Better Jobs and a Fair Deal at Work

Rachel Reeves Excerpts

Wednesday 12th May 2021 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I am proud to open today’s debate on behalf of the Opposition. I am conscious that one of the basic tenets of qualification for Government is to be trusted by the public with their money. If we do not meet that test, then none of our ambitions and none of the changes we seek can come to pass, so let me make one thing clear at the start: it is a test that I intend to meet.

The recovery from the pandemic represents a crucial moment for Britain. This really is not the time for just wallpapering over the cracks; instead, we must match the scale of the moment that faces our people and also our planet. We need a Government who back Britain, and that means an ambitious and bold plan for good jobs. We must end the insecurity and lack of opportunity that there is in our economy for far too many, and seize this moment to create a brighter future for people in all parts of our United Kingdom.

This last year has been like no other. Families have given up so much; so many have lost loved ones. Coronavirus has shone a spotlight on what matters to all of us—our families and friends, our communities, our health and our security. After a decade of Conservative government, our public services were underfunded and underprepared for the pandemic that came—a shortfall of intensive care beds; unfilled vacancies in our NHS; a fragmented and underfunded social care system; and personal protective equipment stockpiles run down, despite all the warnings. This Government have allowed the public square to become degraded, and we all now know the cost of that.

Meanwhile, the failure to increase statutory sick pay in the middle of a deadly pandemic put far too many low-paid families in the impossible position of having to decide whether to go to work and put food on their table or to self-isolate and protect public health. The Government could and should have done so much more for those people.

The truth is that for too many people wages have stalled over the past decade; household debt is rising and too many people live pay cheque to pay cheque. And many of those people do the crucial everyday jobs that keep our economy running and our public services going. They have been overlooked and undervalued. The Government have done nothing for them and nor does this Queen’s Speech.

Instead, £2 billion of public contracts have been awarded to companies with close links to the Conservative party. We are led to believe that this is all one massive coincidence that they got those contracts. How did it happen? Who knows? The Government are taking the public for fools. What taxpayers deserve is for their money to be used to best effect, not for it to be squandered on contracts that do not deliver or used to line the pockets of friends and donors of the Conservative party.

The Government say they want value for money, but they have failed to claw back the millions of pounds wasted on contracts that did not deliver for the NHS and did not deliver for taxpayers either.

[Kevin Hollinrake]

The hon. Lady talked about people with connections to the Conservative party trying to get their favoured contractors to the front of the queue. Does she remember emailing me in the Cabinet Office to ask for one of her constituency companies to get to the head of the queue for exactly the same purpose?

[Rachel Reeves]

The job of a constituency MP, as the hon. Gentleman—a good constituency MP himself—knows, is to look out for our constituents. But I was not pocketing the money: I was not giving contracts to donors of my party, and I was not giving my local pub landlord a contract. Maybe our local pub landlords are really good at delivering contracts for the NHS, even though they have no track record of that—or maybe this one was a mate of a Conservative party Cabinet Minister.

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[Madam Deputy Speaker (Dame Rosie Winterton)]

That is not really a point of order; it is part of the debate, and I do not want the debate to descend into points of order. I am sure that if the shadow Chancellor of the Exchequer feels she needs to say anything further in response to the hon. Gentleman, she will do so.

[Rachel Reeves]

Two billion pounds-worth of contracts to friends and donors of the Conservative party—I will leave it at that, and let the record speak for itself.

Let us be clear about this Conservative Government’s record. They talk in this Queen’s Speech about a skills guarantee, but it was a Conservative Government who cut the education maintenance allowance; my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), the shadow Chief Secretary to the Treasury, was a beneficiary of that and has spoken powerfully about the difference it made to her. And this Government have overseen a fall in the number of apprentices, leaving millions of people without the skills they need to thrive. They speak in this Queen’s Speech about investing in all parts of our country, but it was this Conservative Government who scrapped the regional development agencies—the very bodies designed to ensure that every part of our country could prosper.

The Government talk in this Queen’s Speech about levelling up, but it is this Conservative Government who have cut 60p from every £1 of funding to local councils, forcing them to close Sure Start and children’s centres, and to cut back on social care, libraries and leisure centres, degrading the very fabric of our local communities. The Government want the public to think that they have been in power for only a year. They have not; they have been in power for 11 years, and they need to take responsibility for their own record.

