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  • Rachel Reeves – 2022 Speech on Achieving Economic Growth

    Rachel Reeves – 2022 Speech on Achieving Economic Growth

    The speech made by Rachel Reeves, the Shadow Chancellor of the Exchequer, in the House of Commons on 18 May 2022.

    I beg to move amendment (w), at the end of the Question to add:

    “but respectfully regret that the Gracious Speech fails to bring forward immediately an emergency budget to tackle the cost of living crisis or to set out a new approach to the economy that will end 12 years of slow growth and high taxation under successive Conservative Governments.”

    We meet today when inflation has hit its highest level for 40 years. Every pound that people had last year can purchase only 91p-worth of goods today; that is what inflation of 9% means. Our country has a cost of living crisis and a growth crisis, with prices rising, growth downgraded and no plan for the future. None of this, though, is inevitable. It is a consequence of Conservative decisions and the direction they have taken our economy in over the past 12 years.

    The Government are increasingly a rudderless ship, heading to the rocks, while they are willing to watch people financially drown in the process. Where is the urgency and the action? The time to change course is now. We need an emergency Budget to deal with the inadequacy of the Chancellor’s spring statement, with a windfall tax to help to get bills down and to help families and pensioners to weather the storm. On the day that inflation has reached a 40-year high, the Chancellor is missing in action. As energy bills and anxiety levels soar, the response from the Government diminishes in comparison.

    Harriett Baldwin (West Worcestershire) (Con)

    The hon. Lady asks where the action is. Will she accept that today £150 is going into the bank accounts of people in council tax bands A to D from councils across this country?

    Rachel Reeves

    The action that Labour proposes is a windfall tax to take up to £600 off people’s bills. As the hon. Lady knows, energy bills have gone up 54%, by an average of £693. With all respect, £150 just does not cut it.

    Labour first proposed a windfall tax on 9 January, more than four months ago, and what was the first response from a Conservative Minister? It was to insist that a windfall tax would be unfair because Shell and BP were “struggling”. North sea oil and gas producers are making £32 million a day in unexpected profits. Meanwhile, parents trying to pay their bills are going without food so that their children do not miss meals—that is struggling. We now know that each and every day the Conservatives delay introducing a windfall tax, families and pensioners are forking out £53 million more in their energy bills.

    Jim Shannon (Strangford) (DUP)

    Last night, my party supported the amendment relating to oil and gas that was moved by the right hon. Member for Doncaster North (Edward Miliband). The hon. Lady is right: there is a real need to protect our pensioners. This morning, a constituent told me that his brother, a pensioner, sleeps in a sleeping bag to keep warm; another pensioner tells me that she can turn the heating on in her house for only one hour a day. One way of helping our pensioners would be through the proposal that the hon. Lady refers to: a windfall tax on those who are making exorbitant profits.

    Rachel Reeves

    I thank the hon. Member for speaking so powerfully about his constituents. After years of work and contribution to this country, a pensioner is sleeping in a sleeping bag to keep warm.

    The Government got rid of the triple lock, and now they are refusing to implement a windfall tax. Every day, the case for Labour’s windfall tax gets stronger, while the Tory defence for refusing to act gets weaker and weaker, yet last night every single Conservative MP voted against a windfall tax for the third time. People can no longer afford to pay for the Government’s mistakes. The Government should put the national interest first and follow Labour’s advice. It is time to do the right thing; it is time to put the needs of people first; it is time to introduce a windfall tax to get bills down.

    Chris Grayling (Epsom and Ewell) (Con)

    Will the hon. Lady clarify one thing? There is a bit of dispute about how much a windfall tax would raise per household. There are about 25 million households in the UK. Will the hon. Lady confirm how much money per household a windfall tax would actually raise?

    Rachel Reeves

    A windfall tax would raise about £3 billion. That, combined with the extra VAT that the Government are receiving because prices have gone up so much, could go directly towards taking money off people’s bills. It would make a real impact now. Every single day, the energy companies are making £32 million in unexpected profits. This Government increase taxes on working people; a Labour Government would increase taxes on the big oil and gas companies.

    The cost of living crisis is being made worse by a wage crisis, as years of Conservative Governments have failed to stand up for working people. At the Conservative party conference last year, the Prime Minister bragged of plans for a high-wage economy. How is that going? Let me update the House. In the six months since then, average real-terms pay has not risen, but fallen. Behind the headline figures, data released yesterday by the Institute for Fiscal Studies shows not only that workers are experiencing a fall in their real pay, but that the gap between those earning most and those earning least is widening. For the hospital porters, the supermarket assistants, the delivery drivers—the very people who worked tirelessly through the pandemic to keep this country going—wages are in no way keeping up with the rising cost of living.

    Anthony Browne (South Cambridgeshire) (Con)

    I just want clarification of the figures, because they are very important. The hon. Lady said that a windfall tax would raise £3 billion; among 25 million households, that is just over £100 each, which is less than the Government are giving. She then said that there would be £600 for each household, but that would cost about £18 billion, which is £15 billion more than the windfall tax would raise. Where would that extra £15 billion come from? Would it come from an increase in Government borrowing?

    Rachel Reeves

    Our scheme is very clear. We would introduce a windfall tax, use that money to reduce VAT on gas and electricity bills from 5% to zero, and expand the warm home discount from the measly £140 that people get today to £400. We would fund that through the windfall tax, through the additional VAT receipts that the Government are getting in at the moment because prices are so high, and through receipts from the additional corporation tax that the oil and gas companies are paying. The Government will end up doing this. The only question is when they will get on and deliver for their constituents. Oil and gas companies are making record profits and people are paying record bills. It is a question of whose side you are on. The Government are very clear that they are on the side of the oil and gas companies; the Opposition are very clear that we are on the side of ordinary families and pensioners.

    The Government have failed to introduce not only the windfall tax, but the employment Bill that has been repeatedly promised. There is a real-world price: allowing scandalous threats of fire and rehire to continue to drive down conditions at work, not just in the appalling P&O case, but in other sectors. Fire and rehire should have been outlawed, but thanks to this Government’s actions it is being encouraged. Employment rights for the modern world of work will not just protect workers, but boost growth and financial security. That makes for a stronger economy with firm foundations, rather than allowing a race to the bottom that takes away dignity as well as eroding family finances.

    Kevin Hollinrake (Thirsk and Malton) (Con) rose—

    Ellie Reeves (Lewisham West and Penge) (Lab) rose—

    Rachel Reeves

    I give way to my hon. Friend the Member for Lewisham West and Penge (Ellie Reeves).

    Ellie Reeves

    As well as struggling with rising fuel bills and food prices, many of my constituents are worried about their precarious work, about not knowing from one week to the next what hours they will get, and about being fired by unscrupulous employers. Does my hon. Friend agree that the Queen’s Speech was a missed opportunity to introduce the long-awaited employment Bill, which would ensure that workers get the dignity and security that they desperately need?

