Working People’s Finances: Government Policy

Steve Reed Excerpts

Tuesday 21st September 2021 Commons Chamber

[Steve Reed (Croydon North) (Lab/Co-op)]

I thank Members who have contributed to today’s debate. We have heard excellent and very thoughtful speeches from Members in all parts of the House, but particularly from those on the Labour Benches.

This debate is not about whether taxes should go up to fund services; it is about the fairness of clobbering working people with tax rises after a global economic crisis and at a time when living standards are being squeezed because prices are going up. We have heard moving stories from my hon. Friends the Members for Swansea East (Carolyn Harris), for Islwyn (Chris Evans), for Blaydon (Liz Twist), for Newport East (Jessica Morden), for Liverpool, Wavertree (Paula Barker), for Aberavon (Stephen Kinnock), for Manchester, Gorton (Afzal Khan), for Slough (Mr Dhesi), for Warwick and Leamington (Matt Western) and for Hornsey and Wood Green (Catherine West) about how hard life is becoming for working people in their constituencies.

As my hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) said in her opening comments, this is a debate about the choices the Government have made over the decade they have been in power: the choices they made during the pandemic and the choices they are making now as life slowly returns to normal. It was the Conservatives’ choice last year to force a 5% council tax rise after their costly mistakes and their delay in locking down led our country into the worst recession of any major economy. It was the Conservatives’ choice to cut universal credit, an absolute lifeline for so many working people while prices are on the rise, tipping many working families over the edge into debt and leaving them fearful about the future, as we heard so eloquently from many hon. and right hon. Members.

It is the Conservatives’ choice to clobber working families with a national insurance tax hike rather than ask those with the broadest shoulders to pay their fair share. How can it be right that a landlord who rents out a portfolio of properties does not pay a single penny more while their working tenants get clobbered with tax rises? How can it be fair that the care workers we all clapped last year are this year rewarded with a cut in their take-home pay—no rise in pay, just a Tory rise in their taxes? That is not what the country expected. It is certainly not what those heroes on the frontline deserve. The national insurance tax rise breaks the manifesto pledge that every single Conservative Member was elected on less than two years ago: a pledge so important that the Prime Minister highlighted it in his personal foreword to the manifesto that every single Conservative MP was elected on. Every one of them has broken their promises and has broken trust with the voters who sent them here.

So what will working families get in return for these manifesto-busting Tory tax hikes? What is the gain for all the pain? The Prime Minister told us that this tax increase would pay for his plan for social care—except, of course, the Conservatives’ social care plan does not fix the social care crisis. The Prime Minister told us on his very first day in Downing Street that he had a plan to fix social care. Strangely, he kept that plan hidden for three years. We waited all that time without seeing a dot or a comma of the plan that he supposedly already had ready. When he finally unveiled it, he rushed through a vote on it within 24 hours in a desperate bid to avoid scrutiny. As we read in The Times, he bludgeoned those brave few Conservative MPs who still think keeping their tax promises matters with threats to cut off investment and punish their constituents—the people that voted to send them here in the first place.

The Prime Minister railroaded such an important policy through with such desperate haste because he wanted to push it through before anyone noticed that there is nothing extra for social care for at least three years. In fact, there will not be any extra money ever unless the Government plan to cut the NHS again at some point in the future. Astonishingly, this back-of-an-envelope plan could actually lead to cuts in social care. If councils have to pay increased employers’ national insurance contributions, they will have to cut services or put up council tax even more to pay for it, and care homes are reporting that if the Government do not fund the lost cross-subsidies from private purchasers, they will go bust. The Prime Minister cannot even guarantee that older people will not have to sell their home to pay for social care. That is another election promise smashed to smithereens. The cap on costs does not include accommodation, so people in care will still face charges totalling hundreds of pounds a week even after they have reached the cap.

Where will people living in a town in the north of England in a house worth £180,000 find the £85,000 plus the tens of thousands in accommodation costs that the Government expect them to pay without selling their home? Are the Conservatives so out of touch that they think most people have that kind of money stashed away in savings accounts? They do not. What kind of plan for social care ends up costing working families more while cutting the services they are paying for and closing down the care homes they need to use while still forcing older people to sell their homes? Only a totally botched plan from these tax-hiking, pledge-busting Conservatives.

The Government’s failure on social care means that councils have been left with a £2.7 billion black hole in their social care budgets. Since the national insurance tax hike will not plug that gap because not a penny is going on social care, what do the Government expect councils to do next April, faced with that dilemma? We need not wonder, because it is all right there in black and white in the social care plan—it could not be clearer. It says:

“We expect demographic and unit cost pressures will be met through council tax”.

That is why the Health and Social Care Secretary could not rule out tax rises last week and why I strongly suspect that the Minister will not rule them out in her contribution.

The Prime Minister has primed a council tax bombshell ready to go off next April. The Conservatives will clobber working families with a triple tax whammy, with yet another Conservative council tax hike next year on top of the Conservative council tax hike this year. That is on top of the Conservative national insurance tax hike, and that is on top of the Conservative cut to universal credit. They just cannot help themselves—they are Tory taxaholics.

Earlier this year, the Government’s inflation-busting council tax rise hit working families in the pocket, with the economy struggling to recover after the worst crisis of any major economy. Their council tax hike next year will land on people’s doormats after a winter of rising inflation and rising energy prices. The average band D council tax rate looks set to top £2,000 a year by 2024. Let me tell them here and now that working families simply cannot afford it.

The pain does not end there. As my hon. Friend the Member for Houghton and Sunderland South said in her opening remarks, when social care costs outstrip the funding that councils have available, they are forced to cut other services—even after the Conservatives’ council tax hikes. Just count the cost to communities of these Conservative choices: libraries cut; youth services cut; children’s centres cut; and even public toilets cut. Thanks to the Conservatives, councils are cutting everything except the grass. The message to the public is loud and clear: pay more but get less under the Conservatives.

The headwinds facing working people this year are reaching gale force. Prices are up. Energy costs are up. Taxes are up. Rents are up. Childcare costs are up. Rail fares are up. The only thing going down is wages, which are still lower than under the last Labour Government.

The supermarkets are running out of fresh fruit and vegetables thanks to the Government’s incompetence, but, because household incomes are under so much pressure, many people could not afford to buy them anyway. What a state they have left our country in. Put simply, the country faces a Tory winter of discontent. Working families are facing a squeeze in their living standards that they simply cannot afford, all because of the bad choices, broken promises and sheer crass incompetence of this failing Conservative Government.

Special Educational Needs and Disability Funding

Steve Reed Excerpts

Wednesday 29th January 2020 Westminster Hall

[Steve Reed (Croydon North) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Pritchard. As many others have done, I congratulate the hon. Member for Twickenham (Munira Wilson) on securing this important debate. She has big shoes to fill, following her illustrious predecessor, but has certainly made an impressive start this afternoon.

Children with special educational needs and disabilities are some of the most vulnerable children in our country. They need help and support when they are young to help them to cope with the rest of their lives, which can be very challenging. I join the many Members who have congratulated the incredible professionals who dedicate their time and their lives to supporting those children.

There can surely be no MP who has not encountered heart-rending cases of children who have been refused the support that they so urgently need. In my constituency of Croydon North, I have been dealing with the case of a young boy with dyslexia whose family have to spend four hours a day travelling to take him to an appropriate school. Another child, aged just seven, had to be educated at home for more than a year because none of the three special schools that were close enough for him to attend had a place to offer him.

The cause of those problems, and many like them, is the severe underfunding of such services by the Government. The Conservative-led Local Government Association says that, even after the additional funding that I suspect the Minister will shortly trumpet, high-needs services face a shortfall of £109 million over the coming year. They cannot plan for what comes after that because the Government have still not announced the funding. Councils, which are responsible for those services say that high-needs funding is one of the most serious financial headaches that they face. The money simply is not there to provide an adequate service for every child who needs it.

Things have got so bad that the LGA says that councils will no longer be able to meet their statutory duties to support children with special educational needs and disabilities. That is simply shocking and unacceptable. It means that children in desperate need—children with severe disabilities—will be turned away because the Government refuse to pay for the care that they so urgently need, and that every single one of them deserves.

