Budget Resolutions and Economic Situation
William Bain Excerpts(9 years, 8 months ago)
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Mr William Bain (Glasgow North East) (Lab)
This was the Chancellor’s sixth Budget, and after a Parliament of unparalleled failure on living standards not seen in decades, today was his final chance to chart a fairer course for the British people. He failed that test. He failed it because the values by which he has conducted economic and fiscal policy for the past five years are not the values that build an economy where we have a dynamic industrial policy and public spending plans that generate more growth, decent jobs and rising living standards with higher productivity. He failed because, by his actions, he has shown that he does not believe in a society where opportunity and assets are more equally distributed to the benefit of all, and inequality is lower. He failed because time after time he has put short-term tactics before a long-term strategy for growth in our green industries. This is the Chancellor who told us he could balance the books without hurting the poor, yet young people have seen the biggest drop in incomes during this Parliament and all he has to offer now is a vision of a low-wage, lower-skill economy drifting out of the EU, thereby damaging our future prosperity even further.
Britain is a better country than this Chancellor gives it credit for. He said that his policies today will tackle waste and inefficiency, but what can be more inefficient than the waste of young talent or over-25s being idle? A Government with real ambitions for our country would be creating opportunities to give them hope with a decent job. He says his chancellorship has been about fairness, but what could be more inequitable than bonuses rocketing at the very top of society, while he has broken his promise on the minimum wage by raising it by a measly 70p, instead of to the £7 per hour by this autumn which he promised last year? He boasts of his record on growth, but the UK has had the slowest recovery from recession of any other developed country apart from Italy and Greece, with the IMF and other forecasters predicting that growth will be lower next year and the year after than this year.
According to the Fraser of Allander Institute’s most recent commentary on the Scottish economy, full-time employment is more than 4% below its pre-recession peak and the total numbers of hours worked in Scotland is still lower than it was before the recession. On this day, when unemployment has gone up in my constituency and risen across Scotland by 6,000, this Government should have had more measures in their Budget to deal with that.
We know that bank lending to small and medium-sized businesses has been falling and that exports are weak, with the OBR pointing out that net trade will make a negative contribution to growth all the way until 2019. Productivity is poor. People are having to take out credit and take on more personal debt to make ends meet. This was supposed to be a recovery based on the march of the makers, yet it has stretched households, who are taking on more debt and shouldering the burden of fuelling growth. This should have been the Budget that addressed structural problems in the British economy, because a Chancellor who wants a credible deficit reduction plan for the next Parliament has to have a plan for more balanced growth and prosperity. The rewards of that growth have to be more fairly shared among ordinary working people than this Chancellor has achieved. But he failed. He failed because not only does he have the wrong plan for Britain’s future, but he has the wrong values for our economy and our society, too.
Adam Afriyie
This is the 10th Budget that I have listened to in the House of Commons. The first five led to massive unemployment and a huge deficit, and really damaged the lives of the least well-off in this country. The five under the current Government seem to have led to greater levels of growth, lower youth unemployment, low unemployment overall and a lower deficit. Does the hon. Gentleman recognise that in any way, shape or form?
Mr Bain
I gently point out to the hon. Gentleman that the emergency Budget and the spending review adopted in autumn 2010 led to three years of hardly any growth at all in the economy, a dramatic fall in tax revenues, the deficit having not fallen or been wiped out as the Chancellor had promised, and debts doubling over the course of this Parliament. That was the reason the economy has underperformed and why this Government are going to leave to their successor the highest deficit in the developed western world. The fiscal policies that this Government have adopted could not have been more wrong.
We need a different plan for public spending and for more balanced economic growth, not the one the Chancellor has offered today. We need a plan for a fairer tax system, with tougher action against those who do not pay their fair share of tax or indeed do not pay any tax at all. It was very troubling to read in the OBR’s fiscal outlook this afternoon that it has doubts about the £5 billion that the Government have suggested they will pull in from the tax evasion measures set out today. For example, the OBR said that some of the specific measures were “unlikely” to generate the extra revenues that were scored in the Red Book.
The test for this Government in their Finance Bill next week is whether they will be prepared to bring in legal penalties for those who evade or avoid taxes so that we can fill the gap of £34 billion of tax that should be collected by the Exchequer and has been foregone under this Government. That is what hard-working taxpayers will want to see in the Finance Bill next week.
Despite the Chancellor’s modest U-turn today, he still intends by 2018 to force through the biggest fall in core public service expenditure since 1938. The cynicism of this Budget is that, by bringing in deeper cuts between 2016 and 2018 and then partially reversing them in 2019 and 2020, we can see that it is the electoral cycle that has motivated the Chancellor more than the cycle of what is good for jobs and stable growth in this country.