    Rachel Reeves

    The sad truth is that the Government used to agree. Introducing an employment Bill was in their manifesto; in fact, they have been promising it for five or six years. Let us have that employment Bill to protect people at work, so that working people do not have to resort to food banks, and so that they have the security and dignity that work should provide.

    April’s International Monetary Fund data show that families in Britain are more exposed to the cost of living crisis than countries such as Germany, France and the US because of depleted savings. Savings are declining and household debt is on the rise, not because millions of people can no longer manage a budget, but because millions of people cannot afford a Conservative Government. Working families are increasingly struggling with their budgets because the Chancellor has failed to act in his Budgets. The Food Foundation believes that since January, 2 million people have not eaten food for at least a whole day, because they could not afford to.

    Geraint Davies (Swansea West) (Lab/Co-op) rose—

    Kevin Hollinrake rose—

    Rachel Reeves

    I give way to my hon. Friend the Member for Swansea West (Geraint Davies).

    Geraint Davies

    My hon. Friend knows that food banks were used by something like 26,000 people in 2010 and are now used by 2.6 million people—100 times as many. Does she agree that the economy’s growth now contrasts dismally with its 40% growth in the 10 years to 2008 under Labour? The Institute for Fiscal Studies has said that if we were on the same growth trend, the average person would be £11,000 better off and could therefore weather the storms that we are suffering because of the Tory Government.

    Rachel Reeves

    My hon. Friend is absolutely right. That is the Tory growth penalty—the effect of the lack of growth in the economy. Average earnings are £11,000 less than if growth had stayed at the same rate as under the last Labour Government.

    My hon. Friend mentioned a hundredfold increase in food bank use. This is not normal; it is the consequence of Conservative Governments’ choices. Meanwhile, what have we heard in recent weeks? We have heard suggestions from Ministers about what people can do in their own lives to deal with the cost of living crisis. The Prime Minister thinks that a 77-year-old pensioner who rides on the bus all day to keep warm should be grateful for her discounted fares; the Environment Secretary has lectured people struggling with the cost of food, telling them to “buy own brands”; and the Secretary of State for Levelling Up, Housing and Communities has treated the need for an emergency Budget as if it were an audition for a comedy club. Another out-of-touch Minister has told people, just this week, that if they are struggling financially they should simply work more hours or get another job—as if it were as easy as that. The Chancellor continues to insult the public’s intelligence by suggesting that a compulsory £200 loan—a loan that must be repaid—is somehow not a loan, and now blames a computer system for his decision not to help the least well-off. What planet are they on?

    Nadia Whittome (Nottingham East) (Lab)

    Does my hon. Friend agree that given that wages have been falling for the last 14 years and inflation is now at 9%, or 11% for the poorest families, there is an alternative to people’s wages being squeezed—that the Government could squeeze profits instead? Shell and BP raked in more than £12 billion in the first three months of this year alone, and it is shameful that every Conservative Member voted against a windfall tax yesterday when they had the chance to support it.

    Rachel Reeves

    Conservative Members voted against the windfall tax not for the first time, not for the second time, but for the third time. Every single Conservative MP opposed what they know is the right thing to do. A Labour Government would tackle the cost of living crisis head-on. We would introduce a windfall tax on oil and gas producer profits to cut household bills by up to £600, a home insulation policy that would save millions of households up to £400 a year, and a discount on business rates for high street firms funded by a tax on the online giants. Perhaps the Chief Secretary can tell us in his speech why the Government will not abolish the unfair, outdated and unjustifiable non-dom tax status, and use that money to keep taxes on working people down.

    Finally, Labour would put a stop to the Chancellor’s fraud failures, which allowed £11.8 billion of taxpayer funds to go criminal gangs, drug dealers and worse. We would claw back every penny of taxpayers’ money that we could, because the public are sick of being ripped off and they want their money back.

    We are now in the worst of all possible worlds, with inflation high and rising, and growth low and falling—in other words, there is stagflation. This Conservative Government must address the underlying weaknesses in our economy, which are the result of years of Tory failure. Growth has stagnated, not just this year but over the last 12 years, falling from 2% on average under the last Labour Government to just 1.5% a year in the decade leading up to the pandemic.

    The Conservatives have failed to work with British industries—employers and trade unions—to create the economic growth that would benefit everyone, and for 12 years that approach has sown chaos and uncertainty, making it impossible for businesses to invest with confidence. Now the UK economy has the worst growth projections of any G20 economy but one: Russia.

    Kevin Hollinrake

    Will the hon. Lady give way?

    Rachel Reeves

    The Bank of England has issued a stark warning of a downturn next year, with GDP projected to fall, and it is not set to get much better after that. [Interruption.] The Chief Secretary says, from a sedentary position, that it is set to get better. Oh, yes—growth in the following year is expected to be 0.25%, almost 10 times lower than what the Office for Budget Responsibility predicted in March. Well, done, Tory Government!

    We have heard nothing from this Conservative Government about what they will do to change the situation, and if the Chief Secretary is proud of that record, good luck to him. The Government have no plan to provide the catalytic investment that we need to create new markets, no plan to get trade moving again and tackle the supply chain problems facing businesses, and no plan for a new industrial strategy to make the most of Britain’s potential, bringing good jobs to all parts of Britain. The Conservatives have become the low-growth party, and our country is paying the price.

    Matt Western (Warwick and Leamington) (Lab)

    My hon. Friend is making some powerful points about the fall in growth. I am sure she will be as concerned as I am about the statistics which show the decline in business investment, which I think is down by 9%. We are seeing a 34% fall in automotive production, which is a massive hit for the UK economy. The impact on our foreign competitors is less, because those countries have a strategy. Does my hon. Friend agree that this Government seem not to have an industrial strategy—for gaming semiconductor production, for example? Does she agree that that is what is needed, and that is what a Labour Government would do?

    Rachel Reeves

    The figures from the International Monetary Fund show that investment as a proportion of our economy in the UK is 18%, if we take both public and private investment into account. In other similar economies that the IMF looks at, it is 23%. If we add that up over the next six years—the IMF’s forecast horizon—we see a projection of £1 trillion less investment in the UK than in other countries. These are huge missed opportunities to create the jobs and industries of the future that my hon. Friend wants to see in Warwick and Leamington and all of us want to see in our constituencies.

    The Government’s lack of action is felt by businesses. In April, the price of materials for UK manufacturers increased at its fastest rate since records began, with prices up by nearly a fifth on the previous year. When I speak to businesses, they are worried about falling consumer confidence and a lack of spending power, as well as the costs that they are having to face.

    Kevin Hollinrake

    Will the hon. Lady give way?

    Rachel Reeves

    The British Retail Consortium has explained that the rising cost of living has crushed consumer confidence and put the brakes on consumer spending. So many businesses that worked tirelessly to adapt and survive the pandemic were banking on this year to recover, and it is just not happening.

    Kevin Hollinrake

    Will the hon. Lady give way, on that point?

