Economic Growth

Stephen Kinnock Excerpts

Tuesday 14th November 2023 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

It is a pleasure to follow the hon. Member for Burnley (Antony Higginbotham).

Even by the standards of this shambolic Government, this King’s Speech is a wafer-thin effort. That might be forgivable if we were living in a country where public services were in good shape and the economy was going gangbusters, but we are not. The reality is that, after 13 years of Tory neglect, Britain is breaking and nothing works any more. There is an NHS waiting list of 7 million, schools are literally crumbling and trains are unreliable, extortionately expensive and packed to the rafters. Some 90% of crime is going unsolved, with dreadful conviction rates and victims facing three-year court delays, while raw sewage is being pumped into our rivers and child poverty has tripled since 2017.

This is an utterly shameful record, but it is not only our public services that the Conservatives have broken. They have also taken a wrecking ball to our economy, with a kamikaze Budget that cost £30 billion, and it is working people who are paying the price, with mortgages up almost £3,000, rents up 40% and the weekly food shop up 11% on last year. Their approach to the economy is plain to see. Low public investment has led to the UK having the lowest private investment in the developed world. A sclerotic planning system and rampant nimbyism have hindered house building and stymied our wind farm development, and the abandonment of our manufacturing sector has led to the UK being the most regionally imbalanced economy in the developed world.

If we are to clear up this Conservative mess, we are going to need a decade of national renewal delivered by a mission-driven Labour Government. So Labour’s first two missions are to deliver the highest sustained growth in the G7 and to make Britain a clean energy superpower. The crucial point here is that these two missions go hand in hand. They will be the mutually reinforcing drivers of the green jobs revolution that Labour will deliver.

Just look at the opportunities in floating offshore wind in my Aberavon constituency. FLOW is a prime example of where Wales’s geography offers huge competitive advantage, with the potential to create 16,000 jobs, deliver energy security and lower household bills. But we need central Government to match these ambitions, delivering on the full potential of 20 GW of clean energy by offering a fair strike price for developers in return for ensuring that the manufacturing supply chain jobs are kept here in the UK. If we get this right, Port Talbot could become a green energy and manufacturing hub, with our steelworks making the steel for the floating turbine substructures in a new plate mill, and those very turbines then providing the energy to run the Port Talbot steelworks as well as powering tens of millions of homes across the UK. This bold, ambitious, pioneering plan can become a model for a new economy. South Wales was the cradle of the first industrial revolution, and a Labour Government in Westminster, working in close partnership with the Welsh Labour Government in Cardiff Bay, will put our proud country at the heart of the green industrial revolution.

Whichever way we look at it, we need to make, buy and sell more in Britain. Labour knows that this begins with the steel industry, with our £3 billion clean steel renewal commitment dwarfing the Government’s dangerously unambitious and short-sighted approach. The Conservatives are failing to understand the growing commercial opportunities that a strong British steel industry would be well positioned to seize, and they are failing to recognise the risks of over-reliance on other countries. Decarbonisation is, of course, important, not least because consumers are increasingly demanding greener products, but decarbonisation must not become a byword for deindustrialisation. It would be utterly unforgiveable if the deal that the Government have done with Tata Steel leads to the offshoring of production, good jobs and carbon emissions to other countries that use dirtier steelmaking processes and that do not always have Britain’s best interests at heart.

This King’s Speech is noteworthy more for what it does not contain than for what it does. There is nothing on the cost of living crisis, nothing on the crisis in our public services, nothing to address our protracted productivity crisis, and nothing to tackle the epidemic of 6,000 business bankruptcies that we saw this summer. That is because this is a Government who have given up on governing. They just sit there desperately clinging on to power for power’s sake and arguing with one another.

The British people want a Government who see a problem as something to be solved, not something to be exploited. The choice is clear: five more years of the same Tory chaos or a Labour Government who will give Britain its future back.

Cost of Living

Stephen Kinnock Excerpts

Tuesday 16th May 2023 Commons Chamber

[Douglas Ross]

I will clarify that the hon. Member for Kilmarnock and Loudoun said, “Woo hoo—big dog.” That was his impression of the former Children and Young People’s Commissioner for Scotland. If that is not what he said, there is an opportunity for him in the Chamber to tell us what he thinks about the former commissioner. No? I think that maybe I wrote it down correctly at the time. I also noted how the hon. Member for Glasgow East (David Linden) whispered to the hon. Member for Kilmarnock and Loudoun not to intervene again, and I can see why. I do not think that anyone wants to hear any more from him on this.

