Cost of Living Debate

Full Debate: Read Full Debate

Richard Graham

Main Page: Richard Graham (Conservative - Gloucester)

Cost of Living

Richard Graham Excerpts
Tuesday 14th May 2013

(11 years, 7 months ago)

Commons Chamber
Read Full debate Read Hansard Text
Lord Blunkett Portrait Mr David Blunkett (Sheffield, Brightside and Hillsborough) (Lab)
- Hansard - - - Excerpts

I often wonder on these occasions how Aneurin Bevan and Michael Foot would have got on, having only six minutes to make a speech, but I will do my best.

Last week, my right hon. Friend the Member for Dulwich and West Norwood (Dame Tessa Jowell) reflected on the current political dialogue, saying that

“our political narrative has been characterised by a view of the worst of national human nature rather than the best.”—[Official Report, 8 May 2013; Vol. 563, c. 28.]

I regret to say that she is right. She is right because history teaches us that when politicians—particularly those of governing parties—are prepared to stoop to the politics of blame and resentment, and when the fulcrum of politics shifts to looking to our communities, rather than to the international financial and banking fraternity, to see who can be blamed for our problems, that is when we see people turning on each other. That is what we are seeing now. People are looking at those on welfare as though they are living high on the hog, and looking at migrants as though they are responsible for what has happened to their living standards, even though they are not.

There is a danger that the current ridiculous debate on Europe could put our prosperity at risk. Today’s debate is about the cost of living. If the debate on Europe continues as it is doing at the moment, the ratio of the pound to other currencies internationally will worsen to the point at which our imports will be more expensive and our cost of living will rise. The uncertainty will reduce inward investment into our country and, as we have seen from the Prime Minister’s somewhat ill-timed visit to the United States this week, negotiations over international trade with China, India, the US and the Russian Federation which require a Europe-wide approach to achieve a scale that allows us to negotiate sensibly, will be put at risk.

I simply ask Members on both sides of the House to be big enough to address the real challenges that we face as a nation, rather than turning individuals against individuals and fostering the politics of grievance. Historically, we seem continually to rewrite the issue of migration to this country. There is nothing new about using the politics of insecurity and uncertainty and the fear of change and difference to turn one set of people against another—usually the poor against the very poor—and we are seeing it again today.

Let us compare properly organised, legal inward migration with the illegal migration that pushes people into the sub-economy, which would have happened had we not reached the agreement to allow people to work legally here and pay tax and national insurance from 2004. This is fact, not fiction: 40% of those people from eastern Europe who registered to work here in 2004 were already in this country. They were working in the sub-economy. Nobody wants that; we want secure boundaries and legal, open migration that is properly organised.

Richard Graham Portrait Richard Graham (Gloucester) (Con)
- Hansard - -

I could not help but note, when the right hon. Gentleman said it was ridiculous to blame migrants for our economic woes—I agree with him on that—that it might also be ridiculous to assume that they had nothing to do with our economic woes. At the weekend, Lord Mandelson said:

“In 2004 when as a Labour government, we were not only welcoming people to come into this country to work, we were sending out search parties for people and encouraging them, in some cases, to take up work in this country.”

Would the right hon. Gentleman care to comment on that?

Lord Blunkett Portrait Mr Blunkett
- Hansard - - - Excerpts

This talk of search parties is, frankly, risible. The fact was that we had a booming economy with enormous growth and we needed people to fill those jobs. We needed them to do so legally, rather than illegally. At the moment, however, illegal migration is growing and the message we are sending out, particularly to graduate and postgraduate students, is entirely wrong. Of course there is an issue about integration and about protecting people, but we need a sensible, rational dialogue, rather than one that fosters and engenders fear.

What about the welfare state? In 2005, we set out our principles for welfare reform. Of course, earned entitlement is crucial. We all accept that work is the best form of welfare, but turning those who are struggling on welfare into victims and suggesting that they are responsible for the dilemmas that we face in these times of austerity is frankly unacceptable. My right hon. Friend the Member for Don Valley (Caroline Flint) mentioned the £1,700 cut in average earnings, but this Government have also frozen child benefit and cut tax credits. In-work benefits have also been cut, creating a disincentive rather than an incentive to work. Goodness knows what is going to happen when universal credit comes in later this year.

Above all, the Government are punishing people who are already struggling. The bedroom tax is the most iniquitous of the changes that the Government have brought in—[Hon. Members: “It’s not a tax.”] Does someone want me to give way?

--- Later in debate ---
Geraint Davies Portrait Geraint Davies
- Hansard - - - Excerpts

I had better give way to the hon. Member for Monmouth (David T. C. Davies), because he is likely to say something more ridiculous, as a fruitcake.

--- Later in debate ---
Richard Graham Portrait Richard Graham (Gloucester) (Con)
- Hansard - -

It is always a pleasure to follow the hon. Member for Ogmore (Huw Irranca-Davies), who reminds us of the quality of rhetoric from Wales.

