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Tag: Speeches

  • Mike Amesbury – 2022 Speech on the Government’s “Plan for Growth”

    Mike Amesbury – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Mike Amesbury, the Labour MP for Weaver Vale, in the House of Commons on 19 October 2022.

    This economic crisis has been manufactured in Downing Street and, as we approach Hallowe’en, the little shop of horrors on the Government Benches adds 10.1% inflation. That horrendous inflation figure brings more anxiety to my constituents in Weaver Vale and across Britain, as Members across the Chamber have documented today. This nightmare made in Downing Street is being experienced every day by ordinary people who are just trying to make ends meet during this economic crisis.

    Mortgages are up, energy bills are up, the weekly shop bill is up and rents are up, while wages, benefits and pensions are down. My God—the Bank of England had to intervene with £65 billion to save our pension funds. People on the Government Benches should be ashamed of themselves for supporting this, voting for it and inflicting on us the horror show that we saw in the summer. This has all been driven by Captain Chaos herself, the Prime Minister unchained as a free marketeer ultra.

    Who knew that unsuccessful trickle-down economics, unfunded tax cuts for the wealthiest and borrowing on the never, never would fail? The shadow Chancellor knew, the Bank of England knew, the Institute for Fiscal Studies knew, the Office for Budget Responsibility knew, the Financial Times knew and the hon. Member for Hazel Grove (Mr Wragg) knew, as he has eloquently set out in the Chamber today. In fact, a huge coalition of the economically sensible forewarned that the free marketeer ultras would ultimately fail and crash the economy off a cliff.

    The lady who is for U-turning by the hour is now trying to deflect the blame for the chaos to the former 38-day Chancellor, while appointing the former architect—let us not forget this—of NHS austerity mark one. She is a Tory Prime Minister in name only, chained to the passenger seat while Chancellor Hunt tries to swerve away from another cliff of chaos, but the damage is done. Who knows how much longer this Prime Minister in title only will have to attempt to deal with this utter mess of her own making? Almost certainly not as long as our constituents, who will be paying for years to come for this economic chaos. We will ensure that that is not forgotten.

    Some 4,800 households in Halton and 13,900 in Cheshire West and Chester will now be paying higher mortgage rates, thanks to the experimental mini-Budget that the Prime Minister and former Chancellor now admit caused interest rates to increase—a Budget that the Cabinet signed up to, although they are now in denial about that. That extra £500 a month on average will inevitably mean that homes are repossessed. The situation will be turbocharged by the new Chancellor of doom who has just decided to gift households with energy bills of up to £5,000 next April—complete and utter madness—while the oil and gas companies rake in £170 billion of excess profits. The answer is staring people in the face. It is those companies we need to tackle, and in fact the likes of Shell are expecting it and have built it into their business plans. It is crazy.

    On the long road to recovery that we face, a Conservative Government cannot remain in the driving seat, even if the Prime Minister is not at the wheel. We now have the fourth Chancellor in four months, and that is not going to provide confidence and stability. In fact, we have had 12 years of this Government and 12 years of austerity. The new Chancellor of doom has no strategy for growth, and he is set to outline austerity mark two in the Hallowe’en Budget. It is time to wake up from this nightmare. Step aside, and let us have a Labour Government.

  • Jerome Mayhew – 2022 Speech on the Government’s “Plan for Growth”

    Jerome Mayhew – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Jerome Mayhew, the Conservative MP for Broadland, in the House of Commons on 19 October 2022.

    If we have learned one thing from the experience of the past few weeks, it is that there really is no magic money tree, and the Government really do have to pay their way. Some of us, including myself, had started to doubt that essential economic truth because of the Government’s heroic response to the covid crisis.

    I had intended to say that we had supported the families and businesses of this country to the tune of £400 billion. However, I listened to the Minister at the Dispatch Box, and when we add up all the unplanned borrowing very substantially as a result of covid, the total is actually £630 billion. It is because of that enormous intervention to support families and businesses by this Government that we did not have thousands of bankruptcies and millions of people cast out of work, as was the expectation. Right hon. and hon. Members will recall a forecast that we would have 12% unemployment, but because of the economic management by this Government the impact was cushioned and the economy protected from that enormous external shock.

