Energy (oil and gas) profits levy
Debate between Tulip Siddiq and Jonathan Gullis(1 year, 5 months ago)
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Tulip Siddiq (Hampstead and Kilburn) (Lab)
This week, we have heard lots of statistics and figures flying around. The OBR has estimated that real household disposable income per person will fall by 7% over the next two years. That is the biggest fall on record, taking incomes down to 2013 levels. We have heard that our tax burden is set to rise by around £30 billion more than originally forecast in March. It is the highest level since world war two. We have heard about inflation rising to 11.1 %, a 40-year high, with food prices rising by a staggering 16.4% in the year to October.
Just for a minute, I want to explore what these statistics and figures mean in practice to our constituents and to hard-working people across the country. They mean that a single mother on the South Kilburn estate in my constituency cannot afford to buy a Christmas present for her child. They mean that a hard-working nurse in my constituency who is already struggling to make ends meet and cannot afford her energy bills will be paying more tax. They mean a young carer who is already skipping meals because she cannot afford to eat will fall into more debt and may be pushed into the arms of unethical, unsecure credit loans. In all honesty, can Conservative Members really tell me that the measures outlined in their autumn statement will help vulnerable people such as those in my constituency? Do they think it is fair that my constituents have to bear the brunt of a Tory economic crisis that was built in Downing Street? I am sure the Minister and other Conservative Members will say—
Jonathan Gullis
In Labour’s plans, are there any plans for any tax cuts and, if there are, where are they?
Tulip Siddiq
I am not quite sure what the hon. Gentleman means. Of course we need more oil and gas, but we have said clearly that we should make fairer choices and tax those who say that they have too much money as excessive profits. That is what we are saying, and the hon. Gentleman needs to listen carefully. Labour would also have ended the VAT exemption for private schools, which would raise £1.7 billion every year. That would have been a fairer and more effective way of fixing the Tory economic crisis and bringing the deficit down, instead of pushing the burden on to hard-working families.
Tulip Siddiq
I am afraid the hon. Gentleman has already had his chance.
What worries me is not just that the Government are failing to adopt fair and straightforward measures to fix the mess they caused, but the fact that there is no plan for growth. I was shocked to hear the Minister say how one of the principles is a plan for growth, because I heard nothing in the autumn statement about growth. We have heard from Conservative Members—I know they will keep repeating it—that this is due only to global factors.
Tulip Siddiq
I am not sure there was a question in that intervention. I thank the hon. Gentleman for his patronising lesson, but Labour Members do not need it. After 12 years of watching the Tories destroy the economy, I am afraid we do not need lessons from Conservative Members.
I am sure we will hear a lot today from Conservative Members about how only global factors are to blame for this country’s stagnant growth, but that is shameless. Everyone knows that Britain’s problems started long before covid, and long before Russia’s illegal invasion of Ukraine. Instead of endless Tory excuses, the public deserve an apology for being made to pay for the Government’s last Budget, which sent mortgage rates spiralling, and for 12 years of economic crisis from the Conservatives, which has left the UK completely exposed to external shocks, with inflation sky-high, wages stagnant and living standards in freefall.
When Labour was last in government—since the hon. Member for Newcastle-under-Lyme (Aaron Bell) mentioned it—the economy grew by an impressive 2.1%. Since 2010, under the Conservatives, growth has been 1.4%. Conservative Members speak about educating the Labour party, but perhaps they should educate themselves.
The Governor of the Bank of England told the Treasury Committee last week that the US economy has grown by 4.2% since the pandemic, and the GDP of eurozone countries is 2.1% higher, yet the UK economy is 0.7% smaller than at the start of the pandemic. Let us not just blame global factors. We are not performing well as a country, and let us be under no illusions: this Conservative economic crisis has been 12 years in the making.
After over a decade of stagnation, we are not recovering. Guess what? We are heading into a recession. This morning the OECD published its projections—these are not my projections but those of the OECD. First, it believes that the UK will have the lowest growth in the G20 over the next two years apart from Russia. Secondly, the UK is set to be the only OECD economy that will be smaller in 2024 than it was in 2019. Finally, it shows that we are the only G7 country that is currently poorer than it was before the pandemic.
Labour has a serious long-term plan to get our economy growing again, powered by the talent and effort of millions of working people and thousands of businesses. At the heart of that is our promise to invest in good jobs in British industries through our green prosperity plan. From the plumbers and builders needed to insulate homes, to engineers and operators for nuclear and wind, we will make Britain a world leader in the industries of the future, and ensure that people have the skills to benefit from those opportunities.
We are also pushing forward with our start-up review, which will untangle the problems holding new firms back, and help to make Britain the best place to start and grow a business. In government we will strive to fix business rates, and replace them with a fairer system that is fit for the digital economy and does not put our high street businesses at an unfair disadvantage. Our modern industrial strategy will support the sectors of the future, and an active working partnership with business. Finally, we will fix the holes in the Government’s failed Brexit deal so that our businesses can export more abroad.