Throughout this crisis, the Chancellor has pitched our health against our economy, treating it as if it were a zero-sum game, with health on the losing side. To do so was short-sighted, misguided and dangerous, and he must take responsibility for that. In a pandemic of this kind, public health and the economy are two sides of the same coin. The Government’s failure to act speedily, pushing ahead with “eat out to help out” without sorting out test and trace, and the refusal to back an October circuit break or to level with the public about the risks of mixing at Christmas, have caused huge loss and huge suffering, as well as the largest economic decline in the G7.

[Mr Perkins]

My hon. Friend is absolutely right that the Government seem to be railing against the incompetence of their own government, and policies that they have been voting for in the last 10 years. I would add to her list that the lifetime skills guarantee that they are now trumpeting is merely the reintroduction on a smaller scale of what existed under a Labour Government. This Government voted for these things for 10 years, and now say that they are the answer to the problems that they have created.

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[Rachel Reeves]

My hon. Friend puts it very well.

There is a gaping hole in the furlough scheme, meaning that several million people have inexplicably been excluded for support. The self-employed—painters and decorators, plumbers, freelance musicians and fitness instructors—all work hard and pay their taxes, but for many there has been no safety net and no support. Why has the Chancellor ignored their cries for help? Is it because they did not have his telephone number? Is it because they cannot WhatsApp him—signed off with “Love Dc”?

The revelations yesterday about the bombardment of pressure on Greensill’s behalf by David Cameron are astounding: 45 text messages—nine to the Chancellor and 12 to the permanent secretary. When the former Prime Minister did not get his way, he threatened to phone the Chancellor, “Gove” and “everyone” else. What an appalling way to bully Government officials, and what did they get? [Hon. Members: “Nothing!”] That is not true. They got access to the NHS patient records through the Earnd scheme, and access to other Government lending schemes. Government Members know that.

The Chancellor said that he would push his team, so let me ask him how they were pushed. What were they asked to do? This is not just a political row; this is about how our country is run, and for whom, and it is about real jobs and livelihoods that are now at stake. Instead of trying to help out dodgy finance companies with wheezes for making money off the back of the NHS and small businesses, the Labour party is fiercely proud of British-made goods and services, and the people who make them. We champion our industries—from manufacturing to retail, our farmers, restaurants and pubs and our great cultural sector, to businesses starting up now and during the pandemic. We want and need them to succeed.

British industry is vital to our economic recovery, and the Government should be working hand in hand with it, not scrapping their own industrial strategy.

[Aaron Bell (Newcastle-under-Lyme) (Con)]

Will the hon. Lady give way?

[Rachel Reeves]

If the hon. Gentleman wants to explain why the Government have scrapped their own industrial strategy, he can be my guest.

[Aaron Bell]

The hon. Lady is rightly praising British businesses. Will she therefore condemn the comments of her neighbour, the hon. Member for Leeds North West (Alex Sobel), who in March said that business was “the enemy” and that he would refuse to meet with them?

[Rachel Reeves]

I can say that business is our friend and that we will back British businesses and British workers.

The label “Made in Britain” is a sign of quality, a stamp that marks British manufacturing as among the very best in the world, yet the Government do not make the most of our assets. Over the past decade, they have failed to support our manufacturing base: so many jobs did not return after the financial crisis; and short-term sticking plasters have left sectors such as steel and shipbuilding as an afterthought. We still have not heard a word about the Government’s vision of how we will become global leaders in manufacturing and industry outside the EU or how we will help our cultural industries. We are talking about our musicians and performers, our farmers and fishermen, who are suffering because of the huge gaps in this Government’s deal with our European neighbours. In the last quarter, exports to the EU were down 18.1%, and exports to countries outside the EU were up by only 0.4%. This Government are lacking in ambition and they are in denial about what businesses need to thrive in this new environment. For example, our automotive sector is the jewel in the crown of British manufacturing, yet the UK has only one planned electric vehicle battery gigafactory. It is not yet under way, yet many are springing up all over Europe and around the world. We cannot afford to be in the slow lane, which is why Labour is calling on the Government to part-finance, in collaboration with the private sector, three additional gigafactories by the end of this Parliament, putting Britain back in the fast lane of car manufacturing. The truth is that if the batteries are not made here, the danger is that the cars will not be either. There is an irony here: in the year we are hosting the COP26 climate conference, the Conservative Government were pursuing new coal mines in Cumbria and have failed, through sheer incompetence, to deliver their own green homes grants that they promised. For the green future that we need to tackle the climate emergency we can choose to be world leaders or we can allow our communities, businesses and workers to be left behind. Tackling the climate crisis and creating the high-paid, high-skilled jobs in every corner of our country would have been front and centre of a Labour Queen’s Speech.