    Rachel Reeves

    We could be so much better. Our geography, our universities and our industrial heritage offer so much potential, but the Government do not do enough to unlock it. I have seen the brilliant businesses and emerging industries that will power our economy and lead the world: businesses such as Nanopore, a technology and life sciences firm that started as a research team at Oxford University and now employs more than 600 people; Rolls-Royce in Derby—I was there a couple of weeks ago—which is leading pioneering research with world-leading engineers developing carbon-neutral technologies; and Castleton Mills in my own city of Leeds, once a key part of West Yorkshire’s textiles industry but now a creative, collaborative space housing freelancers, remote workers and start-up businesses.

    Kevin Hollinrake

    Will the hon. Lady give way?

    Rachel Reeves

    However, the success that I see all around the country could be strengthened with strong leadership and vision from the Government. Ministers are more concerned about the next headline or photoshoot than about creating credible plans for growth and success. Today, as inflation spirals out of control, where is the £3.4 million PR budget in the Treasury, and what is the Treasury doing?

    Kevin Hollinrake

    Will the hon. Lady give way?

    Rachel Reeves

    I will give way to the hon. Gentleman. [Hon. Members: “Hurray!”]

    Kevin Hollinrake

    I will sit here again next time.

    The hon. Lady mentioned earlier the support for households in the form of the £200 discount on their energy bills. That went to 100% of households. The £150 council tax deduction reached 80% of households. Will the hon. Lady tell us what percentage of households would receive the £600 per household to which she referred?

    Rachel Reeves

    It is great to see Conservative Members taking so much interest in this. It suggests to me that a policy from them on the windfall tax is coming soon, and it will be welcome.

    We have said that the £600 would go to a third of households. We would increase the warm home discount from £140 to £400, and that would go to a third of households. The hon. Member is, like me, an MP in Yorkshire. Across Yorkshire, every day, an extra £4.5 million is spent on energy costs as a result of the Conservative party’s failure. A total of £220 million has been spent in the seven weeks since the energy price cap went up. Constituents in Thirsk and Malton, like my constituents in Leeds West, are looking for answers, and an expansion of the warm home discount, paid for by a windfall tax, would make a massive difference throughout our region in Yorkshire.

    We need an ambitious plan for the future. That is why Labour will scrap business rates, and the system that replaces them will incentivise investment, promote entrepreneurship and bring life back to our high streets. The race is on for the next generation of jobs, and Labour will make the investment we need with a growth plan to bring opportunities to the whole country, working in partnership with great British industries to get us to net zero and revitalise coastal communities and former industrialised towns. We do not want to be importing all the technologies and products we need; if we can make it here in Britain, we should do so. That is why a Labour Government will buy, make and sell more here at home.

    We will make Brexit work, with a bespoke EU-UK veterinary agreement to cut red tape for the food and agriculture industries and mutual recognition of professional qualifications to help our fantastic business services industries and to make it easier for our creative industries to tour and perform. Unlike the Conservatives, Labour will ensure that our economy grows and prosperity is shared.

    Martin Docherty-Hughes (West Dunbartonshire) (SNP)

    On the matter of making Brexit work, there is a concern that the United Kingdom now mirrors the United States with its labour shortages, rather than mirroring the right to work across the European Union. This is having a drastic effect on the whole of the United Kingdom of Great Britain and Northern Ireland. Can the hon. Member say a wee bit more about how they want to emulate Europe’s labour market situation rather than that of the United States with its labour shortages?

    Rachel Reeves

    The best way to fill those gaps in the labour market is to be training people here in Britain. We have seen the nurses shortage in the papers today. We are having to bring in nurses from all around the world because we are not training nurses here. There are job vacancies here in Britain, and we need to ensure that our young people get the opportunities to train for those high-paid and high-skilled jobs here in Britain. [Interruption.] The Minister says that no one disputes that, so why are the Government not doing it?

    The Tories are out of touch and they are out of ideas. They are the party of high taxes because they are the party of low growth. Their choices have made the cost of living crisis much worse than it needed to be. Their decisions have left those with the least fearing for the future. The Tories cannot be trusted with public money. They have handed billions to their friends, to their donors and to fraudsters. We need an emergency Budget with a windfall tax to keep energy bills down. We need a Government that take growth seriously. We need a new vision for a fairer and more prosperous economy. Labour has a different economic approach: pro-worker and pro-business, with a plan to unleash the potential of both. A Labour Government would steer our country through these difficult times together. I urge Members across the House to do the right thing today and vote for an emergency Budget to get our country and our economy back on track.

  • Stuart McDonald – 2022 Speech on Foreign National Offender Removal Flights

    Stuart McDonald – 2022 Speech on Foreign National Offender Removal Flights

    The speech made by Stuart McDonald, the SNP MP for Cumbernauld, Kilsyth and Kirkintilloch East, in the House of Commons on 18 May 2022.

    I, too, thank the Minister for advance sight of his statement, but I do not thank him either for the fact of the statement, which I agree was completely pointless, or for the overblown rhetoric it contained—rhetoric that I more commonly associate with the Minister’s boss than the Minister, who I have a great deal of respect for.

    On that note, my first question is, why can we not try to have a sensible, grown-up discussion about this complex policy area? It is frankly nonsense to speak about “sides”. There is a balance to be struck, and it is our responsibility as legislators to debate that sensibly. It is perfectly legitimate for us to question whether the balance is in the right place or to question the disproportionate impact on some communities. As I have pointed out before, in endless urgent questions and on similar topics, Stephen Shaw, the Government-commissioned independent expert, said that the deportation and removal of people brought up here from a young age was “deeply troubling” and entirely “disproportionate”. Yes, of course many deportations are absolutely justified to protect the public, but it is nonsensical to ignore the fact that some are very cruel, particularly when they relate to people who have lived almost all their lives here and have absolutely no connection to the place they are being deported to.

    The Government refuse to acknowledge the fact that these decisions can have profound impacts on the family life of the partners, spouses and children of those being deported, and on others, or that it is legitimate to press the Government on that. So let me try a different argument. If someone has been here since they were in infancy, grew up here, was educated here, commits crime here and is potentially dangerous, why is it fair on the country to which they are deported to have to manage that risk, especially if it is possibly far less equipped to do so, rather than this country, where that person was brought up? The Minister talks about letting people out on to the street, but he is letting people out on the street—just not our streets, but those of another country, with which they have absolutely no connection.

  • Stephen Kinnock – 2022 Speech on Foreign National Offender Removal Flights

    Stephen Kinnock – 2022 Speech on Foreign National Offender Removal Flights

    The speech made by Stephen Kinnock, the Labour MP for Aberavon, in the House of Commons on 18 May 2022.

    I thank the Minister for advance sight of his statement.

