The Economy and Living Standards

Oliver Colvile Excerpts

Thursday 12th June 2014 Commons Chamber

[Mr Osborne]

My hon. Friend is absolutely right: there has been a remarkable jobs story in Norfolk as well, supported by the economic investment we are putting into new roads in the county. I have spoken to the chamber of commerce there and seen its ideas for attracting more investment into King’s Lynn and other key centres, and I congratulate my hon. Friend on all he is doing to back business there.

[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

Does my right hon. Friend accept that his economic strategy has seen unemployment in my constituency fall by 25% over the last four years? The Government’s decision to grant a city deal to Plymouth will create 10,000 new jobs by releasing some of the land in the dockyard.

[Mr Osborne]

My hon. Friend is absolutely right. The city deal, which he championed and urged on us, has a real prospect of bringing more investment and jobs to Plymouth. It is great news that work is being created in that great city and I congratulate him on all the local leadership he is showing there.

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[Andrew Selous (South West Bedfordshire) (Con)]

There seems to be a degree of amnesia among Opposition Members about the scale of the great recession presided over by the last Government and which this Government are having to deal with. That recession cost the British economy £112 billion, and it cost 750,000 people their job. On Labour’s watch, youth unemployment increased by nearly half, long-term unemployment almost doubled in just two years, 5 million people were left on out-of-work benefits, and in one in five households no one was working. We have made improvements, although of course we want to go further, but it is worth remembering the scale of the difficulties this Government have had to deal with in the past four years.

Government Members believe in high-skill, high-value jobs. That is why we are so passionate about our apprenticeship programme and about the university technical colleges we are introducing. It is why we are so passionate about our young people gaining the best skills and about improving school standards. That is the way to get pay increases, to defeat poverty and to deal with the cost of living issues facing our constituents.

In my constituency, I see employers rising to the challenge. I see B/E Aerospace in Leighton Buzzard now employing some 540 people, Honeytop Speciality Foods developing a new factory, and Care Group, a company from India, setting up a new factory on the Woodside estate in Dunstable. In India, that business has taken on a significant number of disabled people, and its delightful chief executive plans to do the same in this country—let no one say that capitalism cannot have a human face and a heart.

The jobs figures in my constituency show that there has been a 40% fall in the overall claimant count for jobseeker’s allowance in the past year and a fall in unemployment of 54% for 18 to 24-year-olds, 35% for those over 50, and 39% for those who have been out of work for more than 12 months. Of course, we have further to go—we want everyone to have a job—but that is not bad progress, given the scale of the challenges with which we were left.

We have a Prime Minister who has said at the Dispatch Box that he would like to see a minimum wage of £7 an hour. More companies are paying the living wage. I remind Opposition Members that it took a Conservative Mayor of London to introduce a living wage in London, and a Conservative Secretary of State for Work and Pensions to make sure the cleaners in the Department got the living wage. That did not happen under the previous Government.

What would a socialist Government look like? We do not have to imagine it, because we can just look across the channel, where we will see higher rates of unemployment, much lower rates of business start-up and a whole host of French entrepreneurs, such as Mr Guillaume Santacruz, crossing the channel to set up business here. He has said:

“Where will I have the bigger opportunity in Europe?”

Of the UK, he has said:

“It’s more dynamic and international, business funding is easier to get, and it’s a better base if you want to expand.”

He has left socialist France to come to a majority-Conservative-led Britain to expand his business.

[Oliver Colvile]

Does my hon. Friend agree that cutting corporation tax makes it much more attractive for business and industry to come here, and that that is a key thing we should be looking to do, to make sure we have lower taxes?

[Andrew Selous]

My hon. Friend is absolutely right. We sometimes miss the point that what we should concentrate on is not the tax rate, but the amount of tax the Exchequer gains. Economic history has shown over a long period that lower rates of tax tend to generate more tax revenue, as they inspire entrepreneurs to create more businesses and expand them.

