limit is being reduced to five minutes, and it is likely to be reduced further because of the number of interventions being made.

--- Later in debate ---

[Teresa Pearce]

What I am saying is that child poverty in my constituency will increase as a result of this Government’s plans.

Inequality is often most obvious in the context of housing. Every week my postbag is full of letters from families who are living in overcrowded, shoddy, private-rented flats, and whose dream of a decent home seems to drift further away every month. I would welcome any initiative that helps to remedy that, but, sadly, I do not think that the measures announced by the Government, such as underwriting mortgages for families to buy new-build homes, will help families in Erith and Thamesmead.

The indemnity scheme involves taking a lot of risk on to the public-sector balance sheet. That is bad for taxpayers and could be worse for those who take up the scheme. The scheme applies only to new build, and it is widely acknowledged that new build is often marketed at a premium above market value of about 2% or 3%, so a 95% mortgage will, in effect, be close to a 100% mortgage, and if house prices fall buyers will face negative equity and the taxpayer will have to cover any losses. A better way to help families and first-time buyers is through extending stamp duty relief.

Time and again, therefore, the Government show whose side they are on: they cut corporation tax while increasing VAT; they cut housing benefit rather than tackle the unscrupulous landlords who are profiteering from housing benefit while their tenants live in substandard properties. As for the Chancellor, it is clear that not one of his post-election assertions has turned out to be correct: inflation is up; growth has stalled; the eurozone has crashed; the structural deficit is bigger than previously thought; and unemployment continues to rise month on month as the private sector fails to take up the public sector slack, although the Chancellor was certain that it would do so. It appears, too, that everybody else is to blame. The Chancellor has blamed the royal wedding, the weather, civil servants, Brussels, employment tribunals, trade unions, banks, bank holidays, people living longer, energy prices and, of course, the Opposition. We have a Chancellor who wants the power but not the responsibility, and I fully expect him to say at the next Budget, “It’s not my fault—”

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Time is up. I call Guto Bebb.