Labour has a different and a better plan. It is one that does not jeopardise investment in infrastructure. If we balance the current budget in the next Parliament, then, as the National Institute of Economic and Social Research has said, we would have more growth, more jobs and faster rises in wages—a better plan for Britain.
I welcome what the Chancellor did for the oil industry. With receipts forecast to fall to £700 million in the next fiscal year, there is an even stronger case for an oil resilience fund, which would do a great deal to secure investment and jobs in the offshore sector in Scotland.
We should have had a Budget that raised the minimum wage to beyond £8 an hour. We should have taken steps to encourage the living wage to be paid to as many people as possible in this country. We should have had a higher rate of income tax for those earning more than £150,000 a year. We should have had the opportunity to begin the job of change, but change is coming. A Labour Government are coming, and I believe that the British people will begin that job of change by voting, in just seven weeks’ time, for a Labour Government and for a more equal and prosperous society.
Kate Green (Stretford and Urmston) (Lab)
I am sure that by now Government Members will recognise that the Chancellor’s Budget has not convinced my colleagues and has not convinced the country, and it will not convince my constituents. There is very little in it to return them to the confidence in the future that everyone I speak to on the doorstep tells me they desperately want. Whatever the Chancellor likes to say, low productivity, low pay, low tax receipts and high spending cuts have characterised his management of the economy until now. We heard this afternoon that such an approach is set to continue if his party returns to government in the next Parliament. Happily, we do not expect that to happen.
The Chancellor has taken a series of quite deliberate fiscal choices that have favoured the better-off, whether it is reducing the top rate of income tax or introducing the marriage tax allowance. The latter benefits only couples who are well off enough to be paying tax at all, and, what is more, only one in five of the couples who will benefit are raising children. Middle-income families have been squeezed repeatedly under this Government. My constituents report a pervasive feeling of insecurity and a deep concern for the future of young people.
Most distressingly of all, the very poorest have been pushed to the very margins of our society. There was a shocking rise in food banks from 60,000 visits in 2010 to nearly 1 million in 2013-14, and there was a 55% rise in homelessness and people sleeping on the streets between 2010 and 2014. I am sure that hon. Members cannot have escaped noticing that, as I have, including on their way home from this place in the evening.
The Chancellor repeated this afternoon the claim, which Government Members often make, that child poverty has fallen under this Government. Let us put the record straight: it has fallen in only one year under this Government—2010-11—which was before a single coalition fiscal policy had taken effect. Since then, it has flatlined at 2.3 million children, and the IFS has predicted that, under the measures the Government have already announced, it will rise by 700,000 children during the next Parliament. The fall in the first year of this Parliament was wholly and solely the result of the 2010 Labour Budget, since when median incomes have stagnated. Government Members used not to like the relative poverty measure for exactly the reason that it was bound up with what happened to middle incomes. I notice that they are not so vocal against the relative poverty measure now. They may now want to look at other measures of poverty, but it is an absolute disgrace that absolute poverty has risen under this Government for the first time since measurement of that element of poverty began, while material deprivation has also risen.
Mr Bain
Does my hon. Friend share my astonishment, and that of other Labour colleagues and indeed the whole country, that to try to persuade us people were better off the Chancellor used a metric that deals only with mean incomes—skewed to people at the very top of the income scale—and includes universities, which are not of course households?
Kate Green
The use of statistics this afternoon bore absolutely no relationship to the lived experience of my constituents and those of many of my hon. Friends.
As colleagues have said, most recently my hon. Friend the Member for Ogmore (Huw Irranca-Davies), this Government’s total lack of attention to working poverty is crucial: it is right and welcome that more people have moved into work since 2010, but that is not sufficient if they do not earn enough to live on. The increase in the national minimum wage will help a little bit, but the increase is more modest than we were promised last year. Increases in the tax threshold will increasingly give diminishing returns—they omit the poorest, who pay no taxes or whose incomes are already below the tax threshold—and what is more, they help the better-off. I remind Government Members that the better-off include us. The fundamental problem is that people cannot find the hours they need at the pay they need, which not only puts families under pressure, but is a major contributor to the failure to bring down the deficit as planned. The TUC says that we are set to borrow £54 billion more than planned this year, of which two thirds is a direct result of poor wage growth.
