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Category: Public Services

  • Andrew Lewin – 2024 Maiden Speech on the Economy, Welfare and Public Services

    Andrew Lewin – 2024 Maiden Speech on the Economy, Welfare and Public Services

    The maiden speech made by Andrew Lewin, the Labour MP for Welwyn Hatfield, in the House of Commons on 22 July 2024.

    Thank you, Madam Deputy Speaker, for allowing me to make my maiden speech in this debate. It is a privilege to follow the first female Chancellor in history, and to follow two inspiring maiden speeches from the Labour Benches by my hon. Friends the Members for Queen’s Park and Maida Vale (Georgia Gould) and for Finchley and Golders Green (Sarah Sackman). It is an honour to sit alongside them on the Government Benches, and their communities are both very lucky to have them.

    As hon. Members can imagine, I have given careful thought to my remarks today, but it is safe to say that this is not the most anticipated maiden speech ever associated with Welwyn Hatfield. The reason for that is that, on 20 November 1558, Elizabeth I gave her inaugural address as Queen from Hatfield House in my constituency. Irrespective of how the next few minutes go, I think her place in history is safe.

    I am especially grateful to be called in this debate on the economy. My constituency is anchored by two new towns that flourished under a previous Labour Government. Hatfield and Welwyn Garden City were incorporated as new towns together under a single development corporation on 20 May 1948. The growth of Hatfield and Welwyn Garden City played an important role in the rebuilding and reimagining of life in our part of the country after the horrors of the second world war. I believe that if we are to succeed in growing our economy, we have to rediscover the ambition and the vision that was embodied by those who designed and carefully planned our two great towns.

    My predecessor as the MP for Welwyn Hatfield was the right hon. Grant Shapps, who served our community for 19 years and will be well known to all Members of this House. In fact, he will probably be familiar to anyone who was watching a morning television news programme at any point over the last five years. Before I talk about Grant’s legacy, however, I want to start with a message of reassurance to the Labour Whips and my colleagues: I have no desire to hold quite so many Cabinet positions as he did, and certainly not in such a short period of time.

    I want to reflect solemnly on the personal and professional commitment that Grant Shapps made to the people of Ukraine. After the Russian invasion in 2022, he opened his family home to provide sanctuary to three generations of a Ukrainian family, innocent people whose lives were turned upside down by Putin’s unprovoked act of aggression. In the last Parliament, more than 200,000 Ukrainians were welcomed to our country under the Ukraine family scheme and the Ukraine sponsorship scheme, an initiative that I believe showed our country at its best, open and welcoming in an hour of grave need.

    We serve in this House of Commons at a time when our wider political discourse can often be angry and divisive. Of course we will disagree in the House, and passionately so—our constituents rightly expect us always to stand up for our community and our values, and I will certainly try to do just that—but I think we can too easily forget what unites us. Where we agree, let us have the confidence to say so. My predecessor was right to champion the people of Ukraine, and the cause of freedom and democracy. I commend him for it, and wish him well in whatever comes next.

    Welwyn Hatfield is a constituency rich in history. Welwyn Village and Woolmer Green were both Roman settlements, and Welwyn is one of the few places in the country believed to have been occupied continuously for 2,000 years. Nearly 400 years after Hatfield was home to Queen Elizabeth I, local people made an important contribution to the defeat of Nazi tyranny. The Royal Air Force’s Mosquito fighter-bomber was developed at the de Havilland airfield and aircraft factory in Hatfield. Welwyn Garden City also has a unique place in history as the creation of Ebenezer Howard, the father of the garden city movement. His immaculately planned and tree-lined streets, such as Parkway in Welwyn Garden City, are still true to his vision from nearly 100 years ago.

    Despite our wonderful history, what has struck me when I have walked around our towns and villages is the impression of too many projects on hold, and potential going unfulfilled. Take the iconic Shredded Wheat silos, designed by Louis de Soissons in 1926 and a defining feature of Welwyn Garden City for decades. The site has lain virtually dormant since the factory closed in 2008. In central Hatfield, it is a similar story. Queensway House consists of 66 units that were once all social housing. In November 2019, after a ballot of residents, a majority decided that it was time to demolish and rebuild, but nearly five years later Queensway House is still standing, and it looms over the centre of Hatfield as a symbol of the inertia that has captured our politics for too long. I am determined that that must change. The centre of Hatfield is one part of our community that most urgently needs investment in good-quality housing and social infrastructure, and I will be a champion for it in this House.

    Welwyn Hatfield is a growing and increasingly diverse community. In just the last few months I have attended the world street food festival in Welwyn Garden City, the first ever Diwali celebration in White Lion Square in Hatfield, and the ever popular Welwyn festival on Singlers Marsh. We are home to prominent national businesses, including Tesco and Ocado in Hatfield, and to the thriving University of Hertfordshire. The university will soon be opening its state-of-the-art Spectra building for the study of physics, engineering and computer science—and yes, Mr Vice-Chancellor, as this will appear in Hansard, please consider that to be my formal bid for an invitation to its opening!

    I believe that a new Parliament is a time for ambition and optimism. Welwyn Hatfield blossomed when Attlee’s Labour Government put housing and carefully planned communities at the centre of its agenda for change. Nearly 80 years later, we have another majority Labour Government with a mandate for national renewal. This is a moment of opportunity, and each of us on these Benches has a responsibility to play our part in realising it. For as long as I serve in this House of Commons, I will always do my utmost to champion Welwyn Hatfield, to respect our history, and to be an agent for change.

  • Wera Hobhouse – 2024 Speech on the Economy, Welfare and Public Services

    Wera Hobhouse – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Wera Hobhouse, the Liberal Democrat MP for Bath, in the House of Commons on 22 July 2024.

    The shift to a green economy represents the most significant transformation for centuries. We must reverse the damaging rhetoric by the failed Conservative Government that the economy will suffer if we are uncompromising in our ambition to get to net zero. This is not an either/or of economic growth or investing in the green economy—the green economy is at the heart of economic growth.

    We must end our reliance on oil and gas. Renewables would mean cheaper energy bills across the country, and we would no longer be reliant on dictators such as Vladimir Putin who use natural gas as a weapon. As well as being more affordable, renewables are the best route to energy security. Under the Tory party, renewable projects faced long delays and costs skyrocketed. The new Government’s reversal of the de facto ban on new onshore wind is welcome. We are also glad restrictions on new solar have been reversed.

    The Liberal Democrats share the ambitions of the Government’s climate agenda, but we will also ensure that these projects have local buy-in. Local authorities must play a leading role in delivering climate action, and the communities that host the new infrastructure must directly benefit from it. For example, there is huge growth potential in community energy. The Liberal Democrats are calling for small-scale renewable energy generators to receive a guaranteed fair price for the electricity they sell back to the grid. Community benefit and individual economic incentives are crucial to securing support and active participation in our energy transition.

    In both the Labour and the Liberal Democrat manifestos there was a clear commitment to tightening energy efficiency standards for private landlords. National Energy Action has warned that the statutory fuel poverty target cannot be met without doing so. The King’s Speech provided an opportunity for the new Government to set that as a priority in their new renters’ rights Bill, but it was missed out. I hope the Government will hear this and ensure that improvements to energy efficiency for renters materialise before the situation worsens.

    Under the previous Conservative Government, the cost of living crisis was exacerbated by rises in travel costs, particularly for commuters. It is not clear how Labour’s plans for nationalisation will do anything to alleviate the high cost of travelling by rail. We urge the new Government to freeze rail fares and simplify ticketing to ensure that regular users are paying a fair and affordable price. For too long, decisions over local transport have been centralised. Liberal Democrats have long argued for lifting the ban on local authorities franchising buses. It is reassuring to see that the Government recognise the importance of local decision making. However, councils will need adequate resourcing to expand services. We are yet to see a strategy for that. We would also like to see a long-term plan from the Government for further electrification of the rail network. Not providing one would be a dereliction of duty to reduce emissions and improve air quality.

    I look forward to working together constructively with the new Government to turbocharge our energy to get to net zero, and to make sure we really improve our green public transport and grow the huge opportunities of a green economy.

    [Hobhouse intervened shortly afterwards to add]

    I do apologise to the hon. Member for Finchley and Golders Green, and to the whole House, for not recognising my duty to thank the hon. Lady for her wonderful speech. This means that even after seven years in the House one sometimes forgets to do certain things. It is very good to see the hon. Lady in the House, and I particularly enjoyed what she said about the rule of law.

  • Sarah Sackman – 2024 Maiden Speech on the Economy, Welfare and Public Services

    Sarah Sackman – 2024 Maiden Speech on the Economy, Welfare and Public Services

    The maiden speech made by Sarah Sackman, the Labour MP for Finchley and Golders Green, in the House of Commons on 22 July 2024.

