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  • Jeff Smith – 2022 Speech on the Cost of Living Crisis

    Jeff Smith – 2022 Speech on the Cost of Living Crisis

    The speech made by Jeff Smith, the Labour MP for Manchester Withington, in the House of Commons on 17 May 2022.

    It is a pleasure to follow the hon. Member for Brighton, Pavilion (Caroline Lucas). I agreed with much of what she said.

    This is a Queen’s Speech from a Government who have the wrong priorities and are running out of ideas. Our constituents are struggling to get by, let alone live well, and the Government’s response has been a parade of out of touch and, frankly, insulting ministerial media appearances. There is a huge gap where there should be a strategy to tackle the cost of living. As many have said—not just in this Chamber, but in business as well —we need an emergency Budget, because we need immediate help for struggling families in Manchester, Withington and across the country. We need the windfall tax on gas an oil profits, and I am looking forward to voting for it tonight. We have heard warm words from a number of Conservative Members—they could join us tonight and make a difference by voting to give real help to people who need it at a time of crisis.

    Some important measures were not in the Queen’s Speech. It is disappointing that the fan-led review of football governance has resulted in only draft proposals rather than a Bill. We have been calling for a long time for the acceptance of the recommendations, and especially for the creation of an independent regulator. The Government have, in fairness, said that they will do that, but they have kicked it into the long grass. It is urgent for the future of our national game. Bury has already collapsed, Derby and Oldham have struggled, and we have seen in the media that more clubs across the country could be on the brink. Under the Government’s new timetable, a regulator would not be in place until at least 2024—although I think it could take longer than that—which for many clubs could be too late. We have already had extensive research, consultation and engagement with fans and stakeholders. We need to get on with it. Football clubs are at the heart of our communities, and we need a suitable governance system.

    A quarter of mental health beds have been cut. Right now, 1.6 million people are waiting for mental health treatment. We know that the pandemic has made the situation worse: depression has doubled and crisis referrals are up by 15%, including among under-18s. It is welcome that the Queen’s Speech committed to overhauling the Mental Health Act 1983 and to introducing a long-awaited mental health Bill, although again only in draft. That is overdue and I welcome the fact that the Government have accepted the recommendations of Sir Simon Wessely’s independent review. Alongside reform of the Mental Health Act, however, we must see real action on early intervention, to reduce the number of people becoming unwell in the first place and ensure that those who are struggling can access help early. We also need a proper workforce plan, as Labour has promised.

    After three years and many promises, where is the employment Bill? It is really disappointing. It could have addressed statutory sick pay, flexible working and the rights of people in precarious employment. A number of young people earning the minimum wage in the night-time economy would benefit from a specific measure that the Government have not introduced even though they promised to do so—namely, letting them keep their own tips. Lots of bars and restaurants are great employers, but some keep the discretionary service charge. The Government promised to sort this out, but they have not done so. That should have been part of an employment Bill.

    The climate crisis is urgent, but, as we have just heard, the Queen’s Speech sets out very little to address it. The draft energy security Bill will not address the short-term struggles with household bills or help improve energy efficiency, the most cost-effective way to reduce energy bills permanently. While sitting here waiting to speak, I received an email from my energy supplier telling me that my monthly direct debit payment is doubling. On my MP’s salary I can manage that—most people in this Chamber will be able to manage that—but so many of our constituents will not. They need our help, and they need it now.

  • Caroline Lucas – 2022 Speech on the Cost of Living Crisis

    Caroline Lucas – 2022 Speech on the Cost of Living Crisis

    The speech made by Caroline Lucas, the Green MP for Brighton Pavilion, in the House of Commons on 17 May 2022.

    We are in the grip of multiple crises: a cost of living scandal that is pushing millions of households into fuel and food poverty; a war in Ukraine with disastrous consequences; and the accelerating climate and nature emergencies. In the short time that I have, I want to outline their common roots in our fossil fuel-based energy systems.

    The cost of living crisis is the most visible part of a deeply entrenched social crisis that the Government have systematically not only ignored, but actively exacerbated. Even now, we get the ignorance and arrogance of Tory MPs lecturing about value brands and learning to cook “properly”. I sometimes wonder what planet they are on. In the sixth richest country in the world, more than 2 million adults did not eat for a whole day last month, because they could not afford or get access to food. That is not just a crisis; it is a scandal.

