Richard Holden
Main Page: Richard Holden (Conservative - Basildon and Billericay)Department Debates - View all Richard Holden's debates with the HM Treasury
(4 years, 11 months ago)
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John McDonnell
That is just income tax. It is interesting that the lowest earners pay 40% of their income in tax while the highest earners pay 34%. We know who is paying more in comparison with what they earn.
There is nothing in this Queen’s Speech that will address the grotesque levels of inequality. Actually, the reverse is true because the Government are now launching another assault on trade union rights and, in particular, the human right of the ability to withdraw one’s labour. The Chancellor has also rejected future dynamic alignment with EU employment rights and standards, and there is a real fear—let us express it now—that this prefaces the fulfilment of ambitions of Conservative Members to undermine workers’ rights and conditions. Maybe that is what some of their campaigning for Brexit was all about. Wage levels are low, in part because this Government have produced a productivity crisis. Over the past decade, productivity grew at its slowest level in 60 years. A German or French worker produces in four days what a British worker produces in five, not because the UK worker is any less industrious; far from it. It is because investment in the UK has been broadly weaker than in the rest of the G7 countries, especially since 2016, and investment is currently stagnating.
This has been exacerbated by the lack of investment not just in capital but in human capital—in training and skills. In his interview at the weekend in the Financial Times, the Chancellor highlighted the role of further education colleges, and I agree with him. He talked about the role they could play in raising productivity by promoting lifelong learning and skills training. As someone who benefited from further education while I was on the shop floor, I fully agree, but the reality is that this Government have brought FE to its knees, with the IFS suggesting that at least £1.16 billion is needed just to reverse the cuts that the Government have imposed on further education. We have seen a decade of a Government denying opportunities to the very people whose skills have been desperately needed, not just to fire up our economy but also to lift their families of poverty.
Alongside skills, a vibrant economy needs to invest in the future if we are to compete in the fourth industrial revolution, but on investment in research and development, the UK is now 11th in the EU. We await the Government’s detailed proposals on investment in R and D, and if they are of a scale we will support them, but it will take a lot to make up for the lost decade in this field. A lack of investment in infrastructure and R&D has resulted in productivity going backwards in many regions of the UK. The 2017 Kerslake report identified a £40 billion productivity gap in the three northern regions compared with the south, which has produced some of the worst regional inequality in all of Europe.
Mr Richard Holden (North West Durham) (Con)
The Labour manifesto wanted to scrap R&D tax credits. How does the right hon. Gentleman square that with his support for R&D now?
John McDonnell
Quite simply. It is a good question, because we wanted to scrap the tax credits and put direct investment into R&D. Some of the very advisers the Government have called upon, such as Mariana Mazzucato, have been ripping apart some of those tax credits for inefficiency and ineffectiveness. We shared the objective, but we found a different and more effective route.
We have referred in the past to the differentiation between types of investment, and the example that we have used in previous debates is stark. Planned transport investment in London is 2.6 times higher per capita than in the north, so it is no wonder that rail infrastructure in the north has been falling apart. After a decade of decline, the Government at last seem to have at least acknowledged their mistake in refusing to invest in the regions—something we have been crying out for—but we will see what scale of investment is produced after the fine words.
However, this is not just about capital investment in infrastructure. There is also a desperate need for revenue investment in the social infrastructure of our regions and nations. It is interesting that many cities and towns in the north have borne the brunt of austerity. Seven out of the 10 cities with the largest cuts in the country are in the north-east, the north-west and Yorkshire. That came about not by some miracle, but as the result of deliberate Government policy.
Imitation, they say, is the highest form of flattery, so I suppose Labour should be flattered that the Government are now looking to rewrite the Treasury Green Book to reorient investment decisions towards the regions outside London and the south-east—an exercise that Labour undertook two years ago. I suppose we should also be flattered by the Government now following Labour in adopting a fiscal rule that enables them to take advantage of low interest rates to borrow, which we advocated at least four years ago.
Mr Richard Holden (North West Durham) (Con)
Mr Deputy Speaker, may I just say how much of a pleasure it is to see you back in your rightful place in the Chair today?
