Autumn Statement Resolutions

Debate between Wera Hobhouse and Matt Western

Thursday 23rd November 2023 Commons Chamber

[Matt Western]

I thank the right hon. Lady for that clarification. She is right but, as we saw through the pandemic, it was local authorities who did so much to make up for the failings of the over-centralised Government, who—through the covid-19 inquiry—we now understand were incapable of getting to grips with the pandemic in our communities. That is why local governance is so important. I will move on to my speech.

[Wera Hobhouse (Bath) (LD)]

On the delivery of net zero projects, does the hon. Member agree that local authorities are well placed to deliver on the ground and that, rather than having centralised delivery, it is much better for them to do that work?

[Matt Western]

I absolutely agree. We should take pride in our local authorities. They understand the landscape and the needs of communities, but they must be properly funded to deliver these essential services. I am afraid that, as with the reinforced autoclaved aerated concrete problem we see right now in our schools—two particular schools, Myton School and Aylesford School, in my constituency have RAAC—we see delays in rectifying problems because the Government have become so over-centralised.

If I may, I will move on to my speech—I am sure that everyone is waiting for it. I am afraid that, in the last 24 hours, we have seen holes beginning to appear in the Chancellor’s autumn statement. There are holes in the claims he made about lowering taxes, holes in its credibility and holes in the public finances, as my right hon. Friend the Member for Hayes and Harlington (John McDonnell) alluded to. For the public, the manifestation of that is probably most often seen and understood through the holes in our streets and on our roads. That is the reality of the decay we face across our country.

What surprises and disappoints me is the Government’s chutzpah and the claim that they are making long-term decisions when just five weeks ago the supposedly cautious Prime Minister and his Chancellor stated that it was “virtually impossible” to make tax cuts. It now seems that the Prime Minister realises not only that has he got an election coming up soon but that he does not have many options, so it is best just to spend some money and run. His five pledges, even, have wasted away—they have reappeared as five long-term decisions. What will we expect next month on his five promises to the country? It is yet another reset—I think we have had 11 already.

As I mentioned in an intervention, we are a year on from the kamikaze Budget, which cost the country an estimated £40 billion—[Interruption.] Forgive me, Madam Deputy Speaker; my voice is quite weak due to a chest infection. At the time, I asked the then Chancellor, the right hon. Member for Spelthorne (Kwasi Kwarteng), whether he had

“not just fired the starting gun on a run on the pound”.—[Official Report, 23 September 2022; Vol. 719, c. 964.]

He was utterly dismissive of my assertion, but of course that is entirely what happened, and that is what we saw on the financial markets within minutes of him speaking. Of course, that translated into higher interest rates, which in turn meant higher interest rates for mortgages, so this year we see 1.5 million households moving off their fixed rates and facing higher mortgage costs averaging a further £250 a month. Next year, we will see a similar number of households moving to higher mortgage costs. That comes at a real cost to households up and down the country.

The Prime Minister talks about inflation being a tax, which is a bizarre way of considering it, but we have to remind the public of why we have such high inflation— he may suggest that he has managed to halve it; he is claiming the success from it, although he did not seem to claim responsibility when it went up—and why we faced higher inflation than the majority of the major G7 nations. The truth is, we still face an inflation premium relative to the United States, Germany, France and all the other major nations purely because of what happened a year ago. That is costing our households and businesses. It is costing us all; and, indeed, it has massively damaged our reputation.

That comes on top of 13 years of austerity and failure, with people really feeling the costs on their lives of the austerity that the Government imposed on us. They see services collapsing around them and feel the fabric of society being weakened by successive Conservative Governments.

As we look at the economy and what was announced yesterday, I am reminded of a photograph that I saw a couple of days ago of the Chancellor and the Prime Minister at a further education college. I do not know whether hon. Members noticed how both of them were trying to hold a screwdriver, but it was almost as if they had never held one before. There is a real need to reskill this country, and we could start with some of the people in power. We have a former Prime Minister who, we are now told, could not understand graphs or data, and therefore struggled to interpret how we should react to the pandemic.