    The first duty of the British Government is to keep the British people safe, and the Home Office has a responsibility to make sure that rules are fairly enforced, but Ministers are failing to do so and they are blaming everyone else for their failings. The Home Office must deport dangerous foreign criminals who have no right to be in our country and who should be returned to the country of their citizenship, which is precisely why the last Labour Government introduced stronger laws to that effect. The Home Office also has a responsibility to get its deportation decisions right. As the Government have themselves admitted, during the Windrush scandal the Home Office made grave errors in both detention and deportation decisions, and it is currently failing on all counts.

    The Opposition are committed to the principles of an immigration system that is firm, fair and well managed. First and foremost, it is deeply troubling that a number of expert reports over recent years have pointed to how Home Office failures have resulted in fewer foreign criminals being deported than should be the case. Indeed, in 2015, the independent chief inspector of borders and immigration stated that one in three failures to deport foreign criminals was a result of Home Office failure. Fast-forward to 2022, and the latest immigration figures show that the Home Office is still failing miserably in this regard.

    Under the current Prime Minister and Home Secretary, there has been a stark decline in the number of foreign national offenders being returned and deported. In the year ending September 2021, 2,732 foreign national offenders were returned from the UK—20% fewer than the previous year and 47% fewer than in 2019, the year before the pandemic began. Foreign national offender returns had already fallen to 5,128 in 2019. Even more staggering is the fact that, according to a 2019 Public Accounts Committee report, the Home Office had to release six in every 10 migrant detainees whom the Department wanted to deport, and it simply could not explain why this was happening.

    The PAC also raised concerns about the need for earlier and better legal advice, which would make it more likely that decisions were accurate and robust, rather than being overturned due to poor decisions later in the process. The Minister will know that the Windrush report identified “low-quality decision-making” and an “irrational…approach to individuals”, and the follow-up report stated that

    “there are many examples where the department has not made progress…at all”

    on this matter. The level of sheer incompetence is not only a threat to our security; it ultimately erodes the confidence of the British public and foreign nationals alike, because the system fails to fulfil the basic crucial principles of being firm, fair and well managed. The Minister refers to rape, but it is this Government who have presided over rape prosecutions falling to a shameful 1.3%.

    The Home Office needs to get this right, but the Minister’s statement was long on bluff and bluster but contained absolutely no substance whatsoever. Perhaps he could therefore answer the following questions: how many foreign offenders have absconded in the last 12 months? What specific steps have been taken to learn the lessons of the Windrush scandal to ensure that this shameful episode is never repeated? Does the Home Office actually have a plan that will address the currently shambolic nature of the deportation system?

    The British people deserve better than this. Rather than coming to the Dispatch Box to engage in a frankly rather childish and petulant rant, based on the blame game and finger pointing, the Minister should instead be coming to this Chamber to set out what the Government are actually going to do to fix this broken system.

  • Tom Pursglove – 2022 Statement on Foreign National Offender Removal Flights

    Tom Pursglove – 2022 Statement on Foreign National Offender Removal Flights

    The statement made by Tom Pursglove, the Parliamentary Under-Secretary of State for the Home Department, in the House of Commons on 18 May 2022.

    Foreign criminals who abuse our hospitality by committing serious and violent crimes such as murder and rape should be in no doubt of this Government’s determination to deport them. The British people have shown repeatedly at the ballot box that they want an immigration system that is firm and fair. Our new plan for immigration, underpinned by the Nationality and Borders Act 2022, is the first major reform of the system in decades. With that Act now law, we are getting on with the job and operationalising the plan.

    It is this Conservative Government who are delivering on the will of the British people. Making our streets safer is our priority. That is why we introduced the new Police, Crime, Sentencing and Courts Act 2022, giving the police the powers they need to crack down on violent criminals. It is also why, despite the challenges of covid, we stepped up the removal of criminals who have no right to be here. Since January 2019, over 10,000 foreign national offenders have been removed from the United Kingdom. In the last month alone, flights have left to Albania, Romania, Poland and Lithuania and now, this morning, to Jamaica—a flight I expect to land while I am on my feet.

    It was under a Labour Government that the UK Borders Act 2007 was introduced and passed requiring a deportation order to be made where a foreign national has been convicted of an offence in the UK and sentenced to 12 months or more, unless an exception applies. We apply that law, but it is Labour MPs who now howl, time and again imploring us to halt the removal of dangerous foreign criminals from our streets with letters, questions to Parliament and campaigns on Twitter. We have even seen members of the shadow Cabinet defending criminals, with no consideration for the victims or their loved ones. Too often, Opposition MPs are ignoring the law-abiding majority and, by extension, standing on the side of criminals, including paedophiles, murderers and rapists.

    Let me set out some facts of the flight that departed this morning, because I know this is of real interest to many Members of this House. First, the offences committed by individuals on the flight include rape of a minor, sexual assault against children, firearms offences, dealing and importing controlled drugs, and other violent crimes such as actual bodily harm. Between them, these individuals had a combined total of 58 convictions for 127 offences. These are extremely serious offences, which have a real and lasting impact on victims and communities. They are not minor matters, as some would have people believe.

    Secondly, the flight to Jamaica makes up just 1% of total enforced returns in the year ending September 2021. Criminals who have no right to be in the United Kingdom are regularly removed to countries across the world, and we will continue to do this to keep our citizens safe. Public safety is non-negotiable. However, many more criminals could have left the UK today. What we have seen over the last 24 hours is more last-minute claims facilitated by specialist immigration law firms, as well as representations from Opposition MPs to prevent this flight from leaving.

    It is no surprise that the Opposition voted against our Nationality and Borders Bill precisely because it seeks to address the merry-go-round of last-minute claims and to speed up the removal of dangerous criminals. Labour Members fought tooth and nail to prevent that Bill from becoming law, and votes have consequences. Convicted criminals guilty of heinous crimes, including manslaughter, rape, robbery, child sex offences, drug offences and violent crime, and persistent offenders remain in our country; had the legislation been passed more quickly, with Opposition support, those individuals might have been removed from the UK today. They remain here, and it is a stain on our country that they do. However, I assure the British people that we are taking action, and things are changing as we get on with delivering our reforms.

    I make no apology for removing criminals who have abused our hospitality, broken our laws, and have no right to be here. I make no apology for doing everything in my power to make our streets safer and stand on the side of actual victims. We stand with the British people. It is time that the Opposition tried that as well.

  • Kit Malthouse – 2022 Statement on the Fire Reform White Paper

    Kit Malthouse – 2022 Statement on the Fire Reform White Paper

    The statement made by Kit Malthouse, the Minister for Crime and Policing, in the House of Commons on 18 May 2022.

    My noble Friend the Minister of State, Home Office and Department for Levelling Up, Housing and Communities (Lord Greenhalgh) has today made the following written ministerial statement:

    I am pleased to make a number of announcements to the House today that set out both the Government’s fire reform agenda and the introduction of a package of fire safety measures that will protect the public for years to come. Taken together, this is about:

    Driving forward reform of the fire and rescue service by launching the Fire Reform White Paper and consultation (CP 670)

    Implementing a package of measures to improve fire safety

    Improving transparency and engaging the public.