We could have been discussing that issue, or we could have been discussing ferries. Of course, the UK Government have promised the people of Shetland and Fair Isle a ferry, which has not been made available by the Scottish Government. Of course, when the Scottish Government and the SNP get involved in ferry building, they go massively over budget and behind schedule. The ferries that the people in the Western Isles urgently need are five years overdue.

We could be speaking about drug deaths in Scotland. Again, our two Governments could work together to deal with that crucial issue, yet under the SNP, drug deaths in Scotland are not just the highest in the United Kingdom but the highest anywhere in Europe.

The last issue that I thought we could have been speaking about today was Scotland’s tourism. Many SNP MPs represent rural areas. I wonder if they do not want to speak about camper vans—is that why we cannot look at tourism? Perhaps we could have used the debate to hear whether any SNP Members have ever been in the now infamous camper van. It was apparently bought for the purpose of electioneering for their seats here. Did any of them get in that camper van? Did any of them know about the camper van? We could have discussed that.

Of course, we are looking at the crucial issue of the cost of living crisis in Scotland and across the United Kingdom. We did not hear a word from the SNP about the UK Government’s intervention, with £94 billion provided to help people in every part of the country to meet the challenges of the difficult period they have been experiencing. The autumn and spring statements delivered an additional £1.8 billion to the Scottish Government to help individuals, families, businesses and communities through this difficult time; it was the highest budget that the Scottish Parliament has ever had to deal with these issues. What response do we get from the SNP? It makes up falsehoods about its own interventions.

Less than a year ago, the SNP was claiming that it had put forward and spent £3 billion in response to the cost of living crisis in Scotland. That is the huge figure that the nationalist Government in Holyrood said they had spent to help people through that difficult and challenging time. The only problem for the SNP is that the figure is not true. The Scottish Parliament Information Centre has said that the actual figure is £490 million. The biggest chunk of the £1 billion that the SNP said it used to deal directly with the cost of living crisis was to implement a policy that was part of a platform that the SNP stood on back in 2014. It was Government policy since 2014, but last year it was included in the sums so that the SNP Government could suddenly claim that they were doing far more than they were. We need a bit of realism from the SNP and its Members.

[Stephen Kinnock (Aberavon) (Lab)]

On realism, Labour Members feel strongly that the best way to address the cost of living crisis is to have a Labour Government, which would involve Scottish voters voting Labour. Does the hon. Gentleman agree that voters in Scotland should vote Labour?

[Douglas Ross]

Let me be clear. The sole Labour MP from Scotland is in the Chamber. There are six Scottish Conservative MPs and, in huge parts of Scotland, the Scottish Conservatives are the greatest challengers to the SNP. We proved it in 2017, we proved it in 2019 and we will prove it again in 2024.

I was also making the point about the biggest issue—[Interruption.] Well, Labour Members are speaking a lot. I am very interested in how they will vote today. I am not sure whether they will support the Government amendment or the SNP motion. Or will they do what they normally do: sit on the fence and not take a position? We will find out quite soon. [Interruption.] I am happy to give way to the shadow Secretary of State for Scotland Secretary. No? We will see how it goes at decision time.

Silicon Valley Bank

Stephen Kinnock Excerpts

Monday 13th March 2023 Commons Chamber

[Andrew Griffith]

I can absolutely give my right hon. Friend that assurance. In doing so, let me also pay tribute to her work as a Member of the European Parliament between 2009 and 2017, when she led on banking reform.

[Stephen Kinnock (Aberavon) (Lab)]

The Minister said that SVB UK was a subsidiary of the American bank, but in this country a separate banking licence was given to SVB UK. May I therefore push him on the risk assessment around liquidity? When the banking licence was given, what risk assessment was conducted, particularly given the concentration of a small number of corporates in the deposits to SVB UK?

Non-domestic Energy Support

Stephen Kinnock Excerpts

Monday 9th January 2023 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

I am sure the Minister would agree that a key aim of the support scheme must be to ensure that our steel industry can compete internationally on a level playing field. The German Government have guaranteed their steel industry an electricity price of €130 per megawatt hour for 2023. In contrast, what the Minister has announced today only provides our steel industry with a discount on electricity prices above £185 per megawatt per hour. That leaves UK steel producers to pay an estimated 63% more than their German counterparts. Why are the Government once again letting down our steel industry and forcing our steelworkers to compete with one hand tied behind their back?