    The Government were quite right to do that, but why were they able to? It was because of the decade of prudent economic management that repaired the enormous economic damage left by Labour in 2010—prudent decisions that Labour fought against tooth and nail. The Labour motion before us calls for a plan to make the economy work for working people, but Labour does not stand up for working people. Every Labour Government in history, without exception, have left office with more people out of work than before. Their policies, again and again, are not the policies for working people, but the policies of unemployment.

    Compare that record with that of this Government. Despite suffering the biggest economic shock to the world economy in a century or perhaps longer, unemployment has not gone up, as it always does under Labour. It has gone down, most recently to 3.5%, the lowest level since I was a tiny boy in 1974. In my Broadland constituency, the rate is even lower. That economic management is forcing employers to offer higher wages for staff—exactly the kind of economic conditions that help workers, particularly the lowest paid. It also serves to increase productivity, as local employers invest to limit the number of staff needed to produce. That is what will pay for the wage increases of the future, not Labour meddling.

    I recognise, as does the Prime Minister, that the mini Budget went too fast and too far, and she has rightly apologised for it, but this Government have the right economic policies for growth. As one of the few entrepreneurs in this place, having helped to create hundreds of worthwhile, well-rewarded jobs and careers, I know the truth of the business saying that time kills deals. Speeding up the ability of businesses to get projects up and running will have a huge impact on the future growth and prosperity of this country.

    The Government are right to launch investment zones. These zones do not just corral investment into a particular area; by speeding up the process of business, they will also grow the size of the pie. I hope that the results will be so striking that over time they will become a beacon for wider economic policy, showing the way for the rest of the economy.

    The Government are also right to accelerate productivity-enhancing infrastructure projects across Britain to help with levelling up, including the building of the western link road in my constituency, which will shorten ambulance times by 20 minutes, open up a swathe of Norfolk businesses to improved market access and relieve the residents of Weston Longville and others from terrible rat-running—all opposed by Labour, I might add. As for the local Lib Dems, literally half of them have said they want it and the other half have said they do not. That says it all about the approach of the Liberal Democrats: to say whatever they think will sound good to local constituents, with no consistency at all.

    Finally, the Government are right to speed up the review of EU-inspired regulations to make them bespoke for the United Kingdom economy. That will help British businesses and British workers. This Government have an economic record to be proud of, and I would back them to the hilt over Labour any day.

  • Paula Barker – 2022 Speech on the Government’s “Plan for Growth”

    Paula Barker – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Paula Barker, the Labour MP for Liverpool Wavertree, in the House of Commons on 19 October 2022.

    Government Members should not think for one second that the Opposition will relent from holding them to account for this dog’s dinner, which is entirely of their own making. Like a broken record, the lame duck Prime Minister cites global economic headwinds, refusing to take any responsibility for the decisions that brought the British economy to the edge of disaster.

    We have a Prime Minister in office but not in power, humiliated and bereft of ideas. Her manifesto drawn up by the libertarian right and the Institute of Economic Affairs has been cut to ribbons. The dogma espoused in “Britannia Unchained” must never again be allowed to reign supreme in Whitehall. In fact, the ideas must be consigned to the dustbin of history.

    Now the Prime Minister has brought back an old foe, who underfunded our NHS for years, to implement austerity 2.0, and once again it will be communities like mine in Liverpool, Wavertree who suffer. This is a Tory crisis, and the damage has been done: an estimated 14,344 people in Liverpool will be paying higher mortgage bills next year as a result of this Government’s irresponsible actions. The Prime Minister and the Chancellor now admit that the mini-Budget caused mortgage rates to go up and borrowing costs to surge—a Tory cost we will be living with for years.

    Working people have gone through enough. Now they are told that, to re-establish market stability, the responsibility is being shifted from the Government on to households, communities and working people. It all feels very 2011. Some are even saying that a previous Chancellor, the former Member for Tatton, is pulling the strings. The new Chancellor embodies a very different type of dogma from the Prime Minister’s, but it is dogma nevertheless—a school of economics that saw us enter the coronavirus pandemic with public services under-resourced and under-prepared.

    Feryal Clark

    Does my hon. Friend agree that it is not just public services, but local councils such as mine in Enfield, which faces a £100 million budget gap due to spiralling inflation, that are paying the price for this Government’s mismanagement of the economy?

    Paula Barker

    My hon. Friend makes a pivotal point. Local authorities have been cut to the bone. They provide valuable resources and frontline services out in our communities, but they are being decimated yet again by this Government. Our public sector workforce is demoralised after a decade of pay restraint and cuts to frontline services.

