Delivery of Public Services

Debate between Simon Clarke and Chi Onwurah

Tuesday 28th June 2022 Commons Chamber

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

I hasten to say that we very much remain in office, Madam Deputy Speaker. I am pleased to respond for the Government to this debate. I begin by saying, as I have on many occasions, that we understand the impact of global inflationary pressures on the cost of living. We have already acted in many different ways to ease those pressures, and we will continue to do so; we are acting, as we see it, reasonably and responsibly to help UK households get through this. The reality is that we are experiencing a perfect storm of international supply shocks. High global energy and commodity prices, together with problems affecting international supply chains in the wake of the pandemic, have pushed up prices around the world, and consumers and businesses are feeling the pinch.

[Chi Onwurah]

Will the right hon. Gentleman give way?

[Mr Clarke]

Gosh, it is early for an intervention, but why not?

[Chi Onwurah]

I thank the Chief Secretary for giving way. Is it his view that 10 years of austerity economics, which slashed the capacity of both central and local government to spend, left our Government’s public services with the resilience to meet the demands of the covid crisis, and the cost of living and inflation crisis?

[Mr Clarke]

I take the view that 10 years of responsible government made sure that this Government had the financial resources available to unleash £400 billion of support for the UK economy in response to the pandemic.

On top of the issues with supply chains, Russia’s invasion of Ukraine has significantly worsened the situation. I know that the House is united in the view that we should stay the course with Ukraine and stand up for freedom and democracy there in the face of this barbaric onslaught, but that comes at a cost. Domestic factors have also started to play more of a role. For example, although our very low rate of unemployment is welcome and good in its own right, that contributes to the relatively high rate of inflation.

Rising inflation poses a challenge for the public finances, as it does for family budgets. As in many other countries, high inflation is acting as a curb on growth. The good news, which I will come to, is that the Government have the tools and the determination to tackle inflation and boost growth—namely, an independent monetary policy, a responsible fiscal approach and a focus on supply-side reform.

Budget: Pre-announcement of Provisions

Debate between Simon Clarke and Chi Onwurah

Tuesday 26th October 2021 Commons Chamber

[Mr Clarke]

No, I do not accept the premise of the hon. Gentleman’s point. We remain committed to our ambitious target of the national living wage reaching two thirds of median earnings by the end of the Parliament and expanding it to include workers over the age of 21. We have done an awful lot to help with living standards—doubling the personal tax threshold, doubling free childcare, expanding free school meals for all five to seven-year-olds, and introducing the new household support fund and the energy price cap—and further measures will be announced by my right hon. Friend the Chancellor tomorrow.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I suppose the attraction of delivering a Budget by press release is that it bypasses this House, so when the Government announce billions of pounds to level up transport in the north, I do not get to say that there is nothing in that for Newcastle, where extortionate bus fares are part of the cost of living crisis that my constituents are facing; and when the Minister says that the minimum wage is going up, I do not get to point out that universal credit recipients in Newcastle will still be £800 a year worse off. Why does he think that the Government should not be accountable to the people of Newcastle upon Tyne Central?

[Mr Clarke]

I absolutely do believe that we should be accountable to the people of Newcastle upon Tyne Central. That is why I am here. It is why there will be a five-day Budget debate over the course of the days ahead. It is why my right hon. Friend the Chancellor will appear in front of a Select Committee. On the hon. Lady’s point about transport settlements, we need to unlock devolution in north-east England. My No. 1 ask of the Labour authorities in that part of the world would be to make sure that they get their act together and unlock a devolution settlement.

Financial and Social Emergency Support Package

Debate between Simon Clarke and Chi Onwurah

Wednesday 25th March 2020 Commons Chamber

[The Minister of State, Ministry of Housing, Communities and Local Government (Mr Simon Clarke)]

I begin by offering the deepest thanks and praise of all of us in this House for all those working to deliver essential services to the public across the country. The way they have come together is nothing short of astounding. Equally astounding is the fact that the Prime Minister confirmed this afternoon that, in the past 24 hours, 400,000 Britons have signed up to act as volunteers to support our NHS, which is an incredible statement of the shared sense of purpose we all feel in this unique national endeavour.

I want to address directly every individual working to deliver an essential public service or a business, or to support their local community during this crisis, from NHS employees, local government workers, care workers and community volunteers through to those keeping our supermarket shelves full: you are keeping this country running and collectively helping to shoulder the burden, and we thank you. The whole House will want to join me in recognising the contribution they have already made and will no doubt continue to make over this period of crisis. We need the help of the British public to ensure that we beat the virus as quickly as we can and, above all, we need them to stay inside whenever possible.

This is the worst public health crisis in any of our lifetimes. The Government are responding, and we aspire to make our measures as comprehensive as we possibly can. A national crisis needs a national response and we are offering UK-wide support to ensure that people in all four corners of the country are receiving help.