    Thank you, Madam Deputy Speaker. It is a pleasure to follow the right hon. and learned Member for Fareham and Waterlooville (Suella Braverman). Like other Members, I am somewhat surprised by her rewriting of recent economic history. She had 14 years to fix the problems of child poverty, and did precious little to do that. I listened today to the Chancellor of the Exchequer lay out this Government’s plans to restore economic stability and growth to this country—that is what will lift millions of children out of poverty in the long term.

    It is a privilege to stand here today representing the place where I was born and raised, Finchley and Golders Green. I would like to start by paying tribute to my predecessor, Mike Freer. Although we disagreed on many things, Mike was dedicated to our area, both as a Member of Parliament and as leader of Barnet council. I admire his commitment to public service and, in particular, his role in securing equal marriage legislation for same sex couples—a legacy that he can take enormous pride in. But the circumstances under which Mike decided not to stand for re-election are appalling. We should have been able to face each other on the basis of our ideas, but Mike’s life and office were threatened by those who believe in the bullet, not the ballot box. It is a stark reminder of the fragility of our democracy both at home and abroad.

    I want to use my time in this place to stand up for the democratic values and processes that I believe in. Witnessing the dignified and smooth transition of power last week in all parts of this House is something we can take pride in. We must ensure that we work together to defend the safety of public servants. I wish Mike and his husband Angelo all the best in their future.

    I also pay tribute to the much missed Dr Rudi Vis, who holds a special place in the heart of my local community, not least as the first Labour Member to represent this special patch of north London. In over a century, I am only the second person from my party to be sent to this place by the people of Finchley and Golders Green. I am also only the second woman. Some Members may remember the first. When Mrs Thatcher entered this place, she was made to wait two whole years to make her maiden speech, but in our era of breakneck news cycles, and with so much work that I want to do, having to wait just two weeks has felt like a very long time. Having delayed long enough, Mrs Thatcher did not waste a second when she rose to her feet, breaking convention by making her maiden speech on a private Member’s Bill that she introduced.

    “This is a maiden speech”,

    she said, her sonorous tones echoing through this hallowed place—

    “but I know that the constituency of Finchley…would not wish me to do other than come straight to the point”.—[Official Report, 5 February 1960; Vol. 616, c. 1350.]

    The people of Finchley and Golders Green rightly remain as demanding of their elected officials today, so I, too, will come straight to the point. Like Mrs Thatcher, I am a patriot and I want our communities and our country to prosper and be an influence on the global stage. But unlike her, I fundamentally believe that there is such a thing as society. Society is not an abstract idea to be buried in sociological essays. We can see it in the rich tapestry of communities that come together across Finchley and Golders Green. I may be the first female, Jewish, Gibraltarian MP from this constituency, but I would not be here without the support of my neighbours and my community: the Cypriot community, the Somali Bravanese, the Kosovan, the Japanese, the Irish and Hindu communities, the lawyers and the Uber drivers, the charity workers and the campaigners, the Spurs fans and the fans of some other north London team. Whereas in recent times some politicians have chosen to use “north Londoner” as an insult, my constituents and I wear it as a badge of pride. It symbolises a place that celebrates diversity, hard work and looking out for your neighbour.

    Our diversity comes as no surprise to anyone familiar with the history of our area. Where else can boast the parish where Archbishop Desmond Tutu honed his ministry in the terrible years of exile during apartheid in South Africa, and the childhood home of the late and great Rabbi Jonathan Sacks, a man who taught us that a good society is one that offers all its members equal access to hope? It was in East Finchley that George Michael first tinkled on the ivories and Amy Winehouse first took the stage.

    Finchley and Golders Green has a quiet radicalism baked into its history. Take Hampstead Garden Suburb, where I grew up, a project driven by the extraordinary Henrietta Barnett in the early 20th century. One of the first garden cities, it was a groundbreaking development. She also set up Toynbee Hall in London’s east end, where I began my legal career as a volunteer at the Free Legal Advice Centre. I saw there just how important the law could be for tenants facing eviction and women suffering unequal pay. Now I want to take those values of access to justice and a commitment to the rule of law into my new role as Solicitor General.

    When, in 1907, we witnessed the opening of Golders Green underground station, adverts at the time dubbed our area a “place of delightful prospects”. I can vouch that never a truer word has been spoken, but this place of delightful prospects has suffered in recent years. My community has witnessed rising levels of antisemitism and Islamophobia. These are a scourge on our society and as long as I am in office I will tirelessly call them out and work to eradicate them.

    Our community today is increasingly becoming a place of busy food banks and empty mansions. Inequality is writ large, stunting people’s health and potential. Many across Finchley and Golders Green are struggling with the spiralling cost of living. This has to change not just in my constituency, but across the whole country. Our NHS is broken, the prisons are full, the police cannot respond when they are called out and our teachers are not supported to deliver. We need to get Britain back on track, and the Bills set out in the King’s Speech are exactly what we need to take the brakes off the economy and restore and rebuild our public services.

    My constituents are raring to go. Whether it is the Brent Cross Town development, one of the largest regeneration developments in Europe, or our brilliant high street businesses and local entrepreneurs, all we need to get growing is a Government who are on our side. Well, we have that Government now. So, to quote my famous predecessor, let’s get straight to the point and let’s get on with the change that Britain truly needs.

  • Suella Braverman – 2024 Speech on the Economy, Welfare and Public Services

    Suella Braverman – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Suella Braverman, the Conservative MP for Fareham and Waterlooville, in the House of Commons on 22 July 2024.

    I congratulate the hon. Member for Queen’s Park and Maida Vale (Georgia Gould) on a simply superb speech that follows the best traditions of the House. She has done her constituents proud, and I know that she brings huge expertise and commitment to this House. I wish her all the best.

    I put on record my thanks to the good people of Fareham and Waterlooville for sending me back to Parliament. We had a fantastically energetic—let me put it that way—and hard-fought campaign. I am honoured and humbled to have the privilege to speak on their behalf in this Chamber.

    One thing struck me in the King’s Speech—not the long list of policies that will no doubt damage our economy, or the vague promises that will not survive contact with reality. For me, the thing that was conspicuous by its absence was the total failure of the Labour Government to deal with child poverty and scrap the two-child benefit cap on welfare. [Interruption.] Yes, hon. Members heard that right. [Interruption.]

    Madam Deputy Speaker (Dame Siobhain McDonagh)

    Order. Could we show respect and listen to the Member’s speech?

    Suella Braverman

    I detect a bit of surprise on the Government Benches. I have risen to speak on scrapping the cap. In the grand tapestry of British politics, where the warp and weft of policy and principle interlace, it is not often that a Conservative MP will find threads of agreement with friends across the aisle, but here we are, discussing a proposal backed by Labour MPs, led by the hon. Member for Liverpool Riverside (Kim Johnson) and backed by the Liberal Democrats, the Scottish National party and many Opposition parties. It is one with which I agree, because it speaks to my profound sense of justice and, dare I say, compassion. I will say why Conservatives can and should back scrapping the cap.

    Let us not rewrite history, because there has been a lot of nonsense from Labour Front Benchers about the situation that we inherited in 2010. To put it simply, we inherited no less than an economic catastrophe, and we worked hard to recover from that situation. The deficit stood at 10% in 2010; we got that down to 1.9%. Public sector net borrowing was at 10%; we got that down to 3%. We were in a deep recession, and we now have the fastest growing economy in the G7.

    We had to make incredibly difficult decisions back in 2010 to reduce our welfare bill, but it is clear to me that through those welfare reforms, spearheaded by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), we overhauled an overly complex, bureaucratic system, and helped millions of people get back into work. Four million more people are in work now than in 2010. The unemployment rate is down to 4.4%—almost half what it was in 2010. We can make changes to some of the decisions that we made back then.

    It is clear to me from my work with vulnerable families in Fareham that the cap is not working. It is pushing more children and families into relative poverty, causing them to use more food banks. There are three good reasons for scrapping the cap.

    Ian Lavery (Blyth and Ashington) (Lab)

    Will the right hon. and learned Lady tell the House who introduced the cap, why, and which way she voted when the measure went through this House?

    Suella Braverman

    I just set out that the parlous economic situation forced us to make impossible choices, but thanks to the improved economics and the improvements brought about by universal credit, I believe that it is time to put child poverty first and scrap the cap. There are three big reasons for Conservatives to support that. First, it is affordable. For about £1.7 billion—0.14% of total Government spending—we could quickly bring around 300,000 children out of poverty. In this improved situation, that is the fair and right thing to do. Secondly, the reason why it was introduced in the first place was to disincentivise poorer families from having more children, but that has not necessarily worked. The number of children born has remained relatively stable. As the Joseph Rowntree Foundation found, heartbreakingly, 43% of children in larger families are in poverty. The children hardest hit are those under four. It predominantly affects younger children, and those in large families. I believe that the cap is aggravating child poverty, and it is time for it to go.