I welcome the Queen’s Speech because, above all, it focuses on the core issues that will make a real difference to the cost of living for my constituents. Let me quickly highlight four key points. First, the National Insurance Contributions Bill will, through the employment allowance, provide £2,000 and should therefore eliminate entirely national insurance bills for 450,000 small businesses throughout the country, encouraging them, and, above all, small employers in my city, to take on more employees. The hon. Members for Ogmore and for Denton and Reddish (Andrew Gwynne) commented on the absence of jobs, but let us not forget that 750,000 more people are in work today than there were at the time of the last general election. Let us hope that there will be more after the National Insurance Contributions Bill takes effect.

Secondly, the Immigration Bill will ensure the deportation of dangerous foreign-national criminals, with appeals only after they have been deported, and will prevent immigrants from having access to public services to which they are not entitled. As Lord Mandelson said yesterday, Labour’s overseas search parties for immigrants meant that

“the entry to the labour market of many people of non-British origin is hard for people who are finding it very difficult to find jobs”.

The hon. Members for Ogmore and for Denton and Reddish should reflect on those comments.

Thirdly, we are all agreed that the cost of energy has risen significantly and is a hard burden for many poor and older constituents especially, and the Energy Bill will enable all our constituents to have clearer information and get on to the best energy tariff. That will be a significant and necessary achievement to help them combat the rising costs of living.

Fourthly, I turn to pensions; I declare an interest as chair of the all-party group on pensions. I absolutely support the Pensions Bill’s new flat rate from April 2016. Above all, it will reward women who took time out of the workplace to look after their children and will now, rightly, get a full state pension at a much higher rate than the basic state pension today.

Lastly, there is the Care Bill, which will guarantee that none our constituents will have to sell their homes during their lifetimes and puts a cap for the first time on the cost of care. Many of us who have had parents with dementia, for example, realise how difficult that situation can be.

I now give way to the hon. Member for Oldham East and Saddleworth (Debbie Abrahams).

Debbie Abrahams Portrait Debbie Abrahams
- Hansard - - - Excerpts

I want to ask the hon. Gentleman whether he is aware that the employment rate is lower now than in 2008; that relates to a remark he made earlier.

--- Later in debate ---
Richard Graham Portrait Richard Graham
- Hansard - -

I am afraid that I do not share that view at all. The statistics are clear—there is less unemployment now than there was.

Jobs, immigration, energy, pensions and care—those are the core themes of the Queen’s Speech and they address issues that need to be addressed in tough times for all our constituents.

Let me now share with the House some of the journey that my city has gone through in the past few years. During new Labour’s time in government, 6,000 business jobs were wiped out in my city of Gloucester. The symbol of the city’s failure were the many hectares of wasteland at its entrance, known as the railway triangle. Cheltenham and Gloucester, a well known and respected former building society, was a casualty of the disastrous Lloyds-HBOS merger, which was encouraged, if not engineered, by the previous Government. One of our secondary schools, Bishops college, sunk to having the second worst GCSE results in the country. Our specialist engineering training company was on its knees, with only 25 apprentices a year. Perhaps saddest of all was the closure of the profitable Kingsholm post office, which meant that 500 pensioners had to walk one and a half miles to collect their pensions.

Today, our businesses are in much better shape. The independent Dupont survey shows that in 2012 Gloucester was having its fastest ever growth in new businesses. Our manufacturers are thriving and expanding. Gloucestershire Engineering Training is in new premises, with four times as many apprentices, and the new railway triangle light industrial park is on schedule to provide up to 1,000 new jobs, with half starting later this year.

Most important of all, perhaps, is the new Gloucester academy, a merger of two underperforming schools improving every term and later this year moving into new buildings funded by a £15 million Government grant. That demonstrates what investment in education, our young and aspiration, and giving everyone the chance to succeed, can achieve.

Let me not pretend that everything in the country or my city of Gloucester is rosy. There is much regeneration left to carry out, especially in the city centre and Blackfriars. However, we have exciting plans and ideas to take forward. I would like our social housing manager, Gloucester City Homes, to play a role in housing regeneration and to fund new social housing. The help of the Department for Communities and Local Government and the Treasury in debt write-off is critical. We have traffic issues at the C and G roundabout off Barnett way and our application to the Department for Transport for pinch-point funding is vital. Above all, we have to continue to help people get into jobs. That is the crucial task that we are focused on. As I mentioned earlier, I will host my seventh jobs fair this Thursday.

It is true that some good things happened under new Labour. But one that was disastrous for many of my constituents was the doubling of council tax. They are now paying more than £700 more than in 1997. We have frozen council tax for three years, yet at the end of the process the Leader of the Opposition has said simply that freezing council tax involves a small amount of money that will not make a huge amount of difference. A £700 increase represents a huge amount of money to my constituents.

The right hon. Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) said that we needed welfare reform, but what welfare reform do the Opposition believe in? They have opposed every welfare reform that the Government have proposed. By contrast, the Government are focused on rebuilding the economy, stimulating businesses to create jobs, cutting back Labour’s fuel duty by £5 a tank, lowering income tax for 44,000 of my constituents and taking almost 4,000 out of tax altogether. They are introducing free care for 1,200 two-year-olds in my city later this year.

We are tackling living costs in difficult times, rebuilding public finances, mending the economy, raising skill levels and encouraging more apprenticeships. That is the right way forward. We must keep the focus on helping our constituents and strengthening our country. I welcome the measures in the Queen’s Speech.

None Portrait Several hon. Members
- Hansard -

rose