    The international price of energy and fuel, a global pandemic, the war in Ukraine and disruption to supply chains are all factors in what is happening to inflation and the cost of living, as is Brexit, but make no mistake: the associated social scandal is a direct result of this Government’s political choices, which include cutting universal credit and refusing to uprate benefits in line with inflation.

    The choices locking us into fossil fuel reliance and climate catastrophe are equally unforgivable. Companies such as BP and Shell are gambling on Ministers failing to rein in their deadly plans for more oil and gas production. They are deadly because, as the International Energy Agency has warned very clearly, there can be no new fossil fuel exploration and development if we are to keep global heating below the 1.5°C threshold, yet the fossil fuel giants are investing in carbon bombs that will accelerate climate breakdown, and the consequences will be felt heavily by the poorest and most vulnerable. That is nothing less than criminal.

    The Government’s choices have consequences for the war in Ukraine, too, and for Putin’s war chest. I welcome the consensus that we must stop financing his war crimes, and need to stop importing Russian oil and gas. However, I cannot welcome the fact that, for years, policies that could have brought us to a place of energy resilience have recklessly been torn up, with UK energy bills nearly £2.5 billion higher as a result; or the fact that the Government are about to deliver an unambitious, under-financed energy strategy that will leave millions in poverty and accelerate the climate crisis while doing nothing to reduce the UK’s dependence on Russian oil and gas.

    Here are five policies to help us rise to the challenge. The first is a street-by-street, local authority-led retrofit revolution. That is the cheapest, fastest and most effective way to cut household bills, reduce demand, cut climate emissions, and create thousands of jobs in the process. The second is a transition to the abundant homegrown renewables with which our nations are blessed. Those renewables are already cost-competitive; onshore wind is six times cheaper than gas. The third is a dirty profits windfall tax on the obscene profits of the energy giants, but it should not stop there; instead, it should pave the way for a carbon tax levied on every tonne of CO2 released. That critical lever would help to shift us fairly towards a clean, green economy. The revenue would contribute to free home insulation for those who need it, free public transport and a universal basic income.

    Fourthly, there should be no more subsidising of fossil fuels. The UK has one of the most lax regimes in the world for the oil and gas sector. For example, in 2019, companies got away with paying 12.5 times less tax for a barrel of oil produced here than for one produced in Norway. In 2020, Shell effectively paid no tax at all in the UK; it is the only country in which Shell operates where that was the case. Why does the Gracious Speech not include legislative proposals to kick these climate criminals out of Britain for good? Tell Shell that it is not welcome to relocate its headquarters to London. We should introduce laws that would allow us to put on trial not the peaceful protesters who are defending our futures, but the energy bosses who commit crimes against humanity by continuing to plan vast oil and gas projects that would shatter the 1.5°C climate goal.

    Finally, there should be no new oil, gas or coal licences. Every penny spent pumping oil from the North sea is making the future less liveable. That is absolutely unacceptable. It is criminal, and it has to stop.

  • Holly Lynch – 2022 Speech on the Cost of Living Crisis

    Holly Lynch – 2022 Speech on the Cost of Living Crisis

    The speech made by Holly Lynch, the Labour MP for Halifax, in the House of Commons on 17 May 2022.

    In the time I have, I will focus on two groups who have been in touch with me on the cost of living crisis. Many colleagues have outlined the scale of the problem facing the country. The latest Bank of England forecast is that inflation will peak at 10.2% in the fourth quarter of 2022. Alongside that, domestic gas prices have increased by 28% and electricity prices by 19%. The OBR expects that household incomes will not begin to recover until the second half of 2024. The devastating combination of increases amounts to such a battering on household incomes that the Resolution Foundation estimates an extra 1.3 million people will fall into absolute poverty in 2023, including half a million children.

    There is one group in particular who I know have felt particularly vulnerable to the increase in costs: those living with disabilities and families caring for loved ones with disabilities. I want to pay tribute to my constituents Nadia Clarke and her mum Katie, who are both inspirational and tireless campaigners. Nadia had to spend months challenging her care payments when they went up from £15 to £68 per week. Nadia is not alone. Too many are having to make substantial contributions to financing essential care, while also facing price increases across the board. The latest data from Citizens Advice is that 60% of those who contacted them with fuel poverty concerns in 2021 were disabled people. Research undertaken by the charity Scope demonstrated that the extra costs faced by disabled people add up to £583 a month on average. It stated:

    “Energy for powering essential equipment, such as hoists, beds, breathing equipment, powered chairs and monitors was already expensive.”