    I know that there is the argument, “Don’t have children if you can’t afford them.” To me, that is not compassionate, fair or the right thing to say. As Conservatives, we should be proudly and loudly the party of family. We should encourage families on lower incomes to have more children. For those families on middle and higher incomes, we should change our tax regime so that they are incentivised to have children. We have better parental leave policies, better childcare provision policies and better maternity care. I am a Conservative because I believe in the strength and the sovereignty of the family unit. We should support it, not suppress it. This is not about right or left. This is about right or wrong. Let us come together, in a spirit of compassion and common sense, to scrap the cap and end child poverty for good.

  • Georgia Gould – 2024 Maiden Speech on the Economy, Welfare and Public Services

    Georgia Gould – 2024 Maiden Speech on the Economy, Welfare and Public Services

    The maiden speech made by Georgia Gould, the Labour MP for Queen’s Park and Maida Vale, in the House of Commons on 22 July 2024.

    I am pleased to speak in a debate with so many strong female representatives, including the hon. Member for West Worcestershire (Dame Harriett Baldwin), and I am really honoured to speak in a debate led by the first female Chancellor of the Exchequer, who has shown today what a force for change she is. I have found it incredibly moving to hear MPs across the House talk with such love and dedication about the places they represent. It has given this Parliament a deep grounding in the stories of people from every part of the UK.

    I feel deeply the trust put in me by the people of Queen’s Park and Maida Vale. In speaking here, I stand on the shoulders of some extraordinary women who have represented the different parts of Queen’s Park and Maida Vale. My hon. Friend the Member for Brent East (Dawn Butler) is someone who breaks through glass ceilings and lifts others up behind her. Nothing ever dims her spirit and her passion for tackling injustice. You need only walk down Harlesden High Street with her to see how she inspires people by her example—and sometimes her music.

    My hon. Friend the Member for Hampstead and Highgate (Tulip Siddiq) is a formidable campaigner who was in the Chamber the day she was due to give birth because she needed to give her constituents a voice. She did not stop campaigning until her constituent Nazanin Zaghari-Ratcliffe was safely home with her family. Those who know her will quickly learn that she never, ever gives up. She is always a voice for the people she cares about.

    Karen Buck gave an extraordinary 27 years of service to the residents of Westminster North. I was at a school in my constituency last week where the head said that Karen was the fourth emergency service, always at the end of a phone ready to help. I remember going to an elderly people’s lunch where the residents said, “You can be our MP—you are very nice. Just make sure that Karen comes to our residents’ meeting in July.”

    The wonderful team at the House Library sent me Karen’s maiden speech. It was no surprise to me that it was a passionate call to action on the housing conditions of her constituents. That passion has not dimmed for a second; it could be heard in every line of her 37 interventions on the Renters (Reform) Bill over 25 years later. She has shown that somebody with community running through their veins can move mountains. I will work every day to live up to the women who came before me—that includes you, Madam Deputy Speaker, and your sister Baroness McDonagh, who have both showed such amazing, dedicated service and never give up fighting for constituents and the people of this country.

    Queen’s Park and Maida Vale is a place that means a huge amount to me. My great-grandfather came over to the UK when he was a teenager, fleeing the poverty and pogroms of Lithuania, and worked his way up to open a shop on Kilburn High Road. My family have lived and worked in the area ever since. Growing up in the heart of London, I attended Horfield primary school and saw how many children were cut out of the opportunities on their doorstep; that has driven me ever since. The need that we see now is greater than ever. My inbox and my surgeries are full of people facing the homelessness crisis and skipping meals to feed their family—all in walking distance of the Chamber.

    Queen’s Park and Maida Vale is a place with huge need, but also with huge heart. It has welcomed not just my family but families from so many different backgrounds. We are home to the Bangladesh Caterers Association; the Lauderdale Road synagogue; the UK Albanian Muslim Community and Cultural Centre; Harlesden, which is the unofficial capital of reggae and the starting point for so many iconic artists and producers; Kilburn, a centre of creativity with a claim to be the birthplace of cinema; and the amazing, diverse community of Church Street.

    We are a community that is rich in spirit and dynamism. In 1879, Queen’s Park was chosen to host the royal agricultural show, the Victorian equivalent of the Olympics. It was a very British affair—it rained most of the time—but ordinary people campaigned to preserve the open space, and it is still a thriving park today. Down the road, Walterton and Elgin Community Homes is a shining example of community leadership. We also have the country’s only urban parish council.

    Queen’s Park is the birthplace of the pride of west London, Queens Park Rangers football club. I can tell the House that being a QPR fan is almost as good as this Chamber for getting to know the communities of the UK; it means spending rainy days in Cardiff, Preston, Southend and Tranmere, embracing again and again the triumph of hope over experience.

    I have always been an optimist. Despite 14 tough years in local government, including seven as Camden council leader, I have never lost hope, because every day I can see the power of communities. I was elected as a councillor in 2010, and at events, when people used to say to me, “What do you do?”, I would proudly say to them, “I am a councillor.” They would say, “That is so wonderful; you do such wonderful work as a therapist.” I would have to say, “No, not that kind of counsellor. I am a Labour party councillor.” They would either swiftly go and get a drink or talk to me about dog mess.

    Street cleaning and rubbish collection are essential services that councils deliver—my hon. Friend the Member for Birmingham Erdington (Mrs Hamilton) once introduced me as the person who makes sure that Keir Starmer’s bins are collected—but we often forget how much more local government is. I see that every day, watching the work of Brent and Westminster, two brilliant Labour councils in my constituency.

    Councils are lifelines for communities. They provide care for the children and adults who most need support. They are leaders of place, bringing services and people together to make change. I have seen local government staff go above and beyond time and again, fuelled by love and dedication, because there was no one else there, whether they were working with communities to deliver food during covid or supporting Afghan evacuees. When things have been hard, they have held together our communities, finding unity in difference.

    The Gracious Speech sets out bold new proposals in the English devolution Bill to unlock the energy and creativity of communities. It sets out Bills to fulfil Karen Buck’s long-held campaign to end no-fault evictions and reform the leasehold system. The proposals will support the people of Queen’s Park and Maida Vale who come out every day to build their community—the youth workers, the community gardeners and those running the North Paddington food bank, who wish it did not have to exist. These are people putting hope into action because they believe that things can change. I know that as I sit in the Chamber, I will have their voices and stories with me, but I will also have the stories that I have heard from hon. Members from across the UK. We all have that in common: the privilege and the responsibility of bringing the voices of our community to this place. We may debate and disagree, but I hope to always listen and learn, and remember that we are being entrusted to weave those stories, hopes and ambitions together for a national vision for this country—one that governs for all and leaves no one behind.

  • Harriett Baldwin – 2024 Speech on the Economy, Welfare and Public Services

    Harriett Baldwin – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Harriett Baldwin, the Conservative MP for West Worcestershire, in the House of Commons on 22 July 2024.

    May I start by adding my congratulations to the Chancellor on being the first woman to hold that office in the history of our country? At this rate, the Labour party might even have a female Prime Minister some time this century. I also thank the shadow Chancellor, my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt) for everything he did while in office. In particular, I thank the voters of West Worcestershire for returning me here for the fifth time.

    I was one of those who was here in 2010. It is ironic that I should be following the right hon. Member for Birmingham Hodge Hill and Solihull North (Liam Byrne), because he was the one who left that famous note, “I’m sorry: there is no money left.” If people want to know what a bad economic legacy looks like, I was here in 2010 when we received one from the Labour party. The deficit was over 10% and rising and unemployment was over 8%. Inflation was nearly twice its target, and the banking system had just collapsed and had to be bailed out by taxpayers. We can contrast that with the economic legacy of 2024 that the new Government inherit.

    Despite the economic costs of the pandemic and the energy crisis, the UK is enjoying the fastest growth in the G7. Unemployment is now half the rate it was in 2010. Inflation is back on target. We have a well-capitalised banking system, almost completely out of taxpayers’ hands. Wages are now rising faster than inflation. We are the fourth-largest exporter in the world. Members do not have to take my word for it; they can take the words of the International Monetary Fund, which in a recently published report said that

    “the UK economy is approaching a soft landing”,

    with

    “growth recovering faster than expected…inflation has fallen faster than was envisaged…The banking system remains healthy”.

