(1 year ago)
Commons ChamberListening to the Chancellor today, one would believe that the economy has turned a corner and the cost of living crisis is over. The truth is that after 13 years of economic failure, millions of people are struggling to make ends meet. Some of the comments we have heard from the Government Benches show just how completely divorced the Government are from the reality of working people’s lives.
We hear heartbreaking stories every single day from our constituents about how they skip meals to pay higher bills, with the price of food up 30% in the past two years, electricity up 40% and gas prices up 60%. We hear how they are struggling with the highest tax burden this country has seen in 70 years. The freezing of current thresholds has confirmed an additional 4 million of the poorest in society will now pay income tax by 2029. We hear from constituents worrying about where to find the money to pay their mortgage, to avoid having to sell their family home due to the reckless actions of this Government. Millions continue to pay the price of the Tory mortgage penalty. Working families will see an average increase of £220 a month in mortgage costs because of Tory economic failure and 1.5 million households are also set to suffer as they re-mortgage their deals next year.
I think the right hon. Gentleman is trying to absolve himself of the fact that it was his former Prime Minister and Chancellor who crashed the economy of this country. He just needs to go to his constituents and, I tell you what, they will provide him with the answer at the next election.
The OBR revealed today that household incomes will still be 3.5% lower next year in real terms than before the pandemic hit. To put that in context, it is the biggest hit to living standards since records began, as my hon. Friend the Member for Hemsworth (Jon Trickett) neatly summarised in his speech. My hon. Friend the Member for Wallasey (Dame Angela Eagle) brilliantly articulated, as she always does, the biggest insult to working people, which is that in return for their hard-earned contribution, their reward is crumbling public services. The Conservatives’ mismanagement of the economy has left our public services on their knees, with people unable to get hospital appointments and waiting lists 7.8 million people long.
According to the latest IMF forecast, if people have not seen it, the UK will have the slowest growth in the G7 next year. Today, we learnt that growth in the economy has been downgraded not only for next year, but for two years after that. As British people already know, the promises made today cannot compensate for the damage that has already been done. The measures announced today are equivalent to handing back £1 for every £8 of the Conservatives’ tax increases in 2019 alone. The freeze in the personal allowance threshold means that a couple on an average wage will still be £350 worse off per year, even after all of today’s announcements. After 13 years of economic failure, the Chancellor is asking people to be grateful and telling them that their lives will suddenly improve, despite the Government’s continuing to make them worse off. So the question is this: do people feel better off today than they did 13 years ago? I think our constituents know the answer.
Before I sum up the powerful contributions to the debate that we have heard from the Labour Benches, it would be remiss of me not to welcome the hon. Member for—[Interruption]—the hon. Member for Hitchin and Harpenden (Bim Afolami). Excuse me for forgetting, but he is the fourth Economic Secretary I have shadowed in two years. I know he is an ambitious young man, but he will have a very hard job trying to get the title of the most charismatic Economic Secretary I have shadowed so far. The right hon. Member for Salisbury (John Glen) has earned that. I shall watch the new Economic Secretary to see how he performs in his job. If there are any words of wisdom he wants from me, he is welcome to contact me. I hope he lasts longer than his predecessors.
I am grateful to my Labour colleagues for their important contributions. My hon. Friends the Members for York Central (Rachael Maskell) and for Hackney South and Shoreditch (Dame Meg Hillier) rightly talked about the huge demand for social housing. Private renters are paying the price of Tory failure, along with mortgage holders. My right hon. Friend the Member for East Ham (Sir Stephen Timms) rightly argued that we need to go further on the consolidation of defined contribution pension funds and questioned whether the Government are rushing their reform of work capability assessments. My hon. Friend the Member for Hornsey and Wood Green (Catherine West) gave an important speech on the complete failure of the Government to strengthen adult social care. My hon. Friend the Member for Stockton North (Alex Cunningham) powerfully raised the plight of rising child poverty and once again raised the need for a hospital in his local area.
A Labour Government will always prioritise supporting working people. We will deliver an ambitious plan for growth that meets the scale of the challenge that we face—to turn around the UK economy. Labour will get Britain building again. We will deliver a robust industrial strategy on a statutory footing that will in turn deliver high-skilled, high-paying jobs across the country. We will close unfair tax loopholes to ensure that we can support our schools and hospitals with the investment that our people are crying out for. We will scrap the non-dom tax status loophole, which costs the Exchequer £3 billion in revenue. That money will help us to reduce the NHS waiting list and provide free breakfast clubs for all children of primary school age.
