(11 years, 9 months ago)
Commons ChamberI am glad to join others in saying how pleasant it was to listen to the new hon. Member for Cardiff South and Penarth (Stephen Doughty). I am well familiar with various parts of his constituency from family visits. It is nice to welcome another Welsh Stephen to the Chamber; I just wish our accents were as mellifluous as the hon. Member for Islwyn (Chris Evans).
We are discussing an Opposition motion, so let us examine the Labour party’s record when in office. In 1997, Tony Blair said that there would be no increase in the basic rate or the top rate of income tax while he was Prime Minister. As the Exchequer Secretary was saying, the Labour Government were in office for 13 years—for just over 4,700 days—and it was only in the last 35 days that the top rate of tax was increased to 50%. To put it another way, only one of the 156 pay slips that higher rate taxpayers would have received in that period would have shown an increase in their taxation. That suggests that the Labour party had no record of action and no philosophical appetite when it was in government and had the opportunity to do these things for higher taxes on high earners.
On tax relief for high earners Labour also had a lamentable record compared with its rhetoric today. It increased the relief for higher rate taxpayers to set against their pension contributions; people could put £215,000 into their pension fund and get higher rate tax relief in 2006, but that had been raised to £255,000 by 2010. The capital gains tax rate that Labour inherited in 1997 from the previous Government was 40%, but that was reduced steadily to 18% by the time Labour left office. On the lowest paid in society, the 10p rate of income tax was introduced in 1999, with the then Chancellor saying it was a measure to help the low-paid. I agree with that, but unfortunately he scrapped it in 2007, to loud cheers from his Labour colleagues—I well remember witnessing it from the Opposition Benches—because that tax rise for the lowest paid was financing tax cuts for those on higher earnings. Such is the record of the Labour party when it was in office.
Does my hon. Friend agree that it is really unusual that under a Labour Government in power for so long the rich became richer and the poor became poorer?
My hon. Friend says it is unusual, but I would say that it should not be surprising, given what Tony Blair said would be the intention of his party while it was in office. Of course, that gives us another opportunity to remind ourselves of Lord Mandelson’s comment that new Labour was
“intensely relaxed about people getting filthy rich”.
Let us compare the Labour Government’s record with what the coalition has done. Liberal Democrat priorities in the coalition are twofold: tax cuts for the lowest paid and effective taxes on the wealthy. We have seen the £10,000 tax-free threshold go from the front page of our manifesto and election leaflets through to the coalition agreement and it is on course for delivery within this Parliament. We will have raised the tax threshold from £6,475 steadily towards £10,000 possibly within four years and certainly within five. In the previous decade under the Labour Government, the tax threshold was raised by just £2,090. Under the coalition, more than 20 million people will have a tax cut of up to £700 and 3 million will have been raised out of income tax altogether. That disproportionately helps people who work part time, who are disproportionately women, and is particularly effective in helping the young. Indeed, a young person on the minimum wage can now work full time without paying any income tax. That is a huge difference from the position we inherited.
(13 years, 7 months ago)
Commons ChamberMay I say how pleased I am that the Secretary of State is working with schools and colleges on how the enhanced learner support fund should operate? The few comments that I shall make today are intended to feed into the work that I understand is going on in the vital area of supporting participation in 16-to-19 education and training, and into the work that my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) is carrying out. I believe that there should be a comprehensive view across all education and training for that age group.
Over several years, I have received a number of representations about the unfairness of the EMA system, and I am quite convinced that there is a need for reform, but equally I am concerned that its replacement should provide sufficient support. On the point about unfairness, I would like to quote just one constituency case—a rather unusual one. A single parent, earning just over £30,000 a year, had triplets in a local sixth form. I wrote pleading letters to the relevant Labour Minister, saying that surely there should be more flexibility to take into account individual circumstances, but to no avail. Of course child benefit is not very helpful when one has triplets, either, because for the second and third triplet, the rate is considerably lower.
There must be many cases where a family has two or more siblings in post-16 education, yet the system that the Labour party is defending so vigorously did not have the capacity to respond to individual circumstances. I believe that we need something that is individual and targeted. It is clear to me that we need to address potential barriers to entry faced by individual students in accessing the most appropriate courses of their choice, and how those barriers can best be overcome.
Like the Secretary of State, I believe in choice and social mobility. That means access to the right institution that offers the right range of subjects for the particular student. I represent a constituency that is relatively affluent, but it certainly includes young people who need and deserve our support. It has a mix of urban and rural areas. I concur with the points made about the very long journeys that have to be undertaken by some students.
I shall deal briefly with the main barriers, as I see them. I see transport as a major barrier. It is not enough to say that local authorities have a statutory duty. The local authorities that cover my constituency have long since abandoned providing transport for sixth-form students, and have taken the attitude that EMA replaced the need to cover public transport. They have been quite gruelling, saying, “Ah, there’s another school or college that is closer, where you could do more or less what you want to do.” That is not good enough.
Poole local authority, for example, has grammar schools. If a young person has gone to a secondary modern school from the poorer part of town, it is right that they should have access to the grammar school if they have worked hard to get the qualifications. I ask the Secretary of State to look at that. We believe in social mobility, and with the grammar school system there is a particular problem.
With reference to FE colleges, we need to take on board why young people go on to further education. It is often because it offers a totally different type of course from those they were able to do at school. Again, there is a problem with a local authority funding transport because somebody wants to go to a college of further education rather than to their local comprehensive school. School might have been a bad experience. I have lectured in further education for many years. It is inspiring to turn around students who have had bad school experiences and turn out to be brilliant students in a different setting. I am concerned that we may be depriving some children of those opportunities.
My constituency has no FE colleges, which inevitably means a great deal of travel for youngsters there. Students from my constituency go further afield, beyond Bournemouth and Poole college, in the opposite direction to the specialist college, Kingston Maurward, which has incredibly interesting courses. Originally one of the agricultural colleges, it offers many courses that are suitable for particular interests, such as work with animals. It is extremely important that transport is paid.
I am concerned that the issue of transport costs is not as simple as it sounded when the Secretary of State was talking about it. I would support the introduction of a young people’s travel card. I would make a sacrifice. I am eligible for a bus pass although I do not have one. Even if I had it, I do not think I need to be able to travel all over the country for free. I believe many people would accept a cut there.
A further barrier is the cost of equipment. Bournemouth and Poole college has an amazing reputation for catering and hospitality, as hon. Members might imagine. Of course, the equipment is expensive, and students must have help with that. We have discussed the fact that some courses need more expensive books than others—for example, students going on to study art will need expensive materials.
I had better not, given the time.
There is a big difference between school, where free school meals are available, and the local college. Young people’s life chances can be transformed by going to college, but they need to have enough food.
I draw attention to the young people who are vulnerable and particularly disadvantaged—those not living in a family home for whatever reason, children in care, care leavers, young people who are homeless, children and young people with learning difficulties, teenage parents and young carers. We need some red lines: some groups of young people must be protected, come what may. In future, we must enhance access, ensure success and allow our young people to achieve their potential, regardless of background and financial circumstances.
I have two specific questions. One is about young people who are part-way through courses and who may not have EMA for the next year of the course. How will that be tackled? Will there be ring-fencing? I am worried about colleges and schools having pots of money and its going off into other activities. Finally, we seem to be facing a big threat today, but together we could work on the opportunities arising from it.