Ofsted, which inspects such services on behalf of the Government, tells us a very similar story. According to Ofsted, last January almost 3,500 children who needed special support were still not receiving any. Of those, 2,700 were not in school or receiving an education of any kind because of the lack of support. That is not only short-sighted but cruel. It is cruel to the children whose futures are being curtailed, and cruel to their parents, who are left struggling, angry and frustrated that their child is being denied that most basic of human rights: the right to an education.

[Layla Moran]

The hon. Gentleman is making a powerful speech. Does he share my concern that very often these children end up in the prison service, and is he aware of the statistic that children in custody are, on average, twice as likely to have SEND problems as those in the general population? If we intervene early and ensure that they do not go to prison, that will save the state money.

[Steve Reed]

The hon. Lady makes an important point. Many of the outcomes for these children in later life are negative when they could have been positive.

The failure to fund high-needs services adequately means that lower-level support suffers as a result. The Children’s Commissioner says that speech and language services and mental health services have all suffered. Leaving children with such disabilities unable to cope means that their chance to function well as adults is taken away from them. It is fair neither on the children, who deserve much better, nor on society as a whole, which will be left to pick up the much higher costs of supporting them as adults.

We cannot just abandon these children, so I would be grateful if the Minister responded to a few specific points. Councils need the powers and funding to open new special schools where they are needed. Will she confirm that that will be part of the Government’s review? By the end of August last year, half of the 100 areas that had been inspected by Ofsted and the Care Quality Commission were found to have significant weaknesses in their SEND services. They were all required to submit written proposals for improving their services. That is a shockingly high level of failure. Why has it not triggered a co-ordinated action plan across Government to bring those services up to the level required?

The inspections identified a long catalogue of failings. Here are just some of them, according to the reports: joint commissioning and service planning is weak; education, health and care plan assessment is not working well enough; too many care plans are not finalised within the 20-week timescale; designated medical officers are under-resourced; oversight of care plans is inadequate; transitions into adult health services are inadequate; families do not know where to get the help and support that their children need; more than half of parents or carers have had to give up work to care for their disabled child; more than half of parents and carers have been treated for depression, including suicidal thoughts; and too many parents and carers say that their views and experiences are neither heard nor valued.

That all comes from Ofsted and the CQC, the Government’s official inspectors for such services. Is the Minister really content to preside over services failing to that extent, because she should not be? I hope that she will not just dismiss that evidence, as previous Ministers have, or resort to platitudes about inadequate funding increases. Special needs services are in crisis. Too many vulnerable children with disabilities are living in crisis, and they deserve an urgent response from the Government to put things right.

Exploitation of Missing Looked-after Children

Steve Reed Excerpts

Wednesday 23rd October 2019 Westminster Hall

[Mr Steve Reed (Croydon North) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Evans. I congratulate the hon. Member for Stockport (Ann Coffey) on securing this extremely timely and important debate. I thank all the Members who have taken part and the all-party parliamentary group on runaway and missing children and adults for the work that it has led on this important issue. We spend far too little time focusing on the needs of looked-after children, given that they are one of the most vulnerable groups in society.

We have already heard some shocking examples this afternoon of how badly too many looked-after children have been let down. Far too many children are given placements far away from friends, family and the community that they are part of. Far too many are put in accommodation that is unsafe because it is not properly regulated or supervised. A key reason for that is a severe lack of funding, but we must also recognise the failure properly to involve children themselves in the decisions that affect their lives.

More than two out of every five looked-after children are placed outside their home local authority area; that rises to two in every three children in children’s homes. The fact that children lose contact with everything that they are familiar with is one of the contributing factors to so many of them going missing. They simply want to go back home to the family and friends they miss.

It is desperately worrying that children in placements far from home are at greater risk of exploitation, as the hon. Member for Lanark and Hamilton East (Angela Crawley) explained so clearly. The police recognise that as an important factor in the luring of young people into gangs, or into the hands of adults who want to exploit them sexually or criminally. It is a major factor in the growth of county lines drug dealing operations and the horrific escalation in levels of knife crime that go with that. The existence of unregulated semi-independent housing is a major concern, and a growing national scandal. Social workers I have spoken to tell me that children are placed in those hostels because current levels of funding do not allow for better alternatives. It is shocking to hear that there are now 5,000 young people who have been placed in institutions of that kind.

Lance Scott Walker was just 18 when he was placed in an unregulated teenage hostel miles away from his home, with another vulnerable young person with severe mental ill health. That second young person stabbed Lance in the hostel, chased him out of the building and stabbed him to death in the garden. Lance should never have been left in such dangerous circumstances by the authorities responsible for his care, but when the funding is so inadequate risks are taken, and sometimes they lead to tragic outcomes such as the death of Lance Scott Walker.

The cross-party Local Government Association estimates that an extra £3.1 billion is needed simply to keep the services at their current inadequate levels over coming years. The Children’s Commissioner says that to fund the wider set of children’s services properly, an extra £10 billion is needed. The Government need to ask themselves why they have not made funding care for the most vulnerable children in society the absolute priority that it should be. The lack of funding and support is literally destroying young people’s lives.

Adequate funding is fundamental, but it is not the whole story. I am very impressed by the focus of the report on giving looked-after children a voice. There should be a requirement on children’s services to demonstrate that children and young people have been consulted and involved in the decisions taken about them. Young people will tell you what support they need, what is going wrong in their lives and what they are afraid of. We need to listen, and act on what we hear.

I had the privilege earlier this week of visiting Camden Council’s children’s services department, under the inspirational leadership of Councillor Georgia Gould. Its services are among the best rated and most innovative in the country. Its family group conferencing model puts the child and their immediate family at the centre of decision making and allows them to involve friends, family and community members in decision making rather than leaving it to professionals alone. That ensures that the child’s voice is heard and that their wishes are acted on. Just as importantly, it respects the relationships that matter to those children and it has dramatically improved results, through how it is implemented.

Up north, Leeds City Council, under the equally inspirational leadership of Councillor Judith Blake, has made similarly impressive progress pursuing its child-friendly city agenda for almost a decade now, I believe. Every decision that the council takes is measured against its impact on children—vulnerable children, in particular. It does not just talk about children as a priority; it has acted to make children a priority. It is examples such as those, in Leeds, Camden and many other places across the country, that show us how we should be treating vulnerable children differently—not as problems to be managed, but as young people full of potential with valid views about their own life that deserve to be heard, and relationships that matter to them that need to be respected.

The Government must now take a lead. We need a fully funded national action plan to reduce the number of out-of-area placements and ensure that vulnerable children are safe and that they have a voice. Key to that plan must be the immediate regulation and inspection of semi-independent housing.

No country that loved its children would treat them in the way I have described. There is no group more vulnerable than children who cannot be with their parents, so I ask the Minister now: will she commit to regulating semi-independent housing without delay? Will she take action to reduce the number of out-of-area placements? Will she review funding to bring it up to the level needed to support vulnerable children properly? Will she look at models such as those in Camden and Leeds and bring in a new legal requirement to involve looked-after children properly in the decisions that affect them? Children need change, and they need it now.

--- Later in debate ---

[Michelle Donelan]

I will certainly look at that. We need a combination of ways to prevent children from entering the care system—we will all agree that that is fundamental—and to tackle the supply of places. That is why we put an extra £40 million into creating more secure homes. The Government recognise that issue and are acting on it.

I recently announced an investment of £84 million over five years to support 18 local authorities as part of the Strengthening Families programme, and that is one example of how we are enabling children to stay safely with their families. We have also provided funding through our £200 million children’s social care innovation programme, £5 million of which is specifically targeted at residential care and expanding provision.

For the most vulnerable children who need secure provision, we have added a £40 million capital grants programme. We are funding local authorities—£110 million to date—to implement Staying Put arrangements, under which care leavers remain with their foster carers for longer. We are piloting the Staying Close programme with £5 million of funding to support ongoing links with a residential home.