    If this Government think for one moment that our people will now put up with more of the same while bankers’ bonuses remain uncapped and millionaire bosses continue to rake in profits and dividends, they are sadly mistaken. The British people have woken up to the con. No longer does the promise ring true that each succeeding generation will have it better than the last. That promise, forged in the fire of the post-war consensus, is now in ruins after decades of short-termism and the dominance of capital over labour. We are not all in this together. Not once since 2010 have we all been in this together. Despite the empty rhetoric of a strong economy and levelling up, the Conservative party has always sought to look after its own class interests at the expense of the rest of us.

    Young people in my Liverpool, Wavertree constituency now face their lives being put on hold because of this Government’s incompetence. They have done the right thing: they have gone out, worked hard and saved, only to be cheated and denied the opportunity of home ownership. Working people are up against real-terms cuts to their pay and our elderly are anxious about heating their homes in the run-up to winter. There is even more uncertainty for small businesses and charities, such as the amazing Love Wavertree in my constituency, which does incredible work. It announced today that the increase in its energy bills means it must consider whether it can continue to run its community shop, a lifeline for many people in my constituency.

    History will not be kind to this Government, nor to anyone who has participated over the past 12 years. The Conservative party is lost. Thankfully, change is coming. As the Leader of the Opposition said so eloquently at Prime Minister’s questions today, we are the Government in waiting; the Conservative party are the Opposition in waiting. Frankly, that cannot come quickly enough.

  • Steve Double – 2022 Speech on the Government’s “Plan for Growth”

    Steve Double – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Steve Double, the Conservative MP for St Austell and Newquay, in the House of Commons on 19 October 2022.

    I think we all knew that whoever was Prime Minister or Chancellor and in government at this particular time were going to face some really tough decisions. The fall-out from the pandemic, the invasion of Ukraine and a number of other domestic and global factors were going to mean that some really difficult decisions would have to be made around our economy and our fiscal policy. None the less, the one thing that we should all be able to depend on is that, no matter how difficult times are, the Government will not make those decisions even harder. Sadly, that is what has happened as a result of the rushed mini-Budget. The fall-out has been a loss of confidence—a loss of confidence in the markets and, talking to many local businesses in my constituency in the two weeks immediately after the mini-Budget, a great loss of confidence in the business community.

    Growth is a hard-won thing. We do not achieve growth simply by saying as loudly and passionately as possible that we are going to get growth. Growth needs to be nurtured with the right policies that instil confidence in the business community. It is therefore incredibly welcome, and I am incredibly thankful, that the new Chancellor has stepped up and taken a grip on the situation. I am also delighted to see my very good friend in the position of Chief Secretary to the Treasury. Between the two of them, I have great confidence that they will bring the grip and the leadership to the Treasury that is necessary to create the stability we now need to address this difficult situation. As a result, many elements of the original mini-Budget have now been dropped, and we await further details in the near future of exactly how the Government will now balance the books and lay out their policy going forward.

    However, we really need to know what the Prime Minister’s policies are. She made a number of very bold statements in her leadership campaign to become Prime Minister, most of which have now been dropped. It is very important that we have confidence that No.10 and No.11 are in lockstep at this challenging time and that they have the same policies, so we need the Prime Minister to confirm exactly what her policies are.

    We are aware that some very difficult decisions lie ahead but, in making those decisions, it is vital that we protect the most vulnerable in our society from the damage that has been caused. Those who are least able to shoulder the burden should not be required to pay the price for it. Therefore, it was incredibly welcome that the Prime Minister gave a clear statement at the Dispatch Box that the triple lock will remain in place for pensions. Pensioners in my constituency and across the country will welcome the reassurance that that triple lock will be in place and that they will get a rise in their pension in line with prices.

    It is vital to do a similar thing with benefits. The Government have done a lot of work over many years in reforming benefits. Universal credit pays people to be in work, and I have heard at first hand how popular it is, but it is right that those benefits keep pace with the increase in prices and that those on benefits are not the ones who pay the price of balancing the books.