Labour is leading the charge on unlocking investment in high-growth firms. Through our national wealth fund, a Labour Government will work in partnership with industry to deliver the investment that our businesses need to scale up and deliver growth across the economy. We will empower industry to invest, alongside our Labour Government, in the industries that are crucial to Britain’s success, such as hydrogen, electric battery factories, wind and nuclear, and we will do so in a way that meets our fiscal rules. We will set the fund a target to ensure that for every pound that Labour puts in, we leverage three times as much in private investment. That is because we believe in growing the economy. We want to raise living standards, and we will fund our public services better.
The Tories have claimed that they have a plan for growth, but forecasts are down. They claim to be reducing debt, but it remains at record levels. Despite their claim to be reducing taxes, the tax burden will be the highest since the war. After 13 years of failure, this Government cannot deliver a serious plan to address the fundamental challenges faced by our constituents and the country. All they can do now is take their record to the voters, and call a general election.
(2 years ago)
Commons ChamberI will make a bit more progress, but I will come to the Members in a minute. I am happy to take interventions.
We of course welcome that, after months of kicking and screaming, the Government have decided to adopt Labour’s policy of strengthening the windfall tax on energy giants, but they are still leaving billions of pounds on the table by giving a tax break to companies drilling for new polluting fossil fuels. Labour would have raised over £10 billion more—£10 billion, at the time of a cost of living crisis, is an enormous amount—over the next three years than the Government’s proposal by closing that unfair loophole, taxing oil and gas at the same level as other countries such as Norway and backdating the tax to January of this year.
(9 years, 5 months ago)
Commons ChamberI rise to support amendment 11.
I congratulate the Government on having the good sense not to press ahead with their proposal to hold the referendum on the date that they had set out. That shows that they were listening and I urge them to continue in that mindset.
I will be very brief because I want to make only three points in this debate. First, it is unseemly at best for the Executive to exempt themselves from the legal, electoral and constitutional arrangements that they find inconvenient during any electoral process. We had the period of purdah during the Scottish referendum. The arguments that have been made sound like the arguments of civil servants and lawyers that Ministers have been too keen to listen to. Under the full glare of scrutiny in this House and in the media, those arguments have sounded increasingly self-serving.
Secondly, there is a reason why we have purdah: it is to prevent the Government of the day from affecting the independence or fairness of any electoral process and from using the machinery of government to do so by spending taxpayers money, using the press or using other resources that are available to them. The fear is that the Government at all levels—central and local—could use taxpayers’ money to support one side of the debate, potentially changing its course. The precedent that that would set in this country would be extremely unfortunate. We require the independence of the civil service and the government machine to ensure that our electoral process is not interfered with unduly.
My third point is about the perception or optics of this matter. After any referendum, particularly one that, as we know from previous debates on Europe, will arouse great passions on both sides, we require the result to be regarded as fair, reasonable and legitimate if there is to be any chance of the country coming together on the issue once the voters have spoken. If people believe that they have been bounced or that the result is the consequence of a rigged process, it will be extremely difficult for the country to come together, and the political consequences will be intense. It must be seen that the legitimacy of the process is related to the fairness of the process. That is what is being put at risk by the Government’s proposals.
It is clear from the letter that came from my right hon. Friend the Minister for Europe earlier today that the Government recognise that they will have to make changes to their proposals in the Bill. There are two ways of doing that. The Government can either remove the current restrictions, as they have in the Bill, and set out their own code of conduct on Report—in other words, tell the House what they will be able to do—or accept amendment 11, return to the legal status quo and ask the House on Report what exemptions they should be permitted to have. There are crucial differences between those two processes. The first suits the Executive and allows them to dictate the terms to Parliament in respect of what they want; the second asks that Parliament be given due respect and be allowed to set out the exemptions that it believes are acceptable.
I have not once, in 23 years in the House of Commons, voted against my party on a whipped vote. I urge my right hon. Friend the Minister for Europe not to force those of us who are in that position to take an alternative course tonight.
It gives me great pleasure to make my maiden speech during the Committee stage of the European Union Referendum Bill—a topic that is close to my heart and the hearts of my constituents in Hampstead and Kilburn. Indeed, this topic cropped up frequently in the 22 hustings that we had during the election period and was raised by many people. It is indicative of the debate that goes on in my constituency and of the highly engaged residents in Hampstead and Kilburn—a constituency that I am so proud to represent here at Westminster.