    It stressed that

    “these are not optional extras that can be cut back. This is vital, often life-saving, equipment.”

    In an online video that Nadia shared, she says:

    “it is not acceptable for disabled people to be forced to pay care charges and choose between the support they need and food on the table.”

    She is absolutely right.

    Similarly, last week I was contacted by a gentleman who raised concerns for his sister-in-law, who lives in Halifax. She is on oxygen for 16 hours every day. Her husband is her main carer, but he is also recovering from cancer. Faced with unavoidable additional electricity bills and heating costs, they were feeling desperate about their situation. Thankfully, they have been able to arrive at an arrangement on their electricity bill with the company that supplies the oxygen, but it is just one more example of how the cost of living is proving unbearable for those who have additional needs.

    Coming from a policing family, in my time here I have often sought to be an advocate for the men and women on the frontline keeping our communities safe. We hear just how badly the cost of living crisis is impacting even those working in our emergency services and on our frontline. That feels all the more shameful when we consider what we ask of them. In a recent Police Federation survey of its members in my area of West Yorkshire, 43% of respondents reported worrying about their personal finances every day or almost every day, and 12% reported never or almost never having enough money to cover all their essentials. A chief superintendent recently told me that PCs, and new recruits in particular, were increasingly seeking permission to work a second job on their rest days. One new recruit on a starting salary sought permission to work as a carer. It is perhaps no surprise that 94% of respondents said that they do not feel respected by the Government. The Government must do better.

    The windfall tax would be a straightforward, fair and appropriate intervention for the Government to make. BP and Shell alone are on course to make a combined profit of almost £40 billion this year, and there is widespread public support for a windfall tax.

  • Carla Lockhart – 2022 Speech on the Cost of Living Crisis

    Carla Lockhart – 2022 Speech on the Cost of Living Crisis

    The speech made by Carla Lockhart, the DUP MP for Upper Bann, in the House of Commons on 17 May 2022.

    Across the House, we are all acutely aware of the challenges faced by our constituents. The groceries budget puts less in the supermarket basket than it did a year ago; the electricity or gas top-up card does not last as long as it did a year ago; and £20 of diesel does not take a car as far as it did a year ago. Those additional household cost pressures are being felt at a time when many people have just experienced real-terms cuts to their income and/or benefits. Furthermore, not that long ago, the £20 uplift to universal credit was withdrawn by the Government, despite appeals from Opposition Members, and from charities across the length and breadth of the UK.

    For the squeezed middle, childcare costs continue to increase and mortgage costs face steep rises. The reality for so many is that wages are failing to keep up with the increase in the cost of living. The national insurance hike and the cumulative impact of all those pressures will result in households’ disposable income shrinking. The bite is being felt.

    It ought to be of great concern to the Government that the OBR has warned that UK residents face the biggest living standards drop on record. That is why it is deeply disappointing and distressing for those feeling the squeeze that although we were told that the Government’s priority is to help

    “ease the cost of living for families”,

    in reality, nothing is being done to deliver on that right now. The Government announced 38 Bills last week. Many of them have great merit, yet there was nothing to address the immediate pressures facing households and families across the United Kingdom. A windfall tax on energy companies enjoying soaring profits was absent. The opportunity to cut taxes or reverse the inexplicable national insurance rise was missed. The Government repeatedly tell us that they are a party of low taxes. Surely now is the time to prove it.

    For those in Northern Ireland, the opportunity to give a clear legislative commitment to addressing the issue of the Northern Ireland protocol was also absent. The protocol exacerbates the cost of living crisis in Northern Ireland. The cost of bringing goods into Northern Ireland has increased by around 27%, according to our haulage industry. That cost is being passed on to businesses and consumers. Indeed, the Prime Minister himself has argued that the protocol is restricting his ability to help our post-covid recovery and holding back economic growth. He is right.