Businesses across the country are supporting Labour’s plan for growth. [Interruption.] The hon. Member for Stoke-on-Trent North (Jonathan Gullis) is chuntering from a sedentary position, but he would do well to listen to the chair of Tesco, John Allan, who said that Labour is the only party with a plausible growth plan. The Federation of Small Businesses, which has endorsed our plan to fix business rates so that our high streets thrive, has warned that the Tories’ plans in the autumn statement were high on stealth creation but low on wealth creation.
Tulip Siddiq
The hon. Gentleman has had plenty of opportunities—no more giving way.
The Government’s failure to make fair choices and grow the economy has seen our public services starved of the resources they need. Not only have Conservative policies been bad for people who rely on public services; they are also economically illiterate. Weaker public services mean a weaker economy. As the OBR has set out, rising long-term sickness and a backlog of 7 million people waiting for NHS treatments is a toxic combination. It all adds up to a labour market that is more dysfunctional than at any time in recent history, with hundreds of people out of work because of long-term sickness under this Conservative Government.
Tulip Siddiq
I hear the hon. Member chuntering, “Why does that matter?” It matters because people send us to this House to be their voice, and we are meant to represent the everyday struggles they face. If politicians do not know about the everyday struggles of the NHS, because they have never had to wait in A&E for 24 hours with their child, or hold on to the phone for six hours to get an appointment, they do not know what the NHS needs.
Pothole and Highway Repairs
Debate between Tulip Siddiq and Jonathan Gullis(3 years, 6 months ago)
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Jonathan Gullis (Stoke-on-Trent North) (Con)
I beg to move,
That this House has considered Pothole and Highway Repairs.
Potholes drive us potty in the Potteries. There is a legacy of decades of under-investment in our roads by previous administrations of Stoke-on-Trent city council and the current Conservative administration are running up a down escalator to get them fixed. They are running very hard. Levels of investment in our roads have shot up, and the council is investing £5 million a year in the current four-year period, which is absolutely pushing to the limits of the budget available.
The sad fact is that even when we spend pretty much everything we have available for our roads, the city lacks the council tax base, the parking surplus and, crucially, the Government grants that other cities enjoy.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
I wish to raise the dangers to pedestrians of poorly maintained pavements and roads and to give the hon. Member an example of a constituent who lives in sheltered housing, who contacted me after tripping on an uneven pavement and ended up with a black eye and a sore hip. I am pleased to say that the pavement was fixed within 24 hours of our raising the issue with Brent council—which has just won the Local Government Chronicle “council of the year” award—but does the hon. Member agree that when councils have had their budgets cut by £16 billion over 10 years there will inevitably be a focus on dealing with emergencies rather than maintenance to prevent them?
Jonathan Gullis
I am very grateful to the hon. Lady for her intervention. I agree that where local authorities have seen funding cuts, sometimes it is right to question whether or not we went too far. Certainly with road, highway and pavement repairs, there are questions that need to be answered, because I have very similar casework coming in from constituents in Stoke-on-Trent North, Kidsgrove and Talke. This is one of those problems that can be very easily and quickly fixed, but, sadly, when we have to keep replying to constituents to say that resources are as stretched as they are, sometimes they do not necessarily understand how severe the situation is. So, I completely concur with her.
The reason for that situation is that the current funding formula works against us. The need to address that unfairness is the reason why I applied for this debate. This is a debate in Westminster Hall, and I think that most people would agree that the roads in Westminster, if congested, are in good order. So I looked at what Westminster City Council has available to spend on keeping roads well maintained, and I was staggered to see that in parking surplus alone, the City of Westminster enjoys some £70 million a year—talk about the need for levelling up.
The figure for the city of Stoke-on-Trent is barely 1% of that figure—around £700,000 to £800,000 per year—and in my constituency there is no room to increase parking charges without reducing visitor footfall. Perhaps if we relocated the National Gallery to Burslem or the Royal Opera House to Tunstall, there would be room, but I recognise that for the immediate future this is a quite a big ask. For now, we are much more likely to be competing with comparable cities in the midlands such as our great friend and rival to be the UK city of culture, Coventry. Even there, according to a freedom of information request reported in the Coventry Telegraph, a £700,000 annual parking surplus is secured from the single most lucrative of Coventry’s car parks.
We cannot match that, so I was delighted that the Department for Transport awarded Stoke-on-Trent a one-off £6 million highways challenge fund grant for the current financial year—that is to say that I was delighted by the £6 million grant, but I would be more delighted if it was not a one-off.
As I have said, there is not an option to increase road repair funding further locally from either parking surplus or council tax. We have, I understand, the lowest council tax base of any city other than Hull. We are more than doing our bit by squeezing every penny we can from the city’s limited local budget into roads, but we need more money. Of course, the Government recognise that, and the Minister will be as determined, as I am, to unlock the transforming cities fund money promised to Stoke-on-Trent.