[Mr Reed]

I am listening with interest to what the Minister has to say. She is absolutely right about the need to prevent, to reduce the numbers of children needing to go into the care system. Is she aware—she must have conversations with the heads of such services, as I do—that the reason why local authorities are not spending more on prevention is that their funding has been reduced so much: by 50%, on average? They must use what is left to manage crises, so they have even less to invest in prevention.

Will the Minister consider working with local authorities to set up an investment fund to focus on prevention, to allow them to stop the problems happening? It would cost a little money up front, but save multiples more in future by not allowing young lives to be destroyed.

[Michelle Donelan]

The approach we have taken is to target money at those areas that need it most, ones which have not been performing well, so that we can be specific with that Strengthening Families money of £84 million. We have invested in the workforce as well— £200 million—and our strategy is to put children first. We are doing things in a co-ordinated way.

The hon. Member for Lanark and Hamilton East made reference to care leavers, a subject that the Secretary of State is passionate about, and I share his passion. This week, we announced a £19 million package of things to assist them and to give them the choices and chances that they deserve in life.

Fundamentally, I believe that young people can only ever be safe when they are cared for by local children’s services that have their best interests at heart—something that the hon. Member for Croydon North stressed. Funding is of course important, as he also stressed, and that is why the 2015 spending review gave local authorities access to more than £200 billion up to 2019-20 for services, including children’s social services. In addition, last month we announced another £1 billion for social care in 2020-21, so the issue is a focus of this Government and to say it is not would be unfair.

As I am sure hon. Members agree, however, that is only part of the solution. We are delivering an extensive programme of reform that has a strong focus on prevention, intervening early to provide families with the support that they need. The programme also works to ensure that, where children cannot stay with their family, there are enough places—a point laboured throughout the debate. We are also reforming social work and children’s social care so that we recruit and retain some of the most highly professional individuals. Providing the best possible support for local young people leaving the care system is also paramount.

Let me reassure hon. Members that my Department and I are committed to ensuring that children who go missing can be brought back safely, and that the service they receive in the care of the local authority means that they are in a home that is safe, secure and meets their needs. I commit to work relentlessly on the issue, and I invite any Member to follow up with and meet me after the debate. This is something that should be done and tackled not only across Government but across party. The issue is non-political and, at its heart, should always be about children—their safety, security and futures.

Communities: Charities and Volunteers

Steve Reed Excerpts

Wednesday 13th February 2019 Commons Chamber

[Mr Steve Reed (Croydon North) (Lab/Co-op)]

I listened with interest to the Minister’s warm words, but I suspect that we will hear much this afternoon about the gap between the rhetoric and the reality in the Government’s approach to civil society. Ever since they were elected, this Government’s method has been to underfund, undermine and sideline the sector at every opportunity. That is a tragedy, because civil society, including the charities, volunteers and community groups that are part of it, play a critical role in reconnecting the communities that this Government have divided.

There is a real mistrust of politics and politicians in our country, which is not surprising. A decade of austerity has ripped the heart out of communities and seen the destruction of shared community spaces. Good jobs have been lost to automation. Once thriving industrial towns have been left to decline. Inequality has grown wider while the economy has grown bigger, because a few at the top have grown richer at the expense of everyone else.

The politics that did all that needs to change. People want back control over their own lives. It is no longer enough for any group of politicians to stand up and tell people to trust them to have all the answers. Trust cannot be a one-way street. People will not trust politicians until politicians show that they trust people enough to open power up to them directly. We need a new politics that is big enough to meet the challenges of our age and responsive enough to meet the specific needs of every community.

At the heart of that are questions about power. Who has it? Who does not? How do we open it up to everyone? In this digital age, with a world that is changing so fast, it is clear that we cannot solve tomorrow’s problems with yesterday’s thinking. That is where civil society comes in, because it offers a way for people to participate on their own terms. It connects communities so that they can exercise the power that lies latent within them. Community-led organisations are a key part of how we can make our system more responsive and more democratic by rebuilding politics around people and putting real power in people’s hands. It once felt like the Conservative party was on to that with its big society agenda, but it withered before our eyes into a crude attempt to replace paid professionals with unpaid volunteers. Now, the Conservatives do not talk about it at all.

Let us look at how much has vanished under this Government: 428 day centres, 1,000 children’s centres, 600 youth centres, 478 public libraries and countless lunch clubs, befriending services, community centres and voluntary groups. Those places where communities came together to act have all gone.

[Rushanara Ali]

Does my hon. Friend agree that the cuts in youth services have been particularly devastating? Although the interventions to support the National Citizen Service have been welcomed in many areas, the reality is that the £1 billion or so that has been spent in that arena has not been matched by support in other areas to help young people get on to successor programmes, to meet their needs and to ensure that they have genuine opportunities to take part in positive activities, rather than get caught up in crime and other risks.

[Mr Reed]

My hon. Friend is absolutely right. As I said, 600 youth centres have closed, and all the activities that could have gone on in them have been taken away. That is a crying shame.

Sadly, the Government have not finished with that agenda; there is worse to come. Their new so-called fair funding formula will remove deprivation levels from how funding is calculated. It will take even more away from the very poorest and will weaken the very communities in which the need to tackle poverty, youth crime and homelessness is greatest. Communities cannot organise, act or assert their voice if the Government keep ripping away the resources they need to do those very things.

The Government passed a lobbying Act that gags charities and prevents them from campaigning. Ministers individually have put gagging clauses in contracts to silence charities and prevent them from criticising their personal failures as Ministers. The Government have discouraged volunteers in the UK by not recognising their work for national insurance credits. They announced a plan for paid time off work for volunteering, but it fizzled out into absolutely nothing.

We are a month and a half away from Brexit, but the Government have still not told us how they will replace lost EU funding for charities or how the shared prosperity fund will work, despite the fact that the Opposition have been asking about it for months. The Minister trumpets the new funding—she did so this afternoon—but she fails to acknowledge that it is a tiny drop in the ocean, compared with the billions that the Government have cut. They can work out the huge financial value of what they have taken away, but the social value that they have destroyed is incalculable.

Despite the cuts and the Government’s failure to open up power, people are doing amazing things in their communities, and are stepping in to help the victims of Government funding cuts. I pay tribute to the food banks and homeless shelters which, in such a wealthy country, we should never have needed. There is a wonderful, rich, emerging practice of sharing, co-operating, collaborating and participating in this country. People’s ingenuity and the creativity in our communities cannot and will not be beaten back, but it is fragile. It needs support and protection. It is clear that the Conservatives will never offer that, but Labour will.

[Alex Sobel]

My local council for voluntary service, Voluntary Action Leeds, wrote to me. It said clearly that volunteering is not part of the benefits system, and that people are being sanctioned if they refuse to volunteer. That is not volunteering; it is forced labour. Universal credit is affecting the amount of time that people have to volunteer, so the Government’s own welfare policies are decimating the voluntary sector in this country.

[Mr Reed]

I agree. It is outrageous that the Government are actively penalising people for volunteering when we need to be encouraging volunteering. In particular, it helps people who are looking for work to develop the skills that they need to gain employment. I hope the Minister will take that away and look at it.

People are connecting in neighbourhoods and on social media to collaborate and bring about the change that we desperately need in this country. The digital revolution has opened up data, information and connectivity in the most extraordinary ways. It offers the potential to renew our democracy, making it more open, responsive and participative. This is the new civil society. It is a force for change of the most incredible potential, if only we had a Government with the vision and ambition to support it, like the very best Labour councils already do.

Barking and Dagenham’s Every One Every Day initiative has launched spaces and projects across the borough that bring people together in their neighbourhoods to solve the problems they face. It has dramatically increased participation, with projects as diverse as shared cooking, community composting, play streets and even a listening barber. It is a great example of asset-based community development—a model that is proving its power in communities across the country.

In my borough of Croydon, the Parchmore medical centre in Thornton Heath has spawned a network of more than 100 community-led projects that keep people healthier, and it has dramatically reduced the number of people who need to see a GP. There are sessions on healthy cooking for young families, mobility classes for older people and coffee mornings in the local pub, before it opens for customers, for people isolated in their homes. All of it is free, and all of it is run in and by the community. It has had an extraordinary impact on people’s wellbeing simply by getting neighbours to know each other better and to speak to each other.