    As the hon. Member for Newton Abbot (Anne Marie Morris) outlined so eloquently, the new UK-wide VAT cut on renewable energy products cannot be implemented in Northern Ireland because of the terms of the protocol. That is a wholly unacceptable situation that no Prime Minister or Government of this United Kingdom of Great Britain and Northern Ireland can preside over. The Prime Minister knows what he must do. Today’s statement from the Foreign Secretary is welcome, but we must see action. I regret that thus far the Chancellor has been an absent Chancellor when it comes to visiting Northern Ireland. I again extend an invitation to him to come to Northern Ireland and hear from my constituents and businesses who are feeling the squeeze.

    In conclusion, the long-term objectives identified by the Government—higher wages, more highly skilled jobs and a move towards our own supply of cheaper and cleaner energy—are very welcome, but families cannot wait for those objectives to become reality. For many, the pressure is being felt acutely now. They need action now.

  • Andrew Bowie – 2022 Speech on the Cost of Living Crisis

    Andrew Bowie – 2022 Speech on the Cost of Living Crisis

    The speech made by Andrew Bowie, the Conservative MP for West Aberdeenshire and Kincardine, in the House of Commons on 17 May 2022.

    It is a pleasure to rise to speak in this debate, and to be the last Member on the Conservative Benches to do so, because it has given me the opportunity to listen to the entire debate, and what an interesting debate it has been.

    We have heard that the Liberal Democrats position is to leave all oil and gas in the ground, which makes for an interesting debate on how we will develop our hydrogen-based economy if all the gas is to be left in the ground. We heard the SNP endorse Labour’s plans for a smash-and-grab raid on one of Scotland’s most successful industries—they couched it in ambiguous terms, but the people of Aberdeenshire and the north-east of Scotland heard them loud and clear.

    We heard the former Leader of the Opposition, the right hon. Member for Doncaster North (Edward Miliband), making offensive remarks, frankly, about the oil and gas industry in his opening speech, because he stood at the Dispatch Box and described profits being made by the oil and gas companies as unearned. I ask him to come up to my constituency of West Aberdeenshire and Kincardine and say to the men and women who go off in the North sea for weeks at a time, in difficult and sometimes dangerous circumstances, to provide the energy that keeps the lights on in this place and around the country that the profits of the companies they work for are unearned.

    The right hon. Gentleman also referred to former Governments looking favourably on the introduction of a windfall tax. He is right: former Labour and Conservative Governments, Chancellors and Prime Ministers have introduced windfall taxes—but what happened? Every single time, investment in the North sea went down. It is a funny plan: supporting working people by putting the very jobs that they rely on at risk. That is what Labour’s plan would do.

    The former Leader of the Opposition also selectively quoted Mr Bernard Looney of BP; Mr Looney said that no current plans to invest would be affected by a windfall tax, but he has also made it clear that future plans may be affected. The former Leader of the Opposition mocked the idea that, over the last eight years, the UK’s oil and gas sector has been struggling. Does he not remember the oil price crash of 2015, when a barrel of oil went from $107 to $44 in just seven months? Is the Labour party so out of touch with Scotland these days that it does not know the effect that had on north-east Scotland’s economy? Probably, because under his leadership his party lost all but one of its Scottish Labour MPs.

    Those who have listened to the Labour party’s rhetoric on tax today would suspect that the oil and gas sector was paying no tax whatsoever. In fact, oil and gas companies pay three separate profit-based taxes on oil and gas production: they pay corporation tax and a supplementary charge, and for years have paid a further petroleum tax on top of that. The industry is the most taxed in the country. The Office for Budget Responsibility has forecast that the upstream sector will pay £18.5 billion in production taxes between 2021 and 2025 and a total of £23.4 billion through to 2027, which is £13 billion higher than the previous forecast in October 2021.

    The Opposition are confusing facts with their own spin. BP did not say that taxation has no effect on its investment. It was clear, as others have been, that further investment would be hampered by higher taxation. They talk about the industry as if it is just BP and Shell. That tells of a total ignorance of the industry, and of all the other companies whose fields are in the North sea, and whose fallow years follow those of the majors. The Opposition forget about the supply chain; the small trade across the north-east that ties us to the continent and to our Nordic friends; the students taught; and the discoveries made through research on oil, which will create the green future that we are all calling for. They forget that we are relying on the industry for answers.

