Finance (No. 2) Bill

Wes Streeting Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 21st February 2018 Commons Chamber

[Rachel Maclean]

I appreciate that we are all concerned with driving equality across the country, but the Government clearly differ from the Opposition on how to achieve that. I am proud to be part of a Government who are one of the most progressive we have seen. Our record speaks for itself. It is not about slogans and words; it is about real progress and real change in people’s lives. That is what the Conservative party cares about. Labour Members would like us to introduce a review for every provision in the legislation. It is clear to Conservative Members that this already happens. The Treasury already publishes the impact analysis of these policies.

[Wes Streeting (Ilford North) (Lab)]

The simple fact is that the Treasury does publish the distributional analysis alongside the Budget. To the Chancellor’s credit, he brought that back in after his predecessor had decided that it was not politically convenient. The Treasury does not, however, do a breakdown of the Budget’s impact along a whole range of protected characteristics defined by the Equality Act 2010. New clause 9 would address that. The Government do not currently do this analysis, but as Conservative Members seem to be saying that the Government do already do it, they will have no trouble voting for the new clause, will they?

[Rachel Maclean]

I return to the point that we are already publishing the analysis. The Treasury is working on looking at the impact of the policies across a whole range of levels.

My main argument is that we need to look at what the Government have already delivered. As I said to my hon. Friend the Member for Faversham and Mid Kent (Helen Whately), more women are in work under this Government. That is real change. Those women have been able to get into work because of the wide variety of policies that we have introduced including childcare, help to get into work and retraining at all times of life.

We have seen a massive change in income inequality, which, under this Government, is at its lowest level for many years. Since 2010, households across all income deciles have seen growth in their disposable income.

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[Stephen McPartland]

You are very kind, Madam Deputy Speaker. I obviously had no intention of misleading you in trying to mention it now and again. New clause 9 and the Treasury publishing a distributional analysis of the cumulative impact of Government’s tax, welfare and public service spending is quite a wide-ranging topic. I was trying to make the point that I do not support new clause 9 because it seems academic, as opposed to helping people from different backgrounds to achieve their life chances. On that note, I shall conclude.

[Wes Streeting]

The speeches from Conservative Members have been so rousing that I have been moved to speak to take on the sheer absurdity of the arguments we have heard this afternoon. Member after Member has told us that they oppose new clause 9 because the Government already do this. If the Government already do this, why do they not support new clause 9?

The fact is that the Government do not already do this. What the Government do is publish an impact assessment with a distributional analysis of Budget measures by households depending on income. That measure was introduced by a previous Chancellor, until the current Chancellor’s predecessor decided it was politically inconvenient and got rid of it. The present Chancellor, to his credit, decided to bring it back. That assessment is interesting and useful. It informs Ministers when they are making decisions, but it does not cover the measures that new clause 9 addresses.

The fact is that the Government’s Budget and the Finance Bill are a reflection of their political priorities and tell the country about the problems the Government want to address and how they intend to do so through sufficient provision of resources. The simple fact is that if the Government made an equality impact assessment of their Budget measures, we may not be in a position where women in their 50s are being clobbered by changes to their state pension age at a time in their life when they have little time or opportunity to address it.

As a result of the Government’s refusal to listen to argument, evidence and reason, I see constituents in my surgery on a Friday afternoon—women in their 50s—who tell me that they have lost their job and are not able to access their pension when they expected. They had planned for retirement, and as a result, they can no longer make ends meet. There is nothing they can do about it at that stage. Had the Government considered the evidence, they might have made a different decision.

Had the Government assessed the equality impact of their Budget, we might not be in a position where disabled people have been consistently and repeatedly clobbered by changes to welfare and other areas of public policy. If, as local authorities do, the Government looked at the equality impact of their decision, they might seek to take steps to mitigate the impact on disabled people. Instead, nationally and locally, disabled people have too often had the books balanced on their backs, which is totally unjustifiable.

If the Government looked at the impact of their Budget measures on black and minority ethnic people, they might well take a different approach to the provision of resources in education to address the imbalances. They might also find, through analysis and research—words that have become anathema to this Government in their approach to public policy making—some surprises, such as the fact that detrimental changes to small businesses have a disproportionate impact on BME communities. They may choose to do something about it, or they may not, but at least their policy making would be better informed.

In the debate on this Bill, someone has to stand up and make the case for reasoned, evidence-based public policy making. It is a total disgrace that in the democratic discourse of this country, we now see the trashing of experts. We are warned that if we adopt new clause 9, academics may debate it—God forbid that people with some degree of expertise should debate the laws that we pass, because goodness knows it does not happen in this Chamber often enough. What is it about expertise and data that the Government are so afraid of? What it is about information that they find so terrifying?

[James Cleverly (Braintree) (Con)]

rose—

[Wes Streeting]

Perhaps the hon. Member for Braintree will tell us. I look forward to hearing what he has to say.

[James Cleverly]

I am curious. The hon. Gentleman expresses his desire for experts to have a role in the production of Finance Bills. Does he therefore not regard Treasury officials as experts?