Let us consider another national challenge. More tax gets paid by shops on the local high street than when we buy online. Some big businesses have made billions extra this year, while other businesses are on their knees. The Government must level the playing field between physical high street shops in our town centres and the online retail giants. Yet none of this is in the Queen’s Speech. The UK has lost nearly 10,000 shops, 6,000 pubs, more than 7,000 bank and building society branches, and more than 1,000 libraries in the past 11 years. All of that happened under the watch of a Conservative Government, who stood by. These things matter to people, and I can tell the House that they matter to Labour. My hon. Friend the Member for Oxford East (Anneliese Dodds) has made that clear time and again, and I will do so too. Action was needed these past 11 years and yet there was none. It is needed even more now, yet there is none in this Queen’s Speech.

Alongside thriving businesses, we also need an economy that delivers for working people. That is what the Labour party is all about. This pandemic has shown so clearly who our country’s key workers are. After all, we were not clapping and banging pots and pans for management consultants; we were cheering the delivery drivers, posties, supermarket workers and our public service heroes, especially those in our NHS and social care. They have kept our country moving and our families safe, and they should be rewarded with a pay rise and not a pay cut. Any meaningful recovery means a new deal for key workers, with investment in their skills, fair pay for a fair day’s work, security and a voice in the workplace. The British people were promised new legislation to protect and enhance workers’ rights now that we are outside the EU, making Britain the best place in the world to work. The British people were told by this Government that there would be fairness in the workplace, better support for working people, and measures to protect those in low-paid work and in the gig economy. The Government said that they would protect

“the majority of businesses who…do the right thing….from being undercut by the small minority who seek to avoid their responsibilities”

to society. That was the absolute minimum that we were promised, yet the Government have not even delivered on that. Why is that? It is because improving workers’ rights has never been, and will never be, the priority of a Conservative Government. And who knows that more than any? Workers at British Gas. They have played a vital role in the last year, but have been fired and rehired on worse conditions. Apparently the Conservatives say that it is wrong. The Chancellor has said that today. We agree. But if it is wrong, why do they not do something about it?

Creating good jobs in all parts of our country, for all people; tackling the climate emergency; making sure that all our town centres are thriving and prosperous; supporting British industry and rights for workers—those would have been Labour’s economic priorities in the Queen’s Speech. They are clearly not the priorities of this Conservative Government. The challenges and the opportunities facing our country are great, yet what the Government are putting forward is so small. After just 24 hours, we can already see how thin this Queen’s Speech is. The foundations were not strong enough going into the pandemic, and people deserve something better than what they had before. The Conservatives have taken for granted those who have kept our economy and our essential services moving this last year, and they continue to undervalue all that our key workers do.

I believe that all our high streets, towns, villages and cities can thrive again if people have more money in their pockets and if we keep more wealth in our local communities. We need jobs that people can raise a family on, and rights that give people dignity, respect and support at work when they need it. Those who work hard should reap the rewards, not just those with access to Ministers or those who believe they can avoid paying their fair share of tax. I believe that we will only truly help our country to meet its full potential when people’s opportunities are not defined by what their start in life was, where they live, or what their accent or job is. We must be ambitious for all of our country, with real and lasting change. These should be the tests of any Government right now, and they are the tests that we will hold this Government to. But from what we have heard this week, and from what we have heard from the Chancellor today, these are tests that this Government look set to fail.