We now face a stagnant economy, as we are told by the OBR and all the balanced economic observers: it was flatlining at just above zero for the last quarter, and we are looking at absolute zero in the current quarter. But somehow the Chancellor wants us to applaud growth rates of 0.7% next year and, possibly, 1.4% in 2025—a huge downgrade on what was forecast earlier this year. The public are being duped by the claims the Government made yesterday that things are rosy and will be positive next year. The public know that they have suffered 13 years of mismanagement, in which the Government have failed to solve the productivity puzzle. I used to work in France, where the average worker is 20% more productive than the UK worker. Why is that? Is it down to employment legislation or the lack of investment incentive in this country? The harsh reality is that we all have to work much harder in order more or less to stand still versus the French.

The Chancellor quoted an aggregated growth figure in his statement, but any credible observer should have looked at growth per head, which is far weaker in the UK than in the US, Japan and Spain, and is fractionally ahead of France. In the real economy, people are feeling the impact of the last 13 years, and particularly the last couple of years. They have less money in their pocket, and the money is not going as far. They are suffering a real-term loss of income. We are told that next year their real-terms income will fall a further 1%. Energy costs now account for a much larger proportion of income, having increased by 50% over the last two years: gas has increased 60% in the two years since 2021, and electric is up 41%. Energy bills have increased an average of 51% versus 2021-22. This was not all necessary. We can talk about global energy price increases and inflationary pressures, but the UK suffered because we did not have the energy storage or resilience, particularly in low-cost onshore wind.

We also have some of the least efficient housing stock in Europe. People have to spend more to keep their homes warm, because their houses are inefficient. The houses built since 2016—1.2 million homes—should have been zero-carbon homes but, because all that legislation was torn up, they are not. Instead, they need more gas and electric, which means higher demand. Without that, total aggregate demand would have been brought down to a lower level.

Let me talk about the predicaments facing students. They face a much higher rate of inflation than the typical UK adult, but maintenance loans have not kept up with inflation. According to the House of Commons Library, there has been an 11% real-terms cut in maintenance loans. That equates to them being £1,200 worse off a year as a result of this Government.

I listened to the Chancellor on this morning’s media round. It was only a matter of time before being economic with the truth would give way to the truth about the economy. He was asked whether there were tax cuts when taxes continue to rise, and about his selective approach to cuts being undermined by stealth and concealed taxes, resulting effectively in higher rates of tax brought on by what economists refer to as fiscal drag. He was asked about the freezing of tax thresholds that will see 7 million people overall paying higher levels of tax: 4 million who have never previously been liable having to pay income tax, and 3 million who have moved from the lower to the higher threshold. His promises on lower taxes are empty, and the public will know that.

Let us not forget that this Conservative Government have imposed the highest tax burden in the post-war period, and the most regressive. The Conservatives like to present themselves as the party of lower taxes, but let us remember that when they came into power in 2010 the first thing they did was increase VAT, from 15% to 20% ultimately—33% up on the most regressive tax of all. There has been a whole raft of other stealth taxes, including on insurance. The public need to know that they face five years of further tax rises.

Let us be clear: the Chancellor is funding these tax cuts by tightening non-protected public services. Given the country’s experience over the past 13 years, the Government’s plans should ring alarm bells, because they sound remarkably like “Austerity II: the sequel.” Given the deep damage they exacted on our communities and our social fabric, that will come with a real social cost.

It would be churlish not to acknowledge a few welcome moves—plagiarism is the most sincere form of flattery. The NHS workforce plan was something that Labour proposed. Planning reform is welcome, but the Government do not seem as ambitious as the Labour party. Elsewhere, I welcome the expensing changes to encourage business investment, but I do not know why it could not have happened earlier, because we have not seen the scale of investment in the UK that we should have seen. On support for innovation and certain developments, I would like to see more, particularly on the role of universities.

