Jobs and Business

Debate between Steve Reed and Rushanara Ali

Friday 10th May 2013 Commons Chamber

[Rushanara Ali]

I could not agree more with my hon. Friend. The crux of the matter is that the economy is flatlining and there is no prospect of people having a chance to get a foot on the employment ladder. Such opportunities as are available are too few. We need an economy that can grow and a Government who can act as quickly as possible to boost demand and reverse the trend we have seen. We need more genuine training and employment opportunities, particularly for young people.

I raised with the Business Secretary the issue of graduate unemployment, as this is another pool of talent that is being wasted in our country. I was the first in my family to go to university and many in my constituency are in the same position. They have worked hard, played by the rules and just want to make a contribution.

[Mr Steve Reed]

Has my hon. Friend noticed that the Secretary of State for Work and Pensions likes to claim that his benefits cap is responsible for the number of people moving off benefits into work, yet he does not comment on the fact that roughly the same number of people are moving out of work and on to benefits, with both those aspects being part of the usual cyclical change? His interventions have made not a blind bit of difference to any of that.

[Rushanara Ali]

What can I say? The Secretary of State made some interventions earlier, but they provided very little room for optimism. We need to look at how people’s everyday lives are affected by these issues. As I was saying, in my constituency, graduates, school leavers and those who have left further education just want an opportunity. They want this Government to answer their needs, but that is what is failing. Whatever our political leanings and whichever parties we happen to be in, the critical thing is to get people into work so that they can make their contributions. The fact that that is not happening is the Government’s failure, and they need to take responsibility for it and think again about their policies, which are not working adequately.

Let me deal in more detail with graduate unemployment. In a constituency such as mine, numerous family members are coming out of university, often having been the first in their families to have gained degrees, but they are often struggling to get into work. Despite some major economic opportunities around the City and Canary Wharf, there is a mismatch between people’s potential and their skills and the opportunities to get into those institutions. I believe the Government could do more to support graduates and those leaving further education by making it easier for them to make the transition into those institutions that are traditionally not easy to enter—financial organisations, the creative industries and many other sectors in our city. The cost of graduates being out of work and claiming benefits when they could be making a contribution and lifting their families out of poverty is an example of the missed opportunities. Taking action to deal with that could provide an easy win.

I therefore hope that the Business Secretary will think again about how to get a large number of graduates back into work, as they get very little help when they leave university to make that transition. Graduate unemployment among those from working-class or ethnic minority backgrounds is disproportionately higher than it is for other groups, but it is a real struggle for all graduates. I ask the Secretary of State for Work and Pensions to think about this issue and to highlight in his response whether he has any proposals to deal with it.

I should like the Government to think again about whether they have set the right priorities in giving tax breaks to millionaires at a time when working families are losing so much as a result of the changes that they are making. It is proving incredibly difficult for those families to make ends meet, and to pay for such things as child care and heating. The increasing number of people who are going to food banks in constituencies all over the country shows just how much they are struggling.

It is strange that the Government have stuck to their commitment to give tax breaks to millionaires rather than, for instance, introducing the mansion tax on which the Business Secretary was so keen before the election. I hope that he can persuade his colleagues in the Conservative party to take on board an excellent policy idea, which is supported by both my party and his. It would raise additional revenue and help us to meet some of the vital challenges that we face, especially in relation to getting people back to work.

As some of my hon. Friends have already pointed out, a temporary cut in VAT could help to stimulate the economy. When we were in power, there was evidence that a VAT cut could make a significant difference by boosting consumer demand. We desperately need to establish ways to stimulate demand in the economy. The Government should think again about how to generate growth and create jobs. That is not happening, and it has been not happening for too long, despite the promises that were made in 2010 and despite all the forecasts—which, thanks to the Government’s policies, have turned out to be wrong.

I want to make two points about the impact of unemployment on women in particular. The unemployment figures highlight its disproportionate impact on women, and the position is worsening. The Government’s attempt to water down the powers provided by the Equality Act 2006 is very worrying, given that in the current downturn the impact on ethnic minorities and women is greater than ever before. We need organisations that can ensure that those unequal impacts do not become even worse, and I hope that the Government will think again about their strange decision to water down the powers of the Equality and Human Rights Commission.

The pay gap between men and women—as well as the fact that women are more likely to lose their jobs and remain out of work—is deeply worrying. I hope that the Secretary of State for Work and Pensions will tell us what his Department is doing to address the real concern that is felt about the effects of that on women.

The content of Queen’s Speeches is ever-diminishing, and this year’s is particularly disappointing. It is clear that the Government have run out of ideas and energy in just a few years. My constituents, and constituents throughout the country, desperately need a plan for jobs, a plan for growth and a plan for economic recovery, none of which the Government are providing. If they cannot be bothered even to come up with a decent legislative programme in the Queen’s Speech, we have to wonder why the public should trust them to restore our economic future and create jobs and growth. I hope very much that the public will see through the Government and their failure, in these very difficult times, to understand and respond to their needs and to the fact that they are struggling.