[James Cartlidge]

I do not agree about the level of support. I cannot speak for what is happening in Germany, but this remains significantly more generous support for the energy and trade-intensive industries. The hon. Gentleman is right about the figures for this country: the price threshold for the scheme is £99 per megawatt hour for gas and £185 per megawatt per hour for electricity. To be clear, about 60% of the up to £5.5 billion that we have allocated for this scheme would be for the energy and trade-intensive industries. That is more than half of all the funding. It is a significant commitment and includes major manufacturing sectors such as steel.

Oral Answers to Questions

Stephen Kinnock Excerpts

Tuesday 15th November 2022 Commons Chamber

[James Cartlidge]

To be clear, the levy is an additional 25% surcharge on UK oil and gas profits on top of the existing 40% headline rate of tax, taking the combined rate of tax on those profits to 65%. The hon. Lady is right that the levy contributes to the support that will be going out to Northern Ireland; it will come in a month later, but will be backdated to 1 October, and it will include businesses as well as households.

[Stephen Kinnock (Aberavon) (Lab)]

14. What fiscal steps he plans to take with Cabinet colleagues to support the development of floating offshore wind.

[Wera Hobhouse (Bath) (LD)]

21. What fiscal steps the Government is taking to support the development of floating offshore wind.

[The Exchequer Secretary to the Treasury (James Cartlidge)]

We are committed to developing floating offshore wind to support our energy security and net zero ambitions. The contracts for difference scheme has already supported the first-of-its-kind TwinHub project off the coast of Cornwall, which will deliver enough energy to power 45,000 homes. The floating offshore wind demonstration programme provided £31 million in grant funding to support many other new innovative projects.

[Stephen Kinnock]

Floating offshore wind has the potential to transform the economy and jobs market in my Aberavon constituency and across south Wales, but it will only happen if floating offshore wind substructures and other components are manufactured and assembled locally. There are two concerns: first, the Crown Estate is putting in place leasing criteria that seem to be about the highest bidder rather than maximising local value and content, and secondly, there are rumours flying around that the Government may be cancelling the floating offshore wind manufacturing investment scheme, which will be fundamental to facilitating the whole programme. Will the Minister confirm that he will urge Crown Estates to maximise local content in the criteria and that the Government are 100% committed to the FLOWMIS programme?

[James Cartlidge]

The hon. Gentleman is a staunch campaigner for his constituency’s ability to take advantage of this exciting new technology, and I pay tribute to him for that. As he knows, the Crown Estate works independently to manage the seabed and has an important role in the deployment of floating offshore wind. Its approach for the 4 GW leasing opportunity in the Celtic sea is focused on ensuring the development of this new technology market in the UK as quickly as possible. But, to be clear—cutting to his point about content—the Crown Estate has announced that for the first time it is reforming the tender process to consider supply chain plans, sending a clear signal to the market that UK content is important.

Economic Update

Stephen Kinnock Excerpts

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

Absolutely, and only a couple of weeks ago I was sitting in a café in Cheltenham having a cold sandwich with my hon. Friend. I want to thank him for his incredible articulacy in lobbying for the needs of the people of Cheltenham.

[Stephen Kinnock (Aberavon) (Lab)]

Does the Chancellor think that it is morally justifiable to lift the cap on bankers’ bonuses while refusing to confirm that he will link benefits to inflation?

[Jeremy Hunt]

I understand why the hon. Gentleman has asked the question. I believe that wealthier people should pay more as we go through a difficult period, but the mechanism of the cap, with which we were doing that, was not working. We will get more money out of the pockets of those rich bankers through what we are going to do now.

Delivery of Public Services

Stephen Kinnock Excerpts

Tuesday 28th June 2022 Commons Chamber

[Mr Clarke]

I am going to make some progress at this point.

The Chancellor has also announced his intention to cut the basic rate of income tax from 20p to 19p in the pound from 2024. This will be the first income tax cut for 16 years, and it will be a £5 billion tax cut for 30 million people. The Chancellor has also said that he will set out his support for businesses in more detail in the autumn Budget.

Crucially, everything that we have done has been done responsibly, reflecting our continued commitment to strong and sustainable public finances. In direct contrast, the Labour leadership has so far promised £99.5 billion of day-to-day spending commitments—

[Stephen Kinnock (Aberavon) (Lab)]

Where?

[Mr Clarke]

I can provide the hon. Gentleman with the full details if he would like a list.