The support for the UK automotive sector is particularly welcome for companies such as Jaguar Land Rover, Aston Martin and the myriad supply companies in my constituency. The Government talk about an advanced manufacturing plan, but where has it been for the last few years? They have not had any form of industrial strategy. In fact, the former Chancellor could not even bring himself to use those words when he was in post. I add my support for the Winser report and the rolling out of the grid. It is way too late, but we need to get on with it. It is essential that we electrify the UK economy.

Increasingly, this appears to be a Government without a cause. If they have a purpose, it is as a self-preservation society, as perhaps was exposed yesterday. At their heart is a weak Prime Minister. His King’s speech betrayed a lack of vision and substance; out of ideas and out of road. I am afraid that the public will be underwhelmed by this statement, and by a Government so utterly out of touch. As they say in examinations: compare and contrast the clear direction and purpose of the five missions forged by my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) with the soft, fluid aims of the current Prime Minister.

Overnight, analysis from independent think-tanks such as the Institute for Public Policy Research and the Resolution Foundation has underlined the inequality in the tax burden, where those on the lowest income and those least able are paying disproportionately more under the Conservatives. Overall, the average household faces a £4,500 increase in taxes in the period 2019 to 2028. The Prime Minister and the Chancellor may pat each other on the back, but in this Parliament alone they have presided over a £1,900 tax increase, according to the Resolution Foundation. After 13 years of failure, chaos and mayhem, when energy prices are rising astronomically and food prices dramatically, we now see changes to the tax threshold. The public are really hurting. I am afraid the Government just do not get it.

Amazon Deforestation

Debate between Wera Hobhouse and Matt Western

Monday 7th October 2019 Westminster Hall

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to see you in the Chair, Mrs Moon. I congratulate the more than 100,000 signatories to this petition, because it seems that more and more it is the people outside who bring the most pertinent discussions to this House.

We are having a good discussion. I am happy to acknowledge what a pleasure it is to follow the hon. Member for Huddersfield (Mr Sheerman), and his enthusiasm, which I share, that if we put our mind to it, there are solutions to the climate crisis and we must not be gloomy. We hear increasingly about people who get really depressed about the future, especially young people. That, on top of the challenge that we have, will be devastating if we allow it to continue. The hon. Member for Winchester (Steve Brine) is leaving the Chamber, but it was a particular pleasure to listen to what he was saying.

One of my favourite films is “Monty Python’s Life of Brian”. Hon. Members may remember how, at the end of the film, the committee is still debating and Brian is already on the cross. That is what we often do: we debate and debate, and we do not acknowledge the emergency that is actually before us. I share the impatience of everybody who has been demonstrating today and who will continue to demonstrate outside with Extinction Rebellion.

Like the hon. Member for Cambridge (Daniel Zeichner), I became a member of Greenpeace—more than 30 years ago, in Germany. This is not a new thing. We knew about it, yet what have we done about it? If anything, we will have to justify to future generations the fact that we knew about this. The chair of the Committee on Climate Change said that we have a “moral duty”, because we know what to do about it, so let us do it.

That is the impetus, and that is the response that I would like to see from the Government. There is an emergency. We know what to do about it. Let us not just say, “Well, we have already done quite a lot.” We have definitely not done enough. That is what these debates are all about. I hope that we can find a cross-party consensus on the fact that it an emergency and that we need to do a lot more. It is a massive challenge; young people are reminding us how big the challenge is. We do not want to be depressed about it, but we need to do a lot more.

I must say that I take a slightly grim view of the Brazilian Government. As the hon. Member for Winchester said, deforestation actually slowed down between 2004 and 2014, or 2013—I cannot quite remember the figures—but it is increasing again, which is disappointing. If we could do that between 2004 and 2012, we need to look at why it has gone backwards. These are the questions that we have to ask ourselves.

