Budget Resolutions
Debate between Seema Malhotra and Darren Jones(9 months, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Darren Jones
I read the article on the BBC, which I can assure the hon. Gentleman is a pretty reliable source of information. If the SNP wants to tell teachers and nurses earning £28,000 a year that they are high earners, I encourage it to do so in the general election coming up this year.
Labour first called for a windfall tax on the profits of oil and gas companies in January 2022. The Conservatives finally agreed to introduce the energy profits levy in May that year, though there were significant holes in the Government’s approach. Since then, Labour Members have been pressing Ministers to close them. Ahead of the general election, we have set out our plans for an energy profits levy if we win. We will increase the levy to the same rate of tax as in Norway, end the windfall tax investment allowances, and maintain the levy until the end of the next Parliament, with a statutory sunset clause, if there continue to be windfall profits. We have set out our plans now to give those operating in the North sea as much certainty as possible when making future investment decisions. To give further certainty, I can put on record today that we fully support an energy security investment mechanism, and we will therefore support Budget resolution 18 today.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
My hon. Friend is making a powerful speech about how this has been a high-tax, high-debt Government, but at the same time they have been presiding over low living standards. Does he agree that the £17 rise in real weekly earnings under the Conservatives is in huge contrast to wages rising by £183 under Labour? While they have been presiding over low living standards without any plan to sort that out, we will have higher living standards and lower bills under Labour.
Darren Jones
I thank my hon. Friend for her intervention, which I think reflects the mood of the public. When Conservative Ministers stand up and say that we have never had it so good, people at home look at their payslip and their bank balance and realise that is not the case.
Let us now turn to the delusion of this Budget being a so-called long-term plan for growth. The independent evidence is clear: this will be the worst Parliament on record for living standards. It is the only Parliament where living standards have fallen instead of risen, with real pay having gone up by only £17 a week under the Conservatives, compared with £183 a week under the last Labour Government, as my hon. Friend has just pointed out. The Chancellor could not bring himself to say the R-word, but the Budget documents confirm that, despite 22 Budgets or statements from successive Conservative Chancellors over these past 14 years in which they promised they would get the economy growing, we are now in recession—a recession that for working people has been felt for some time.
We have had seven quarters of downgraded growth per person extended by a further downgrade in the Budget last week. That is the longest period of stagnation since the 1950s, with an economy that has shrunk on a per capita basis since the Prime Minister took office and overall GDP forecast to increase only because of a dependence on migrant labour. That is quite the record for a Conservative party that promised to reduce migration and get the economy growing.
Business, Energy and Industrial Strategy Committee
Debate between Seema Malhotra and Darren Jones
Darren Jones
The hon. Member is a hard-working member of the Select Committee, and he will know that we are only able to delve so far into the functioning of devolved Administrations. However, we did conclude in our inquiry that leaders in the devolved Administrations should be around the table with local and regional leaders in discussions with Ministers in Whitehall, so that we do have a joined-up and collaborative approach to delivering on a shared objective to level up the whole of the United Kingdom.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
I congratulate my hon. Friend and his Committee on this very serious report, which shows undeniably that the Government lack any clarity as to what they mean by levelling up. In fact, the hon. Member for Newbury (Laura Farris) said this week:
“One of the things about ‘levelling up’ is…it’s quite a sort of ambiguous phrase—it means whatever anyone wants it to mean”,
but clearly that should not be the case.
It is at least welcome that there is now political consensus that for too long the UK has been scarred by deep regional inequalities. The single biggest challenge for levelling up is that people have to leave their regions and head south to get good work. This has to change, and it can only happen by making the quantity and quality of jobs in regions our priority. Levelling up must be about investment to combat those inequalities, including between regions, within regions and between socioeconomic groups across the whole of the UK.
Can I ask the Chair, first, what his Committee’s conclusions were in relation to fair funding for levelling up, particularly in the light of how the levelling-up fund’s piecemeal funding does not make up for the failure of austerity over the last decade, with services decimated as £15 billion of cuts have been made to local government? Secondly, on extending democratic power, what is his Committee’s view on how we should reach consensus on which tiers of devolved and local government should have responsibility for achieving those important shared levelling-up outcomes, because quite clearly this can no longer be done from the centre?
Darren Jones
I thank the shadow spokesperson for those points, and for her kind remarks about the work of my Committee. On the funding allocation, of course the issue here is that if there is not a clear strategy about what levelling up is and therefore clear funding allocated to it, it is unclear what funding is being made available above and beyond the day-to-day functioning of government, and indeed in comparison with historical funding cuts through periods of austerity and following our withdrawal from the European Union. Because of that lack of clarity, we have no answer as to how local communities can fairly bid for funding for the levelling-up agenda, above and beyond what already exists through the day-to-day work of government.
On democratic engagement in defining local economic areas, that of course is a very difficult issue. It is one we did not delve into in any great detail in our own inquiry, not least because it goes a little beyond the remit of our Select Committee powers. However, we do recognise that there needs to be more consistency across England in democratic structures so that there is an equality of capacity to bid to Whitehall for funding in advance of—this is my personal view—a more devolved level of decision making and funding across England in the years ahead.