However, Labour has only announced £7.5 billion in revenue to pay for those commitments, less than one tenth. That leaves a £92.5 billion fiscal black hole of unfunded public spending commitments, which would almost double our current borrowing. This year we will spend £80 billion just paying interest on our debt. That is nearly four times what we spent last year, and those numbers should concern the whole House. The Office for Budget Responsibility made it very clear at the time of the spring statement that our fiscal headroom could be

“wiped out by relatively small changes”

to the “economic outlook”. Labour’s £92.5 billion black hole would mean an extra £3,303 per household in general taxation or extra borrowing. In opposition, parties have the luxury of promising it all and not being responsible for delivering any of it.

--- Later in debate ---

[Stephen Kinnock (Aberavon) (Lab)]

I would like to start by thanking all the hard-working people who keep our public sector and our public services going day in and day out. They are not responsible for the fact that our country is so bogged down in backlogs and bureaucracy. Indeed, as we have heard throughout this debate, their professionalism and dedication to public service stand in stark contrast to the shambolic performance of this Conservative Government.

I would also like to thank hon. Members, particularly those on the Opposition Benches, who through their speeches and interventions in this important debate have expressed genuine concern on behalf of their constituents about the desperate state of the Prime Minister’s backlog Britain, as opposed to those who have attempted to defend the indefensible.

My hon. Friend the Member for Bristol North West (Darren Jones) made a thoughtful speech and pointed out that if Ministers were running a business it would be bankrupt by now. My hon. Friend the Member for Birmingham, Hall Green (Tahir Ali) gave a barnstorming speech: “Welcome to backlog Britain, thanks to 12 years of a Conservative Government.” is the line that came through very clearly. My hon. Friend the Member for Reading East (Matt Rodda) called on the Government to learn the lessons and focused in particular on the chaos of the Passport Office. My hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) recounted the appalling costs to his constituents of the backlogs and dysfunction at the heart of this Government, demonstrated by the failure to answer his basic parliamentary questions.

Conservative Members consistently attempt to blame covid and the lockdowns for the mess in which we now find ourselves, but backlog Britain cannot be blamed simply on covid and the lockdowns. The reality is that the underlying causes of the mess we are in predate the pandemic and the challenges we now face have got worse since the end of lockdown. That is because backlog Britain has been created by two basic failures: first, a failure of resilience caused by a decade of underinvestment by the Conservatives in British businesses and public services; and, secondly, a failure of governance caused by Ministers walking away from their responsibilities and utterly failing to plan for the end of the covid restrictions. The combination of those two fundamental failures with the fact that we have a lawbreaking Prime Minister who has lost the confidence of 40% of his own MPs and has basically become a national embarrassment provides all the ingredients for a catastrophic breakdown in the systems and institutions that keep our country going.

On the failure of resilience, the decade leading up to the pandemic was defined by a staggering lack of investment by the Government in the private sector, which led to low growth and weakened British business—so much so that Britain became the European capital for hostile foreign takeovers. The Conservatives failed miserably to meet the average growth rate for similarly developed countries and as a result the Government unlocked less private investment than in all but two of the 38 comparable countries. If the Government had matched that growth rate, the Treasury would now have £12 billion extra in the Exchequer, and if they had matched the growth rates achieved by Labour Governments between 1997 and 2010, they would have an extra £40 billion to spend.

Low growth meant less money to invest in public services. NHS waiting lists were already at record highs, and as the shadow Chief Secretary to the Treasury, my right hon. Friend the Member for Wolverhampton South East (Mr McFadden), pointed out in his opening contribution, there were already more than 100,000 staff vacancies while court backlogs were already growing by 23% in 2020. Lower growth inevitably meant weaker public services and less flexible local government, resulting in a less resilient economy and public sector. It also left our critical national infrastructure dangerously reliant on China for everything from personal protective equipment to our nuclear energy supply.

Resilience is about being able to absorb and bounce back from shocks when they hit, but that lost decade of underinvestment removed our shock absorbers: the British state was surviving hand to mouth—it was walking on thin ice; it was hollowed out by the toxic combination of incompetence and indifference that has characterised successive Conservative Governments since 2010. And now we see that this ice is breaking and the result is backlog Britain.

[Huw Merriman]

Given that there have been four Conservative election victories—or, at least, four Conservative Governments—is the hon. Gentleman saying that the people cannot be trusted, that the Conservative Government are not as bad as he says, or that the Labour party has been particularly hopeless at giving an alternative message? It must be one of those three things.

[Stephen Kinnock]

The British people participate in democratic elections, and when we see the desperately bad results that this Conservative Government are delivering, I am absolutely confident that at the next general election they will deliver a landslide Labour Government. Then we will see the changes our country needs, rather than the incompetence and indifference we see from the Conservative party.