Plymouth has set up the country’s biggest network of community energy co-ops to generate energy sustainably and plough the profits back into the local community. Stevenage is pioneering community budgeting, involving local community groups. Preston is leading on community wealth building by focusing council procurement on community organisations. In Lambeth, the council has set up, with the community, Black Thrive, a new social enterprise that gives the black community greater oversight of the mental health services that the community uses. In all these cases, existing or new community groups, charities and social enterprises have shown they have the power to transform lives. They open up decision making to the creativity and innovation that lies untapped in too many of our communities.

[Sir John Hayes]

I wonder whether the hon. Gentleman would consider the dichotomy at the heart of his argument—I used the word “argument” in the most generous spirit. The dichotomy is that he is arguing that this increase in digital communication is beneficial to community, but he must know that online shopping is destroying local shops, online media is destroying local newspapers and the virtual relationships he has described are not comparable with real relationships. Clearly, he is doubtful about his own relationships in Croydon, because he has already told us that people do not like politicians. Perhaps he should get out into the real world and leave the virtual world for a few minutes.

[Mr Reed]

What is destroying our high streets are the right hon. Gentleman’s Government’s business rate hikes.

The community and voluntary groups that are part of all of this innovation are pointing the way forward, not only to a better society, but to a new politics—not the centralised state or the marketised state, but the collaborative state, enabling an open, participative and hopeful approach. This new people-powered politics will help us find a way to tackle the great social ills of our time, one of which the Minister referred to; loneliness in this country has now reached epidemic proportions. Loneliness is the product of the breakdown of the family, the fragmentation of communities and the cuts that have taken away support services. The Local Government Association now points to an £8 billion funding shortfall in social care services, but we also see long working hours, low pay, investment and jobs deserts and the hollowing out of communities. All of that has contributed to this situation, but, sadly, no single piece of legislation can put a problem that complex right. The answers lie in our communities, in strengthening the bonds between people instead of atomising them, and in building up community assets instead of closing them down as the Government have done. Communities are already doing much, but if we had the courage to open up power and resources to them, they could do so much more.

Our country is at a crossroads. The Brexit debate has crystallised the deep divisions that separate us from each other and the anger that has driven it. We need to come back together, but that will not happen from the top down. We need a new, more open politics, one that is more participative, embracing the collaboration and kindness that all of us, as MPs, see in our constituencies. For that we need a Government who recognise and celebrate the central role of civil society and communities, and are ready to invest in them, not cut them to the bone. That is how we can genuinely let people take back control, so they can build the compassionate country we have the potential to become.

[Several hon. Members rose—]

Sport in the UK

Steve Reed Excerpts

Monday 4th February 2019 Commons Chamber

[Mr Steve Reed (Croydon North) (Lab/Co-op)]

I congratulate the many Members on both sides of the House who have contributed to such an important debate. On my own side, my hon. Friends the Members for Tooting (Dr Allin-Khan), for Cardiff Central (Jo Stevens), for Harrow West (Gareth Thomas), for Keighley (John Grogan) and for Rhondda (Chris Bryant) each gave heartfelt speeches focusing in particular on giving a bigger voice to fans and on equalities issues in sport, from pay to participation.

I cannot take part in this debate without mentioning Crystal Palace football club in my constituency. It is known as a club that reaches out and plays a full part in the wider community. This winter, with homelessness soaring to record levels and temperatures plunging below freezing, Crystal Palace have opened the doors of Selhurst Park to provide food and shelter for people sleeping rough, which shows us that our top clubs offer much more than just sport. They are part of the fabric of our society, and they deserve recognition for that fact.

We have heard much this evening, and rightly so, about the importance of grassroots sport and sport for all, yet this is an area where funding cuts have had the greatest impact. ITV News reports that local authority sports funding is down by £400,000 in London alone over just five years. Councils are struggling to cope with Government funding cuts of up to 80% since 2010, at a time when demand for high-cost statutory services like social care is rising, the result of which is severe cuts to non-statutory services, including grassroots sports.

The Government’s latest plans to remove deprivation levels from what they are, I presume, ironically calling the fair funding formula will slash what remains of grassroots sports in our most deprived communities. These are the communities where violent crime is rising fastest. There is ample evidence that diversionary activities for young people prevent those most at risk from getting involved in crime, yet this Government run the risk of further driving up violent youth crime with a perverse approach of targeting their harshest cuts on our very poorest communities.

Towards the end of last year, the Government trumpeted their new loneliness strategy. Sports are some of the most effective ways to tackle loneliness among young people, yet grassroots sport funding is facing yet more cuts. The simple truth is that the Government will not make any impact on issues such as loneliness if they keep cutting the very things that allow communities to tackle loneliness.

Last summer, the Government published their obesity strategy. The King’s Fund points out that about a third of children under 15 in the UK are overweight or obese. It tells us that children are becoming obese at an earlier age and staying obese for longer and that children from lower-income household are more than twice as likely to be obese as those in higher-income households. The Government’s reaction to that so far has been negligent. As my hon. Friend the Member for Tooting has previously pointed out, in the past two years alone, Government cuts have seen 100 swimming pools drained, 12 athletics tracks closed, 350 sports halls shut and 800 grass pitches sold off. How are we, as a country, to tackle this health and inequalities crisis if the Government allow grassroots and community sports to disappear at this rate?

Sport has the power to tackle some of the great challenges of our age, whether loneliness, obesity or mental ill health, yet the Government have chosen to cut sport to the bone. Sport can help to prevent these problems. Spending on grassroots sport is not money down the drain; it is a sensible investment that saves money in the long run by keeping people healthy and bringing our communities back together. The Government need to match their warm words tonight with action. They need to get serious about the power, impact and importance of sport for all of our communities.

[Mr Speaker]

Has the hon. Gentleman finished his contribution?

[Mr Reed]

I have, Mr Speaker.

[Mr Speaker]

It was very brief. I call the Minister, who need not feel obliged to speak until 10 o’clock, as I know she made a very full contribution earlier.

Cat Welfare

Steve Reed Excerpts

Tuesday 11th December 2018 Westminster Hall

[David Rutley]

I must confess that I was not aware of that. I am grateful to my right hon. Friend for raising what goes on in Northern Ireland with me. I am sure that the hon. Member for Strangford is aware of that, too. I will follow up with officials and see what we can learn.

[Mr Steve Reed (Croydon North) (Lab/Co-op)]

Will the Minister give way?

[David Rutley]

On that point, yes, but then I had better move on to microchipping, otherwise I will be held to account.

[Mr Reed]

Last year, the RSPCA reported that it had reached a five-year high for the level of airgun attacks on pets. The vast majority of pets attacked were cats. Will the review that the Minister is engaged in also look at where airguns can be advertised and sold? We had an incident in Norbury recently in which a pawnbroker’s shop turned itself into an airgun centre and had a big display of what looked like semi-automatic rifles, but were airguns, in the shop window on a high street right here in south London?

[David Rutley]

I thank the hon. Gentleman for bringing that to our attention. I am not the Minister responsible for the matter, so I do not want to tread beyond where I should, but I have seen similar incidents and reports in my constituency. I will follow up on the very important point he raises and get back to him on how wide the review will go. I hope it will address such issues, but I will confirm that with him in due course.

My hon. Friend the Member for Gillingham and Rainham talked about his private Member’s Bill, which takes forward a serious issue. He also highlighted how the subject has been raised in numerous petitions. The sheer number of people who have signed the petitions highlights that the Members in the Chamber are not alone; many people are very concerned about the issue. The Government recommend that any owner should microchip their cat to increase the chance of being reunited with it if it gets lost. In April this year, we updated the statutory cat welfare code with the welcome collaboration of Cats Protection and others. The code now more strongly emphasises the benefits of microchipping cats.

Microchipping technology has vastly improved the chances that lost pets will be reunited with their owners. For a relatively small, one-off cost of about £25, people can have greater confidence that their beloved cat can be identified. Why would someone not want to do that? As the head of cattery at Battersea Dogs and Cats Home, Lindsey Quinlan, has said, while the microchipping procedure is short and simple,

“the return on their value is immeasurable”.