    One measure that has survived the cull from the mini-Budget is the cut in stamp duty. Naturally, I am someone who welcomes a cut in stamp duty. However, Cornwall is currently in the middle of a major housing crisis. Experience from the previous cut in stamp duty during the pandemic showed that it fuelled demand for second homes and investment properties. That inflated house prices in Cornwall way higher than the national increase, meaning that even more local people are unable to afford to buy a house. If the Government are to press ahead with the stamp duty cut, will they ensure that it applies only to primary residences and that those who seek to buy second homes and investment properties for holiday lets are not able to attract the proposed cut? If the cut goes ahead, all we will do is fuel second home and investment property purchases in tourist areas such as Cornwall, making our housing crisis even worse. We need the Government to help us address that so that local people can get the housing they need. I ask the Ministers on the Front Bench to take that particular point away and look at it. Yes, a stamp duty cut is welcome to help people buying a home, particularly their first home, but it should not go to those who are buying second and subsequent homes.

    All in all, after a very difficult time, I am in a much better place and am confident that the new team in the Treasury has a grip on the situation and will provide the stability and leadership that we need. I look forward to hearing more details in due course of exactly what policies will be put in place.

  • Stephen Timms – 2022 Speech on the Government’s “Plan for Growth”

    Stephen Timms – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Sir Stephen Timms, the Labour MP for East Ham, in the House of Commons on 19 October 2022.

    I am very pleased to follow the hon. Member for Hazel Grove (Mr Wragg), and I pay tribute to him for the frankness of the personal remarks with which he opened his speech. I must say that the whole speech contained a great deal of good sense, which I hope his hon. Friends on his Front Bench will have heard and paid attention to.

    Christians on the Left organises a church service each year on the Sunday morning when the Labour party conference begins, and the preacher this year was the Archbishop of York. In the very fine address that he gave on that occasion, he said:

    “Increasingly, the safety net in our nation is a foodbank, where more and more people have to go to get what our economy itself fails to provide.”

    He is absolutely right: something fundamental has gone wrong in our economy. For many people, including those in employment, the economy does not work. More and more are turning to food banks to survive. Some 61,000 food parcels were distributed by the Trussell Trust’s food banks in 2010-11, whereas the number was 2.5 million in 2020-21—a fortyfold increase in a decade.

    In the leadership election campaign in the summer, the Prime Minister acknowledged her party’s failure on economic growth, and she was absolutely right to do so. The new Chancellor told us on Monday that the record on growth had been very good. That is one of many things that he and the Prime Minister seem to disagree about, but on this one, I am definitely with the Prime Minister. As my hon. Friend the Member for Leeds West (Rachel Reeves) often points out, we are a high-tax economy because we have been a low-growth economy.

    Last April social security benefits were raised by 3.1%, even though inflation was nearly 10%.

    That was justified on the basis that the regular formula for uprating benefits uses the figure for inflation from the previous September. That formula has, on several occasions, been disapplied since 2010, but never in the interests of the poorest families in the country—only ever to their disadvantage. This year, the formula was applied, piling on yet another real-terms cut in benefits, reducing them to the lowest real-terms level for more than 30 years. The then Chancellor and the then Prime Minister implicitly recognised that unfairness and promised to use the same formula next April, delivering, we have learned today, a 10.1% rise.

    The current Chancellor must now decide whether to keep that promise to the poorest families in the country during a cost of living crisis. The Minister, in his opening remarks, referred to protecting the vulnerable. I really hope that he meant that, because those families have so often had a kicking from this Government over the past 12 years. If that happens again, dependence on food banks will get yet another large boost as thousands more people have to turn to them to survive—on top of the 700,000 households who did so in 2019-20. The food banks themselves are struggling now because donors cannot afford to give as much. Mass food bank dependence is a potent symptom of the economic failure of the past 12 years.

    Yesterday, representatives from Muscular Dystrophy UK came to Parliament to spell out the hardship from rising prices facing the people they support, because, for example, those people depend on machinery—ventilators—that have to be permanently switched on and powered. On Monday, the Chancellor spoke of compassionate conservatism. If that is not just a vacuous slogan, those people’s needs must be recognised in the benefit uprating decision that could be announced on Monday week.

    The benefit cap was introduced 10 years ago and was supposed to reflect median earnings. It was changed once in 2016, when it was cut, and it has never been increased. This time, surely, it must be. If it is not, at a time when inflation is over 10%, thousands more people will crash into the cap next April and be forced to depend on food banks, heaping yet another economic failure on the catastrophic blunders, as the hon. Member for Hazel Grove rightly pointed out, of the past few weeks.