    So I approach the economic measures in the King’s Speech with a degree of trepidation, because they come at a time when the economy was back on track. While I agree that “securing economic growth” is a fundamental mission of government, I would add the word “non-inflationary”. I have looked and looked through this King’s Speech, and I cannot see any measures that magic up economic growth. Growth does not just happen because it is written into the King’s Speech.

    In my time as Chair of the Treasury Committee, we had the opportunity to have a private session with the IMF. It is interesting to observe that many of the measures put forward by the Government in the King’s Speech were in the IMF’s prescription for the UK economy. Reforming planning and building on our beloved green belt were from the IMF, as was strengthening the role of the Office for Budget Responsibility and crowding in private capital on net zero projects via a national wealth fund.

    What else does the IMF want? Well, colleagues may not be surprised to learn that it also wants to see more taxes. It does not quite say it like that—it calls it “closing tax loopholes” or “mobilising additional revenues”. Some of the measures we heard about in our private session with the IMF were as follows. The first was setting capital gains tax rates in line with income tax rates. I hope that Ministers will rule that one out. The second was subjecting the sale of primary residences to capital gains tax. I hope that Ministers will rule that one out. The third was ending inheritance tax loopholes for pensions, family businesses and farms. I hope that Ministers will rule that one out. The fourth was revaluing all of England’s homes for council tax, and especially those over £320,000 in value. I hope that Ministers will rule that one out. The IMF also liked the idea of road pricing; I hope that Ministers will rule that one out. It also wants to bring forward considerably the date at which the state pension age increases.

    Given that those are all tax measures that the IMF recommends, I am sure that the Chancellor is beginning to contemplate them. When the Government respond to today’s debate, I hope that they will specifically rule those things out, because the tax rises that the Government admit to already—the pensioner tax, the tax on education, and regulatory costs galore—are bad enough. Let us hear some specific denials on those other taxes.

  • Liam Byrne – 2024 Speech on the Economy, Welfare and Public Services

    Liam Byrne – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Liam Byrne, the Labour MP for Birmingham Hodge Hill and Solihull North, in the House of Commons on 22 July 2024.

    It is an honour to speak in this King’s Speech debate, and a privilege to have heard the first female Chancellor in our history deliver such a remarkable opening salvo. I will say a word not just about the King’s Speech itself, but the strategy behind it. When the Chancellor and my right hon. Friend the Prime Minister launched our manifesto, there was a clear ambition at its heart to ignite a revolution in wealth creation in this country not just for some, but for all. That strategy was absolutely right, because among the worst of our inheritance is the scandal—the moral emergency —of the inequality of wealth that now scars our country.

    Madam Deputy Speaker, you and I could take a walk this afternoon down to a coffee bar called Shot in Mayfair, which would serve us coffee for £265 a shot. We could go next door to a restaurant Aragawa, where they serve steak for £900 apiece. Some, if they were lucky enough, could book a night at the Raffles hotel for £25,000. These are extraordinary prices, but not unremarkable in a country that now has the highest sales of Rolls-Royces, superyachts and private jets. This absurdity of affluence sits alongside a country where, on the last figures, more than 1,000 people died homeless, tens of thousands of people are dying from the diseases of poverty, and 2.1 million people can put food on the table only because of the tender mercies of food banks. That is the inequality of wealth bequeathed to this Government. It is best illustrated perhaps by one figure: the wealth of the top 1% has grown by 31 times the wealth of everybody else over the past 14 years. That is why my right hon. Friend the Chancellor was right to say that there has to be a revolution in wealth creation in this country—not just for some but for all.

    The measures that my right hon. Friend has set out are the right ones: a plan for growth and a plan to devolve economic power out of the paralysis of Westminster and Whitehall and down to mayors and local councils. Alongside that is a revolution in planning law, infrastructure law and skills finance. I urge my friends on the Government Front Bench to maximise the amount of power held locally, because it is local people and local leaders who know best how to grow our economy. If we have a growing economy, the key is then to ensure that growth is fairly shared. That is why the employment rights Bill is so important. As my right hon. Friend said, there has not been growth in living standards for more than 14 years. That is why we need to ensure that there is a fair day’s pay for a fair day’s work.

    Alongside that, the draft equality Bill is extremely important, and I urge my right hon. Friend to go further and to use the consolidation of pension funds to inaugurate an era of civic capitalism in this country, where we use the combined £2 trillion-worth of pension savings to encourage businesses that are good, not businesses that are bad, such as those that she revealed when she was a brilliant Chair of the Business and Trade Committee, or the scandals that we exposed in the last Parliament with McDonald’s, Asda and other firms behaving in a way reminiscent, frankly, of Victorian capitalism.

    Once we have begun raising incomes, we must help people build well. That is why the changes to the housing market that my right hon. Friend proposed are so important. We can underpin that and maximise investment into the infrastructure of this country by ensuring that there is a national wealth fund, but I would go further, and I ask her to look at how we can put together not just the national wealth fund but the Crown estate fund, which is set for reform under a Bill in the King’s Speech.

    We could go a step further and review the whole portfolio of investments held by the Government and by UK Government Investments. The last Government made some pretty strange investments during covid, including, I understand, buying shares in Bolton Wanderers, shares in a bespoke boutique whisky company, and even, it is said in some newspapers, shares in a strange firm that organises international sex parties called Killing Kittens. I say to my friends on the Government Front Bench that it is time we had a Domesday Book that consolidated assets in this country. Let us look at what we need and what we do not. Crucially, let us look at how we maximise dividends going to ordinary working people in this country to help them build wealth for themselves.

    I conclude with this: on the Government Benches, we have long known that we only deliver and maximise freedom and opportunity for people in this country, and make those freedoms and opportunities real, if there is security. There is no security without wealth, which is why the ambition that my right hon. Friend set out not simply to build a wealthy democracy but a democracy of wealth, is the right one.

  • Sarah Olney – 2024 Speech on the Economy, Welfare and Public Services

    Sarah Olney – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Sarah Olney, the Liberal Democrat spokesperson on the economy, in the House of Commons on 22 July 2024.

    Thank you, Madam Deputy Speaker. It is a pleasure to see you in the Chair.

    It is a real pleasure to contribute to the debate on behalf of the Liberal Democrats, not just because I am speaking on behalf of so many more of them than I used to, but because it gives me an opportunity to welcome the Chancellor of the Exchequer to her place and express my personal congratulations on becoming the first woman in the UK’s history to hold the position. I am personally delighted. I spent many years working in banking and finance, and I know how male-dominated those industries still are. I wish her well in her new role and look forward to working with her over the coming Parliament. The Liberal Democrats will be vigorous in scrutinising her plans, but we will always work in the national interest, and I can assure her of the support of the Liberal Democrats on all those matters on which we can agree.

    I am sure that one of the things on which we can certainly agree is that the right hon. Lady and her colleagues have received a dismal inheritance from the departing Conservative Administration. The numbers reveal a dispiriting picture of low growth, high interest rates and a record fall in living standards delivered by an out-of-touch and incompetent Conservative party that took people for granted for years. Our constituents see this situation reflected in the increases in their mortgage payments, the hike in their energy bills and the prices they pay at the tills for their weekly shop. They see it in public services that are in a state of crisis and an NHS that is failing to deliver the care they need. The Liberal Democrats welcome the seriousness with which this King’s Speech focuses on stability, reinvesting in our crippled public services and growing the economy.

    We welcome measures such as the introduction of an industrial strategy council to co-ordinate policy on economic growth, but the immediate and pressing problems that our constituents are facing in their everyday lives cannot just be addressed by centralised, top-down institutions run from Whitehall. Our economy needs to grow from the bottom up, bringing prosperity to every community, taking away the barriers to entry for small businesses and enabling individuals across the country to make the most of their skills and talents. The Liberal Democrats want urgent measures introduced to give immediate support to families and small businesses.

    While out on the doorsteps during the general election campaign, I and my 71 colleagues heard a clear message from our constituents that their biggest priority was fixing the NHS. We are here because we promised to fight hard for a better NHS for our constituents and for communities across the country. That is why we are calling for the Chancellor to immediately draw up a Budget for health and social care. We cannot deliver economic growth without fixing the crisis in our NHS and in social care. NHS waiting lists are at an all-time high; it can take weeks to see a GP and it is now almost impossible to see an NHS dentist. Everyone deserves access to the care they need when they need it and where they need it. A successful health and social care system is fundamental to a fair society and our country’s prosperity.

    The failures of the Conservative Administration led to a dramatic increase in the number of people experiencing long-term sickness conditions and the Liberal Democrats will continue to push for public service investment to help reduce NHS waiting lists to get people back to work.