Whatever resources the NHS needs, it will get. As an aside, today we have agreed with local councils in England to provide free parking for our NHS and social care workers as they fight coronavirus. I am working closely with my right hon. Friend the Secretary of State for Housing, Communities and Local Government, the Chancellor and other ministerial colleagues across Government to ensure that public services receive the funding they need to get their residents through this crisis. That means supporting those on the frontline; those who are in a dispensable. Generous tributes have been paid to them in excellent speeches from my hon. Friend the Member for Southend West (Sir David Amess), the hon. Member for Croydon Central (Sarah Jones)—I will return to some of the points she made—the hon. Members for Mitcham and Morden (Siobhain McDonagh), for Brent Central (Dawn Butler), for Gordon (Richard Thomson) and for Coventry South (Zarah Sultana), as well as the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle), whom we are all glad to see back in his place after recovering from the virus, the hon. Member for Glasgow South West (Chris Stephens), the right hon. Members for North Durham (Mr Jones) and for East Ham (Stephen Timms), the latter an expert in all matters to do with the welfare system, and the hon. Members for Sefton Central (Bill Esterson) and for Newcastle upon Tyne Central (Chi Onwurah). I thank everyone who has taken part in this afternoon’s debate. I assure all hon. Members that the Government are absolutely resolved to do whatever is necessary to support public services and authorities through the response to the coronavirus.

In normal times, I am a convinced believer in an agile state supporting free enterprise, which delivers jobs and revenue for our public services. The hon. Member for Newcastle upon Tyne Central gave a paean to the power of the market, but she is right: these are not normal times. In this strictly limited period, we must all accustom ourselves to a relationship between the state and civic society that is unprecedented in peacetime.

[Chi Onwurah]

I have to correct the record. It was not a paean to the power of the free market; actually, I was identifying its critical failings when it comes to providing capacity for the state to respond to pandemics of the type we face.

[Mr Clarke]

I will of course take that point for the record. Let me in turn pay my own tribute to the power of the market.

In these unusual times, we have a shielding policy, for which my Department is responsible. Letters have been sent to 1.5 million high-risk individuals asking them to shield themselves and stay at home for the next 12 weeks. I think we all recognise the magnitude of what we are asking people to do. I emphasise to everyone who is in the process of becoming shielded that we are there for them and we will not let them down.

No-deal Brexit: Short Positions against the Pound

Debate between Simon Clarke and Chi Onwurah

Monday 30th September 2019 Commons Chamber

[Mr Clarke]

The short selling regulations cover the sale of shares, so that falls within the remit of the existing legislation. Clearly, we all want to see our country thrive and move forward towards a better future. That will be best done by voting for a deal, as of course many of the members of the hon. Gentleman’s former trade union will have done.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I hope the Minister recognises that we are talking not about companies protecting themselves in good faith from the devastating impact of a no-deal Brexit, but about large-scale—industrial—shorting of the pound, that that can drive extreme behaviours, as well as market crashes, and that, at the very least, this needs to be investigated by the Electoral Commission, in order to see what the influence is. But my question to the Minister is simple: does he know the level of exposure to the shorting of the pound?

[Mr Clarke]

The Government do not take a view on this issue. [Interruption.] But what is clear is that the hon. Lady can avoid the outcome that she so wants to avoid, by voting for a deal when one is brought forward—that is, and always remains, the case. So we now need to move forward with some purpose, rather than with wild speculation, trying to smear the Government as somehow being in hock to these interests—it is not working. Any rational observer will see that this is not an argument that sustains itself.

Budget Resolutions

Debate between Simon Clarke and Chi Onwurah

Wednesday 31st October 2018 Commons Chamber

[Chi Onwurah]

My hon. Friend is absolutely right. The services that make such a difference to our constituents’ daily lives face increased cuts, which is why our constituents know that austerity is not ending under this Government.

[Mr Simon Clarke]

Do the hon. Lady’s constituents want to pay billions more in tax or to have the nation weighed down by billions or even trillions more in borrowing?

[Chi Onwurah]

Our manifesto commitments show that 95% of the people of this country would not suffer any tax increase under a Labour Government. The Conservatives have managed to double our debt, while preaching austerity—doubling the debt because the economy did not grow significantly under the austerity ideology.

The Secretary of State may point to the increased spend on the NHS as an example of austerity ending, but the Health Foundation has branded it as simply not enough. Paul Johnson of the Institute for Fiscal Studies said yesterday that if we look at total spending—[Interruption.] The Secretary of State seems to suggest that health spending is not relevant to the economy, but it is the wellbeing of all our constituents that enables us to deliver an economy that works for everyone. Paul Johnson of the IFS said:

“If you look at total spending beyond the NHS it’s not really going anywhere… If you look at total spending as a fraction of national income, it’s not really going anywhere... This is not a dramatic change in the sense of undoing much of the cuts we’ve had over the last eight years.”

The Chancellor has squandered an opportunity to repair the damage done to our public services and our economy by his predecessor’s pursuit of a failed economic ideology. That ideology has created many of the problems holding back our economy today, from chronically low productivity and business investment to eye-watering levels of inequality in terms of both income and geography.