I am proud that we have a Government who are rising to the infrastructure challenge facing this country. We have heard a lot about infrastructure. My area has waited for a crucial bypass for 60, 70 or even 80 years. I have watched the town in which my constituency office is located, Dunstable, and the neighbouring town of Houghton Regis being throttled by excessive traffic congestion for many years. It has had a dreadful impact on businesses there. Even though permission was given for the road in 2003, not a shovel hit the ground during the whole 13 years under the previous Labour Government. I can tell hon. Members that diggers are now on the ground in my constituency and the road is going to get built. There will be relief for the people of Dunstable and Houghton Regis, who waited a long 13 years under the previous Government for nothing at all to happen.

We have the courage to make sure that people can get on trains in the morning and do not arrive at platforms that are already full. We have not built a new railway line since the Victorian era, but it is this Government who have the courage to rise to the infrastructure challenge.

We have also shown courage on pensions. Have not Opposition Members received letters from their constituents telling them how appalling the annuity market has been and how the projections of their future pensions were on the floor, cut by more than half? Were they not concerned by that? We on the Government Benches were, and, as the Chancellor said earlier, many of us came in Friday after Friday to try to get private Members’ Bills through to do something about it. Of course, Labour Members did not trust our constituents to spend their own money wisely. Oh no, they did not want to do that—they wanted to control it. I am proud to be serving in a Government who trust people with their own money. As the Chancellor has said, they have earned it, they have saved it and they have the right to have control over it. That is exactly what we should be doing.

Those are all very good things. Of course, there is further to go. The way to deal with the cost of living and help people pay their bills is more jobs, more better paid and highly skilled jobs and a high value-added economy. We are going in the right direction. We are creating more jobs, and Government Members want them to be well paid and highly skilled, and that is what we will continue to try to achieve.

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[The Financial Secretary to the Treasury (Nicky Morgan)]

This Queen’s Speech builds on the Government’s long-term plan to create a stronger economy and a fairer society. We have had a debate, but the hon. Member for Nottingham East (Chris Leslie) did not appear to want to talk much about Labour’s amendment and he certainly did not want to talk about Labour’s plan, if it has one, for the economy.

Let me go back to the beginning of the debate and pay tribute to my hon. Friends the Members for Portsmouth North (Penny Mordaunt) and for Mid Dorset and North Poole (Annette Brooke) for their eloquent, articulate and, it has to be said, hugely entertaining speeches last week. As they affirmed, it was the first time that female Members of Parliament had both proposed and seconded the Loyal Address, and it is an honour for me to close the proceedings on it tonight. That is especially true at a time when our country can boast more women in employment than ever and more women working full time than ever. Those statistics are of course part of a wider picture in which not only has overall employment reached its highest level ever, but unemployment has reached its lowest level in more than five years.

Let me turn to the speeches—I counted 37 of them—in today’s debate. We started with the contributions of three distinguished Members: the right hon. Member for Derby South (Margaret Beckett), my hon. Friend the Member for Aldershot (Sir Gerald Howarth) and the right hon. Member for Blackburn (Mr Straw).

My hon. Friend the Member for Gainsborough (Sir Edward Leigh) talked about Labour’s waste during office. He would know a lot about that as the former Chair of the Public Accounts Committee.

My hon. Friend the Member for South West Bedfordshire (Andrew Selous) talked about the amnesia of Opposition Members—we can see it in some of their faces today—and the problems that they left behind for this Government to deal with. He spoke about investing in infrastructure. I am sure that he will welcome the Infrastructure Bill that was announced in the Gracious Speech last week.

[Oliver Colvile]

Does my right hon. Friend recognise that it is incredibly important that there is investment in the south-west, including in our railways and roads? That is how growth will be delivered in the south-west and in my Plymouth constituency.

[Nicky Morgan]

I thank my hon. Friend. The Labour party did nothing for the south-west. He has been a doughty champion of investment in the south-west since his election in 2010. The Treasury and other Departments continue to look at road and rail projects, which will make a huge difference. Of course, we saw the speedy rebuilding of the railway line following this year’s floods, which caused such disruption to the south-west. We did not hang around talking about it; we got on and delivered the investment that was needed.