    Ben Maguire (North Cornwall) (LD)

    Does my hon. Friend agree that reforming social care should be one of the most urgent priorities of this Government? The Royal Cornwall hospitals NHS trust recently announced that £26 million a year is spent on patients who are medically well but unable to be discharged due to a lack of social care packages.

    Sarah Olney

    My hon. Friend is right, and it is wonderful to see him in his place; the people of North Cornwall will be well served by his championing of social care, which was front and centre of the Liberal Democrats manifesto in the general election.

    The most direct way to alleviate poverty is to increase the money paid to the poorest households. We know that our fellow citizens who are living in the severest poverty are likely to be families with small children. Growing up in poverty affects children’s educational chances and is likely to impact their physical and mental health, holding them back from achieving their true potential. Taking immediate steps to tackle child poverty should therefore be a priority. We believe that removing the two-child cap is the most cost-effective way of immediately lifting 500,000 children out of poverty, while helping to make costs more manageable for parents. That would have a direct benefit to families struggling with the cost of living crisis. Not only do we have a moral obligation to change this unnecessary policy but it is the most cost-effective way of alleviating poverty with a broad range of economic advantages, including supporting more parents back into the workforce. So I urge the Chancellor of the Exchequer to remove the two-child limit on social security payments in her Budget to ensure that all families who need it receive immediate reassurance and support.

    But families of all sizes are suffering under the cost of living crisis and desperately need help. Our schools are increasingly having to battle the effects of poverty to ensure children are able to attend school and have the best chance of reaching their potential, and too many children are distracted from their lessons because they have not had enough to eat. The Liberal Democrats set out plans in our manifesto for free school meals for all children living in poverty, with an ambition to extend them to all children once public finances allow. The Liberal Democrats are calling on the Government to consider funding free school meals as a priority to alleviate the pressure on the finances of the families who are struggling the most. This will also contribute to positive educational outcomes that will benefit us all in the future.

    The Liberal Democrats welcome many of the measures in the King’s Speech that aim to boost economic growth, and we support the Government’s objective to make that a priority. We welcome moves to boost stability and provide strategic leadership via an industrial strategy council and to increase investment through pension reform. However, our small businesses and local high streets need immediate support, and the Government need to do more to ensure economic growth can reach every part of the United Kingdom and that small businesses and entrepreneurs can quickly rediscover the confidence that they need to invest after years of Conservative chaos and mismanagement. Liberal Democrats want to see more direct support which will impact local community businesses. We believe we need swift action specifically to tackle high energy costs and we continue to call for business rate reform.

    A new Parliament presents a real opportunity to begin to properly rebuild our trading relationships with Europe. From speaking with many small business owners I understand the pressures and limitations that current trade deals with Europe pose to businesses. We must tackle the arduous legislation around importing and exporting goods, which significantly limits the opportunities for small businesses to grow. The Liberal Democrats have a comprehensive plan to rebuild trust and co-operation with Europe, and we understand that to be a crucial aspect of the support that businesses urgently need. We welcome the Government’s acknowledgement of the need to reform the apprenticeship levy. However, we would like to see them go further and replace the current scheme with a broader and more flexible skills and training levy. We hope that the Government will join us in encouraging the take-up of apprenticeships, particularly for young people, and support our calls to guarantee that they are paid at least the national minimum wage by scrapping the lower apprentice rate. We understand the broad economic benefits of supporting the development of skilled workers and are optimistic about the advantages that can bring to business.

    The recent years of chaos and irresponsible Conservative administration have left a substantial challenge for the new Government to tackle. We do not underestimate the work lying ahead to get the economy back up and running, to nurture an environment that will allow businesses to thrive and to restore the public services that provide care for people when they need it. My Liberal Democrat colleagues and I will hold the new Government to account to ensure that they deliver on the promises outlined by His Majesty on Wednesday as we work to rectify the damage done by the Conservatives: rebuilding our economy, supporting individual communities and small businesses, and urgently investing in health and social care.

  • Rachel Reeves – 2024 Speech on the Economy, Welfare and Public Services

    Rachel Reeves – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Rachel Reeves, the Chancellor of the Exchequer, in the House of Commons on 22 July 2024.

    It is a pleasure to open today’s King’s Speech debate on behalf of His Majesty’s Government. I always enjoy debating with the right hon. Member for Godalming and Ash (Jeremy Hunt), though I must say I rather prefer doing so from this side of the Chamber. [Hon. Members: “Hear, hear.”]

    I appreciate the shadow Chancellor’s generous words on my appointment and also his tribute to officials, who I can confirm are indeed first rate. It has been more than 14 years since a Labour Government were in office for a state opening of Parliament—14 years of chaos, 14 years of economic irresponsibility, 14 years of wasted opportunities and 14 years since there has been a Labour Chancellor of the Exchequer standing at this Dispatch Box. Today, I pay tribute to my most recent Labour predecessor, the late Lord Darling. He was an outstanding Chancellor, a kind man and a good friend.

    Mr Speaker, it is also the very first time that there has been a female Chancellor of the Exchequer. On my arrival at the Treasury, I learned that there is some debate about when the first Chancellor was appointed. It could have been 800 years ago, when one Ralph de Leicester was given the title of “Chancellor of the Exchequer” for the first time, or, 900 years ago, when “Henry the Treasurer” was referenced in the Domesday Book. It could even have been 1,000 years ago, when Alfred the Great was in effect the first Master of the Mint. Whichever it is, I am sure the whole House would agree on one thing—that we have waited far too long for a woman to be the Chancellor of the Exchequer. [HON. MEMBERS: “Hear, hear.”]

    I stand here today proud, but also deeply conscious of the responsibility that I now have: a responsibility to women across the country whose work is too often undervalued; and a responsibility to every young woman and girl, who should know that there is no ceiling on their ambitions and no limit on their potential.

    Sarah Edwards (Tamworth) (Lab)

    Seven Tory men have stood at that Dispatch Box over the past 14 years and the result has been an economic crisis, crumbling public services and a cost of living crisis. Can we expect a change of approach from the new female Chancellor of the Exchequer?

    Rachel Reeves

    One thing is that I hope to be in post for a bit longer than some of my predecessors.

    As tempting as it is, I do not intend to conduct a full sweep of the past 1,000 years of economic history from the Dispatch Box today—[Hon. Members: “Ah”!] I am sorry. However, we must talk about the past 14 years. I warned that whoever won the general election would inherit the worst set of circumstances since the second world war, and I have seen nothing to change my mind since I arrived at the Treasury. I will update the House on our public spending inheritance before Parliament rises for recess.

    I heard what the shadow Chancellor said from the Dispatch Box now and on the television yesterday, which was to claim that I should be grateful for what he has left us. That is unbelievable, because he knows the truth and is now trying to rewrite history. In doing so, he has reminded the British people why the Conservatives lost the election. They are out of touch, deluded and unable to defend the indefensible. In the weeks ahead, it will become clear what those in his party did. They stored up problems, failed to take the tough decisions and then they ran away, leaving it to us—the Labour Government—to pick up the pieces and clear up their mess.

    Today, I want to focus on one thing above all else: economic growth. Since 2010, Conservative Chancellor after Conservative Chancellor, including the now shadow Chancellor, stressed the importance of growth. We have had more growth plans than we have had Prime Ministers or Chancellors, and that is quite a lot, but growth requires more than talk; it requires action. Like so much else with the previous Administration, when we scratch beneath the surface the façade crumbles, and all that is left is the evidence of 14 years of failure.

    Matt Western (Warwick and Leamington) (Lab)

    I congratulate my right hon. Friend on her appointment; she is making an excellent speech. Friday’s ONS report showed that public sector borrowing was 25% higher than forecast. Does she agree that that underlines why it was so important to have a fully costed and fully funded manifesto to restore confidence in the public finances, and that it was a surprise that certain other parties did not follow the same route?

    Rachel Reeves

    I thank my hon. Friend for that question. He speaks powerfully, and I pay tribute to his work in the last Parliament, particularly around education and skills. This is a really important point. For me, the most important pages of the manifesto that we stood on were the three grey pages at the back of it, which set out all our spending commitments and how they would be paid for. That was important, because to earn the trust of the electorate parties must be really clear about where the money will come from and what they will use it for. That is what we did in our manifesto, and it is what we will do in Government.

    The shadow Chancellor made some points about GDP, comparing ours with that of other countries, but since 2010 UK GDP per capita—that is the most important measure, because it reflects how people feel and the money that they have—has grown slower than the G7 average, slower than the EU average, and slower than the OECD average. Treasury analysis that I requested when I became Chancellor shows that, had the UK economy grown at the average OECD rate these last 14 years, our economy would be over £140 billion bigger today. That could have brought in an additional £58 billion of tax revenues in the last year alone—money that could have been used for our schools, hospitals and other vital public services. Growth is about more than just lines on a chart; it is about the money in people’s pockets, and Treasury analysis shows that achieving the rate of growth of similar economies would have been worth more than £5,000 for every household in Britain.