As colleagues have said, young people have been especially hard hit, again as a result of conscious policy choices by this Government. Of course older people should never face retirement in poverty—I am proud that Labour Governments halved pensioner poverty—and an ageing population means increasing the spending on this group, but we are significantly under-investing in the next generation. My constituents repeatedly say that to me. Hourly wages and weekly earnings have fallen fastest among young workers. Research by the London School of Economics has shown that typical incomes for those in their 20s were nearly a fifth lower in 2013 than they were five years earlier, and even those in their 30s with good degrees have lost out on their incomes. That not only blights young people’s lives today, but damages their ability to plan, save and look forward to the future. A Government who have made much of rewarding saving and forward planning should be mindful that they are putting a whole generation in a position in which they are simply unable to do so.
Although there were announcements today about helping people who wish to buy a home, an aspiration shared by many of my constituents, it is noticeable that there was absolutely no help whatsoever for the many young families who rent a property and will continue to do so for many years to come. If it is right to provide financial support to young people to buy their first home, will Ministers explain why it is not right to offer the same kind of financial support to those of them who rent?
Nor was there anything to comfort families with children. As the Child Poverty Action Group has pointed out, the cost of raising a child has grown significantly faster than its parents’ incomes under this Government. We heard nothing to help people with the additional costs of raising children, simply a tax break for married couples, many of whom will not be raising kids at the moment.
Finally, we heard today of the truly shocking plans for further cuts if the Conservative party were to form the next Government. Those shocking cuts to public service spending have been accelerated into the early part of the Parliament, no doubt so that a future Conservative Chancellor would be able to say that he was increasing spending as an election approached. We have heard in the past about shocking cuts to social security spending, and those cuts will be even harder on working-age people and families with children because pensioner benefits will be protected.
The Budget has told half the story today, hidden the pain for tomorrow and done nothing to put the country and families in my constituency back on their feet. It is not a Budget about the future: it is the Budget of a failing Government.
Oral Answers to Questions
William Bain Excerpts(9 years, 10 months ago)
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Mr William Bain (Glasgow North East) (Lab)
1. If he will review the effectiveness of the procedure for tabling money resolutions for private Members’ Bills; and if he will make a statement.
Kerry McCarthy (Bristol East) (Lab)
5. If he will review the effectiveness of the procedure for tabling money resolutions for private Members’ Bills; and if he will make a statement.
The First Secretary of State and Leader of the House of Commons (Mr William Hague)
It is the responsibility of the Member in charge of the Bill to make a request to the Government to table any money or Ways and Means motion that may be required in respect of private Members’ Bills that have had a Second Reading. It is the usual but not invariable practice of the Government to accede to such requests.
Mr Bain
On Monday, the House adjourned after barely three hours of Government business, so is it not an outrage that the Leader of the House cannot find time to bring to the House important money resolutions on private Members’ Bills, such as that of the hon. Member for St Ives (Andrew George), which would exempt thousands of disabled people from the terrible effects of the Government’s hated bedroom tax?
Mr Hague
On the question of Monday’s business, it is right to allocate a full day of debate on the Floor of the House when all stages of a Bill are being considered. It is up to the House if it does not use the full time, but there would be considerable objections if we did not allocate a full day for all stages of a Bill. As I have explained to the House before, the problem with the money resolutions on the Affordable Homes Bill and the European Union (Referendum) Bill is not one of time; there has been no agreement in the coalition about those money resolutions, and that remains the case.
Oral Answers to Questions
William Bain Excerpts(10 years, 1 month ago)
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Claire Perry
May I commend the hon. Gentleman for his long-standing commitment to road safety? It started many years ago and he has done an amazing job. He will be as pleased as I am that, overall, road deaths this year are at their lowest level since 1926. Since the regime of testing and compulsory basic training was introduced in 1990, deaths and fatalities among users of small and medium-sized motorbikes have fallen by up to 60%, so the regime is fit for purpose and we are always looking to make our roads even safer.
Mr William Bain (Glasgow North East) (Lab)
3. What recent discussions he has had with stakeholders in the aviation industry on the use of flight paths over conflict zones.
The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)
The Department keeps in close contact with UK carriers about the whole range of threats to aviation, including the risks of flying over conflict zones. The Secretary of State recently met the secretary general of the International Civil Aviation Organisation and discussed this very issue.
Mr Bain
Our thoughts remain very strongly with the families and friends of those who died in the terrible disaster that affected flight MH17. Since then, conditions have become even more dangerous, particularly in relation to the middle east. What are the Government doing, through the ICAO, to ensure that information about international flights is shared between domestic countries?