I hope my maiden speech does not defy convention as much as the voters of North West Durham did in returning the first Conservative MP ever for that constituency. I will work hard for everyone from every political tradition in my constituency over the next few years to repay the trust that they have placed in me.
First, I would like to pay tribute to the outgoing MP, Laura Pidcock. Although we come from very different political angles with very different political philosophies, I recognise particularly the work that she did for the men who were victims of sexual abuse in the 1960s, ’70s and ’80s at the Medomsley detention centre, and I will continue that campaign. I am sure that all Members of this House will join me in wishing her and her young family every success in her new role as chief of staff to the hon. Member for Leeds East (Richard Burgon) in his quest for the deputy leadership of the Labour party.
North West Durham is a stunningly beautiful place. I readily admit that, as everyone can tell from my accent, I grew up on the wrong side of the Pennines, albeit in a very similar area with some very similar challenges. From Killhope Cross to Burnhope and from Ebchester to Witton-le-Wear, covering much of the former County Durham districts of Wear Valley and Derwentside, my constituency of North West Durham is quite a large one.
There are many local campaigns that I am already stuck into, and which are required to help drive our local economy and the good, well-paid jobs that are the backbone of a strong economy: investment in our high streets in Crook, Willington and Consett; and investment in transport, particularly in rural bus services in Weardale, Tow Law and villages across the constituency and, in the north of the constituency, investment—hopefully—in a new rail line. Consett and the surrounding area is one of the largest population centres in England without a rail line, despite having four rail lines there as recently as the 1960s. I will be campaigning for a feasibility study to reconnect our area to the growth centres of the north-east, with a cycle and walkway alongside it. If this proves viable, as I hope it will, I will be campaigning for public money to get our area plugged into the northern powerhouse. I will also be campaigning for investment in services that support local people, such as Shotley Bridge Hospital, which I hope will be protected for the long term, and over time I will be campaigning for a modern hospital to replace it.
Consett has a proud heritage—a heritage of steel manufacture that goes back centuries—but the steelworks were closed 40 years ago, and now we have to look forward to the future. Over the weekend, I visited the Genesis Project, which is providing much investment in both housing and new industry in the constituency. I will also be campaigning for our rural communities and for the jobs that continue to exist there, particularly in our agricultural and rural economy. We have an absolutely stunning area of outstanding natural beauty and a world heritage site, but those places cannot exist in stasis. In fact, the Eastgate cement works site that was closed in 2002, when over 100 jobs were lost there, is still vacant, and I will be campaigning for investment to put that place back in use.
On a national level, there are a few things I would like to ally myself to, one of which really does affect my constituency quite significantly—vehicle excise duty on motorhomes. My constituency is one of the largest producers of these in the country, and they have already been hit by a huge increase in vehicle excise duty. I hope that the Government Front Benchers will listen to my pleas to see that reversed.
I will also be campaigning—as one might expect, knowing me—for a cut in beer duty. Per head, we have many more pubs than average, including many excellent wet pubs in the constituency. I think of the Black Lion in Wolsingham and the Steel Club in Consett, in which I have been holding my surgeries. I hope that the Government will pay attention to these pleas too.
On a slightly different note, I would also like to see the Government investing in the Pause programme. It is something that I saw in action when I was working in the Department for Education, and I would like to see it rolled out nationally. It is not a huge amount of money, but it will really help women, particularly at the most vulnerable time when they have had children taken into care. It was piloted by a Labour council in one of the poorest areas of east London, and I think it is something that all Members from both sides of the House could support being seen across the entire country.
Furthermore, again on the education side, I would like to see technical and vocational education really at the centre of the Government’s agenda for the future. I am very proud to see the 20 institutes of technology that will be pushed out across the country, including one in the north-east, and I really want to see technical and vocational education at the heart of everything we do to drive productivity, particularly in the north-east of England.
Another campaign that many hon. Members were involved in was the one against fixed odds betting terminals. I would like online gambling and online fixed odds betting to face the same restrictions. If we are going to ban people from walking into bookmakers to gamble large sums, we should also look at the gambling that can take place in people’s homes, in people’s bedrooms or even in the bath. It is one of those things that reach into every aspect of people’s lives, and I think it is a really important thing that the Government should look at in the coming years. I will certainly be part of any campaigns that look at restricting that.