    The shadow Chancellor stood up and once again claimed that he bequeathed a great legacy. Seriously? The last Parliament was the first on record where living standards were lower at the end than at the start. The highest level of debt since the 1960s, the highest tax burden in 70 years, mortgages through the roof, the economy only just recovering after last year’s recession, economic inactivity numbers last week showing a further rise, and borrowing numbers last week showing over £3 billion more borrowing than the OBR expected—that is the Conservatives’ legacy. If that is a good inheritance, I would hate to see what a bad one looks like. I think deep down the shadow Chancellor knows that. In fact, he does know it.

    Yesterday, the shadow Chancellor admitted what we all know: that the manifesto that he campaigned on was undeliverable, and the money for the tax cuts that he promised simply was not there. If he wanted to show the country that his party has listened, and learned from its mistakes, he would have used his speech this afternoon to apologise, but he did not, and that tells us everything that we need to know about this Conservative party: party first, country second; political self-interest ahead of the national interest; irresponsibility before the public good. Let me say this to the Conservative party, “We will not stop holding you responsible for the damage that you have done to our economy and to our country.” Never again will we allow the Conservatives to crash our economy. They failed this country. They shied away from tough choices, and we will not repeat their mistakes. It falls on us, this new Labour Government, to fix the foundations so that we can rebuild Britain and make every part of our country better off. We will govern through actions, not words, and we have already begun to do just that, because there is no time to waste.

    Less than 72 hours after I was appointed as Chancellor, I put growth at the very heart of our work. Working alongside my right hon. Friend the Deputy Prime Minister, I set out reforms to our planning system—reforms that the Conservative party did not deliver in 14 years. Our reforms restore mandatory targets to build the homes that we desperately need, end the absurd ban on onshore wind to deliver home-grown cheap energy and recover planning appeals for projects that sat on the desks of Ministers in the last Parliament for far too long. Those are tough decisions that the Conservative party already opposes.

    Why was that my first act as Chancellor? Because getting our economy growing is urgent, and this King’s Speech shows that we are getting to work.

    Mr Mark Francois (Rayleigh and Wickford) (Con)

    On the matter of mandatory housing targets, having been a constituency MP for 23 years and seen them tried in a number of different ways, may I humbly offer the Chancellor this, with all sincerity? There is such a thing as good development, but it only works if it is something that we do with people and not to people. This Stalinist approach will not work.

    Rachel Reeves

    I have been compared to a lot of things, Madam Deputy Speaker, but I have never been compared to Joseph Stalin.

    Our approach is a brownfield-first approach. We will reintroduce those mandatory targets; of course it is up to local authorities and local communities to decide where the housing should be built, but the answer cannot always be no. If the answer is always no, we will continue as we are, with home ownership declining and mortgages and rents going through the roof. On the Government side of the House, we are not willing to tolerate that.

    This King’s Speech shows that we are getting to work. As my right hon. Friend the Prime Minister set out, our programme for government is founded on principles of security, fairness and opportunity. Our No. 1 mission is to secure sustained economic growth in our great country through a new partnership between Government, business and working people that prioritises wealth creation for all of our communities.

    We will fix the foundations of our economy so we can rebuild Britain and make every part of our country better off. There are a number of important pieces of legislation in the King’s Speech that will help us to grow the economy. In this speech, I will focus on three in particular: the Budget Responsibility Bill to restore economic stability, the national wealth fund Bill to drive investments and the pension schemes Bill to reform our economy. Those Bills speak not just to our programme for government, but also to trust in politics. They show that we will govern as we campaigned and that we will meet our promises to the British people.

    In the election campaign, I said the first step we would take would be to restore economic stability, because stability is the precondition to a healthy, growing economy. It is how we keep taxes, inflation and mortgages as low as possible. After years of irresponsibility, we are putting our economy on firm ground once again. We introduced the new Budget Responsibility Bill on Thursday to deliver on our manifesto commitment to introduce a fiscal lock so that I can keep an iron grip on our country’s finances.

    Kit Malthouse (North West Hampshire) (Con)

    The Chancellor and I sat on the Treasury Committee together many years ago, and she will know from our time together that economics is as much art as it is science. Given that she is effectively giving a veto over economic policy to the OBR through this Bill, she must recognise that we need to understand what the people in the OBR believe, what their theories of economics are and what principles they attach themselves to. What further scrutiny of the chair of the OBR and the people doing the forecast will be available to this House, given that effectively they will be co-Chancellor with her during the next few years?

    Rachel Reeves

    The Treasury Committee, as the right hon. Gentleman knows, can call in the chair and other members of the Office for Budget Responsibility, but his comments show exactly why we need this Bill: so that never again can we have a repeat of the mini Budget. The Bill will require every announcement that makes significant permanent changes to tax and spending to be subject to an independent assessment by the Office for Budget Responsibility. Why? Because unfunded, reckless commitments do not just threaten our public finances; they threaten people’s incomes and they threaten people’s mortgages. We saw that in the wake of the mini-Budget presided over by the former Member for South West Norfolk. I understand that she has taken umbrage in recent days at the idea that that episode was disastrous. Well, if any Conservative Member would like to dispute that fact today, I would be more than happy to give way. [Hon. Members: “Come on then!”] They cheered it at the time, but they are not cheering it now, and I do not imagine that they would put it on their leaflets.

    The Conservatives should be ashamed of what they did because people up and down the country are still paying the price for the chaos that they caused. We say: never again. The Budget Responsibility Bill will enshrine that commitment in law.

    Mr Luke Charters (York Outer) (Lab)

    During the pandemic, the friends and family of Conservatives were awarded contracts for work that were never fulfilled. My constituents would love to know how we can get their money back, perhaps through the covid corruption commissioner.

    Rachel Reeves

    I enjoyed campaigning for my hon. Friend in York Outer, and it is great to see him in his place today. Stability means a tough set of fiscal rules, but it also means spending public money wisely, as he says. The last Government hiked taxes while allowing waste and inefficiency to spiral out of control. At no time was that more evident than during the pandemic, especially when it came to personal protective equipment. The former Prime Minister, when he was Chancellor, signed cheque after cheque after cheque for billions of pounds-worth of contracts that did not deliver for the NHS when it needed it—that is simply unacceptable.

    Today, I can announce that I am beginning the process of appointing a covid corruption commissioner to get back what is owed to the British people. That money, which is today in the hands of fraudsters, belongs in our public services, and we want it back. The commissioner will report to me, working with the Secretary of State for Health and Social Care, and their report will be presented to Parliament for all Members to see. I will not tolerate waste. I will treat taxpayers’ money with respect and return stability to our public finances.

    The second Bill I will speak to is the national wealth fund Bill. We know that economic stability is vital for investors and for business—the small business looking to grow; the global business looking to expand in the UK; the entrepreneur looking to take their first steps. To support them, stability must sit alongside investment.

    Andrew George (St Ives) (LD)

    On the effective use of public funds, is the Chancellor aware not only of the alleged corruption in the way that covid aid was distributed, but of the large number of tax loopholes in this economy? For example, in Cornwall, over £500 million of taxpayers’ money was handed out to holiday home owners not only through covid aid but through the small business rate relief scheme and other tax loopholes. At the same time, only a third of that amount has gone into social housing for first-time users. Will she look at the whole issue of parity in the way public funds are used, to support people who need housing?

    Rachel Reeves

    I welcome the hon. Member back to this place. I enjoyed sparring with him in my early days in Parliament, and it is great to see him back in the House. He is absolutely right that we need to get value for money for all tax incentives. I will ensure that the Treasury and the Ministry of Housing, Communities and Local Government look at the changes that he suggests.

    The last Government’s record on investment was dismal. We now sit behind every single member of the G7 when it comes to business investment as a share of GDP. That is not an abstract economic problem. Weak investment holds back productivity and hurts living standards; it leaves households poorer and wages lower.

    The King’s Speech deals directly with the need to unlock private investment through a new national wealth fund Bill. That will be supported by an injection of capital, part funded by an increase to the windfall tax on oil and gas giants. It will make transformative investments in industries of the future, such as carbon capture and storage, and green hydrogen. It will mobilise billions of pounds-worth of additional private sector investment in our industrial heartlands and coastal communities while generating a return for taxpayers. The national wealth fund will work with local partners including mayors, as well as the devolved Administrations in Scotland, Wales and Northern Ireland, to develop an investment offer that meets the needs of all our nations and regions. It will simplify a complex landscape of support for businesses today, aligning key institutions such as the UK Infrastructure Bank and the British Business Bank under the one banner of the national wealth fund.