    It is good that the Chancellor is keeping all options on the table. Of course, we want investment in green technologies as we move forward, but Labour’s plan is back-of-the-fag-packet stuff. It is high on rhetoric and low on substance. Typical! Same old Labour.

  • Drew Hendry – 2022 Speech on the Cost of Living Crisis

    Drew Hendry – 2022 Speech on the Cost of Living Crisis

    The speech made by Drew Hendry, the SNP for Inverness, Nairn, Badenoch and Strathspey, in the House of Commons on 17 May 2022.

    Since I was first elected in 2015, I have seen things go from bad to worse for struggling people and families under the Tories in this Chamber. I used to say that people should not have to choose between heating and eating; I did not expect the Tories to take away even that option from people. We hear today that people are self-disconnecting from gas and electricity, or storing food outside their refrigerator to save money by switching it off, in dangerous circumstances. This is a dreadful time and people are facing dreadful conditions. They are unable to wash clothes or wash themselves, use cookers, or even switch on the lights. People are struggling. They are seeing energy companies put up their bills, sometimes increasing direct debits by hundreds of pounds per month, even though there is little evidence that that is required.

    All this is happening, yet this Government and a complacent Ofgem are doing next to nothing. They should be doing everything in their power, yet their inaction can only lead to the conclusion that they just do not care. They ought to step in to help off-gas grid customers and businesses, because they face an even heavier burden: unregulated liquified petroleum gas and heating oil prices are rocketing, and they face cost rises three to four times greater than everyone else. Businesses off-grid are hammered, as are small and medium-sized businesses in general, who have no cap to protect them. What is the point in having a regulator that will not regulate and a Government lost in their own rhetoric?

    At this time my constituents are noting a £20 per week increase in their weekly shop, which is another £80 a month that families can ill afford. Was it lunacy that this Government, knowing that people were facing rising inflation and rocketing energy prices, moved to cut the £20 a week from universal credit, or was it ideological cruelty? I will leave that to others to decide.

    In Scotland, the Scottish Government have already been mitigating the imposed costs on families, spending £350 million to nullify the bedroom tax and, as we heard from my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown), spending four times more per head on insulating houses and properties. When the UK Government took away £20 a week from families, the Scottish Government gave them the Scottish child payment of £20 a week, soon to rise to £25, providing real help through very limited powers.

    What does this Chancellor do? He gives a tiny council tax cut and a payday loan. As the hon. Member for Sheffield Central (Paul Blomfield) said, the UK Government do have choices. Norway, for example, an independent country similar in size to Scotland in terms of resources, will reimburse households for 80% of all their electricity costs above an affordability level. Why are the UK Government not using their powers, reserved to this place, to take meaningful action? It is because they just do not care.

    Scotland is at the moment stuck with the bad choices that this place makes. The people of Scotland can now see even more clearly that when the powers lie in Scotland their Scottish Government will make the choices to protect and support them, in contrast to what happens in this place. There is a hope, however: they can see that the change our people, our families and our communities need is coming. The powers of a normal independent country are needed more than ever, and they are coming soon.

  • Gagan Mohindra – 2022 Speech on the Cost of Living Crisis

    Gagan Mohindra – 2022 Speech on the Cost of Living Crisis

    The speech made by Gagan Mohindra, the Conservative MP for South West Hertfordshire, in the House of Commons on 17 May 2022.

    It is an honour to speak in the debate on Her Majesty’s Gracious Speech. I wish to cover three topics in my limited time: security, the economy and planning.

    Hon. Members will be aware that the Northwood NATO base is in my constituency, which it is a real privilege to host. Through the awful war between Russia and Ukraine, we have seen the importance of global security and I welcome the movements of Sweden and Finland to join that global peace organisation. I strongly associate myself with the commitment, as put forward by this Government, of

    “defending democracy and freedom across the world, including continuing to support the people of Ukraine.”

    However, as well as military might, we also need to think about energy security and food security. I am pleased to see further progress on cheaper, cleaner and more secure energy here in the UK, building on our hugely successful COP26 presidency. As a Member of Parliament who represents a constituency that is approximately 80% green belt, I am really passionate about supporting British farmers and encouraging consumers throughout our great nation to buy British where possible.