That leads me to the second fundamental failure: the failure of basic competent governance. Mr Deputy Speaker, you do not have to be Mystic Meg to know that when the pandemic abated, the lockdown restrictions would be lifted. We all knew that GP, A&E and hospital waiting lists were skyrocketing, with 4,500 fewer GPs to take appointments than 10 years ago. We also knew that the court backlog was at a record high, with the victims of the most serious violent crimes, including rape, having to wait two or three years for a case to come to court. We also knew that people would want to go on holiday and that they would need passports.

There was no need for a crystal ball—it was happening in front of our very eyes—but while AstraZeneca and the NHS were rolling out the vaccine at speed, the UK Government were patting themselves on the back and wheeling suitcases full of booze into No. 10. Backlog Britain represents a shameful dereliction of duty by a Prime Minister who is utterly out of his depth. Instead of meeting Britain’s challenges, he prefers Government by gimmick. There are lots of big, flashy announcements, but nothing ever seems to get delivered. The Northern Ireland Protocol Bill is not designed to solve any of the immediate problems, and it will take months to get through Parliament. The Bill of Rights is an empty distraction that will just increase the backlogs in the courts system, and the Government have sent £120 million of taxpayers’ money to the Rwandan Government for a press release.

There is a world of difference between campaigning and governing, and the Government appear to be permanently stuck in campaign mode, constantly hunting for wedge issues that will enable them to pick fights and sow division, inflaming tension, rather than building consensus. They are not even campaigning for the Conservative party. No, their campaigns are focused on one aim and one aim only: throwing red meat to Back Benchers so that the Prime Minister can carry on squatting in Downing Street.

One of the many fundamental differences between Government Members and Opposition Members is that we believe in an active state. We believe that the state should work in partnership with the private sector and civil society to facilitate sustainable economic growth and the smooth running of the systems and institutions that underpin and empower our economy and our communities. We believe in investing to help the private sector to grow so that British businesses can create jobs, improve productivity and compete internationally rather than sell out to the highest foreign bidder We believe in investing in public services so that NHS hospitals do not have to choose between treating covid and screening cancer, and we know that the backlogs are clogging up our courts, our ports, our A&E departments, our GP surgeries, the Passport Office, the DVLA and our asylum system. That is holding our country back.

Government Members do all they can to avoid any state support whatsoever. They see government as the very last resort, and the result is the mess that we are in. The result is backlog Britain.

A Government who fail to plan are a Government who plan to fail. A Government who fail to build resilience are a Government who leave us exposed to shocks. A Government who blame anyone and everything for their own failures will never step up and take responsibility for cleaning up the mess they have made, and a Government led by a man who is utterly unfit for public office are bound to end in disaster. Backlog Britain is the consequence of all those failings. The British people deserve better than this.

Financial Statement

Stephen Kinnock Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

In his reply to my hon. Friend the Member for Sheffield South East (Mr Betts) on steel, the Chancellor talked a lot about the steel compensation that has been paid. While that is, of course, welcome, the fact is that British steelmakers are still paying 61% more than their German competitors. Steel is a foundational industry that is about good jobs, decarbonisation and our sovereign capability, so why is there absolutely nothing in the statement for our steel industry?

[Rishi Sunak]

We have programmes in place to support our energy-intensive industries, and we remain in close dialogue with all companies in all sectors. Our track record on supporting industry is strong, and we continue to create jobs and make sure that British workers are well supported.

Working People’s Finances: Government Policy

Stephen Kinnock Excerpts

Tuesday 21st September 2021 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

It is a pleasure to follow my hon. Friend the Member for Liverpool, Wavertree (Paula Barker), who made such a powerful and passionate case, so rightly pointing out the false economy that inequality represents.

Thousands of families in my constituency, like families across the UK, have taken a real buffeting over the past 18 months, and this month could bring the perfect storm for them as the furlough scheme ends, the universal credit uplift is scrapped and the cost of living spirals upwards. The pandemic has had a significant impact on household finances, which have been stretched to breaking point, and not everybody is able to weather the storm as easily as others.

Conservative Members like to claim that their Government have fixed the roof while the sun is shining, but the reality is that the Tory roof is made of straw and a cold wind is blowing. Worrying research from the Bevan Foundation has found that one in three Welsh households does not have enough money to buy anything beyond everyday items, while more than one in five households with a net income of less than £20,000 have seen their income drop since January. The planned cut to universal credit will only deepen these inequalities, as those on the lowest incomes will be pushed into poverty and destitution.