    Fire Reform White Paper and consultation

    The Fire Reform White Paper and consultation seeks to introduce system-wide reform to strengthen fire and rescue services across England. The proposals are set out under three key themes: people; professionalism; and governance. The consultation is launching today to seek views and will be open for 10 weeks.

    https://www.gov.uk/government/consultations/reforming-our-fire-and-rescue-service

    Review of the National Joint Council

    As set out in the White Paper the Government will launch a review of the National Joint Council for Local Authority Fire and Rescue Services. The review, which will commence later this year, will consider whether the pay negotiation mechanism in England is fit for purpose.

    The Fire Safety Act 2021

    The Fire Safety Act 2021 was commenced in full on 16 May 2022. This will clarify that structure, external walls and flat entrance doors of blocks of flats are within scope of the Regulatory Reform (Fire Safety) Order 2005 (the fire safety order) and ensure that they are included in that building’s fire risk assessment.

    https://www.gov.uk/government/publications/fire-safety-act-2021

    Fire risk assessment prioritisation tool

    To support commencement of the Fire Safety Act 2021, the Home Office is publishing supporting guidance issued under article 50 of the fire safety order and launching an online prioritisation tool. The new fire risk assessment prioritisation tool has been developed to help responsible persons identify the priority for updating fire risk assessments.

    Fire risk assessment prioritisation tool: https://bpt.homeoffice.gov.uk/

    Fire Safety (Regulations) 2022

    The Fire Safety (England) Regulations 2022 will require responsible persons to send information on high-rise residential buildings which will help fire and rescue services better plan for and respond to a fire. They will also improve fire safety in high-rise buildings by setting a baseline on safety checks on lifts for firefighters and other key pieces of firefighting equipment and, in mid-rise buildings, on doors. They will also make residents in all multi-occupied residential buildings feel safer by providing them with fire safety instructions and information on the importance of fire doors. https://www.gov.uk/government/publications/fire-safety-england-regulations-2022

    Personal emergency evacuation plans (PEEPs) consultation response, and new consultation

    We are publishing the responses to our PEEPs consultation which we ran from 8 June to 19 July 2021. We have taken account of the substantial difficulties of mandating PEEPs in high-rise residential buildings and have developed new proposals that we are confident deliver proportionality, practicality and improve safety for those vulnerable people living in the highest risk buildings. We will now consult and seek views on these proposals.

    https://www.gov.uk/government/consultations/personal-emergency-evacuation-plans

    https://www.gov.uk/government/consultations/emergency-evacuation-information-sharing

    Fourth thematic update on Grenfell Tower inquiry phase 1 recommendations

    We are publishing our latest update on progress against Grenfell Tower inquiry phase 1 recommendations. This shows progress made by Government Departments, and relevant public authorities, including the London Fire Brigade, and National Fire Chiefs Council. The tracker provides a digestible, transparent way for the public to hold those responsible for delivering recommendations to account. https://www.gov.uk/government/publications/quarterly-thematic-update-on-progress-against-the-grenfell-tower-inquiry-phase-1-recommendations

    Fires in high-rise residential buildings in England are rare, and thankfully deaths from fires in high-rise residential buildings are extremely rare. The Government, however, are committed to learning the lessons of the tragedy at Grenfell Tower.

  • Jeremy Quin – 2022 Statement on Defence and Security Industrial Strategy

    Jeremy Quin – 2022 Statement on Defence and Security Industrial Strategy

    The statement made by Jeremy Quin, the Minister for Defence Procurement, in the House of Commons on 18 May 2022.

    I wish to update Parliament on the progress made since the publication of the defence and security industrial strategy (DSIS) on 23 March 2021.

    Russia’s invasion of Ukraine has highlighted even more the importance of a sustainable and resilient sector that generates the necessary skills to deliver the capabilities we and our partners need, now and in the future.

    Over the past 12 months, Government and industry have made significant progress on more than 50 DSIS commitments, and today, I am pleased to announce the publication of the land industrial strategy (LIS) which will be published on the www.gov.uk website shortly. I am also placing a copy in the Library of the House.

    The Land Industrial Strategy

    The LIS draws on DSIS principles to provide, for the first time, a specific strategy for the sector. It sets the conditions for a long-term collaborative approach, based on shared culture and behaviours that support co-investment in capability delivery, innovation, the strengthening of supply chains and the national industrial resilience the UK needs to respond to crisis.

    The LIS is not intended to prevent MOD looking overseas to acquire where appropriate the best value for money equipment. It is however designed to encourage greater transparency and partnerships, especially with onshore suppliers.

    The LIS should support the delivery of modernised equipment to the frontline more quickly and efficiently. Key platforms will serve for decades, so we will use open architectures, commonality and modularity, and work with industry to make upgrades through-life. This will give us enhanced capabilities and decisive advantage against adversaries, and, with our allies, the critical “technological edge” needed in this information age.

    Partnerships

    In the coming years, Government will be asking more of industry, to become more efficient and more enterprising, ensuring we have access to the skills and capabilities we need. This is why we are offering greater long-term transparency on our plans and policies. Since DSIS, MOD has published strategies for digital, data, shipbuilding, space and now land. Other documents such as the defence artificial intelligence strategy will be published shortly.

    In addition, we are now going beyond the commitments set out a year ago and, building on the principles of DSIS, we will soon be publishing a defence capability framework that will articulate our longer-term military capability priorities and challenges, providing greater transparency of our future plans and building upon the equipment plan 21. It will map out those areas where we expect industry to invest and upskill, combining our collective efforts to achieve the best outcomes for the UK.

    In January, in recognition of the importance of small and medium-sized enterprises (SMEs) for innovation, diversity, and resilience in MOD’s supply chains, we published the refreshed SME action plan, which sets out how MOD will continue to create opportunities for SMEs.

    I will shortly be launching the defence technology exploitation programme (DTEP)—a UK-wide initiative that will fund and support collaborative projects between SMEs and higher tier defence suppliers—and help them win new business delivering against MOD’s technological priorities.

    DSIS also focuses on strengthening our partnerships abroad including through developing our Government-to-Government frameworks to better support defence exports.

    Acquisition and Procurement Reform

    Closer to home, we are driving increased pace into acquisition and incentivising innovation and productivity through a range of acquisition improvement initiatives and fundamental reforms of the regulations that govern defence and security procurement and single source contracts.

    The implementation of category management is expected to result in financial savings and capability benefits such as improved availability and time to delivery, through a pan-Defence approach to buying goods and services.

    We are improving the way that we manage our senior responsible owner (SRO) cadre by introducing an SRO talent pool and ensuring that our SRO skills are matched to the challenges of the projects. We are also targeting the SROs on our biggest projects allocating at least 50% of their time to the task.