Mr Goodwill
May I extend the Government’s condolences to the families of the 283 passengers and 15 crew, including 10 British citizens, who were killed? Indeed, at the European Council in Luxembourg, we had the opportunity to express condolences to my Dutch counterpart; a very large number of the casualties came from his country. The ICAO has set up a taskforce to look at the provision of over-flights in conflict zones, and the UK is participating actively in that work.
Oral Answers to Questions
William Bain Excerpts(10 years, 8 months ago)
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Stephen Hammond
I was pleased to meet the hon. Lady and other Members from Bolton recently. She knows that commercial leases are a matter for the operating companies, but also that, as I said a moment ago, I have worked with operating companies to reach a solution to ensure that there is extra capacity on the line in Bolton from Christmas onwards.
Mr William Bain (Glasgow North East) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Transport (Mr Patrick McLoughlin)
Following the wettest winter on record, I recently announced an extra £140 million for urgent repairs to local roads, bringing the total fund to more than £170 million. Today, I am announcing the individual allocations of that funding among local authorities. Some £47 million will be allocated to councils in the south-west that were particularly badly affected. I expect councils to spend the money wisely and quickly, and councils that do so will be particularly well placed to bid for additional funds for road repairs in the next financial year from the £200 million pot announced by my right hon. Friend the Chancellor in yesterday’s excellent Budget.
Mr Bain
Thirteen months ago, the Public Accounts Committee told the Secretary of State that serious fundamental errors in the franchising process for the west coast main line had led to more than £55 million of public money being flushed down the drain. What action has he taken to make sure that that Tory franchising fiasco never happens again?
Mr McLoughlin
I announced a number of follow-ups that I took as a result of that particular franchising problem—I was incredibly open with the House about it—through both the Laidlaw inquiry and the Brown inquiry. I do not recognise the £55 million figure that the hon. Gentleman talks about.
Oral Answers to Questions
William Bain Excerpts(10 years, 9 months ago)
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Mr Goodwill
We are continuing the scheme that was initiated by the last Government. By 2015, 75% of journeys will be step-free, as opposed to 50% in 2006.
Mr William Bain (Glasgow North East) (Lab)
4. What steps he is taking to improve safety on motorways.
The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)
Motorways are the safest roads in the country. The Highways Agency network carries 32.7% of all traffic, but accounts for only 6.8% of those killed or seriously injured. Hard-shoulder running on smart motorways is delivering further improvements.
Mr Goodwill
The hon. Gentleman has got it completely wrong. I know that this seems counter-intuitive, but 8% of fatalities take place on the hard shoulders of existing motorways, although only a very small proportion of traffic is on them. Hard-shoulder running, managed motorways and smart motorways have been a great success, and have reduced the number of accidents on those sections of the motorway by 50%.
Mr William Bain (Glasgow North East) (Lab)
6. What recent discussions he has had with the voluntary sector on the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014.
The Deputy Leader of the House of Commons (Tom Brake)
The Government met nearly 50 organisations to discuss the provisions of the Act before it received Royal Assent. Those discussions led to a number of changes being made to the then Bill to reduce the burden on smaller third parties who campaign at elections, to ease the transition to the new regime, and to clarify the rules.
Mr Bain
Notwithstanding the unseemly haste to rush this legislation to Royal Assent last week, many voluntary sector organisations have deep misgivings about the effect it will have on the way that they operate. Will the Minister show equal haste in committing to post-legislative scrutiny of the legislation so that the House can assess the damaging impact that it will have on our charities?
Tom Brake
We have surely now reached the time when the hon. Gentleman and other Labour Members should accept that the Act does not do what he has claimed. He may not be aware that the National Council for Voluntary Organisations recently said:
“We are grateful that the government has listened to the concerns charities have raised in recent months…The”
Act
“provides a much more sensible balance…between creating accountability and transparency in elections while still allowing for charities and others to speak up on issues of concern.”
Oral Answers to Questions
William Bain Excerpts(10 years, 11 months ago)
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Pat Glass (North West Durham) (Lab)
5. What recent progress has been made on the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill; and if he will make a statement.
Mr William Bain (Glasgow North East) (Lab)
7. What recent progress has been made on the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill; and if he will make a statement.
Tom Brake
The Government reorganised the debate in the Lords to enable discussion of part 2, on non-party campaigning, to take place later, thereby providing an opportunity to engage fully with organisations. I hope the hon. Lady agrees that the fact that the Government recently met 50 organisations to discuss the matter and previously, when the Bill was in the House of Commons, engaged extensively with organisations shows that there has been comprehensive consultation.
Mr Bain
This Bill will impede dramatically the ability of charities and many other voluntary groups to comment and campaign on issues relating to Government policy. What further opportunities will the Government allow in the other place and in this House for further scrutiny before flawed legislation causes great damage to our democracy?