It is therefore good to see that the proportion of cats that are microchipped has grown in recent years.

My hon. Friend highlighted the good report by the PDSA showing that 68% of cats are microchipped. However, a recent survey by Cats Protection found that the majority of the cats taken to its adoption centres in the past 12 months were not microchipped. It is heartbreaking to think that some of those cats may not have been reunited with their families simply because of the lack of a microchip. That is why I strongly endorse Cats Protection’s campaign to promote cat microchipping. The Government will work with Cats Protection and other animal welfare charities so that the proportion of cats that are microchipped continues to grow.

In England, compulsory microchipping of dogs was introduced through secondary legislation due to the public safety risk posed by stray dogs. That does not mean that cat welfare is any less important than dog welfare; it is just that there is not the same risk associated with cats from a safety perspective. For that reason, the microchipping of cats is not compulsory, but we strongly encourage owners and breeders to do it. That is why the Government’s cat welfare code promotes microchipping on two grounds. First, as I have already mentioned, microchipping gives cats the best chance of being identified when lost. Secondly and just as importantly, a lost cat that has a microchip is more likely to receive prompt veterinary treatment when needed. In that way, micro- chipping helps to protect more cats from pain, suffering, injury and disease, as required by the Animal Welfare Act 2006.

I am grateful to Cats Protection for its support in developing the cat welfare code. Department for Environment, Food and Rural Affairs officials remain engaged with the issue. I commit to meeting Cats Protection in January, whether as part of the roundtable or separately, to take forward this important agenda.

In the limited time available, it is important to highlight some other actions I would like to take in response to this important debate. As has been said, under the Road Traffic Act 1988, drivers are required to stop and report accidents involving certain working animals, including cattle, horses and dogs. That does not currently extend to cats. However, the Highway Code advises drivers to report accidents involving any animal to the police. That should lead to many owners being notified when their cats are killed on roads. I am pleased that it is established good practice for local authorities to scan any dog or cat found on the streets so that the owner can be informed.

Following today’s debate, I will meet the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) to discuss how we can work together to further promote best practice. Highways England has clear guidelines for contractors to follow when they find a deceased dog. That process is designed with owners in mind, giving them the best chance of being informed of the incident that has occurred. The process laid out in the network management manual currently applies only to dogs. I would like to see what could be done to extend it to cats, and I hope other Members agree. The area is the responsibility of the Department for Transport. Following today’s debate, I will work with the Minister of State, Department for Transport, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) to explore what the Government can do in this area.

To conclude, I would like to say how important it has been to have this debate today. It has brought the issue very much to my attention as a relatively new Minister for Animal Welfare. I am extremely grateful for that. I would like to highlight how important animal welfare is to the Government and to DEFRA.

Budget Resolutions

Steve Reed Excerpts

Thursday 9th March 2017 Commons Chamber

[John McDonnell]

I will tell a quick anecdote. I was on the tube a month ago when a worker got on and sat down next to me. He was in his overalls as he was on the night shift. He had worked for Tube Lines before the company went bust. He is a rail maintenance worker, which is a skilled job, but he is now employed by an agency and does not know whether he will have work tomorrow, the next day or whenever. He has no sick pay and no holiday pay, and if he does not turn up for work, he does not get paid. He has to pay an accountant to deal with the tax on his salary payments. At the same time, he can be exploited by being sold on from agency to agency. That is not real self-employment; that is the exploitation of someone who has been forced into self-employment. Such issues must be addressed. This insecurity is not just because of the gig economy, but because of what has happened in recent years, with people being forced into self-employment. Those issues were not even addressed yesterday. There is a problem of employers shirking their responsibilities by forcing staff into self-employment.

Yesterday, we got not a package of measures designed to address the problems of the modern world of work, but a single, unilateral tax hike for the self-employed. People earning over £8,000 will be hit. The Chancellor tried to disguise that by bundling the measure in with the re-announcement of abolishing class 2 national insurance payments, but yesterday’s Budget documents are clear that this is a tax hike of £2 billion, targeted at the self-employed. Increasing the taxes paid by self-employed people does not move them to parity with the employed, because they do not receive the same benefits as the employed. The Chancellor says that he is concerned about the gap between different contribution rates, but the Labour party does not believe that the burden of closing that gap should fall on some of the lowest paid workers who are also those in the most precarious position in our society.

[Mr Steve Reed (Croydon North) (Lab)]

Does my right hon. Friend agree with the Conservative Croydon councillor, James Thompson, who tweets:

“Disgusted by this so-called Conservative government hitting the self-employed”.

[John McDonnell]

I find it interesting that the response to yesterday’s statement has been anxiety right across the political spectrum. I hope that the Chancellor is listening. I hope that the Labour party and others in the House will combine with some Conservatives who are concerned and that we will force the Chancellor to think again.

The Chancellor says that he is concerned about the gap between different contribution rates. We do not believe that the burden of closing the gap should fall on some of the lowest paid workers, but that is the consequence of yesterday’s decision. The Government are making minicab drivers pay more. They are taxing Uber drivers while at the same time cutting the taxes of Uber itself. A hairdresser earning £15,000 a year will be £137 worse off as a result of yesterday’s measures. That cannot be fair—it just cannot be right.

And, yes, this is a manifesto betrayal. There was a promise in the manifesto and it read like this:

“This means that we can commit to no increases in VAT, Income Tax or National Insurance. Tax rises on working people would harm our economy, reduce living standards and cost jobs.”

That was not me or Labour MPs, but the Tory manifesto. The Government have been trying to muddy the waters by talking about a Bill they brought forward in 2015. That Bill sought to cap class 1 contributions—Labour supported it—but it did not even allude to the idea that any other classes would see increases. To quote the current Chief Secretary to the Treasury speaking in Committee:

“we do not have further proposals other than those that we previously set out”.––[Official Report, National Insurance Contributions (Rate Ceilings) Public Bill Committee, 27 October 2015; c. 16.]

Some have tried to portray yesterday’s announcement as progressive, but what is progressive about raising taxes for low-paid drivers while the Government go ahead with cuts to capital gains tax for a tiny few? What is progressive about raising taxes for low-paid self-employed cleaners while the wealthiest families in the country get an inheritance tax cut? What is progressive about raising taxes for plumbers while multinational corporations see their tax bills slashed year after year? What is not fair is £70 billion of tax giveaways for the wealthiest and the corporations while taxes are hiked for middle and low earners. Just because the higher paid will pay a bit more, that does not make it right for the Government to clobber those on low incomes to plug a gap in their finances.

Interestingly, the Government have promised a review, but the tax hike is already scheduled. It may be that there is jam tomorrow on benefits, if one chooses to believe the Government, but who would believe them after they have broken a clear manifesto promise? The Government could not have made their interests more clear in hiking taxes for the self-employed while slashing taxes for the corporations. I quote the Federation of Small Businesses:

“Increasing this tax burden, effectively funded by a reduction in corporation tax over the same period, is the wrong way to go”—

I agree.

Meanwhile, the Government’s small, incremental reforms to business rates fall far short of the radical long-term reform that is needed. They are just trying delaying tactics. Business rates are a ticking time bomb that threatens to destroy many of our town centres. To be frank, this is a Government of the giant corporations and tax avoiders. It is not a Government for workers, not a Government for the self-employed and not a Government for small businesses.

Let me turn to the social care system and yesterday’s announcements. Our social care system is in crisis. I have an anecdote about a constituent I visited last week. She is a young woman who looks after her father, who has had seven strokes, and a mother with dementia. She is trying to hold down a job, but cannot get the care. As a result, she has cut her hours, rendering the income into her family and for her own children extremely tight. It is a difficult situation. That one example from my constituency exemplifies what is happening right across the country. People are suffering in that way in virtually every constituency.

According to the King’s Fund, social care needs £2 billion now just to cope with the emergency. The Chancellor failed to grasp the scale of the crisis. The money announced yesterday amounts to less than a third of what is needed. What I resented yesterday was that it had been trailed in the media that £2 billion was coming, but we were not told until the last minute that it would be over three years. That is nowhere near enough to meet the crisis that people are enduring at the moment. There are now more than a million people, mainly older people and frail people, who are desperate for social care but still cannot get it as a result of the failure to address the emergency we are facing.