    We have implemented the social value model within MOD’s procurement process, ensuring contracts deliver against key MOD outcomes and also support wider Government objectives. The MOD’s social value centre of expertise has been established and is ensuring this model is consistently applied.

    In March, the Joint Economic Data Hub published its first annual report, highlighting the important role the defence sector makes to the UK economy, including the large number of defence jobs supported by international business as well as the many apprentices and graduates in the sector. This is part of the drive by Defence to be more transparent in setting out the economic contribution the defence sector makes across the UK.

    Innovation

    This Government have reversed the long-term decline in research and development through additional funding and our ringfenced investment of at least £6.6 billion over the four years of the 2020 spending review. We have increased funding to the UK Defence Solutions Centre and the Defence and Security Accelerator, which is helping turn private sector innovation into military capability.

    In February, the UK’s first defence space strategy included a commitment to invest a further £1.4 billion into space technologies over the next decade—with additional innovation funding since being provided; and in March, I opened the Defence Science and Technology Laboratory’s first regional S&T hub in Newcastle upon Tyne, focusing on AI and data science to exploit the latest technological breakthroughs for use across Defence.

    We are also working closely across Government with the Joint Security and Resilience Centre at the Home Office and UK Defence and Security Exports at the Department for International Trade to create a more resilient, more efficient, and more innovative security sector.

    Conclusion

    We have made significant progress in the first year of DSIS, but there is more to be done. The Defence Secretary and I, supported by other Government Ministers, will continue to review progress against commitments to make sure our armed forces will continue to get the equipment and capabilities they need to keep us safe and drive prosperity.

    Attachments can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2022-05-18/HCWS36/

  • Therese Coffey – 2022 Speech on the Cost of Living Crisis

    Therese Coffey – 2022 Speech on the Cost of Living Crisis

    The speech made by Therese Coffey, the Secretary of State for Work and Pensions, in the House of Commons on 17 May 2022.

    It is an honour to conclude this debate on the Gracious Speech. Understandably, a lot of people have contributed today. I want to take this opportunity to join right hon. and hon. Members in paying tribute to Her Majesty in her platinum jubilee year. This is a Queen’s Speech that will deliver for the British people: safer streets, stronger schools, a secure supply of energy, speedier access to social security for those people near the end of their lives, streamlined financial services unlocking investment, stripping out unwanted EU regulation, and legislation to help level up across the United Kingdom. All these measures will help to grow the economy, which will help to address the cost of living challenge that families are facing.

    We should remember that this is a global challenge. Countries around the world are having to deal with inflation, and the covid aftershocks are still ripping through the world’s supply chains. On top of that, Putin’s brutal invasion of Ukraine has exacerbated spiking energy prices. On this side of the House, we are the champions of freedom and democracy around the world and it is right that we do all we can to end Putin’s onslaught, but sanctions are not cost-free for us here at home. They come on top of the impact from covid. These are global inflationary forces, and it would be wrong to pretend that we can protect everyone from their impact.

    Thanks to our strong recovery from the pandemic and having got the big calls right over the last two years—such as our plan for jobs—we have helped families across the country. We can see that in the labour market statistics published today. Our unemployment rate today is below the low level we saw before the pandemic. Not only that, it is the lowest since 1974. The number of people on payrolls is at a record high, and over half a million more people are now benefiting from a regular pay packet than in February 2020.

    I am also delighted to say that we have met our 2017 commitment to get 1 million more disabled people into employment in 10 years. In fact, we announced today that we have hit 1.3 million more people. That is good news for people with disabilities and it is good news for the economy too. The level of youth unemployment is now at a record low. This means greater security, more financial resilience and better prospects for people.

    David Linden

    The Secretary of State talks about employment, but when I go to my local food banks, one of the things that people tell me on a regular basis is that the number of people using the food banks as a result of in-work poverty is up. What does her local food bank tell her?

    Dr Coffey

    The hon. Gentleman is right to say that food banks are present and providing support in many communities, especially where people are trying to work out the best way to spend their resources. He mentions in-work poverty, and it is why we have a plan for in-work progression, why we have been investing in skills, why we are investing in our jobcentres and why, through the plan for jobs, we are doing more to help people not only to get back into work but to get on in work too. That is what we are doing.

    On top of the activity we have been undertaking, there are things we can do and are doing to cushion families from the worst effects of inflation and to ease the squeeze on household budgets. As my right hon. Friend the Chancellor set out, £22 billion has already been committed to support the hardest hit this year. The £150 of support for households in bands A to D is landing in people’s bank accounts, with a further £144 million discretionary fund available to councils. From October, the £200 reduction in energy bills will help families spread this year’s increased costs over the next few years.

    We initiated the household support fund, through which we invested £500 million across the UK to help with the cost of household essentials. We are increasing that to £1 billion every year. For the second phase of the grant we have put a particular focus on people on fixed incomes, which is why a third is ringfenced for pensioners. That is on top of existing targeted support such as the warm home discount, cold weather payments and winter fuel payments. We are stepping in at this challenging time, and we are ready to do more to help.

    We are discussing an Opposition amendment, and I make it clear that we will reject all Opposition amendments to the Queen’s Speech as a matter of precedent. The Queen’s Speech sets out the Government’s legislative programme for the year, and it is for my right hon. Friend the Chancellor to introduce fiscal measures, and he will make all future decisions on tax in the usual way. I reiterate that he told the House today that no option is off the table.

    We know that the best way to raise living standards over the long term is to grow the economy, to invest in skills and to get people moving into and progressing in decent jobs. The latest statistics cut through the Opposition’s charge that poverty has increased since the Conservatives came into power. There are 1.2 million fewer people, including 200,000 fewer children and half a million fewer working-age adults, in absolute poverty, before housing costs, than in 2010. In March we published statistics that, for the first time, combine absolute low income and material deprivation among working-age people. Those statistics show a fall of three percentage points, from 3.1 million when we came into power to 2.2 million in 2019-20.

    Alan Brown

    Will the Secretary of State remind the House of how much money the Treasury puts towards the warm home discount?

    Dr Coffey

    The hon. Gentleman is trying to be clever, as he knows the answer is that it is a redistribution within the energy policy. [Interruption.] Would he rather not have it? Would he rather be with his fellow SNP people who voted against any rise in benefits at all? That is what several of his colleagues did. They did not vote for a lift in benefits.

    After a decade of rising employment, we are building on our track record. We are ensuring that people have stronger incentives to work and can keep more of what they earn. Some 1.7 million working people on universal credit are, on average, £1,000 a year better off following our cut to the taper rate. Last month’s 6.6% rise in the national living wage has provided the lowest paid with an increase of £1,000 a year in their income, and in July the increase in the national insurance threshold will benefit 30 million working people, with a typical employee saving over £330 a year.

    Stephen Timms

    The Secretary of State mentioned today’s labour market statistics. Will she confirm that they show there are now half a million fewer people in employment than before the pandemic?

