Living Standards

Richard Graham Excerpts

Wednesday 4th September 2013 Commons Chamber

[Mr Robinson]

I hope that the Treasury is examining how we can ensure that there is a fair spread of the benefits that will come in the recovery, and how we can sustain that recovery. I will come to that in a moment.

In the global race on living standards, the UK is doing worse than any of our competitors and has had the biggest fall in worker income of any country in the G7. Why is that? Because none of the forecasts made for the past three years has been met, since the Chancellor announced with great fanfare the plan for the rectification of the deficit and the return to growth. He has not come anywhere near fulfilling a single one of the predictions he made then for any year on investment, growth or employment, which I will come to in a moment. It is clear that the failure of the Government’s policy has caused terrible burdens to fall on those least able to bear them. They have failed in their policy, their objectives and the tasks that they set for each sector of the economy. I do not know whether it had to be that way or whether they will repeat that failure, but personally I think it was unnecessary.

We all hope—no one more fervently than the Opposition—that that is behind us now and we can look forward to a recovery that can be sustained. We do not want the Government killing off this recovery like they killed off the one that they inherited from us back in May 2010. [Interruption.] They killed it off. The economy was beginning to grow, under a stimulus. They killed off that recovery, so let us see whether they can kill off this one. No doubt they will try. To avoid that happening, the Government must change course on several fronts, and they must do it quickly, even now.

[Richard Graham (Gloucester) (Con)]

Will the hon. Gentleman give way?

[Mr Robinson]

In a moment. The Government cannot just sit back, say it will all be glorious, accept the fine new forecast in the way they accepted the previous one, and think, “That’s going to happen.”

Before we come back to the inevitable party points that each side will make, I wish to raise one serious issue before the House, which is the role of real wages in economic recovery. As has been said, and as the figures bear out, the burden has been borne heavily by those on average and below-average wages. The fall in wages is significant; it is the largest in any of the major economies and I think the largest in the UK for probably 100 years. That must be rectified because it will be a drag on our ability to recover if we remain in a low-wage, low-skill economy. I hope that point is taken up by the Treasury in all seriousness, as well as by British industry. We have got to upskill unless we want to engage in a race to the bottom of a low-wage economy, which we will never win.

[Richard Graham]

Will the hon. Gentleman give way?

[Mr Robinson]

I will give way in a moment as I said I would. There is time enough. Even China is now coming under pressure from Indonesia and Vietnam. If we try to get down to the levels of wages there, we will not do it; the recovery must be about a higher skilled, more productive economy in which rising incomes play a vital role. Rising incomes, particularly at average level, will be vital in sustaining the recovery. I hope that point is taken and will receive a serious reply.

[Richard Graham]

I am grateful to the hon. Gentleman for giving way. He has provided various revisionist explanations for what his Government did for 13 years. Is he aware that in my constituency of Gloucester, some 6,000 jobs in business were lost during the 13 years of the Labour Government? Since the last election, some 2,000 jobs have been created and 1,240 new apprentices started last year alone. He is right to flag up that some wages are low, and we would all like them to be higher, but what does he say about the prospects for those 6,000 people who lost their jobs, and for the 2,000 new jobs created since the election? Surely that is the starting point for an improved life.