--- Later in debate ---

[Sajid Javid]

My right hon. Friend the Chancellor talked about leaving the European Union. In fact, I think that that was one of the first things that he mentioned in his Budget statement. It is a shame that the hon. Gentleman was not listening.

Most important, the success that I have described is being felt in the pockets of ordinary working people, with real wages forecast to rise in every year up to 2020-21. Britain is home to more private sector businesses than ever before, and that is providing more jobs than ever before. We have gone from record-breaking recession to record levels of employment. But of course we are not complacent: there is much more to do. Going on a wild spending spree simply because of improved growth forecasts would be like going down the pub to celebrate the extension of an overdraft. Our focus on sustainable, stable public finances must continue, and the Budget provides for exactly that.

[Mr Reed]

The Secretary of State is lecturing the House on how finance works, but we would like to know more about how it works in his Department. He has denied offering Surrey County Council a sweetheart deal, but the BBC has now published a letter from officials in the Department for Communities and Local Government which shows that they did, in fact, offer Surrey more cash in a unique deal. Did the Secretary of State know about that letter when he issued his denial?

[Sajid Javid]

If the hon. Gentleman had cared to look at a written ministerial statement published on 9 February, he would have seen that it states very clearly that Surrey approached the Department, as do many other councils before a financial statement, asking for more money. It made a request for a business rates retention plan, which was firmly rejected.

--- Later in debate ---

[Sajid Javid]

I think my hon. Friend will understand that it would not be appropriate for me to comment on a particular planning application, but if he would care to furnish me with more information, I am sure that officials in the Department will take a look at it.

[Mr Reed]

Will the Secretary of State give way?

[Sajid Javid]

I will in a moment.

By maintaining a robust, growing economy, we will be well placed to make the most of the opportunities that Brexit will bring. The Budget also allows us to make additional commitments in a number of areas without putting our hard-won economic recovery at risk. The first of those areas is adult social care. The true measure of any society is how it cares for its most vulnerable citizens. Given advances in medical care and an ageing population, many councils have found it increasingly difficult to meet the costs of care in their communities.

[Mr Reed]

Will the Secretary of State give way, on that point?

[Sajid Javid]

I will give way once more to the hon. Gentleman.

[Mr Reed]

I am grateful, because social care was the subject of the correspondence with Surrey County Council. When the Secretary of State issued his denial, was he aware that his own director of local government finance, Matthew Style, had sent a letter to the council offering it a unique financial deal?

[Sajid Javid]

I think I have already answered that question for the hon. Gentleman: there was no deal available to Surrey that is not available to any other local authority.

I have been working on adult social care with my right hon. Friends the Secretary of State for Health and the Chancellor of the Exchequer. The result is a Budget that delivers £2 billion of additional funding for adult social care. Let me be very clear: every single council in England responsible for adult social care will benefit from this additional funding, rural or urban, north or south, Labour or Conservative. To allow councils to move fast so that they can put in place extra social care packages as soon as possible, we will publish the allocations later today. This additional money, front-loaded for 2017-18, will make an immediate difference to people in our communities who need care and support, and it will bring the total dedicated funding available for adult social care in England to £9.6 billion over the course of this Parliament.

I know that this is a novel concept for the Labour party, but more money is not the only answer. This Government are not just dedicated to sustainable economic growth; we also believe in sustainable public services. Demand for adult social care is not about to stop rising, and the challenge of paying for it is not going to go away. The £2 billion announced in this Budget will make a significant difference over the next three years, but the challenge will not suddenly vanish in 2020.

The funding model for the adult social care system is clearly in need of substantial reform and improvement; it has to be made fairer and more sustainable, and we are absolutely committed to doing just that. We are looking at all the options, and later this year we will be publishing a Green Paper setting out a long-term plan that will ensure that proper care is provided to everyone who needs it.

--- Later in debate ---

[Mr Steve Reed (Croydon North) (Lab)]

We are here to consider the Budget that the Government have put forward for the country. I want to speak about its impact on my constituents.

Like the rest of the country, Croydon is experiencing a social care crisis. Older and disabled people regularly visit my office to say they cannot get home care and that they do not get adequate support when they leave hospital. Local charities are telling me that the funding that they need has dried up as well.

After the Chancellor ignored the social care crisis in his autumn statement, we were hoping for better this time. Although £2 billion extra over three years is a welcome start, it goes absolutely nowhere near resolving this crisis. These services have already been cut by £5 billion since 2010. Some 26% fewer people receive help today, even though there are more older people needing such help. The King’s Fund projects a £2.8 billion funding gap every year by the end of this decade, but only £2 billion is being made available over three years, so all I can say to my older constituents and the disabled people who come to ask me what the Government are doing to help them is that the Chancellor has responded to their plight by imposing yet more cuts.

It is galling to see the Department for Communities and Local Government offering Surrey County Council a sweetheart deal that is denied to Croydon and people living in every other part of the country. It is not only Surrey that has this problem to deal with, but every local authority. Every community is struggling with it. I regret immensely that the Secretary of State failed to answer my question about whether he knew in advance about the letter that was sent from his Department to Surrey County Council offering it a sweetheart deal. We need to know whether he knew about that in advance of its being withdrawn. If he was party to it, the House needs to know that that is how he is attempting to operate within his Department and, if he did not know about it, the House needs to know that he has no grip on what his officials are up to. His constant evasion of the question will not suffice. We need answers from the Secretary of State; I am sure that in time we will get them.

Particularly painful to my constituents will be the planned hike in national insurance contributions for the self-employed. Croydon North is one of the most ethnically diverse constituencies in the country. Unfortunately, unemployment is particularly high among many minority communities. Their desire to work and their strong enterprising spirit means that many people from these communities set up their own businesses. Self-employed people work as taxi drivers, van drivers, hairdressers, plumbers, decorators, childminders—all sorts of jobs. They work very long hours, often for very modest pay. In Croydon, well over one in 10 workers are self-employed. It makes no sense whatsoever to clobber them with new tax rises. They need help and support, not further barriers to work.

[Mr Jackson]

So what does the hon. Gentleman say to the respected Institute for Fiscal Studies and the much respected Resolution Foundation, which are today stating specifically that the measures that he identifies are progressive and ameliorate inequality in the tax system between people on pay-as-you-earn and those who are self-employed?

[Mr Reed]

Perhaps Conservative Members, including the hon. Gentleman himself, should have thought about that before they stood for election on a manifesto that said absolutely categorically that there would be

“no increases in...National Insurance contributions”.

It does nothing for trust in politics when politicians say one thing to persuade people to vote for them but then, once they are elected, do the polar opposite. They are helping to further break trust in this House and trust in politics. This is not down to the IFS; it is down to Tory Central Office, the Prime Minister, the Chancellor of the Exchequer and—dare I say it?—the hon. Gentleman himself, if he is going to vote for the proposal. Given all the uncertainty about Brexit—it is shocking that the Chancellor had so little to say about Brexit in his statement—small businesses and the self-employed need reassurances, not broken promises.

I now turn to those in employment, because this Budget has very little to offer them either. Low pay and stagnant wages have become endemic. Most people have seen no growth in household incomes in the 10 years since the global financial crash; indeed, many have seen a real-terms cut. The British economy might be getting richer, but British working people are getting poorer. Ours is the only advanced economy in which wages fell while the economy grew between 2007 and 2015. In Croydon, average earnings have fallen by 7.6% in real terms, and today more than one third of my constituents earn less than a real living wage. So where has the money gone? Who has taken the proceeds of that growth? It is not the vast majority of people in Croydon or across Britain who work around the clock to pay the bills and put food on the table, but the shrinkingly small number of the super-rich whose interests this Government really represent. Wages are stuck and household debt is soaring, but the Chancellor had absolutely nothing to say about any of it.

[Peter Dowd]

Is my hon. Friend aware of today’s Resolution Foundation report that says that the UK is set for the worst decade for pay growth in 200 years?

[Mr Reed]

That is absolutely shocking, but it reflects what we are seeing in our constituencies and what our constituents are telling us.