    Dr Coffey

    In my discussions with the chief statistician, he has said that more people are on the payroll than ever before. That is good news. I am conscious that there are people who are economically inactive, and the Government will set out how to challenge that. As the right hon. Gentleman knows, my main priority is those people to whom we pay benefits to look for work and making sure they get into work, but of course we will be extending our activity to try to get people back into the marketplace who have dropped out since the covid pandemic.

    As I pointed out, 30 million working people will benefit from the rise in the national insurance threshold in July. With a record number of vacancies in the economy, we want more people to have the benefits that work brings. That is why we are focused on getting more people into and progressing in jobs, where they can boost their pay, prospects and prosperity. Building on our plan for jobs, our Way to Work scheme is getting people into jobs even more quickly, with the aim of getting half a million claimants into work by June. We can see a kind of magic in our jobcentres, as people really want to break free from that unemployment poverty trap. By the end of April we were more than halfway to our goal, and we know there is more to do. But our Way to Work scheme is helping people move into any job now, to get a better job tomorrow and to build a longer-term career. To help people lift off at work when they land a job, we are rolling out extra support for claimants to build the skills they need to progress in work.

    All of this is underpinned by our programme to deliver on what Parliament voted for in 2012: to replace all the legacy benefits with universal credit, because people will always be better off working than not working, unless they cannot work. That is the magic of UC, unlike the cliff edges of tax credits, which stop people progressing the amount of time and skills they get in work. So we are getting on with it, having resumed the process to complete the move to UC by 2024. Given that we estimate that two thirds of people on tax credits would receive a higher entitlement on UC, this will be important in helping to increase incomes.

    All of this stands in contrast to what is put forward by those on the Opposition Benches. I believe the Leader of the Opposition would scrap UC—it was certainly in his pledges when seeking to be elected as Leader of the Opposition. They would undo a decade a progress, leave people further from the labour market and penalise the taxpayer by failing to realise the benefits of a modern system.

    My right hon. Friend the Prime Minister summed up our focus in his speech last Tuesday at the start of our debates on the Gracious Speech: “Jobs, jobs, jobs!”. We are talking about high-skill and high-wage jobs. These are clearly challenging times, but we will continue to provide the leadership needed to rise to those times, continuing to drive up the skills our economy needs and employment prospects across the country, and putting more pounds in people’s pockets. This Queen’s Speech will grow the economy, level up our country, spread opportunity, and strengthen security and prosperity for all the British people, through the covid aftershocks and for decades to come. We therefore continue to commend the Loyal Address, unamended, to the House.

  • Jonathan Ashworth – 2022 Speech on the Cost of Living Crisis

    Jonathan Ashworth – 2022 Speech on the Cost of Living Crisis

    The speech made by Jonathan Ashworth, the Labour MP for Leicester South, in the House of Commons on 17 May 2022.

    This is a debate about the 250,000 households that the National Institute of Economic and Social Research predicts will be forced into destitution next year. This is a debate about the 1.3 million people, including 500,000 children, who will be pushed into absolute poverty. This is a debate about the 2 million—and rising—pensioners in poverty. This is a debate about the 2 million adults who did not eat for a whole day last year. This is a debate about our constituents who are working all hours God sends and still need to queue at food banks to feed their families.

    In his speech earlier, the Chancellor—I do not know where he is, by the way—boasted of an employment miracle, but is it not the truth, as the Office for National Statistics has shown today, that pay is being outpaced by inflation, with real wages falling by 1.2%? That is the largest monthly fall in real regular wages in a decade, yet at the same time, pay-as-you-earn data shows that the wages of the very top earners are increasing rapidly. Labour market inequalities are widening, and workers deserve a fair pay rise.

    If we drill down into the employment figures, we see that it is also the truth—and this has come up today—that they are lower than they were pre-pandemic. Indeed, 1.5 million have left the labour market, including more and more over-50s who are drawing down their defined-contribution pensions. The sickness levels of those out of work are at their highest level for 20 years—[Interruption.] Ah, here he is—come on in, Chancellor! Instead of providing help, the Gracious Speech had no employment Bill—it was ditched—while Jobcentre Plus and Department for Work and Pensions offices will be closed and staff laid off, and job scheme funding is being cut or underspent. This is a Government failing on employment.

    Our constituents face a cost of living crisis, but instead of action we had a complacent speech from the Chancellor, who said that he may act on a windfall tax “soon”—but people need action today. Does he really think that the parents who are making choices between feeding meters and feeding their children, the families who are cutting off their meters and the people who are scared of the final demand from their energy companies can say to those energy companies, “Don’t worry, we’ll pay you soon”? Of course not—the mañana Chancellor needs to act today to help people.

    A theme across the House not just today but throughout the week has been the failure of the Chancellor and the Government to help people with the cost of living crisis. I cannot mention all of the many speeches we have heard today, so I will mention only a few. The hon. Members for Dudley South (Mike Wood), for Newton Abbot (Anne Marie Morris) and for Sevenoaks (Laura Trott) made sympathetic noises towards a windfall tax. In fact, they were so sympathetic, I thought they had got hold of the parliamentary Labour party’s briefing pack for the debate.

    Mike Wood

    Will the right hon. Member give way?

    Jonathan Ashworth

    We are pushed for time, so I beg the hon. Gentleman’s pardon—but he can have a word with me when he is voting with us in the Lobby later.

    Look at the realities facing our constituents: the cost of pasta is up 10%; milk, cheese and eggs, up 8.6%; butter, up 9.6%; cooking oils and fats, up 18%. And the message from Ministers? “Just purchase supermarket own brand.” “Buy value beans”—the new three-word slogan from the Tory party.

    Another quotation of which the Chancellor may be aware is from Milton Friedman; I know the Chancellor is a big fan. Milton Friedman said:

    “Inflation is taxation without legislation”.

    But the Chancellor has legislated. Instead of helping people on universal credit, he legislated to cut universal credit in real terms—a loss of around £500. Instead of helping pensioners with the triple lock, the Government legislated to impose the biggest real-terms cut to the pension for 50 years, meaning a cut of more than £420 for the typical retiree.

    The Secretary of State for Work and Pensions is about to embark on a programme of cutting the incomes of some of the most vulnerable people on legacy benefits as they migrate to universal credit. But it does not have to be like this, because—as the Chairs of the Treasury Committee and the Work and Pensions Committee, many charities and the Institute for Fiscal Studies have said—one could bring forward a proportion of the benefit increase pencilled in for 2023 today. Indeed, the Chief Secretary to the Treasury said a few weeks ago at the Dispatch Box that the 2023 increase in benefits and the pension will take account of inflation. The Government are promising to increase benefits and the pension in line with inflation in 2023, but in the meantime are sending the very poorest on a rollercoaster. Some 500,000 children will be pushed into absolute poverty.