In Aberavon alone, more than 7,000 households receive universal credit. For those families, the £20-a-week uplift has been a lifeline, protecting those who have lost income and preventing them from slipping into poverty or having to visit the food bank to feed their families. It is important to note that of the 7,000 households in Aberavon that are on universal credit, 2,000 have registered since the start of the pandemic. The idea that the removal of the uplift is somehow not a cut is deeply disingenuous, because the 2,000 households that have registered since the start of the pandemic have certainly not known any other rate of universal credit. The Government’s claim is blatantly and deeply disingenuous.

The uplift has made a real difference to family budgets. My inbox has been filled with emails from residents telling me how it has helped them to meet the cost of essentials and allowed them to pay their bills, make the rent, put food on the table and switch the heating on. To some, £20 a week may seem like a small amount of money, but to the families I am talking about it makes a world of difference and would have been crucial to help them with rising energy bills and the escalating cost of the weekly shop. They are now deeply anxious about their precarious finances and worried about how they will make ends meet without the uplift.

The reality is that we are potentially moving into an age of anxiety. The anxiety that is now afflicting so many millions of families and households throughout the country saps the strength from the recovery and defeats growth. It is a brake on growth, which is why the Government’s policies are so deeply damaging. They are not only the wrong thing to do in a civilised society but the definition of a false economy because they are putting a brake on growth and holding back the recovery.

Some of those who contacted me are shopworkers and carers who worked through the pandemic and now face the cut to universal credit. That is no way to thank them for what they have done. Members on the Government Benches stood on their doorsteps applauding our key workers; now they reward them with this cut and a cost-of-living crisis. Their hypocrisy is breath-taking.

[Alex Cunningham]

My hon. Friend talks about people applauding on their doorsteps; when I put a question to the Prime Minister when he was talking about his tax increase, he said that the Government do not pay care workers. Apparently, somebody else does, but does my hon. Friend agree that the Government pay grants to local authorities, and that money goes to carers? We hope that some of the extra tax money will go to local authorities to pay care workers, so is it not about time that the Government said, “We’re paying for the fiddler so we’re going to decide the dance”? They should decide the level of pay for care workers and it should be much higher than it is now.

[Stephen Kinnock]

My hon. Friend is absolutely right. As the Leader of the Opposition, my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), has confirmed, we are committed to a proper living wage in this country of a minimum of £10 an hour. Government Members constantly ask for Labour’s plan; there is one absolutely key element of it. It is about making work pay and rewarding the heroes of the pandemic: those who kept our economy running and our supply chains open. Rather than rewarding them with cuts and destroying supply chains, we should seek to build an economy that works for everyone.

The grim reality is that around 40% of the families who claim universal credit are in work, but that work is insecure and involves short hours or low pay. They are claiming universal credit not because they are workshy but because the Government are presiding over an economy in which jobs are not paying the bills and low-paid people are forced to top up their income. If the cut to universal credit goes ahead, it will be the biggest overnight cut to the basic rate of social security since the foundation of the modern welfare state. It will plunge families into poverty, forcing them to rely on food banks. But it is the very definition of a false economy: it would remove £7.3 million from the economy in my Aberavon constituency alone. This money is not saved by families; it is spent in the shops and the businesses in my constituency, helping to stimulate the local economy and helping to create jobs. Without it, spending power will decrease and the economic recovery will be stymied. Government Members have rightly stated that we need to grow our way out of the recession, and yet they are promoting policies that will put a brake on growth. It beggars belief.

This squeeze on living standards is not inevitable. Poverty is a political choice. The squeeze on living standards is a political choice. The Government have made the choice of hitting hard-working families with a double whammy of cutting the universal credit uplift and hiking up national insurance contributions. At a time when food, fuel and energy prices are going up, this will place an enormous burden on hard-working people. It is the Government’s choices that have shaped an economy that has become less resilient and less secure. The Government’s botched Brexit and failure to plan for crises such as the pandemic have combined to expose our declining sovereign capability—our lack of supply chain resilience, the empty shelves in the supermarkets, the shortage of HGV drivers, and delays at our border and ports. All of this is combining to drive up prices, and it is hitting working families in their pockets.