    Barry Gardiner (Brent West) (Lab)

    I heartily applaud what my right hon. Friend is saying about the renewed windfall tax. Will she also look at the fact that, in this country, we have the lowest basic rate of tax on oil and gas companies anywhere in the world? The average is 74%; in this country, it is 38%.

    Rachel Reeves

    As my hon. Friend knows, we committed in our manifesto to a three percentage point uplift to the current energy profits levy, which we will use to fund the national wealth fund. That fund will power jobs and prosperity in all parts of our country, and that work is already well under way. In my first week in office, I welcomed the report of the national wealth fund taskforce, and I thank the former Governor of the Bank of England, Mark Carney, and the whole taskforce for their outstanding work. This Bill will put the national wealth fund on a statutory footing with clear objectives, crowding in private investment to create wealth across Britain.

    Deirdre Costigan (Ealing Southall) (Lab)

    Under the Conservatives, businesses and working people were held back by a complete and abject failure to build the new homes that my constituents in Ealing Southall were crying out for, the laboratory spaces that will provide the jobs of the future, or the national infrastructure needed for businesses and working people to prosper. Will my right hon. Friend assure this House that, under her chancellorship, we will finally get Britain building again?

    Rachel Reeves

    I welcome the election of my hon. Friend in Ealing Southall—I think her constituents and the whole House can see what a strong advocate she will be for her local community. She is absolutely right: we have to get Britain building again. We have to build the homes and the transport, energy and digital infrastructure that our country desperately needs.

    Jim Shannon (Strangford) (DUP)

    I thank the Chancellor for giving me the chance to intervene. When it comes to rebuilding and the house building programme that she has suggested should happen, in the papers today, it is suggested that people on a wage of £70,000 cannot get a mortgage. In Northern Ireland, those on a smaller wage cannot get a mortgage either, so can I ask the Chancellor this direct and hopefully positive question, which will hopefully receive a positive answer: what can she do to improve access to mortgages for those who want to own their accommodation, rather than rent it? What can she do to make sure that everyone in the United Kingdom of Great Britain and Northern Ireland can benefit, as she has clearly said they will?

    Rachel Reeves

    I thank the hon. Gentleman for that intervention. One of the biggest challenges people face with getting a mortgage is building up the deposit. That is why we have committed to a mortgage guarantee scheme, to help those people who cannot rely on the bank of mum and dad to get on the housing ladder. That is a really important commitment, as is our commitment to build the homes: unless we build more homes, home ownership will continue to go backwards, as it did over the past few years.

    Alongside stability and investment in our economy must come reform, because delivering economic growth requires tough choices. It means taking on vested interests and confronting issues that politicians have too often avoided. The last Government refused to engage with those choices, and refused to level with the British people about what was required. This Government will be different. We have already demonstrated that through a series of reforms to our planning system, and are bringing forward further legislation in the King’s Speech to get Britain building.

    Today, I want to focus on another area of our economy where reform is vital: our pension schemes. People across our country work hard to save for the future; they want a better, more secure retirement with the most generous pension possible. At the same time, British businesses with high growth potential need capital to support their expansion. Pension funds are at the heart of this. There will soon be over £800 billion of assets in defined contribution pension schemes, but for too long, those assets have not been targeted towards UK markets. That has impacted British savers, and it has impacted British business.

    The last Government also said that this was a problem, and I welcome that acknowledgement, but they never introduced the legislation needed to make the change. We believe in deeds, not words, so we will strengthen investment from private pension providers by bringing forward the pension schemes Bill in the King’s Speech. It will boost pension pots by over £11,000 through a new and improved value for money framework. Through an investment shift in DC schemes, just a 1% shift in asset allocation could deliver £8 billion of new productive investment into the UK economy.

    To ensure that the Bill is as strong as possible, I am today launching a pensions investment review, led by the first ever joint Commons Minister appointed between the Treasury and the Department for Work and Pensions—my hon. Friend the Member for Wycombe (Emma Reynolds), the Pensions Minister. This will include a review of the local government pension scheme, the seventh largest pension fund in the world, to ensure it is getting the best value from the savings of nearly 7 million public sector workers, the majority of whom are women and the majority of whom are low-paid. They deserve a pension that is working for them. Together, these reforms will kick-start economic growth by unlocking investment that has been tied up for too long.

    Kit Malthouse

    Will the right hon. Lady give way?

    Rachel Reeves

    I have already given way to the right hon. Gentleman.

    Madam Deputy Speaker (Dame Siobhain McDonagh)

    Order. Could I just urge the House to think about interventions? There is a very long list of Members who want to speak and lots of people who want to make their maiden speech, and it would be great if they could all get in.

    Rachel Reeves

    Madam Deputy Speaker, you will be pleased to know that I will not apprise the House of every Bill that supports economic growth in the King’s Speech. Needless to say, there are many more—from the English devolution Bill to transfer power back into the hands of local communities to the employment rights Bill to make work pay, and the Great British Energy Bill to take back control of our country’s energy and create new jobs across the United Kingdom. Growing our economy flows through almost every word of this Address.

    The British people put their trust in us on 4 July to fix the foundations of our economy, to rebuild Britain and to make every part of our great country better off. I do not take that trust for granted. We will not let people down, and I am ready to deliver the change that we need. I know it will take time and I know it will require hard work, but we are already getting on with the job by ending a reckless, chaotic approach to economic management, by putting politics back in the service of working people and by making economic growth our fundamental mission. I commend the Address to the House.

  • Jeremy Hunt – 2024 Speech on the Economy, Welfare and Public Services

    Jeremy Hunt – 2024 Speech on the Economy, Welfare and Public Services

    The speech made by Jeremy Hunt, the Conservative MP for Godalming and Ash and Shadow Chancellor of the Exchequer, in the House of Commons on 22 July 2024.

    I beg to move an amendment, at the end of the Question to add:

    “but humbly regret that there is no mention in the Gracious Speech of the improved economic conditions the Government is inheriting, with the fastest recorded growth in the G7, inflation at the Bank of England’s target for the second month in a row, and unemployment at half the rate that it was in 2010; further regret that there is no mention of how to make necessary savings on welfare; urge the Government to meet the commitment set out in the Labour Party’s manifesto not to raise taxes on working people; regret that the Gracious Speech fails to make a commitment not to use changes to reliefs to raise taxes; and call on the Government to increase income tax thresholds to prevent income tax from being charged on the State Pension.”

    It is an important and rather painful part of our democracy that today I am a shadow Chancellor, responding to the King’s Speech in exactly the same way that the new Chancellor responded to me just a few months ago, so I start by congratulating her, as well as Mr and Mrs Reeves. As the father of two girls, one of whom has her 10th birthday today, I warmly welcome the smashing of a glass ceiling by Britain’s first female Chancellor. As I said on election night, she has led the Labour party on a difficult journey, which has changed it for the better. Her stated commitment to fiscal responsibility, stability and economic growth has been consistent and, I am sure, not always easy. Unfortunately for us, her success in holding the line means that we face rather a lot of Labour MPs on the Government Benches, but I wish her well in her new role.

    I also commend to the right hon. Lady the superb Treasury officials she now inherits, and put on record my gratitude to them the excellent work they did for me, staying up in the middle of the night ahead of fiscal events, engaging in tense negotiations with spending Departments—and occasionally, it has to be said, with No. 10—bringing me endless flat whites and Pret lunches to keep me going and, most of all, making my family feel welcome in the goldfish bowl that is Downing Street. It is part of the magic of democracy that those same officials have seamlessly transferred their allegiance from me to her, and I know that they will serve her extremely well.

    In opposition, we will not oppose for its own sake, and there are a number of Bills in the King’s Speech that we welcome. The right hon. Lady is right to focus on growth, and the improvements on planning will build on many reforms introduced by the last Government, including the 110 growth measures I introduced in last year’s autumn statement. Any boost to house building is also welcome. We delivered 1 million homes in the last Parliament, and she will soon find out that if she is to deliver 1.5 million, she will not be able to duck reforming environmental regulations—a change that Labour blocked in the last Parliament but will deliver an extra 100,000 homes. I caution her not to over-rely on bringing back top-down targets. In the end, we will build more houses only if we change attitudes to new housing, and that is unlikely to happen if unpopular targets are steamrollered through local communities.