Deforestation in the Amazon is a global crisis. The Amazon is the largest carbon dioxide sink in the world; it captures and stores a huge amount of CO₂, doing the heavy lifting for all of us in the fight to stop the looming climate crisis. During the summer, reports emerged about the huge expansion of Amazon rainforest fires. Although wildfires are seasonal and play a role in regenerating wildlife, the fires raging in the Amazon rainforest were much larger than usual. If the Brazilian Government continue to ignore the extent of the damage, those fires will pose a serious threat to the Amazon biome.

I understand the argument that it is a bit rich for us to pontificate if we have, in the past, also deforested and if our economies ultimately profit from what is happening elsewhere in the world. However, responsible Governments see that there has to be something like a carrot and a stick, and I think we need to apply a bit of a stick, not just a carrot. We need global co-operation if we are to have any chance of keeping the rise in global temperatures below 1.5° C. If we continue on this trajectory, global temperatures are currently predicted to rise by about 3° C. That is just not acceptable, and we cannot be complacent. If we fail, we will face an irreversible climate crisis, which evidence suggests will destroy ecosystems, cause the extinction of thousands of species and displace much of the world’s population.

This is one of the wider political problems. The climate crisis and catastrophe will affect the world disproportionately. Some countries, particularly in the northern hemisphere, will be okay—Britain will probably be one of them—but what about Africa and the southern hemisphere? If we think globally, and if we believe that we cannot just let other countries sink into the ocean or have intolerable temperatures so that they cannot sustain human life, our response has to be urgent. It is our global moral responsibility to act, and so far I do not think that the Government have really woken up to this emergency.

The only way we can stop this is by everyone, on every level, doing their bit, from individuals to international bodies that represent groups of nations. Brazilian President Bolsonaro, it seems, has so far shown no interest in averting the climate catastrophe or in putting forward some climate action. I will be very political here: he is a populist leader who uses environmental chaos, social instability and economic disruption for his own political gain. He has no regard for the long-term implications of rainforest destruction. It would be naive to think that Bolsonaro turns a blind eye only for short-term financial success. Burning down the rainforests and literally fuelling the climate crisis is consistent with his disruptive political agenda. It matters that we stand up to these populist leaders who seek to divide people, not only for the people of this world but for the planet.

I fully agree with the petition, signed by 122,578 people across the UK. We cannot afford to sit on the fence and let other countries do the work. If the Government are serious about reaching net zero and about preserving our environment for future generations, we must do more now. Liberal Democrat MEPs have been playing a central role within the EU in challenging Mr Bolsonaro’s policy and in working with other EU partners to figure out how to challenge his destructive agenda. I take the point of the hon. Member for Fylde (Mark Menzies) that it is no good only to impose sanctions. However, the European Union, which is usually very good on international co-operation, has proposed this path, and I believe that the British Government should fall in line and do the same and really put some stick into their actions towards the Brazilian Government.

International pressure is the way to build incentives for Brazil to protect its rainforest and step up in the fight against the climate crisis. This is where our membership of the EU is central, allowing us to lead the fight against populism and climate destruction. By promising to leave the EU on 31 October, the Government are recklessly putting the UK out into the cold, where our power and influence will be much diminished. The fight to reach net zero and save our planet for future generations will be the biggest challenge we have ever faced. We owe it to future generations to act and do something now.

[Matt Western]

The hon. Lady makes some powerful points. Does she agree—the point was made by the hon. Member for Winchester (Steve Brine)—that this is almost like a double whammy? It is not just the fact that we depend on these international organisations to oversee and to show responsibility for these challenges, which are multinational, not national, and that leaving the EU will make things so much tougher for us. To underline the point, as the hon. Member for Winchester was saying, it is also about where we see ourselves, and the opportunities and challenges, and perhaps the threats, of doing global trade deals and free trade agreements with countries such as Brazil when we are in a weaker position. There will be a hint of desperation about our trying to strike an early deal with them. We may seek to get exports to them, but are we prepared to take more beef from them, which of course comes at the expense of the rainforest? Does she agree that it is not simply about international organisations but also our future trade arrangements and the power we have or do not have in them?