    On the economy, our primary focus as the Conservative party should be on growing and strengthening the economy, just as it has always been and just as we always have, but particularly now as a means of easing the cost of living. Our stated aim in the Queen’s Speech, to grow our economy by taking the responsible approach to public finances, supporting people into work, reducing public debt and, most importantly, cutting taxes is the correct way, in my opinion, to manage our economy. I know that my right hon. Friend the Chancellor is looking forward to doing all of that before the next general election.

    The measures set out in this Queen’s Speech demonstrate our continued commitment to driving forward our economy while tackling the cost of living, protecting British businesses and investing in a modern, cleaner and greener society. Britain has always been a global country, and I know that my right hon. Friend the Secretary of State for International Trade will continue to secure further deals to boost our economy and benefit our society now that we have the freedom to do so outside the EU.

    Planning is a topic that is very important to my constituents. The Levelling-up and Regeneration Bill proposed in the Queen’s Speech is a really interesting piece of legislation. I have spoken many times in this place about how beautiful my constituency is. As I have said, approximately 80% of my constituency is green belt, so balancing the preservation of this undoubted natural beauty with the importance of helping families and young people to own their own home is a crucial issue for me. One of the great many pleasures about meeting my constituents is hearing the passion and love they have for their own area and the strong desire they have to protect its character. I know that the proposed Bill will help with that.

    Sara Britcliffe (Hyndburn) (Con)

    One of the points I think my hon. Friend is making is that it is so important to make sure that we utilise brownfield land to the maximum for housing and so on, but does he agree that it is important that local people have their say on the design of their area and what goes where?

    Mr Mohindra

    I absolutely agree with my hon. Friend, and I feel as though she was looking over my shoulder because that is exactly the next point in my speech.

    Introducing a Bill for local growth, giving further powers to local leaders to regenerate their own area and reforming our planning system to give residents greater involvement in local development are all positive steps. However, we must ensure that any local devolution from this House on this issue also comes with accountability, where necessary. Part of my constituency covers the Liberal Democrat-led Three Rivers District Council, and it is disappointing that there have been continual delays in the local plan process. That is unacceptable, especially when the Liberal Democrats continue to blame both the Government and the independent Planning Inspectorate for what I regard as issues that they should primarily be dealing with themselves. Local people absolutely should play a bigger role in deciding how best to improve and expand their local area, and we must be tougher on local councils that seek to play party politics and pass on all the blame for the decisions they are taking.

    In closing—I realise I have taken enough time in the Chamber—I welcome the measures introduced in this Queen’s Speech, particularly those affecting security, both of ourselves and of our friends and allies; the economy, which we must continue to grow sustainably and with as little taxation and spending as possible; and planning, which will allow us to give local people more of a voice in protecting their communities.

  • Rebecca Long-Bailey – 2022 Speech on the Cost of Living Crisis

    Rebecca Long-Bailey – 2022 Speech on the Cost of Living Crisis

    The speech made by Rebecca Long Bailey, the Labour MP for Salford and Eccles, in the House of Commons on 17 May 2022.

    It is often said that a nation’s greatness is measured by how it treats its most vulnerable, but sadly we saw no such measures of greatness in the Gracious Speech. As the Child Poverty Action Group states, it was

    “a legislative agenda that risks leaving increased levels of child poverty—currently at almost 4 million and expected to rise further—as its only real legacy.”

    What were the Government’s priorities, if not to help those in need? We saw ideological flights of fancy, such as forcing through the privatisation of Channel 4, which does not cost the taxpayer a penny and does not need to be privatised, and the British Bill of Rights, which is understood to be a back-door vehicle to undermine the Human Rights Act.

    On workers’ rights, there was no employment rights Bill, despite years of promises from the Government. In its place was the Brexit freedoms Bill, which many fear will cut safety regulations, environmental protections and workers’ rights. People are right to be worried, because despite the Government’s warm fluffy protestations to the contrary, some of the Secretaries of State responsible for drafting the Bill wrote a book arguing that Britain needs to adopt a far-reaching form of free market economics with fewer employment rights.

    In the meantime, our communities are suffering through the cost of living crisis and the Government seem blinkered to their despair. They hiked national insurance contributions for working people; cut universal credit and pensions by offering only a 3.1% increase when inflation is predicted to reach 10%; and sat back as oil and gas companies sit on record profits while people struggle to pay their bills.