Two hauliers in my Aberavon constituency, Frenni and Owens, have told me about the detrimental impact that the shortage of HGV drivers is having on their businesses. Owens estimates that they are 150 drivers short and that that is reducing their capacity by about 1,000 full trucks a week. They desperately need the Government to take urgent action to address the shortage. What that demonstrates is that the economy is interconnected and that the impact on supply chains impacts on prices, impacts on the cost of living crisis, and impacts on working families. The Government should be doing all they can to support families through these tough times, not pulling the rug out from under them. They must start by cancelling this cruel and self-defeating universal credit cut. Then they must build an economy that works for all, by tackling insecurity at work, lifting people out of in-work poverty and increasing the minimum wage to at least £10 an hour. Then they must tackle the cost of living crisis by sorting out the chaotic shambles of their botched Brexit.

If the Government’s levelling-up agenda is to be anything more than empty rhetoric, they must change course. They must stop this race to the bottom and strive instead to build an economy that works for all. They must stop their complacent, blasé approach to Government and get their act together to address the huge disruption that has been caused by their botched Brexit deal.

[Alex Cunningham]

The Tories are keen to talk up the importance of work, and I agree with them on the importance of work—good paid jobs must be the answer—but they also allow many firms to go to the wall. The latest in our area is the world-renowned Cleveland Bridge and Engineering Company, which built the Sydney Harbour Bridge and the Tyne Bridge. Hundreds of jobs in the main firm and in the supply chain have now gone, as neither the Tory mayor in the Tees Valley nor the Government were prepared to do anything to sustain those jobs, simply because the company had a cash-flow problem. Does my hon. Friend not agree that we need to protect the jobs that exist today and not just dream of jobs in the future?

[Stephen Kinnock]

My hon. Friend hits the nail on the head. Much of the debate today has been about the immediate impact of the universal credit cut and the immediate impact of the cost of living crisis, but we need to examine the fundamental structural weaknesses in the British economy that have seen a massive decline in manufacturing, and that has been turbocharged by 11 years of Tory neglect. We have ended up concentrating so much of our economy in London and the south-east around the financial services sector. The financialisation of the British economy has ended up driving inequality, with a very small percentage at the top being paid eye-watering bonuses while the rest of country is left behind. We have shifted from being a country that makes things to a country that consumes things—a country that is fuelled not by production, but by consumption, and which is floating on a sea of debt. All those structural weaknesses have been chipping away at the resilience of the British economy for 11 years now, and the pandemic and the botched Brexit are now combining to expose the profound lack of resilience in our economy. Therefore, although today’s debate is extremely valuable and important, it fundamentally needs to be seen in the context of 11 years of Tory failure, neglect and a failure to look at the foundations of our economy.

I have the largest steelworks in the United Kingdom in my constituency, and steel is a case in point. The hon. Member for Redcar (Jacob Young), who represents a steel constituency, is not in his place now. We have seen the act of industrial vandalism that saw the closure of the SSI works in Redcar on the watch of the Tory Government; the total and utter failure to address exorbitant energy costs, which are crippling the British steel industry; the failure to stand up to China and the dumping of Chinese steel on the markets, which has deeply undermined our competitiveness across the world; and the failure to have a patriotic procurement policy that would enable us to focus on buying British steel when those opportunities arose. If we are serious about the transition to a green economy, we will never get there without a resilient and vibrant British steel industry. Our steel industry is just one example of how the Government have allowed our manufacturing sector to decline over the last 11 years that they have been in power.

[Alex Cunningham]

There is some good news this afternoon, because I understand that the Government have actually helped out and we have some form of agreement with CF Fertilisers—the company that makes fertiliser from natural gas and produces 60% of the country’s CO₂, which is so desperately needed for everything from beer to anaesthetic systems in hospitals. Will my hon. Friend welcome that, but also reflect on the fact that the company had to go to the brink of failure before the Government chose to act on energy prices and the other factors that were affecting it?

[Stephen Kinnock]

My hon. Friend hits the nail on the head; we appear to be in a constant state of crisis management, based on the fact that there has not been long-term planning. The gas crisis was foreseen by many people years ago, and it was based on a concern about the Government’s failure to deliver gas security by enabling the additional storage of gas. We do not have gas stockpiled in the way that most other advanced industrialised countries across the world have. This is another example of the Government being asleep at the wheel and not having that long-term planning in place.

We have a Secretary of State for Business, Energy and Industrial Strategy who does not believe in industrial strategy. He has closed down the Industrial Strategy Council at the very time that we need a partnership between the state and business to drive our economy forward. These fundamental issues have to be addressed. We have to look at the cost of living crisis, and develop a partnership between the state and business. We must have the long-term planning in place that we so desperately need.

[Alex Cunningham]

Will my hon. Friend give way?

[Stephen Kinnock]

I would very much like to give way to my hon. Friend again, but Mr Deputy Speaker is looking at me in a way that tells me that perhaps it is time to finish my speech.