[Wes Streeting]

Unlike Conservative Members, I have high regard for Treasury officials, and I do not trash the data produced by civil servants in the way that Ministers of the Crown do. I think civil servants are a very good example of experts, and I would like the expertise of the Treasury and the civil service to be drawn upon to produce exactly the kind of equality impact assessment that Labour is calling for in new clause 9.

It is because I have faith in civil servants’ insight and ability to gather and garner evidence to inform Ministers that I would like to see a more evidence-based approach to public policy making. If we had such an approach, we would undoubtedly have a better quality of government—and goodness knows we need that, when we look at the current state of things. We would also have a better quality of debate in the House about what our priorities are, the challenges facing the country and how to tackle them.

[Luke Graham]

The hon. Gentleman makes a big play of analysis. Can he inform the House of the analysis that Labour has undertaken of the distributional impact of £170 billion of extra borrowing and the interest payments on our communities?

[Wes Streeting]

I am very grateful to the hon. Gentleman for that intervention because he makes exactly the point I have made since the general election. We put forward policies in our manifesto—by the way, they proved immensely popular across the country and led to a result that a lot of people were not expecting—and I think we should do a distributional analysis of such policies across the board to make sure that resources are properly targeted where they are needed.

In conclusion, we should not fear such information and evidence, which would lead to better-informed government. The greatest tragedy of this Prime Minister is not the fact that she is being held hostage by the hard Brexiteers on the right of her party; it is that she has not delivered on a single one of the sentiments in the fine words she said on the steps of Downing Street about creating a more equal society and tackling injustices that are still burning injustices even in one of the richest economies in the world in the 21st century. Sentiments are all well and good, but we need policies that are backed up by evidence and reason, and we need the ability genuinely to tackle the problems that the Prime Minister set out so long ago on the steps of No. 10, but which I fear she will never be able to implement before they boot her out next year.

[The Financial Secretary to the Treasury (Mel Stride)]

Before I plunge into new clause 9, as indeed I will at some length, may I concur wholeheartedly with the statement made by the hon. Member for Ilford North (Wes Streeting) when he praised civil servants for their impartiality, objectivity and professionalism? In my experience of the Treasury, I have always found them to be exactly that. We should all register that important point.

We have had a fairly wide-ranging debate. I hesitate to add that, on one or two occasions, it has been marginally informative. On one occasion—I will not name the Member—it was very informative because I actually learned something I had not previously known. The reason why it has been wide-ranging is that this is of course an extremely important issue. What I hope unites Members on both sides of the House is that every Member of the House deplores unwarranted inequality. It is not that we are all entirely equal—we are, of course, different—but we have a right to be treated with equal respect and a right to equal opportunity and aspiration, as it was eloquently termed my hon. Friend the Member for Stevenage (Stephen McPartland).

If I may, I will look at new clause 9 in a little detail. As I have suggested, it has been slightly absent from this debate, so let us bring it back to centre stage. The new clause seeks to require the Chancellor of the Exchequer to provide a

“review before the House of Commons within six months of the passing of this Act.”

In so doing, the Chancellor has to look at a number of aspects of the impact of the Finance Bill now going through the House. Under the new clause, the review would look at

“the impact of those provisions on households at different levels of income”.

As has already been pointed out at length, we have indeed brought back the household distribution analysis that looks at tax, welfare and public expenditure, and at the impact of those elements on different income levels by decile.

Under the new clause, the review would also look at

“the impact of those provisions on people with protected characteristics (within the meaning of the Equality Act 2010)”.

This is perhaps a good moment for me to say something very important. Ministers of course always seek to operate within the law, and the Equality Act is very clear about our duties as Ministers when we consider various policies that come before us. Those policies are not just those before us in the context of a major fiscal event, but policies and decisions we take day in and day out, some of which never even pass through this House. We do so not just because of the law, but because we think it is the right thing to do.

Under new clause 9, the review would also look at

“the impact of those provisions on the Treasury’s compliance with the public sector equality duty under section 149 of the Equality Act 2010, and…the impact of those provisions on equality in different parts of the United Kingdom and different regions of England.”

The new clause then focuses on the specific taxes covered by the assessment the Chancellor of the Exchequer would be required to present in the report. I want to make one important general point: in looking at regional aspects of spending and tax, it is far easier, for fairly obvious reasons, to consider the spending elements than the regional distribution when it comes to taxation.

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[Stella Creasy]

I rise to support the amendments tabled by the Opposition and to speak to my amendments 1 to 4.

I was into PFI before all the cool kids were. These amendments speak to a long-held concern of mine, which is that it is not enough for us as politicians to identify when something has gone wrong and to shrug our shoulders and say, “It’s complicated.” The consequences for the communities we represent and for this country’s public finances are so toxic that it is vital we act.

George Bernard Shaw said:

“Political necessities sometimes turn out to be political mistakes.”

Let me be clear that I am not seeking to blame anyone. Governments of all colours used PFI. It started in 1992 and has gone on to the present day. Absolutely, the last Labour Government used PFI to fund things, and it was not an ideological decision; it was a very simple one about keeping borrowing off the books.