    It is clear to everyone—even the CBI and Sir John Major —that the Government must issue an emergency Budget. That means increasing universal credit, legacy benefits and state pensions in line with actual inflation; scrapping the punitive aspects of the universal credit system, such as the five-week wait, the two-child limit, the benefits cap, and no recourse to public funds; increasing the minimum wage to a real living wage, with a pathway, including business support, towards £15 an hour; and a real-terms public sector pay increase.

    We also need an extension of the warm home discount, a street-by-street national home insulation programme and a windfall tax on fossil fuel companies. As Greenpeace suggested, the Government could increase the tax level on oil and gas producer profits to 70% as an absolute minimum, which would simply be in line with the global average and would generate an additional £13.4 billion for the Exchequer that could be used to bring down bills and invest in energy efficiency.

    Fundamentally, however, for the longer term, we must recognise that although horrific global events are a significant factor in the cost of living crisis, it is the structural issues in our economy and energy system that have left us most vulnerable to global price fluctuations. Closing our main energy storage facility in 2017 without replacing it was a monumental error, but worse still are the long-term structural failures that the privatisation of our energy market has caused. It is undeniable that public ownership is central to addressing the costs and energy security crisis that we face.

    So at the very least our communities deserve an emergency Budget before millions suffer possibly the worst economic crisis that they will ever see in their lifetime. At best, we need to reform our economy and energy system so that they protect people from the crisis that we are seeing today.

  • Aaron Bell – 2022 Speech on the Cost of Living Crisis

    Aaron Bell – 2022 Speech on the Cost of Living Crisis

    The speech made by Aaron Bell, the Conservative MP for Newcastle-under-Lyme, in the House of Commons on 17 May 2022.

    It is a pleasure to follow the hon. Member for Jarrow (Kate Osborne).

    There is much to welcome in Her Majesty’s Gracious Speech, but since I have only four minutes, I will be brief about the Bills in it. The Schools Bill will raise standards and help every child fulfil their potential in this country, and the energy security Bill will tackle the long-term cost of living increases. We have seen the disruption that oil prices can cause, but we can expand on our leadership in offshore wind, build new nuclear and kick-start Britain’s hydrogen economy. The Brexit freedoms Bill will make it easier to amend and repeal outdated EU laws.

    The Levelling-up and Regeneration Bill will give communities new powers to drive local growth and regeneration. That will build on the success we have already had in Newcastle-under-Lyme from the future high streets fund and the town deal, with more than £50 million of investment brought into our borough by a very well-run council. As I said earlier, it has already paid out to 34,000 residents their £150, whereas so many Labour councils—I mentioned some of them earlier, and I forgot Kirklees, with apologies to my hon. Friends from there—have not paid out their £150. All the words from those on the Opposition Benches about the cost of living squeeze ring very hollow when their councils are not getting that money into people’s bank accounts. No doubt that is why Newcastle-under-Lyme Borough Council was returned earlier this month with the first Conservative majority in our history. We won seats from Labour in historic Labour places, such as Crackley and Silverdale. I am very proud of the achievements of that council and the leader Simon Tagg.

    Turning to support with the cost of living, many colleagues have said that we are right to target growth and investment in the long term. That is the solution to raising standards in the long term, but we need support right now because of the high inflation that has been stoked principally by the oil price and by Putin’s war in Ukraine. I welcome the threshold rise in national insurance, which means that 30 million people will be better off and 70% will be paying less even after the new levy. I noticed that in the Opposition’s literature, they said they would scrap the levy, but now they are rowing back on that. Can we have a spending commitment for the next election that they want to scrap it? That levy is going to support the NHS and social care, so if Labour wants to remove it, it should say so.

    We are increasing the warm home discount to £100, and extending eligibility to 3 million people. We are doubling the household support fund to £1 billion and investing £200 million per annum in continuing the holiday activities and food programme. I am also very glad that the Chancellor of the Exchequer listened to me and my right hon. Friend the Member for Harlow (Robert Halfon) on fuel duty. That 5p cut is very helpful in a constituency such as Newcastle-under-Lyme, where so many are reliant on cars.