    We will also look carefully at the right hon. Lady’s Budget Responsibility Bill. We are proud that a Conservative Government set up the Office for Budget Responsibility, and I commend the work of Richard Hughes and his team. We did not always agree, but in the end, that is the point of an independent watchdog. We all understand the politics of a Bill that allows the Government to make endless references to the mini Budget, but if the right hon. Lady is really committed to fiscal responsibility alongside growth, I hope that she will today confirm that she will not fiddle with the five-year debt rule to allow increased debt through the back door. We—and, it has to be said, markets—will be monitoring the overall level of debt very carefully to make sure that that does not happen. I also hope that she will commission the OBR to do 10-year forecasts of our long-term growth rate rather than five-year forecasts, as at present, in order to bake long-term decision making into Treasury thinking.

    Bill Esterson (Sefton Central) (Lab)

    The shadow Chancellor was talking just now about fiscal responsibility. During the election campaign, he committed to a series of tax cuts, but I noticed that yesterday on Laura Kuenssberg’s show he said that it would not have been possible for him to proceed with those tax cuts. What has changed, and why did he make that commitment during the election campaign, knowing full well that he could not afford to carry it out?

    Jeremy Hunt

    I am grateful to the hon. Gentleman for that intervention, because it allows me to explain why he is completely mistaken in what he is saying. We offered a set of carefully and fully funded tax cuts—unlike the £38.5 billion of unfunded spending commitments that came from the Labour party—but we always said that they would be brought in over time over the next Parliament. We did not make a commitment that they would come in immediately, and indeed they would not have. We would have done it in a responsible way.

    When it comes to dubious claims, the new Chancellor herself has been making some that do not withstand scrutiny. She said, for example, that the economy would have been £140 billion bigger if we had matched the average OECD growth rate, but she knows that the OECD is a diverse group of 38 countries, including many with economies very different from our own, such as Turkey, Mexico or Luxembourg. A much more meaningful comparison is with other similar G7 economies, which shows that since 2010 we have grown faster than France, Italy, Germany and Japan. Indeed, the International Monetary Fund says that thanks to difficult measures taken by the last Conservative Government, we will grow faster than any of those four countries, not just in the short term but over the next six years. One reason for that is our record on attracting investment.

    Since 2010, greenfield foreign direct investment has been higher in the UK than anywhere in the world except the United States and China. In the last year alone, Nissan, Jaguar Land Rover, Tata, BMW Mini, Google and Microsoft have all voted for the UK with their dollars, not least because of cuts in business taxation, such as full expensing, introduced by the last Government. If the Chancellor now looks for back-door ways to increase business taxation, as many fear, she will risk the UK’s attractiveness to foreign investors, of which she is now the beneficiary.

    Chris McDonald (Stockton North) (Lab)

    That investment is very important to my constituents in Stockton North, where many companies are poised to make billions of pounds of industrial investment. They tell me that they prize economic stability above all else, so will the right hon. Gentleman now commit to supporting the Budget Responsibility Bill to give those investors the security they need?

    Jeremy Hunt

    Yes, we are minded to support the Bill, subject to having had a close look at it, because we think it is perfectly sensible. Whether it is completely necessary is a different question, but it is perfectly sensible.

    We have grave concerns about some elements of the King’s Speech, with a Times editorial this week describing some of its Bills as

    “a dose of traditional socialist dogma”.

    Tony Blair came to office having removed the old clause IV of the Labour party constitution, because he knew that state-run businesses are rarely successful and usually end up being bailed out by the taxpayer. Last week, with their railway and energy plans, the Government brought forward more nationalisation than Blair ever did—indeed, more than any Government in modern times.

    If the Chancellor really cares about fiscal responsibility, she should beware. The reason why unions like publicly owned utilities is that they give them more leverage on pay and more ability to demand bail-outs. Unlearning the lessons of history will mean more strikes and bigger bills for the taxpayer.

    An even bigger concern for business is the impact on jobs of Labour’s new deal for workers. We have seen the creation of almost 4 million jobs since 2010, which is nearly 800 jobs for every single day that Conservative Governments were in office. The president of the Confederation of British Industry described the UK as a “job-creation factory” but, like many others, he expressed concern that the Deputy Prime Minister’s new labour laws could put that at risk.

    Day one rights sound attractive, but employers fear they will mean a flood of tribunal claims, meaning it is safer not to offer a job at all. That is why the Federation of Small Businesses responded to the King’s Speech by saying that companies are worried about increased costs and risks. In the end, French-style labour laws will lead to French levels of unemployment, which are nearly double our own—indeed, they are close to what they were when the last Labour Government were in office. By contrast, the Conservatives nearly halved unemployment over the last 14 years, and it would be a tragedy for working families up and down the country if the new Government turned the clock back.

    Finally, the most dubious claim of all is this nonsense about the Government having the worst economic inheritance since the second world war, which everybody knows is just a pretext for long-planned tax rises. People can see what nonsense this is by simply comparing it with the last time we had a change of Government in 2010. Inflation was 3.4%, compared with 2% today. Unemployment was 8%, compared with 4.4% today. Growth was forecast then to be among the slowest in the G7, compared with the fastest today. Instead of an economy in which markets and the pound were facing meltdown, the Chancellor has inherited an economy in which the Office for National Statistics has said that growth is “going gangbusters.”

    That has been backed up by even more data since the election. May’s GDP figures show that Britain’s growth was double the rate predicted by economists, and the fastest in more than two years. New figures from S&P show that, in February, British businesses were among the most optimistic in the world—top of the league again, according to the ONS. Inflation has remained at its 2% target level.

    In her BBC interview yesterday, the Chancellor glossed over those figures, putting on the most shocked expression she could muster, to pretend that public finances are worse than she expected. But the root cause of the pressure on public finances—£400 billion in pandemic support and £94 billion in cost of living support—was never a secret. Indeed, the Labour party supported those measures and, in some cases, called for us to go further. Nor were the difficult decisions we had to take to pay for them a secret either. When we had to increase borrowing, increase tax and reduce spending plans in the autumn statement of 2022, Labour did not oppose us.

    Like all Chancellors, she faces fiscal challenges: welcome to the job. But that job is a whole lot easier because, faced with an economic crisis two years ago, Conservatives took decisions that her predecessor Labour Government ducked completely after the financial crisis. That is why she has a deficit of 4.4% this year compared with 10.3% left behind for the Conservatives in 2010. She did not just compare her inheritance to 2010; she claimed to have the worst inheritance since the second world war. Is she really saying that she faces conditions worse than Geoffrey Howe in 1979, with a winter of discontent, stagflation, an 83% top rate of tax and a Labour Government who went with a begging bowl to be bailed out by the IMF? The Chancellor knows perfectly well that that claim is nonsense, otherwise why, in her first week, would she announce £7.3 billion of spending on her national wealth fund, without a spending review, a budget or any external validation from the OBR? As Paul Johnson of the Institute for Fiscal Studies says, thanks to the OBR the nation’s books are “wide open” and “fully transparent”, so pretending things are worse than expected “really won’t wash.” As she establishes her reputation, it is surely unwise to base her big central argument on a claim so patently ridiculous.

    But we all know exactly why the Chancellor is doing it. She wants to lay the ground for tax rises she has been planning all along, which leads to two major concerns. First, she says her No. 1 mission is growth, but all around the world, evidence suggests countries with higher taxes tend to grow more slowly. Lower taxes, when funded properly, boost growth, as we saw with full expensing and the national insurance cuts last year, both of which the OBR confirmed add to our GDP. However, keeping taxes down is hard work.

    I saw the numbers the Chancellor has seen just a few weeks ago, and the official advice was clear: with public sector pay restraint, productivity plans such as those we announced in the Budget, and welfare reform, it is perfectly possible to balance the books without tax rises. It is not easy—government never is—but not impossible. Yet all those three things—pay restraint, productivity improvements and welfare reform—were glaringly omitted from the King’s Speech. Instead, she has chosen an easier path: what Labour party sources told The Guardian was a “doctor’s mandate” to raise taxes.

    The Chancellor has ruled out raising income tax, national insurance and VAT, but she should not think for one second that other tax rises will not impact working people. Capital gains tax destroys the pensions people build up over their lifetimes; business tax rises are passed on to customers, leading to higher bills; and taxes on banks and energy companies lead to fewer companies operating in the UK, a lower tax take and less money for public services such as the NHS.

    That is the biggest contradiction in the new programme —a Government who say they want the fastest growth in the G7 but, in the very same breath, plan tax rises that will make that growth harder, if not impossible, to achieve. Even if such an approach were misconceived, it is none the less a legitimate choice for a governing party. What is not acceptable is, just 18 days after the election, to be laying the ground for tax rises after the Chancellor promised us 50 times in the election campaign that she had no plans to raise them. Every Labour Government in history have raised taxes and raised spending. If she wanted to do the same, she should have had the courage to make the case for that before the election. Instead, she is softening us up for a colossal U-turn that will lead to lower growth, less money for public services and massive public anger, which is why I commend to the House the amendment in the Opposition’s name.