The Economy

Debate between Wes Streeting and Caroline Lucas

Wednesday 8th July 2020 Commons Chamber

[Wes Streeting]

I know you are watching the clock, Madam Deputy Speaker, but the good thing about that intervention is that I no longer have to repeat those points in my speech. I agree entirely.

[Caroline Lucas]

Will the hon. Gentleman give way?

[Wes Streeting]

I am afraid I must begin to draw to a conclusion. I remember Madam Deputy Speaker as a Chief Whip and she is not afraid to crack it.

The Chancellor has taken measures that most people would have thought unthinkable from a Conservative Chancellor. In his statement this afternoon, he said his response to this crisis would be unencumbered by dogma. We welcome that approach and we hope that others in his party were listening. In recent weeks and months, we have seen the penny drop for the champions of small state, free market, low tax economics about the limitations of their blinkered ideological dogma. As they look to the future, perhaps they might reflect on their past failures, because if we are to build a better country in the aftermath of the crisis, we have to be honest about the state of the country as we entered it.

The ideological dogma that underpinned the last decade of Conservative economic policies has made this a lost decade—a decade of low productivity, stagnant wages, rising poverty and mounting debt, the slowest growth since the war and, perhaps the most damning indictment of all, child poverty rising on their watch. More children in this country are living in poverty—and not by accident or because of factors beyond the Government’s control but because, as the Chair of the Government’s own Social Mobility Commission said,

“welfare changes over the past ten years have put many more children into poverty.”

People may not talk of their own life experiences in terms of a failed economic model or a broken social contract, but they experience it when their bills rise faster than their wages, when their public services are not as good as they were, or when they hit glass ceilings because of their class, gender, race, religion or disability. Those people who have stared into the grim reality of Britain’s social insecurity system—many for the first time in their family’s living memory—and have contemplated what life would be like on universal credit can see that broken system, too. Those living outside London and the south-east can see it, and clearly resent the concentration of so much power, wealth and opportunity in one corner of our country. Even within our capital city, between the glittering lights of the City of London and Canary Wharf, those families crammed into temporary bed-and-breakfast accommodation can see the injustice under their noses. People may not always talk in terms of paradigm shifts, but they know that after this crisis, we simply cannot return to business as usual.

The Chancellor said he wants to

“heal the wounds exposed through this crisis”,

but the wounds were already there for anyone who wanted to see them. This has got to be a turning point for our country—one that tackles injustice and gives everyone a stake in success; that fixes our broken social care system, so that never again are older and disabled people left as dangerously exposed as they have been during this crisis; one that addresses the social insecurity experienced by people in precarious work and builds resilience for the challenges ahead posed by technological revolution; one where we seize the opportunity to make the recovery a green recovery with the green new deal that our country needs; and where we argue with renewed vigour and conviction that global problems require global solutions, and where we play our part in rebuilding the institutions needed to provide safety and security in a dangerous world.

For the sake of our country, I hope the Government rise to the challenge, because ours is a great country, full of promise and opportunity, one of the richest countries in the world, with world-class universities, entrepreneurialism and successful business, groundbreaking science and technology, world-renowned arts and culture and a vibrant civil society, and that is what we are fighting to save. But this is also a country of staggering inequality, intolerable poverty and wasted potential, and that is what we are determined to change. As history has shown us, when the country provides the call for change, it is in a Labour Government that they find the solutions.

Finance Bill

Debate between Wes Streeting and Caroline Lucas

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Wes Streeting]

I strongly agree with my hon. Friend. We will not have to wait for the Minister to respond to hear the Government’s case, because I can tell the House what he is likely to say. He will tell us that tackling climate change is a top priority for the Government, and that this is demonstrated by the UK becoming the first major economy to pass legislation committing us to reach net zero emissions by 2050. He will tell us that the UK reduced its greenhouse gas emissions faster than any other G20 nation between 2008 and 2018. He will cite measures taken in this Bill as further evidence of the Government’s commitment, including tax support for zero-emissions vehicles; reforms to vehicle excise duty and company car tax; preparations for the introduction of the plastic packaging tax; and the establishment of a UK emissions trading system outside of the European Union. I suspect he will also point to previous announcements made by the Government, such as the £800 million fund for carbon capture and storage.

Taken individually, these steps are welcome, but collectively they do not provide the momentum we need to accelerate progress towards net zero. The Opposition do not believe that the 2050 target is ambitious enough, and neither does the science, so it is all the more worrying that, on current projections, we will not even achieve that deadline.

In its 2020 report to Parliament, the Committee on Climate Change underlines the charge that I am laying at the door of the Government this afternoon. It acknowledges, as do we, that in the time that has passed since the UK legislated for net zero by 2050, initial steps towards a net zero policy package have been taken. However, as the Committee says,

“this was not the year of policy progress that the Committee called for in 2019.”

[Caroline Lucas (Brighton, Pavilion) (Green)]

The hon. Gentleman is making a really strong case. Does he agree that the problem with the Government’s actions to date is not just what they have not done but what they are promising to do, including a £27 billion road-building scheme and boasting of 4,000 miles of new strategic roads in Britain? That would be an absolute disaster as far as the climate is concerned.