Once upon a time in this country, there was a covenant between people and Government. People gave their consent to the system in return for a fair reward for the work they put in. There was an understanding that if people worked hard, they would do well. They could expect a decent home, security for their family, and healthcare when they fell ill or grew old, and that if they could not work, they would be looked after with dignity and respect. But today that covenant is broken. The unfairness and inequality that this Government stoke has bred resentment that has catapulted us out of the European Union and over a cliff edge into uncertainty.

[Mr Jackson]

I cannot allow the hon. Gentleman to propagate this myth. The gap between the poorest and richest 10% of our population was the highest that it has ever been under a Labour Government. This Government, I am proud to say, have delivered something that was never delivered in 13 years of a Labour Government: a national living wage to assist the poorest members of our community who are in work.

[Mr Reed]

This Government have absolutely divided the country. They have divided different parts of the country and communities from each other. I will give a statistic that shows how they have done it. Since they came to power in 2010, the 10 poorest councils in the country have experienced cuts 17 times bigger than those faced by the 10 richest. If that is not divisive, I do not know what is. This is happening on top of the fact that jobs have been lost to automation, factories have moved abroad, British people are denied the investment, skills and training that they need to compete in a global economy, and wages are stagnating. The Tories have made all this worse by targeting the poorest communities for the biggest scale of cuts. They have put the greatest burden on the weakest shoulders, and they have done so as a deliberate political tactic.

[Adam Afriyie (Windsor) (Con)]

The picture of doom and gloom that the hon. Gentleman paints is completely disconnected from the reality for people overall. Will he at least acknowledge that those in the lowest quartile have had a bigger tax cut than those in the highest quartile?

[Mr Reed]

We do not need to hear anything about tax cuts from Conservative Members, given that they have just broken their solemn electoral promise not to raise taxes if elected back into government. Only yesterday we saw the Chancellor standing at the Dispatch Box proposing to raise taxes. Conservative Members will have to vote on that, and it will be very interesting to see how many follow it through and how many do not.

The truth is that the Government have divided our country. With this Budget, they are doing absolutely nothing to bring it back together again.

--- Later in debate ---

[Mr Stewart Jackson (Peterborough) (Con)]

It is a pleasure to follow the hon. Member for Cardiff South and Penarth (Stephen Doughty).

The Labour party clearly has a rich vein of irony, as it is masquerading as the friend of the entrepreneur and the self-employed. Perhaps the white van man taskforce will be headed up by the right hon. Member for Islington South and Finsbury (Emily Thornberry), who has great affinity with white van man.

The fact of the matter is that Labour Members must be living on a different plant from the rest of us, because this Budget was actually a consolidation of seven years’ work to rescue this country’s fiscal credibility from the disastrous mess left by the Labour party, including the record peacetime debt that we had in 2010. I also have to say that in my 12 years in the House, I have rarely seen a poorer Budget response than that from the Leader of the Opposition—no wonder his own MPs had their heads in their hands.

[Mr Reed]

rose—

[Mr Jackson]

I will not give way, if the hon. Gentleman will forgive me, as I have to make progress.

If we are talking about honesty and being upfront, even today the shadow Chancellor is quoted as saying that within 100 days of a Labour Government, we would see the end of nuclear power. That is rather different from what was being said two weeks ago in Copeland, when the Leader of the Opposition was saying that nuclear power was safe under Labour.

The Budget also consolidates this Government’s industrial strategy, which is a recognition that many people across our country, particularly outside London, felt that the benefits of globalisation were not flowing to them, and to their communities, infrastructure, towns and cities. It is right that we address that, and this Budget does so. Those people feel that some of the forces of globalisation had passed them by. That is a wider context of Brexit, but because of my departmental responsibilities, I will not go any further into that.

We have also witnessed a jobs miracle over the past seven years. In my constituency there has been record growth in private sector jobs, a drop in the number of NEETs—those not in education, employment or training—and youth unemployment, and an unemployment rate of 1.9% on the last figures, which is the lowest in eight years. We have also seen the highest increase in living standards in 14 years, and an increase in real wages over the last quarter or so. We have cut the deficit by two thirds—it was 10.1% of GDP under the previous Labour Government; it is now 4%. The Government have also tackled key issues relating to the skills agenda, with £500 million for skills. In my constituency, a university technical college is attracting new students. More money—£40 million—is being made available for reskilling and retraining the workforce. The Chancellor is also considering important issues such as infrastructure spending on roads and broadband.

Welfare is certainly an issue that transcends party politics, but I am proud that this Government have worked on the basis that the No. 1 priority for getting people out of the miserable cycle of poverty and welfare dependency is to get them into work. Taking people from workless households and giving them work is massively important if we are to change their lives. It does not help when Labour Members propagate the myth about zero-hours contracts. In any case, people who are on those contracts sometimes make the decision to work in that way themselves. That affects their lives, but it is their choice. In fact, 97.1% of people are not on zero-hours contracts, but we would not know that from listening to Labour Members.

I agree that the social care funding is vital. It builds on the precept that we have already put in place, and on the better care fund. However, in 13 years of benign economic circumstances, the Labour Government did nothing at all about social care. They sold the gold, they ruined our private pension schemes and they racked up record levels of debt.

We are spending serious money—£10 billion by the end of this Parliament—on schools improvement. Labour adopt a levelling-down approach, attacking people who are aspirational and ambitious for their children. They say that grammar schools are awful—that they are what the rich and the middle classes do. Actually, they are about equality, improving people’s lives and reducing those differences. It is about taking people from modest backgrounds and giving them a real stake in their future. Labour Members have always been against that. They have been against share ownership, against the right to buy and against grammar schools. For them, it is all about levelling down and sharing the misery among everyone. That is what socialism is all about.

We are dedicated to improving the living standards of all our people. As Disraeli said, the aim of the Conservative party is the enervation of the condition of the working class, and that is our watchword. This is about social progress. That is why 1 million people will get a £500 pay rise this year as the national living wage goes up to £7.50. The personal allowance has risen seven years in a row. We have frozen fuel duty for working people who need their cars to go to work. We have provided free childcare—[Interruption.] The hon. Member for Cardiff South and Penarth says that we have not, but we are also putting serious money into research and development, broadband and tackling traffic congestion at pinch points.

Of course we have had to make difficult choices. On the specific issue of national insurance contributions, this is about the regularisation and simplification of the tax system, but it is also about social equity and fairness. The hon. Member for Cardiff South and Penarth shakes his head, but the Resolution Foundation has not always supported a Conservative Government’s fiscal measures and yet it is doing so today, as is the Institute for Fiscal Studies. It is interesting that Labour Members should be against fiscal fairness. They are against us making the necessary changes to fund things like social care. I have asked questions to which I have not had an answer from their Front Bench, or from “continuity Blair” on the Back Benches. I like to see the dynamic duo from Ilford, the hon. Members for Ilford South (Mike Gapes) and for Ilford North (Wes Streeting). What we do not have from Labour is a coherent, comprehensive, plausible policy on tax or spending. It is just more tax, more borrowing, and more spending—more debt millstones for our children. That is the Labour party for you.

There are certain things that I would have liked to see in this Budget that I did not, such as more tax on high-strength cider and a higher tax on tobacco. I support the sugar tax. I am not a libertarian—I am a social conservative—and we should reflect the health impact caused by sugar in our diet. Like my hon. Friend the Member for Harrow East (Bob Blackman), I would like more help in the autumn statement on affordable housing to get younger people on the housing ladder. We need to do more on tax advantages for brownfield remediation. We need to put in place extra care facilities for older people, such as through real estate investment trusts. We need more smaller niche house builders to get back into the market and build more homes.

Some schools in my constituency are concerned about the impact of the new education funding formula on their baseline funding. It would be remiss of me not to say that the King’s School and Arthur Mellows Village College are worried about that, and I will be speaking quietly and privately to the Chancellor.

My party is proud of its achievements over the past seven years in turning this country around after we inherited the Labour party’s disastrous legacy. My party believes in social progress, prudent government and fiscal responsibility, and it falls to the Conservative party, as ever throughout history, to build a country that works for everyone.