    We may yet need to do more on energy, but that depends on where the oil price goes. If the oil price stays high, I am sure the Chancellor will do more when we come to the next round of the energy price cap. I welcome what he said on the windfall tax. The Opposition amendment is unnecessary. I am clear that windfall taxes are unwelcome, although in certain circumstances they may be the right answer, and I am glad to see the Chancellor not ruling anything out. We need to see proper action from the oil and gas companies in investing. If they do not do that, I will be happy to support him, if that is the direction we take. I realise it is a cyclical industry, but there is a case to be made.

    Finally, I press the Chancellor to do more about levelling up through the tax system. I urge him to look again at council tax. That £150 for bands A to D was very well targeted at people. It was not just levelling up for constituencies such as mine, where 92% of people are in those bands, but levelling up for anyone in a house in bands A to D across the country. Council tax rates are based on valuations that are now very out of date. No Government have ever had the appetite for a valuation, but there must be some scope to lower the burden on people in lower bands and to increase or add extra bands I and J on top. I put that to the Chancellor.

    Jonathan Ashworth (Leicester South) (Lab/Co-op)

    That is brave.

    Aaron Bell

    It is brave—I thank the right hon. Gentleman—but we need to do it to level up the tax system.

    More than anything, I am glad to have the Chancellor of the Exchequer leading us through these difficult times. Hon. Members should remember that if Opposition Members had had their way, we would be led by the right hon. Members for Islington North (Jeremy Corbyn) and for Hayes and Harlington (John McDonnell), and we would not be standing up to Putin; we would be excusing him.

  • Kate Osborne – 2022 Speech on the Cost of Living Crisis

    Kate Osborne – 2022 Speech on the Cost of Living Crisis

    The speech made by Kate Osborne, the Labour MP for Jarrow, in the House of Commons on 17 May 2022.

    The cost of living crisis presents the biggest threat in a generation to the living standards of the working class in this country. The removal of the energy price cap has meant that bills have risen by up to 54% for millions of households in the UK. This has meant the highest real-terms energy price increase in living memory, with the worst fall in living standards since the 1950s.

    Shockingly, the cost of living crisis is having a disproportionate effect on women. According to work done by the shadow Secretary of State for Women and Equalities, my hon. Friend the Member for Oxford East (Anneliese Dodds), more than 7.5 million women are currently living in relative poverty. That translates to almost a quarter of all women across the UK. The TUC has said that the Chancellor’s response to the cost of living crisis has been “woefully inadequate”. It says that he needs to call

    “an emergency budget to get pay rising, help families with soaring bills, and keep the economy moving”—

    and it is absolutely right.

    This cost of living crisis is underpinned by financial injustice and unfairness. It is a crisis where Tory smoke and mirrors cannot hide the truth, and where people have had to choose between eating and heating their homes while paying crippling bills. Against the backdrop of these cruel choices, oil and gas companies have managed to turn over record profits in the first quarter of 2022, with Shell recording a record quarterly profit of $9.1 billion, up from $6.3 billion in the final three months of 2021, while BP has seen its profits for the first quarter more than double on the previous year to $6.2 billion. This cannot be right.

    I was proud to be elected on a manifesto that committed to bringing energy companies into public ownership, which would have regulated prices and ultimately put accountability to the people over profit. This Government should have looked towards countries such as France, Spain and Germany and used the Queen’s Speech as an opportunity to implement a low-percentage price cap on energy prices, and they should have committed to implementing a windfall tax. Calls for a windfall tax are supported not only by those on the Opposition side of the House, but elsewhere, including by the Tesco chairman, John Allan.

    If the best this Chancellor can provide is a tacit threat to impose a windfall tax on energy companies, rather than a legislative commitment, that is simply not good enough. The increase in energy prices and the responsibility for the terrifying cost of living crisis stop at the Government’s door, and they have failed to use this Queen’s Speech as an opportunity to rebalance the financial burden in this country. More people will suffer through their lack of action.

    As we emerge from this pandemic, people in this country are enduring one of the worst cost of living crises seen in post-war Britain. The simple fact is that it does not have to be like this, and the Government have a duty to alleviate this crisis by making corporations, and those who can, contribute more. This Queen’s Speech was an opportunity to redress the balance, but it was also incumbent on the Government to take action, and they have not. This Queen’s Speech, put forward by this Government, has no substance and shows no willingness to redress the balance of power in this country. Unless they do more, I fear for the people I represent in the Jarrow constituency and for those in the rest of the UK.