    To be fair to the Chancellor, he said, “We looked at this, but the IT system said no”. As many Members have said, it is a shame that his computer didn’t say no when he was cutting universal credit by £20. But I have been given a briefing note by Oracle, which I understand provides the IT systems for the Department for Work and Pensions, entitled: “How DWP transformed the backbone of the UK benefits system”. The note says that the changes that made to the computer system

    “has built automation into…management—this allows DWP to make changes every week, rather than having to plan six months in advance”.

    Mr Mark Bell, who is the deputy director at the Department for Work and Pensions, said:

    “This has been widely recognised as one of the best technical achievements delivered by DWP Digital for many years…It also enabled us to make further digital enhancements to benefit millions of UK citizens.”

    Technical lead Mr Nick Cutting says that this has brought “flexibility” and that it led to the Department being able to do things it

    “never could have done, or that would have taken significant time at a significant cost”

    if it was still running on legacy infrastructure. You see, Madam Deputy Speaker, the truth is that it is not the mainframe that is preventing the Government from acting; it is their frame of mind.

    The Secretary of State for Work and Pensions (Dr Thérèse Coffey)

    I appreciate that the right hon. Gentleman used to be a political adviser to the previous Government, but they did not have universal credit. What he is describing is universal credit, a system that the Labour party has consistently opposed. That is why we are able to make the changes; it is true and accurate, as he has just read out to the House, that it is the legacy systems that are the problem. That is why we cannot simply change the rates of all benefits as he wants us to do. The point is that we cannot do that, and he has read out the reasons to the House.

    Jonathan Ashworth

    The right hon. Lady has just confirmed that she is refusing to increase universal credit, with the consequence that 500,000 extra children will be pushed into poverty—[Interruption.] I am not misleading the House. I remember meeting her for negotiations over the pandemic legislation. We met in the offices of the Secretary of State for Health and Social Care. We said that we needed more support on universal credit and we came to an arrangement. She also gave a lump sum to those on working tax credit, which is a legacy payment. So if there is a will, the Government can do it, but the truth is that they do not want to do it.

    The reality is that if the Government wanted to lift children out of poverty, they could do it. If they wanted to lift pensioners out of poverty, they could do it. If they wanted to prevent 250,000 families from being pushed into destitution, they could do that too. The fact that they will vote against the amendment in the Lobby tonight tells us everything we need to know about this Tory party. For them, rising child poverty is a price well worth paying.

  • Zarah Sultana – 2022 Speech on the Cost of Living Crisis

    Zarah Sultana – 2022 Speech on the Cost of Living Crisis

    The speech made by Zarah Sultana, the Labour MP for Coventry South, in the House of Commons on 17 May 2022.

    Thank you, Madam Deputy Speaker.

    The annual profits of oil giant Shell were £12 billion. BP’s profits were £9.5 billion. The company’s boss said that his pay had more than doubled to just under £5 million, and then the company complained that it is

    “getting more cash than we know what to do with”.

    In the next year, the combined profits of those two companies are expected to double to £40 billion.

    It is not just oil giants; bankers’ bonuses are booming, too. They are higher than at any time since the 2008 financial crisis. Posh bars in the City say that they have had a run on their most expensive champagne. While the vast majority are struggling like never before, the wealthy few are raking it in. The Institute for Fiscal Studies says that the booming incomes of the top 1% are driving rising inequality. It is a crisis for the majority, but a bonanza for the few.

    This is not inevitable. This crisis was made in Downing Street. It is the result of political choices made by this Tory Government. Last year, they let Shell pay zero tax on North sea oil and gas production, with the Treasury actually paying Shell £92 million. Earlier this year, the Tories voted to give bankers a tax cut worth £1 billion a year, and just a week later they voted to slash social security payments in real terms and to cut pensions by about 4%, once inflation is factored in. A couple of months earlier, they implemented the biggest overnight cut in the history of the welfare state, scrapping the £20 a week universal credit uplift, and then they let energy bills soar by a whopping 54%. Their choices are why my constituents and millions of people across the country are struggling while the super-rich line their pockets.

    We could choose to do things differently, and that is what amendment (f), tabled in my name, would do. It would use a windfall tax on oil giants to slash energy bills and bring energy companies into public ownership. It would give millions of workers a real pay rise, making the minimum wage a genuine living wage, and implement a real-terms public sector pay rise. It would rebuild the social security safety net, with a real-terms increase in social security and pensions, including restoring the £20 a week universal credit uplift. It would pay for that by raising taxes on the richest, not on ordinary workers, including an end to the tax-dodging loopholes that Conservative Members are so fond of, including the non-dom status. Instead of the political choice to squeeze the livelihoods of working people, we could squeeze the profits of the rich. That is what my amendment would do, and I urge Members to back it.

  • Martyn Day – 2022 Speech on the Cost of Living Crisis

    Martyn Day – 2022 Speech on the Cost of Living Crisis

    The speech made by Martyn Day, the SNP MP for Linlithgow and East Falkirk, in the House of Commons on 17 May 2022.

    I probably should not be that surprised that the Queen’s Speech does nothing to tackle the Tories’ cost of living crisis, because they have done virtually nothing over recent years on the underlying causes. Many of my constituents fall into the groups that are hardest hit—the poorest, the elderly and those in remote parts of the country. They are being hammered by soaring inflation, fuel prices and energy prices, yet the Government have continually dragged their feet over the energy crisis. They have had to be forced to debate fuel poverty and energy price caps, but sadly without any effective outcomes.

    The publication of the energy strategy and the announcement of the energy Bill offer nothing either to help with the cost of living crisis or to improve energy efficiency, which would permanently help to reduce people’s bills. The rise in energy prices impacts hardest on the poorest families in our society. The poorest single adult households are now spending 54% of income, after housing costs, on energy. That is simply not sustainable.

    The Queen’s Speech is yet another example of missed opportunities. It fails to fix known problems with universal credit, such as the five-week wait, the benefit cap and the two-child limit, pushing more families further into hardship. It does nothing about the appalling state of pensions in the UK. We have the worst pensions in Europe; they are equivalent to 20% of average earnings, compared with the OECD average of 40%. That is utterly appalling, and many of our pensioners now face the stark choice between heating and eating. The abandonment of the triple lock on pensions takes hundreds of pounds out of their pockets at the very time when energy bills are soaring through the roof and they face serious issues over food security and prices.

    We should not forget either that, even before the current turbocharging of this crisis, malnutrition in the UK has tripled—I state that again: it has tripled—since the Tories came to power in 2010. One in 20 people in the UK are affected by malnutrition and this Government’s inaction will only make that situation worse.

    This week, Andrew Bailey, the Governor of the Bank of England, said:

    “It is a very, very difficult place for us to be. To forecast 10% inflation and then say…‘There’s not a lot we can do about 80% of it’”.

    I will tell the House what I would do about it: we need an emergency Budget; we need to slash VAT on fuel prices; and we need to impose a windfall tax on the companies that have benefited both through the pandemic and in the current crisis. I say to my constituents in Scotland: if you want joined-up policy making from Government and to tackle these issues, you need to get independence, because we will not get the action here.