[Wes Streeting]

I am grateful to the parliamentary leader of the Green party for that intervention. There is a really important issue here around infrastructure. Our current infrastructure contributes enormously to the carbon output of our country. If we make the right infrastructure decisions now and get our priorities right, which is the point the hon. Lady is making, the Government can accelerate our progress towards net zero.

The Committee on Climate Change recognises the policies announced by the Government on transport, buildings, industry, energy supply, agriculture and land use. However, taking all of that into account, the Committee states that

“these steps do not yet measure up to meet the size of the Net Zero challenge and we are not making adequate progress in preparing for climate change.”

The charge sheet is serious. The Committee tells us:

“Announcements for manufacturing and other industry have been piecemeal and slow…There is still no strategic approach to drive change at the required scale and pace.”

It also says:

“Buildings and heating policy continues to lag behind what is needed”,

and that nearly 2 million homes built since the Climate Change Act 2008 was passed

“are likely to require expensive zero-carbon retrofits and have missed out on lower energy bills.”

At the general election, the Conservative party promised in its manifesto to invest £9 billion in energy efficiency over the next decade. The Committee says that that

“is welcome but not enough to match the size of the challenge and has been delayed while awaiting the National Infrastructure Strategy.”

The Committee also welcomed plans for reform of the renewable heat incentive and plans to introduce a green gas levy, but warned that

“the current plans are far too limited to drive the transformation required to decarbonise the UK’s existing buildings”.

On agriculture and land use, land-use change and forestry, it noted that

“the current voluntary approach has failed to cut agricultural emissions, there has been no coherent policy to improve the resilience of the agriculture sector, and tree planting policy has failed outside of Scotland.”

There is no room for complacency, which brings me to new clause 28. It asks the Chancellor to

“conduct an assessment of the impact of this Act on the environment…within six months of Royal Assent”,

including the impact on

“the United Kingdom’s ability to achieve the 2050 target for net zero carbon emissions…the United Kingdom’s ability to comply with its third, fourth and fifth carbon budgets…air quality standards, and…biodiversity.”

At present, the UK is set to miss its legally binding fourth and fifth carbon budgets, having only achieved its second carbon budget thanks to accounting revisions to the UK’s share of the EU emissions trading scheme and the impact of the global financial crisis. I am sure many Members of the House will agree that we should not rely on fiddling the figures or economic crisis to help us to achieve our carbon budgets, though I have to say, looking at the current state of the aviation industry and the Government’s unwillingness to act to save jobs, perhaps it is their intention simply to allow jobs to go and businesses to pull out or even go bust, rather than take the action needed to ensure a just transition.

Too many of our citizens are breathing in toxic air, with the serious health consequences that follow. The UK is one of the most nature-depleted developed countries in the world. Despite our being a signatory to the convention on biological diversity, 41% of species in the UK have decreased in abundance over the past 50 years, and 15% of species are threatened with extinction. As Sir Robert Watson wrote in relation to climate change and biodiversity loss,

“We either solve both or we solve neither.”

The risk is that as it stands we are going to solve neither.

We had hoped that the Prime Minister’s speech this week would provide more than warm words to tackle global warming. It had been billed as a new deal in the spirit of President Roosevelt’s response to the great depression, but moving some infrastructure spending forward is not a new deal and planting a few new trees certainly is not the green new deal our country needs. State action alone will be insufficient to meet the challenge, but national and international leadership from the Government is essential if we are to succeed. The public recognise that. They are looking to the Government to provide that leadership, but according to a YouGov poll published by the Institution of Civil Engineers today, less than a third of the public thought the Government had a plan to achieve net zero. They are not wrong, and there is no shortage of ideas available to the Government.

The Committee on Climate Change has provided a series of recommendations for every Government Department, including Her Majesty’s Treasury. Today, the Institution of Civil Engineers has dedicated its annual “State of the Nation” report to infrastructure and net zero, with a range of practical proposals that I hope Ministers will look seriously at adopting. This week, the Climate Coalition organised a fantastic lobby of Parliament around its green recovery plan, with citizens from all over the country Zooming in to meet their MPs virtually and underline the importance they attach to getting it right.

In the aftermath of the covid-19 pandemic and the economic crisis it has brought about, there can be no return to business as usual. Climate justice and social justice go hand in hand. If we take the right decisions now on industrial strategy, infrastructure, housing, energy, transport, agriculture, research and development and our natural environment, we will not only accelerate progress towards net zero, but will create new jobs—good jobs—new industry and better opportunities in communities blighted by deindustrialisation. In doing so, we will build a better, fairer Britain. We will improve the nation’s health and happiness, and we will safeguard our natural environment and our planet for future generations.

That is why we ask the Chancellor to come before the House next week not just with an economic update, but with a back-to-work Budget that has a laser-like focus on protecting people’s jobs and livelihoods and safeguarding their lives through the pandemic. Our approach, our ambition and our determination to achieve net zero should absolutely be at the heart of that Budget.