[Mr Deputy Speaker (Mr Nigel Evans)]

Alex Cunningham, who has not made a speech, has spoken for longer than Wendy Chamberlain.

[Stephen Kinnock]

I will give way to my hon. Friend one more time, if that is all right.

[Alex Cunningham]

I am very grateful to my hon. Friend for giving way again. He will not know this, but I spent a long part of my career in the gas industry. I remember taking a group of women journalists offshore to the Rough field, off the Humberside and Yorkshire coast. Does he agree that it is extremely lamentable that the Government allowed that storage facility to close down and that that wonderful facility—the first of its type in the world—is no longer in use for gas storage?

[Stephen Kinnock]

There we have an absolutely spot-on illustration of precisely the problem that I was alluding to, which is that many of the issues that have been exposed by the pandemic are a failure of long-term planning. That is another example of a false economy. It is about the culture of looking at the immediate bottom line. Knowing the cost of everything and the value of nothing is the definition of the way in which this Government have been running the country for the past 11 years.

The value of resilience is about understanding the need for investment and about investing in order to save for the future. Prevention is always cheaper than cure. That is why, with the up-front investment that has been so sorely lacking over the past 11 years, those chickens are now coming home to roost. We therefore need to develop a new political culture, a new business culture and a new commitment in this country to security, resilience and partnership. On that basis, the issues that we are addressing today are the symptoms of the problem and not the cause.

Better Jobs and a Fair Deal at Work

Stephen Kinnock Excerpts

Wednesday 12th May 2021 Commons Chamber

[Stephen Kinnock (Aberavon) (Lab)]

Good jobs and decent working conditions have always been central to the Labour party’s core mission. Prosperity and patriotism are the mutually reinforcing foundations upon which our Labour movement is based, and although we in the Opposition recognise that good pay is utterly crucial we also know that work is about dignity, pride and contribution. It is about being part of something bigger.

In my Aberavon constituency, I see that desire to be part of something bigger every day—from the NHS workers who have saved so many lives to the manufacturers who have provided them with PPE, and the steelworkers who have continued to build the foundations of our modern economy. Yet over the last 11 years we have seen an exponential increase in insecurity across all sectors of our economy—from the two in five adult workers who do not yet know their shift hours for next week to the exploited gig economy workers denied holiday pay, the workers sacked by British Gas and then rehired on worse conditions, the high street workers with the threat of internet shopping looming over them, and the factory workers who could be the latest victims in the erosion of our manufacturing base that we have seen over the last 11 years.

British workers are the greatest asset that this country has, yet successive Conservative Governments have utterly failed to value their contribution. Many on the Conservative Benches celebrate flexibility and fluidity, yet flexibility without real choice means insecurity, and fluidity without proper investment in reskilling means mass unemployment. Tackling insecurity at work should therefore be a top priority for any Government, so where on earth is the long-promised employment Bill? Its omission from this Queen’s Speech is simply unforgivable.

It is important to recognise that during the pandemic 50% of the workforce did not work a single day from home. It is many of those workers, who are still going into work or who have been furloughed, who are the most likely to be at the sharp end of the job market, with their jobs often the most at risk from automation, the digital economy and the green revolution. It is these trends—and, crucially, how the Government respond to them—that will define Britain’s success in the years ahead. Of course, the trade union movement must be at the heart of this response. The modern job market will evolve, but the basic principle will always remain: the most productive and competitive companies are those that give their workforce a strong voice. Good industrial relations deliver good business results.

I therefore suggest that there should be three core principles at the heart of the Government’s response: first, dignity at work with new legislation protecting the rights of employees, not least to outlaw fire and rehire; secondly, partnering with business and trade unions for a new kind of growth to deliver the jobs of the future, recognising where Britain can be competitive but also that the less celebrated foundational industries such as steel are critical for our security; and thirdly, a properly resourced programme of training and retraining aimed at the jobs of the future. There is no point in trying to address the productivity crisis if we keep cutting the workforce out of the conversation; there is no point in investing in further education if the jobs are not there; and there is no point in decarbonising our industrial base if the local workforce is not trained up and if jobs and carbon emissions are simply offshored. As my hon. Friend the Member for Leeds West (Rachel Reeves), the shadow Chancellor, has so rightly said, our communities do not need sloganeering about levelling up; they need good jobs. She said:

“We need jobs you can raise a family on”.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call Richard Holden. Is the hon. Gentleman appearing virtually? No. I call Wendy Chamberlain.