Economic Responsibility and a Plan for Growth

Nigel Evans Excerpts

Wednesday 19th October 2022 Commons Chamber

[Beth Winter (Cynon Valley) (Lab)]

I rise to speak in favour of the motion tabled by my hon. Friend the Member for Leeds West (Rachel Reeves). As others have outlined, interest rates are rising while inflation is now in excess of 10%. Mortgages and rents are increasing as real incomes fall. Twelve years of austerity and the cost of living crisis are making life a misery for people in my communities.

On top of that, the mini-Budget of the Chancellor’s predecessor has created long-term damage to the economy. Despite substantial U-turns in policy, energy producers and other monopolies continue to make huge windfall profits. There remains economic chaos, which the Government are struggling to control, but that chaos is because the Conservatives defend their and their allies’ incomes and their class interests. The mini-Budget that caused such chaos was a huge ideological experiment in tax handouts to the wealthy. That is why I support the motion and, in particular, believe that the economy must work for every single person in every part of the United Kingdom.

The people of my Cynon Valley constituency and the people in Wales are going through a cost of living emergency. When I surveyed people in Cynon Valley, I found that nearly 90% of them felt worse off than they did 12 months previously; more than two thirds said that they will significantly cut down on heating; almost half said that they would not put the heating on at all; and the vast majority said that the situation was having a detrimental impact on their mental health.

Behind those statistics are real people. Let me quote a couple of my constituents. One said:

“Life genuinely doesn’t feel worth living any more. I feel guilty for bringing my children into this awful mess of a world.”

Another, a disabled person, said:

“I have no idea what I’m going to do—

this—

winter, something has to give.”

Those are harrowing comments by constituents. That is the real-life impact of the cost of living emergency.

The Chancellor is not interested in working on behalf of my constituents and 99% of the people living in this country. He has been clear that he is going to pursue yet another ideological austerity agenda. Cutting public spending is an attack on the living standards of working-class people.

The people of Wales deserve better. We deserve fair funding and a needs-based funding formula. I commend the First Minister of Wales, Mark Drakeford, who yesterday passionately and rightly condemned Conservative cuts to the NHS in Wales. He has also made clear his backing and support for an inflation-proofed pay rise for public sector workers. Westminster—the Treasury—needs to ensure fair funding for Wales and not force my constituents further into poverty.

The cost of living crisis is undoubtedly a political choice made by successive Conservative Governments here in Westminster. It is clear that the public cannot afford for this Conservative Government to remain in office, and as others said, we are ready for an election at any time. Right now, however, we also need urgent action to better distribute the enormous wealth in this country; we are the fifth richest nation in the world. To do that, we must also change the balance of power from the few to the many. We need to see an inflation-proofed rise in income. I still think that the Tory party’s position on pensions is at best unclear or confusing. Social security is now under threat from the Chancellor, who has refused to back a rise at today’s inflation rate, and we need to see inflation-proofed increases in pay. We also need to see a shift in the burden of taxation to those who can afford it: the wealthy, the banks, the monopolies making millions and billions in profit.

The TUC congress is meeting this week. Yesterday, it agreed that it must

“organise coordinated action over pay and terms and conditions…with all TUC unions”.

I support that resolution, and yesterday I tabled an early-day motion about it.

The people in Cynon Valley, in Wales and throughout the United Kingdom cannot and will not tolerate a further period of austerity based on unacceptable economic theories. We are mobilising to defeat the Tory agenda. Trade unions, local authorities, communities and constituents up and down the country are coming together in unity to campaign and care for one another. There is a better way. In this economic chaos, the Conservatives will continue to defend their own incomes and interests. Now we will defend ours. Diolch yn fawr.

[Mr Deputy Speaker (Mr Nigel Evans)]

Diolch yn fawr.

--- Later in debate ---

[Edward Argar]

I am very conscious that I have only about two minutes left and I would like to address the points made by a few other colleagues, including some on the right hon. Gentleman’s side of the House.

The hon. Member for Weaver Vale (Mike Amesbury) knows that I am fond of him—I do not know whether that will harm my career or his—but I just highlight to him the challenges that have driven the headline inflation rates we are seeing, which are higher in the eurozone than here at the moment. These are not Government-driven; they are energy costs and supply-chain challenges. If he looks at the analysis by the Office for National Statistics of the figures, he will see that those rates are particularly driven by food costs and food supply chains. We also have to look more broadly at the geopolitical context.

My hon. Friend the Member for South Suffolk (James Cartlidge) genuinely understands business and knows what it takes, and he highlighted the need to support the most vulnerable. That is something that my right hon. Friend the Chancellor has made clear will be at the forefront of his announcements. My hon. Friend also touched on the social care levy and the social care cap, and I know that he has views on it. I know that my right hon. Friend the Chancellor will have heard that, but I am afraid that my hon. Friend will have to wait until 31 October for announcements from the Chancellor, which I will not pre-empt.

Significant contributions have been made by Members from both sides of this House. These are challenging times and the Government will take the difficult decisions necessary to ensure there is trust in our national finances. We will also remain completely committed to our mission to go for growth rooted in economic stability and confidence, but let us not forget that our economic foundations remain strong.

We are a Government with a record of action: we acted to support families and businesses on energy costs, we have acted to bring stability, and we will act to grow the economy. As the Chancellor said to the House on Monday, despite all the adversity and challenges we face, there is enormous potential in this country. Our job, now and always, is to fulfil that potential.

Question put.

The House proceeded to a Division.

[Mr Deputy Speaker (Mr Nigel Evans)]

I understand there has been a problem with the card readers in the Aye Lobby. They should be working now.

--- Later in debate ---

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

On a point of order, Mr Deputy Speaker, the motion that the House has just passed, with no opposition from the Government,

“calls on the Government to publish the Office for Budget Responsibility forecasts immediately alongside Government estimates of windfall profits for the next two years from energy producers in the UK.”

Both those pieces of information are very important. The House has just called on the Government to publish them immediately. I seek your help in making sure that that happens.

[Mr Deputy Speaker (Mr Nigel Evans)]

I thank the right hon. Member for his point of order. Those on the Treasury Bench will have heard what he has to say. He is absolutely right that the Government must respond within a certain period of time to say how they will act now that that motion has been passed.