What can I say about my constituency, with its deep history and its intellectuals—the melting pot of cultures and ethnicities that is Hampstead and Kilburn? I do not believe that any other constituency has the radical background that we have in the arts, social awareness, politics, architecture and poetry.
We are home to one of London’s paradises of walking and swimming. We welcome all political leaders who want to take a walk on Hampstead heath and meet fellow walkers. [Laughter.] Many years ago, two leaders of literature, Samuel Coleridge and John Keats, took a famous walk on Hampstead heath, where they discussed a thousand different things. Perhaps if they took a walk today, instead of talking about metaphysics and nightingales, they would talk about econometrics and the blue bird of Twitter—indeed, about Milifandom and the Cameronettes.
We are proud to have housed George Orwell when he wrote two of his most famous books: “Nineteen Eighty-Four” and “Animal Farm”. He was down and out in both Kilburn and Hampstead. As someone who raised the importance of privacy, he might turn in his grave at the knowledge that there are now 32 CCTV cameras within 20 yards of the very room in which he wrote “Nineteen Eighty-Four”.
As a constituency that has elected a female MP for 23 years, we are proud that we once housed Marie Stopes, who pioneered birth control for women in the aftermath of world war one. Even today, my constituency nurtures the likes of Bradley Wiggins, Mitchell and Webb and Zadie Smith, but for me, the most important part of my constituency is the resilience of the people who live there—the teachers, the doctors, the nurses, the public sector workers, the trade unionists, the small business owners and, yes, the bankers and lawyers as well.
Those are the people who, in 1966, caused national shock by electing a Labour MP in the form of Ben Whitaker. They turned that blue-stained seat Labour. Ben Whitaker was a man who showed the world that Hampstead is part of a London where affluence and social conscience go hand in hand. Ben Whitaker’s time in the House was important but, for me, what really stands out is the work he did in raising international awareness of the plight of Armenians, and the support he gave to a war-torn Bangladesh in the 1970s.
In 1992, my constituency decided once again to go against the blue national tide and elected my predecessor. What can I say about her? A woman in love with social justice. A lady with more than just a touch of class. Glenda Jackson, the queen of Hampstead. I remember her fervent opposition to the Iraq war, her powerful rhetoric against tuition fees and her advocacy of women’s rights. Perhaps her most dramatic moment was when she stole the show by defying all the bookies and winning the seat for Labour by just 42 votes in 2010. I am pleased that her formidable Conservative opponent now sits on the Government Benches as the hon. Member for Croydon South (Chris Philp), but not as the hon. Member for Hampstead and Kilburn.
On 7 May this year, my constituency elected the daughter of a political asylum seeker. My mother came to Kilburn in the 1970s because 19 members of her family had been assassinated at home. My mother and my aunt were the two surviving daughters of the founding father of Bangladesh. I am pleased to say that they are in the Gallery today, listening to my maiden speech. [Hon. Members: “Hear, hear.”]
My mother came to Britain because this was a safe haven for her. Her story tells us that immigration is not simply an economic phenomenon. Britain has been seen for many years as a safe haven for political freedom. We must not let that slip away. An ill-conceived net migration target that includes refugees and asylum seekers is, frankly speaking, immoral, and it should put us to shame.
In my constituency we have shown our welcoming attitude to migrants from Ireland and to refugees fleeing political persecution in Nazi Germany. I am proud to say that that tradition stands today in Salusbury World, the only refugee centre to be based in a primary school. In my constituency of Hampstead and Kilburn, we recognise the link between aspiration and immigration. We recognise that public services will be put under pressure because of a larger population. We recognise that housing will be put under pressure, but we still recognise the benefits of immigration, and how it enriches us.
We believe that the Government should be able to take the benefits of immigration and ensure that it translates into prosperity. We think the Government should be able to maintain standards in housing and public services. Think about this: 46% of constituents in Hampstead and Kilburn are foreign-born. Without an open door to immigration, we might not have Hampstead and Kilburn. If we want Britain to remain open for business, we cannot shut the door of the shop.
My fear is that the EU referendum will become a proxy referendum on immigration. Both topics require a cool head and a moral compass. I believe that Members on both sides of the House need to work together to ensure that we give people the right choice to make the right decision when it comes to voting in the EU referendum.