[Wera Hobhouse]

The hon. Gentleman makes a powerful point. Again, who do we see ourselves to be in the world? Will we support nationalist Governments who, ultimately, when it really becomes difficult, will put up fences, pull up the drawbridge and not let people in anymore, saying, “Well, we are okay; sod everybody else”? Sorry, Mrs Moon.

International solidarity and our humanity demand of us to act globally and not just to do things in our national interest. I have always believed that being a member of the European Union is part of that attitude of being global and thinking co-operatively, not only in our own national interest. Of course, national interest matters, and everybody can discover their national interest at some point, but it is very dangerous to think in that way. We have to solve global challenges globally and be a good global player, and wow, hasn’t Britain been leading the way internationally for so many decades? I have become a proud British citizen because I believe in that sort of Britain, not in a small-minded, narrow Britain.

We cannot get there without global action, and we must respond with one voice when a leader like Bolsonaro fails to take the climate crisis seriously. I hope that the Minister will take on board what has been said so far this afternoon.

Climate Change

Debate between Wera Hobhouse and Matt Western

Monday 24th June 2019 Commons Chamber

[Wera Hobhouse (Bath) (LD)]

The Government’s commitment to the 2050 target is welcome, but we must ensure that that general commitment today is turned into clear interim targets and legislation. There has been a fantastic rise in public awareness of the climate crisis in recent months, and young people have played a vital part in that. It is their future and this is a wake-up call for all of us, with difficult choices ahead. We need to get widespread public buy-in for climate change action. Citizens assemblies are one method that the Liberal Democrats believe could help to achieve that.

Secondly, we need to take a positive co-operative approach when working with the business community, but we must not be complacent. We are relying on business to find innovative solutions to many of the problems we need to solve. We need to replace jet fuel with a carbon-zero fuel, for example. Natural gas, petrol and diesel have no place in our energy future, but we should not be naive about the realities of tackling vested interests. The fossil fuel lobby will probably disagree with our approach.

[Matt Western]

Does the hon. Lady agree that France and Germany are showing ambition on electric vehicle charging points? France has four times the number that were introduced here in the past year, and Germany has 150% more than the UK.

Permitted Development and Shale Gas Exploration

Debate between Wera Hobhouse and Matt Western

Thursday 28th March 2019 Commons Chamber

[Wera Hobhouse]

My home is heated through a community energy centre. That said, I am talking about how the gas is produced. I am saying that fracked gas is a fossil fuel but that there are renewable gas alternatives that we need to explore and invest in, and which the Government should be prioritising.

[Matt Western (Warwick and Leamington) (Lab)]

I commend the hon. Lady for bringing this debate to the House. I appreciate the point the hon. Member for Thirsk and Malton (Kevin Hollinrake) is trying to make, but we have been building an unprecedented number of houses in the last few years, and the 15,000 to 18,000 in my constituency will all have gas boilers. They did not have to. They could have been heated by air source heat pumps, for example.

[Wera Hobhouse]

I completely agree. Getting to carbon zero is a massive challenge and we must start today. We must think about how our new houses should be built, because the retrofitting of these properties will cost even more. All Departments need to put their minds to it.

These problems are not unique to Bath or the UK. We know from the United States that fracking operations can result in the contamination of the water table. The effect is wide-ranging. Sometimes people cannot even drink their own tap water because of the health risk. A report in 2016 by the United States Environmental Protection Agency demonstrated exactly how the hydraulic fracturing fluid used to split the bedrock can contaminate groundwater and release gases displaced by it. Communities across the USA have been forced to try to mitigate these problems. We should not even go there. Why should we risk water contamination?

Added to all this is the amount of industrial infrastructure that will scar our countryside if these proposals are pushed through. Giving permitted development rights to shale gas exploration would in effect remove the control that local authorities usually have over the planning process.