Oral Answers to Questions
William Bain Excerpts(11 years, 4 months ago)
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Stephen Hammond
I can indeed reassure the hon. Gentleman about that. My right hon. Friend the Secretary of State and I hosted a follow-up summit on 25 March to discuss with the industry ways to bring down premiums. The Ministry of Justice has already banned referral fees and is consulting on steps to reduce the number of fraudulent whiplash claims. We are also taking steps to ensure that drivers are better prepared, the driving test is safer and there will be more responsible drivers on the road, which again will help to drive down premiums.
Mr William Bain (Glasgow North East) (Lab)
T2. In the past few years, rail fares have been rising almost three time as fast as wages, and are among the most expensive anywhere in Europe. What will the cap be on regulated rail fares by franchised rail operators in the 2015-16 financial year?
Mr McLoughlin
With the help of my right hon. Friend the Chancellor, we have capped the overall increase in regulated fares to RPI plus 1. I am very aware of the pressure of rail fare increases that passengers face, and so are the Government.
High Speed Rail
William Bain Excerpts(11 years, 9 months ago)
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Mr McLoughlin
I imagine that I would need to check out the timetable that the hon. Gentleman has just alluded to, because it is not unknown for Opposition Members to look on the past through rose-tinted glasses. Part of the problem might be that more people are now using the railways so there are more stops, which means that his journey is perhaps taking a little longer than it used to. However, I am very much minded to ensure that his region, like every other region in the north of the country, can benefit from the proposals I have brought forward today.
Mr William Bain (Glasgow North East) (Lab)
The Secretary of State will be aware of the strength of support in the Scottish Chambers of Commerce and in Glasgow and Edinburgh city councils for the extension of high-speed track right up into Scotland’s two major cities. Would it hasten the evaluation of the economic case for that if the Minister were to commit to legislating, in this Parliament, in a single Bill covering the entirety of the route between London, Manchester and Leeds?
West Coast Rail Franchise
William Bain Excerpts(11 years, 11 months ago)
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Mr McLoughlin
I do not mind my hon. Friend reminding me of that, and I know that he will do so on many occasions when he gets the opportunity. I look forward to having discussions and conversations with him about how we can possibly improve the situation in which his constituents find themselves, but I hope that he welcomes the fact that the line has come part of the way to his constituency, if not yet all the way.
Mr William Bain (Glasgow North East) (Lab)
The west coast main line is of huge importance to the Scottish economy, as it carries half a million passengers a year along its whole length for business and tourism purposes. What assurances has the Secretary of State received this morning from Virgin trains about whether the 248 workers who are employed by the company in Scotland will have security in their jobs for the future?
Mr McLoughlin
I am not responsible for the personnel decisions of Virgin trains, but I am sure that the hon. Gentleman will make representations to the company. I hope he welcomes the fact that I have announced today the completion of 106 new Pendolinos and the hourly service to Glasgow, which are substantial improvements in this service for people in Scotland.
Oral Answers to Questions
William Bain Excerpts(12 years, 1 month ago)
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Mr William Bain (Glasgow North East) (Lab)
1. What discussions she has had with the Secretary of State for Work and Pensions on the effects on women of the introduction of universal credit.
The Minister for Women and Equalities (Maria Miller)
I have had many conversations with the Secretary of State at the Department for Work and Pensions, and others, regarding universal credit. Universal credit is designed to encourage people to work, and benefit women who find the existing system a barrier to work. It will help lone parents, who are mostly women, work a small number of hours through increased earnings disregards, and provide child care for the first time for those working under 16 hours.
Mr Bain
I welcome the Minister for Women and Equalities, and her colleague, the Under-Secretary of State for Justice, the hon. Member for Maidstone and The Weald (Mrs Grant) to their new positions. [Interruption.] And—how could I forget?—my neighbour, the Under-Secretary of State for Business, Innovation and Skills, the hon. Member for East Dunbartonshire (Jo Swinson).
Does the Minister accept that work needs to pay for all women, so how will she ensure that, when universal credit is introduced next year, 1 million lone parents do not lose out—as Gingerbread has suggested—on the equivalent of two-thirds of the unintended increase in the tax allowance, taking home only £70 for every £1,000 increase in the allowance, compared with £200?
Maria Miller
As I am sure the hon. Gentleman will agree, one of the best ways we can support lone parents to get out of poverty is to help them into work. That is exactly what universal credit is trying to do—to ensure that lone parents can stay close to the labour market and, for the first time, get child care support if they work under 16 hours a week.