The Economy

Peter Dowd Excerpts

Thursday 24th October 2019 Commons Chamber

[Sajid Javid]

Sound public finances are the foundation of economic prosperity and strong public services, and we have come a long way since 2010. We inherited a deficit of 10% of GDP. At that time, that was the biggest Budget deficit of any advanced economy. It was equivalent to borrowing £5,000 every single second.

[Peter Dowd (Bootle) (Lab)]

You caused it.

--- Later in debate ---

[Peter Dowd (Bootle) (Lab)]

There were around 39 speeches today, so obviously I cannot go through them all, but I would like to thank the right hon. Member for Sevenoaks (Sir Michael Fallon)—although, given all the cuts we have had under the Tory Government, I am surprised it is not “Sixoaks”—for his support for Labour’s policy on share ownership. I also offer my congratulations to the right hon. Member for Central Devon (Mel Stride) on his appointment to the Treasury Committee, and commiserations to the hon. Member for Thirsk and Malton (Kevin Hollinrake).

The right hon. Member for Kingston and Surbiton (Sir Edward Davey) said that the Liberal Democrats were the yellow party. They certainly were the yellow party, in that they did not stand up to the Tories when they were in coalition with them. That is the sort of yellow party they actually are. So I will not be taking any sermonising whatever from that shower at the back of me—none whatsoever.

May I say to my hon. Friend the Member for Ynys Môn (Albert Owen), thank you for all the work that you have done, given that this is your last Queen’s Speech—and yours was an excellent speech, too.

The Chancellor’s performance was excruciating. Judging by the faces of the Members sitting on his side of the House after he had made it, I thought I had walked into an embalmers’ and morticians’ conference. Thinking of the global banking crisis, does he not remember collateralised debt obligations—otherwise known as financial weapons of mass destruction? Has he forgotten that he had a great part in promoting them? That is the cause of the global financial crisis—reckless speculation, dependence on credit and grossly unequal distribution of income. It applies to this day. [Interruption.] Members on his side of the House may mutter all they want; that is the fact. They and their friends were the cause of the global crisis, not this side of the House—[Interruption.] Not this side of the House.

The topic today is the economy—an economy that the Tories are in the process of systematically wrecking. As many have pointed out today, after nine years in charge of the economy, their strategy has proven to be a total failure. Nine years of austerity, combined with Tory infighting over who can deliver the worst Brexit for our economy, has made us all poorer. Wages have stagnated. The queues at food banks have grown almost as long as the incoherent responses of the Prime Minister at PMQs.

[Albert Owen]

My hon. Friend is talking about the Chancellor’s opening speech in which he tried to mock Labour’s nationalisation plans, saying that we would even go as far as nationalising travel agents. I remind him that Thomas Cook made a profit when it was in public ownership between 1948 and 1972, but it went bankrupt under this Government, with people losing their jobs and their holidays.

[Peter Dowd]

My hon. Friend refers to just some of the many thousands of workers who have been let down by this Tory Government. We all walk past people sleeping rough on the streets every day, but what have the Government done about that? Nothing. Despite endless promises of jam tomorrow, there looks to be little respite ahead under this Government. Their approach to this is writ large by the smirks on the faces of the members of the Government Front Bench.

Manufacturing output in August dropped at the fastest pace in seven years, with EU-based customers rerouting supply chains away from the UK in anticipation of 31 October. Consumer and business confidence is tumbling. Anecdotally, we know that a worrying proportion of businesses are moving their operations and investment elsewhere.

My right hon. Friend the shadow Chancellor said:

“We have heard the Prime Minister’s previous crude dismissal of British business. Now we are seeing his words become Government policy.”—[Official Report, 8 October 2019; Vol. 664, c. 1650.]

Businesses are responding in droves. The Centre for European Reform says that the economy is already £69 billion smaller as a result of Tory turmoil and uncertainty since the Brexit vote. That is their responsibility on their watch—nobody else’s. Time and again, they put party over country while the economy suffers. The Government’s false dichotomy of no deal versus a bad deal amounts to an attack on the economic wellbeing of our citizens. Our economy needs cast-iron guarantees of frictionless free trade and strong regulatory alignment with the European Union. It needs a targeted industrial strategy to turn the biggest threat of our time into an economic opportunity, but not with the Tories.

The only threat we face that is equal to the continuation of this Government is the climate emergency. We need a green industrial revolution: a rapid and far-reaching transformation of the UK’s infrastructure, from our homes to our transport and energy systems. That requires investment on a scale that makes the Government’s programme pale into insignificance. Labour is offering—

[Kevin Hollinrake]

Will the hon. Gentleman give way?

[Peter Dowd]

I am sorry, but I will not at this stage.

Labour is offering a national transformation fund and a national investment bank that would invest £500 billion of lending and spending over 10 years, with tackling climate change as a central mission—a concept alien to that lot over there. It will include targeted investment to develop and commercialise new technologies so that they are designed here, assembled here, installed by a well-paid unionised workforce here, and then exported to the rest of the world. It is a far-reaching programme of economic revival that will create the industries of the future here. This is a Government of yesterday. We are the Government of tomorrow.

With its wind and marine resources, the UK has some of the best potential in the world for renewable energy. Renewable energy should be to the UK what tech has been to California, but the Government’s failure to support these nascent industries has held us back. We should be building on our existing strengths, such as the automotive sector, which could, with the right support, lead the world in electric vehicle and battery production. At the Labour party conference, my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey), the shadow Business Secretary, announced a multibillion-pound package of investment to kick-start the electric revolution. That is the scale of targeted support that our automotive industry needs—not just green number plates. Today, she announced plans to create a carbon-neutral energy system by the 2030s, including insulation upgrades for every home in the UK and enough new solar panels to cover 22,000 thousand football pitches, including Anfield.

This is not just about avoiding a climate catastrophe. The green industrial revolution is about building the world we deserve, not the world that the Tories think we deserve. We will ensure that nothing is too good for the working people of this country. We can tackle climate change while transforming our economy so that it works for the many, not just the privileged few.

As my right hon. Friend the Leader of the Opposition has said, this is not the time for despair; it is the time for action. I hope the Chancellor—hope does spring eternal—will act by accepting amendment (g) so we can begin to rebuild our economy in the interests of the many, not the few. Under this Government of yesterday, I will not hold my breath.