Equality: Autumn Statement

Steve Reed Excerpts

Wednesday 14th December 2016 Commons Chamber

[Mr Steve Reed (Croydon North) (Lab)]

I congratulate my hon. Friend the Member for Rotherham (Sarah Champion) on securing this important debate, and I am pleased that she referred in her excellent contribution to maternity and paternity leave, because I would like to focus on the plight of parents of premature babies, a group that really is struggling to manage. The autumn statement was a missed opportunity to offer them the better help they need. Although maternity provision in the UK is generally good by international standards, it does not work for parents whose babies are born long before their due date. These tiny babies, born too soon to live without medical support, can be on life support in incubators for weeks, or even months. The parents cannot hold them because they are encased in machinery with wires, tubes and bleeping monitors as they fight for their lives.

Paid maternity leave lasts for about six months, but it is triggered the moment the child is born; there is no flexibility if the baby spends several of those first vital months inside an incubator on a special care unit. That means that the child is doubly disadvantaged, first by being born too weak and frail to live without medical support and with illnesses that can often last for years, and secondly by being denied the full period of time that healthier babies get to bond with their parents. Holding, cuddling and breastfeeding are all vital to a baby’s healthy development, but a premature baby never gets back the time they spend in an incubator.

The stress of watching their baby struggling to live leaves one in every five mums of premature babies with mental ill health, which is another issue that the autumn statement ignored. On average, the parents of premature babies spend an extra £2,000 on the costs of overnight accommodation, hospital parking and eating in expensive hospital cafeterias. For many parents, that is money they simply do not have, and it pushes many into debt that they struggle to get out of afterwards. It is difficult not just for mums but for dads, too. They still only get 10 days’ paid paternity leave, even if their baby is born months early, so at a time when their newborn child is fighting for its life and the child’s mother needs help the most, many dads are sent straight back to work.

Those parents need an extension of paid maternity and paternity leave that takes into account how premature their baby is. There would be a relatively small up-front cost to the Government, but it would save far more public money in the long term by keeping parents in work, helping vulnerable babies to develop more healthily by having that vital time to bond, reducing mothers’ mental ill health and reducing the child’s need for later medical interventions. Of course, the human benefit for families would be way beyond any financial calculation.

I took a group of campaigners and mums of premature babies to share their stories with the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Stourbridge (Margot James), and I look forward to hearing her views on what she heard. I hope that the Government will reflect on the damage they have done to families these past six years and, in this case at least, do the right thing and support parents who need us to do the right thing for them so that they can do the right thing for their families.

The Economy and Work

Steve Reed Excerpts

Thursday 26th May 2016 Commons Chamber

[Mr Steve Reed (Croydon North) (Lab)]

The Queen’s Speech included a local growth and jobs Bill, which is intended to localise business rates, but councils fear that the Government’s approach will be unfair. Given that Ministers have given no indication of how they intend to go about achieving it, we can use only their past behaviour as a guide, and that is very worrying indeed.

The Government’s council funding cuts clobbered the poorest 10 councils with cuts 23 times bigger than those experienced by the 10 richest councils. This year’s £300 million cuts relief fund was gerrymandered to ease the pain in those Tory-voting areas that had suffered the least, while offering nothing to those areas that had suffered the most. It is no wonder that the National Audit Office is investigating that perverse decision.

If business rate localisation is gerrymandered in the same way, it will stifle growth in those parts of the country that need it most, thereby creating more poverty, fear insecurity and alienation.

This is all part of the Government’s ongoing refusal to challenge inequalities of power and wealth right across the society. The social contract that underpinned our society has been shattered. The promise was that if someone worked hard, they would get on, and if they could not work, they would be looked after. Today, however, even if someone works hard, they might not be able to pay the bills or put a secure roof over their family’s head, and if they cannot work, they risk being thrown to the wolves.

There are parts of my constituency in Croydon North where too many people feel left behind because work is insecure and incomes do not cover the basic household bills. Globalisation is certainly creating great innovation, wealth and opportunity, but it is being allowed to leave too many people and their communities behind. It is sharpening inequality, moving populations on an unprecedented scale, threatening the environment and stoking political and religious fundamentalism. Alongside strengthening regulation at the centre, devolution should be used to put real power into people’s hands to challenge the blatant unfairness of the system and to build communities’ capacity to manage those great changes on their own terms.

Just across the river from Parliament stands a newly built tower full of luxury apartments kept empty by foreign investors, while on the streets below there is a housing crisis. What a powerful symbol of just how far we have gone wrong.

Anger is rising across the industrialised world. If people do not have faith that a system is working fairly for them, they will kick back against it. When legitimate concerns do not get heard by the political mainstream, they push towards the margins. As my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith) said earlier, politics is polarising in a dangerous way. People are angry about a political system that is failing them, elites that are exploiting them and wealth and opportunity that are bypassing them; but instead of addressing all that, the Government are fuelling forces that are pushing inequality to breaking point, and the consequences of that will be as dangerous as they are unpredictable.

Productivity

Steve Reed Excerpts

Wednesday 17th June 2015 Commons Chamber

[Mr Steve Reed (Croydon North) (Lab)]

First, may I congratulate you, Madam Deputy Speaker, on your new role? I also add my congratulations to my hon. Friend the Member for Sheffield, Brightside and Hillsborough (Harry Harpham) and the hon. Member for Hertsmere (Oliver Dowden), who made their maiden speeches during this debate. They were incredibly impressive contributions and I am sure the whole House looks forward to hearing much more from both of them over the coming years.

It takes British workers until the end of Friday to produce what a German or American worker has produced by Thursday, and yet British workers work some of the longest hours in the industrialised world. The fault lies not with our workforce, but with a Government who have failed on investment. After 2010, the previous coalition Government choked off investment in infrastructure, which damaged the confidence of the private sector to invest. They failed to reform the banking sector with regional and sectoral banks, so it remained difficult for businesses to secure the investment and borrowing they needed to grow.

The economy is becoming more global and more digital. We need a workforce with the skills to match the opportunities, but instead we have continuing cuts to further education, a failure to recognise the importance of vocational education, and pressure on schools to teach learning by rote instead of the flexible skills that young people need for tomorrow’s economy.

Low productivity leads to low pay, and low pay leads to job insecurity and growing levels of household debt. Just like before the crash, Britain now faces a credit bubble based on an unsustainable housing market. The huge increase of people in work forced to claim benefits to top up poverty pay illustrates just how shaky our economy has become.

It is in places such as Croydon that the Government should be looking to boost productivity. I hope the Chancellor will fully back our Labour council’s bid for a Croydon growth zone by agreeing to the local retention of business rate growth and stamp duty in order to kick-start a £9 billion programme that will create more than 23,000 new jobs, build 8,000 new homes and invest in one of London’s fastest growing tech hubs. Ambitious, creative investment such as that is the first step to higher productivity and a more efficient economy. But we cannot build sustainable economic growth on poverty pay, household debt, low skills and job insecurity. A failure to invest might create a short-term boost in profits, but in the long term it leads to decline.

The Government are planning legislation that will take away workers’ rights. It is a huge mistake to think that the only way to be pro-business is to be anti-worker. Our economy can succeed only if we are both pro-business and pro-worker. Instead of a fresh round of anti-union laws that leave people even more insecure, the Government should give workers a more direct incentive to share in the fortunes of their employer. Workers on company boards and the right to shares in an employer’s business would encourage the workforce to share in the sacrifices sometimes necessary to boost productivity. A bigger voice for workers would allow companies to benefit from the insights of their own employees.

One of the big causes of the crash was a lack of accountability in the banks, which led to cheating and uncontrolled risk. Improving the accountability of firms to their own workforce and customers could help reduce that risk in our economy. Britain has no statutory right to request employee ownership when a company is being dissolved or sold, and we lag behind the rest of the EU in legislating for workers on boards.

It is a crying shame that the Government treat Britain’s workforce as a problem to be contained, rather than a resource to be harnessed. Britain cannot build sustainable economic growth on low productivity, low skills, low pay and low investment. We need the precise opposite to give our people the opportunity to make the most of globalisation and the digital economy.