However, we know now just how costly these decisions have been for this country. Every single school, hospital, street lighting system and motorway built was needed, but we know now that the consequence of these costs is that we may not be able to build such things in the future. I am in the Chamber today to propose a way in which Parliament can now act to get money back for our public services, because everyone of us has one of these projects in our constituencies.

We can talk about the numbers involved: £60 billion of capital building, on which we will pay back £200 billion. These companies are truly the legal loan sharks of the public sector, charging an excessive rate of interest in comparison with public sector borrowing for building and running services for us. Conservative Members may say that the cost I am talking about includes services, so it is worth breaking down the charges. Last year alone, this country paid out £10 billion in PFI repayments, over half of which was for interest and charges. The money we are paying for PFI is not paying for schools and hospitals to be run; it is paying the profits of the companies we borrowed from to be able to build them in the first place.

The National Audit Office has done absolutely sterling work uncovering just how bad a value-for-money calculation it was to go for PFI. On average, these projects are 2% to 4% more expensive than Government borrowing at the time. In total, with charges and fees included, they are now, on average, 40% more expensive than having worked with the public sector.

The interest rate matters because the costs are not necessarily about the management of a project; they are about the profits being made. Every single MP who is being lobbied about their schools and hospitals needs to recognise that 20% of the extra money the Government say they are giving to schools and hospitals will not touch the sides of emergency wards or go into the budgets of teachers to pay for the books and classes our schoolchildren need. It will go straight out of our public sector into pure profit for these companies.

The Centre for Health and the Public Interest has gone through the accounts of the few hundred companies running schools and hospitals to identify just how much money is involved. It found that they will get £1 billion in the form of pre-tax profit from NHS deals alone, which total just 125 of the 700 PFI projects. For example, the company holding the contract for University College London has, alone, made £190 million in the past decade out of the £725 million the NHS has paid out. In short, it has made enough in profits to build and run an entire hospital.

We have to talk about the human cost. I became interested in PFI when I saw the damage it was doing to my local hospital, Whipps Cross in Walthamstow, and to schools such as Frederick Bremer School in Walthamstow. Its headteacher is now desperately struggling to balance her budget in the face of this Government’s swingeing cuts to the schools budget, but the one repayment she cannot cut is the PFI one. Barts, the biggest PFI in our NHS—with a £1 billion capital build, and £7 billion repaid—is paying £150 million a year, of which £74 million is interest alone. It is no wonder that the hospital is in such persistent financial difficulty.

[Wes Streeting]

My hon. Friend is making a powerful case. Whipps Cross University Hospital also serves my constituents. To the east, the cost of PFI at Queen’s Hospital in Romford is such that it is creating enormous financial pressures on the Barking, Havering and Redbridge University Hospitals NHS Trust. Does she agree with me that that underpins the urgency of the need to tackle this issue? We should not stick to the ideological dogma of the past, but look at what has really happened and claw back some of that excessive greed to better fund our public services.

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[Colin Clark]

No. The hon. Gentleman has had his go.

The nationalists made a conscious decision. They were not short-changed, they were not unaware, and the money was not “stolen”. They must accept that culpability for the lost millions lies squarely with them. If they want to raise the money, they should take the responsibility and raise it themselves. I only hope that they do not do so by inflicting further punishment on Scottish taxpayers.

The poorly judged centralisation of Police Scotland is never far from the headlines, but the resignation of the chief constable and the delay in the pointless merger with the British Transport Police have brought it under a fresh spotlight in recent weeks. Surely now is the time for SNP Members, both here and in Holyrood, to stop manufacturing grievances from their own mistakes and join us in working constructively to make Scotland a better place. And they should start that process with a review of the structure of Police Scotland.

[Wes Streeting]

Amendments 10, 11 and 12 stand in my name and those of a number of Members on both sides of the House. They deal with the vehicle excise duty supplement, and, in particular, with how it applies to the new electric zero-emission taxis. I should probably declare an interest, as chair of the all-party parliamentary group on taxis. I am delighted that the amendment carries not only cross-party support but support throughout the country: in inner and outer London, Brighton, Sheffield, Bradford, Exeter, Huddersfield, Cambridge, Stoke-on-Trent, Bedford, Cardiff, Chesterfield, Sunderland, Leeds and Rotherham. Sterling work has also been done by my hon. Friend the Member for Oxford East (Anneliese Dodds), not just in Committee but in presenting the same powerful case this afternoon. I hope that this is an issue on which we can find common cause with those on the Treasury Bench.

During the debate on the Budget and subsequently the Finance Bill, I welcomed the Chancellor’s announcement in the Budget to exempt zero emission-capable taxis from the vehicle excise duty supplement, but I also cautioned that that exemption would not kick in until mid-2019. Zero emission-capable taxis are already available for sale and have already hit the streets of this city and others. This new generation of the iconic black taxi not only provides passengers with a new degree of comfort and great surroundings, including the ability to see the sights of London through the roof while driving around but, most significantly and pertinently for the purposes of this debate, it is environmentally friendly. Members on both sides of the House are increasingly aware of how difficult taxi drivers in this city and across the country are finding their trade in the face of aggressive, and in many cases unfair, competitive practices. The Government need to do all they can to stop that great iconic taxi being driven off the streets of this city and others.