Automated and Electric Vehicles Bill

Debate between Wera Hobhouse and Matt Western

3rd reading: House of Commons & Programme motion: House of Commons & Report stage: House of Commons
Monday 29th January 2018 Commons Chamber

[Matt Western]

It is. It is about motivating and encouraging change through consumers.

I would like to move on finally to electric bikes and mobility vehicles. That might seem like a less glamorous or glossy sector of the market, but we have some terrific bike manufacturers in this country. We have Pashley and Moulton, and Brompton here in London. Brompton’s first e-bike is about to roll off the production line. However, our sales of electric bikes are way behind those of other countries. We are something like seventh in Europe, with 5% of its total sales, way behind Austria, Italy, France, Belgium, the Netherlands and Germany. Germany has 36% of the total sales for Europe.

In 2016, the city of Munich started a subsidy scheme for electro-mobility that includes electric bikes. The subsidy for the purchase price is granted to private companies and non-profit organisations, with a contribution of, say, €500 for electric bikes or €1,000 for electric cargo bikes. In Sweden, there is a 25% Government subsidy for all e-bikes until 2020, which has led to a 50% surge in electric bike adoption in the country. It has been hugely successful in the past 12 months, and that shows what leadership can do to change consumer behaviour, which the right hon. Member for South Holland and The Deepings referred to. The same thing applies to commercial vehicle fleets, whether they be for haulage or local delivery.

I urge the Government to adopt new clause 3, which is simple and straightforward. It puts forward a framework to identify all the vehicle sectors that need to be considered, so that we ensure that they are very much in the front of our minds.

[Wera Hobhouse]

I shall speak to new clause 2, which I tabled. We have already had a good discussion about making it as easy and quick as possible for consumers who are considering buying electric vehicles to do so. That is why I very much encourage the Minister to reconsider whether new clause 2 should be included in the Bill.

Let me set the scene for this urgency. Air pollution in the UK is a big killer, contributing up to 40,000 deaths a year and costing the NHS £15 billion. As a country, we have been slow for a long time to comply with EU limits on pollution. We have been very slow at tackling high levels of pollution in the past.

These issues are incredibly relevant to my constituency. Bath is officially one of the most polluted areas in the country. Bath and North East Somerset was named among 29 local authority areas with high levels of nitrogen dioxide. According to the council’s own data, 92% of air pollution in Bath is caused by traffic. The swift take-up of electric vehicles is therefore very important.

I welcome the Government’s proposal to create universal charging points, which was also a Liberal Democrat manifesto commitment. However, as we have said several times, the Government should be more ambitious. The Bill must go further to ensure that it is as convenient as possible for people to own electric cars and to help consumers to make decisions that will benefit the environment and, particularly, public health.

New clause 2 would give the Secretary of State the power to make regulations requiring owners and operators of certain public facilities to work with local authorities to provide public charging points and to ensure that public charging points are maintained and easily accessible to the public. Again, a number of points have already been made about why local authorities have not picked up voluntary schemes. I believe that the carrot and the stick is the right approach, and I again say that the Government must consider using a little bit of stick.

The Bill allows the Government to regulate petrol stations and motorway service stations to provide electric charging points. The new clause would ensure that people with electric cars could easily charge their cars on shorter journeys as well as when travelling longer distances. I am considering whether I should buy an electric vehicle, but I do not fancy sitting around for eight hours in a service station on the motorway to charge my car.

Local authorities should have powers to require new commercial and industrial developments to provide electric charging points and, for example, to pilot the use of lamp posts as charging points in residential areas where homes do not have driveways. All this is about encouraging creative ways of making sure that charging our vehicles is as convenient as possible and increasing take-up among people who want to acquire electric cars.

If the Government are serious about reducing transport emissions, far more radical measures will be needed, but this Bill is a step in the right direction. I believe that new clause 2 would improve the Bill even further.