Finally on the campaigns I will be involved in, I would also like to make a personal shout-out for a review of legal aid. It is something that Members in another place particularly helped me out on, and for those in difficult circumstances it is something that I hope the Government Front Benchers will address.
It is the greatest honour of my life to have been elected to represent the people of North West Durham. I hope to prove for them a worthy MP and a campaigning MP, and that I will deserve their support in elections for many years to come.
Mr Marcus Fysh (Yeovil) (Con)
It is a great pleasure to follow my hon. Friend the Member for Eastbourne (Caroline Ansell). It is wonderful to see her back in this place, and to follow so many great colleagues, including new Members who have given us amazing demonstrations of their pride in and passion for their areas. It is interesting to hear some of the passion from new Opposition Members as well. I think the one thing that unites everybody who comes to this House, across both sides of the Chamber, is the genuine desire to see their areas improve. We might have different ways of trying to get from A to B, but I think most of us in this place want a better life for the people who live in our areas.
On election day, I was flabbergasted and moved by just how many people in one of my toughest areas—one of the more deprived parts of south-west England—were telling me that they would vote Conservative. They backed us in the election, and we owe it to them to back ourselves to make that difference for people. We now have a huge opportunity and a mandate for radical change. I think that a lot of people wanted to see that change in their lives when we had the Brexit vote as well, and we have a duty to make that a reality for them.
I was really proud of the people of Yeovil for choosing an optimistic and forward-looking approach, rather than the backward-looking way of socialism. Capitalism is the way forward that has been proven, over many years and in many different parts of the world, to be the best deliverer of better conditions for people. It is wonderful to see that optimism is back, because capitalism depends on optimism. It depends on people believing in each other’s ability to fulfil their part of a bargain, whether that is doing a deal, knowing they can get help if they need to climb the famous Conservative ladder, or retiring knowing that their children will have the same opportunities that they had—or even better. We owe it to people to really drill down into what can improve their lives.
Competitiveness is very important in the current global environment. We are in a challenging world. We have interest rates at next to zero, or below zero in many cases. That zero-bound, as it is known, presents a lot of challenges for policy makers to make sure that investment occurs in a way that is productive, because we do not want to be using such low interest rates to be investing in unproductive things. That is something we really need to watch out for.
The UK economy is doing really well, and we should celebrate that. We heard earlier about the wonderful employment performance. We can always do better; we should not rest on our laurels at all. We should look at some of the problems that the European economy is having at the moment, including the persistent problems in the banking system. Despite the low interest rates and the quantitative easing that has been used, à l’outrance, to buy up corporate bonds, the situation is still very fragile. We should not underestimate how resilient we need to make our own economy to be able to resist the vicissitudes of economic fortune that may or may not occur. It is brilliant, in that context, that we have managed to bring Labour’s deficit down so that we are not adding to the national debt in the way that we were when we took over back in 2010.
At a granular level in our constituencies, there are big areas where we need to perform better and to improve things. I am very keen on what is in the Queen’s Speech and was in our manifesto about reform of business rates. That is particularly important because our high streets are struggling. Going back to Yeovil, we heard only earlier today that the national department store chain Beales is now in administration. It is has a big facility in Yeovil that I would like to persist there, even if it looks difficult at the moment. The company has cited business rates as one of the big factors. We need to make sure that our towns fund is well funded and gets into all areas of the country, not just the north, because many in the south-west feel left behind too. We depend on that and the future high streets fund for investment in our cattle market site and at Glovers Walk. Without help with the basic infrastructure and reconstruction of those sites, which is quite difficult, it is hard to regenerate our main town.
Mr Fysh
My hon. Friend makes a very good point and he is absolutely right. Increasing that to 33% really is a big deal for smaller businesses. We need to reform the whole system and try to use that to devolve the ability to invest locally raised taxes in our local economies and have them compete with each other. That can create the dynamism in our economy to really grow and create jobs into the future.
We need to invest in roads in the south-west. We need to follow through on the dualling of the A303. We should be starting that this year on the Sparkford to Ilchester section, but we need to make sure that the Stonehenge tunnel is funded, because the value for money of the whole project depends on that.