  • William Wragg – 2022 Speech on the Government’s “Plan for Growth”

    William Wragg – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by William Wragg, the Conservative MP for Hazel Grove, in the House of Commons on 19 October 2022.

    Thank you very much for calling me so early in the debate, Madam Deputy Speaker. If I may strike a conciliatory tone at the outset of my remarks, I thank everybody in this House who sent me remarkable support in the course of the summer recess. There is nothing unique about my having had issues with my mental health, but what is perhaps more unique than most in the country is that I have the platform and opportunity to highlight that and to speak empathetically, and I am very grateful indeed. In making this speech, there are a number of things in my life that I am struggling with at the moment, but, bizarrely, it seems that making a speech in the House of Commons is not one of them. I am not entirely sure whether that is attuned to my state of mind, and no doubt my hon. Friends on the Front Bench will tell me afterwards.

    I want to speak on this important matter because I have not said a word to my constituents about the events of the last month or so. I watched on from home when the Chancellor gave his so-called mini-Budget, which should have been delivered as a full Budget, with the proper procedures of the House duly followed. As the time passed, I grew increasingly concerned by its nature. I am quite an old-fashioned person and, in respect of this House, I like to look at the wording of the motion. I also believe in speaking one’s mind, and I can only say that today is the exact centenary of a meeting in 1922, during which Conservative Back Benchers met to decide that they would stand on their own ticket in the 1992 general election, thereby depriving David Lloyd George of the opportunity to continue as Prime Minister. As vice-chair of the 1922 Committee—the foundation of which followed the events of that afternoon and evening—I think it is quite important to speak my mind. I realise there are some in my party who lament that state of affairs, but I hope they will indulge me, as I have indulged them over time.

    Many things that have been said by those on the Front Bench are very true. There is an international situation, an illegal invasion of Ukraine and a spike in the international cost of energy. The Government have many things to be proud of—not least the employment record—but there is no escaping the fact that the measures contained within the financial statement directly caused the situation to be made worse. I am quite sure that was not intentional, but I cannot easily forgive the lack of foresight by senior members of the Government. My forgiveness is not what that the Government should seek at all; it should be that of our constituents, who are in a difficult enough situation as it is. To see this as a question of international turbulence inexplicably increasing the mortgage rates and inexplicably necessitating further cuts to public expenditure—I cannot easily forgive that.

    In the course of the summer, I found the trashing of the reputations of independent organisations in this country, such as the Bank of England and the Office for Budget Responsibility, to be near to malice in its nature. Treasury orthodoxy came under attack. I am a Conservative, and I suppose that orthodoxy goes hand in hand with that. That is Conservative orthodoxy. Conservative orthodoxy is sound financial management and a balanced budget—not sticking pamphlets into a test tube, shaking it up and seeing what happens. That is not the way the Conservative party should ever govern.

    Apparently I can be a little difficult to handle, and my hon. Friend the Member for Workington (Mark Jenkinson) must have wondered what he had done in a previous life to find me in his flock as my Whip. I always commiserate with my Whip when they are appointed; indeed, I have been round the block with a number of them, and I end up getting round to them all over again. But there is a serious point to all this: I am personally ashamed of what occurred with the financial statement, because I cannot go and face my constituents, look them in the eye and say that they should support our great party. The polls would seem to bear that out.

    The next debate is apparently a confidence issue. Well, I am not going to fall into that trap. I oppose fracking and thought that we had come to a considered position on it, but there we go. I will vote with the Government Whip.

    Feryal Clark (Enfield North) (Lab)

    Will the hon. Gentleman be lending the Prime Minister his confidence vote in the next debate?

    Mr Wragg

    The hon. Lady is very charitable in giving me a further minute for my peroration, although it seems a shame to extend it too long. The fracking debate that follows has been made a confidence vote. If I voted as I would wish, I would lose the Whip. I would no longer be a vice-chair of the 1922 Committee. I would no longer maintain my position as a Chair of one of the Select Committees of the House. Indeed, because of that, my letter lodged with my hon. Friend the Member for Altrincham and Sale West (Sir Graham Brady) would fall, and I wish to maintain that letter with him.

  • Drew Hendry – 2022 Speech on the Government’s “Plan for Growth”

    Drew Hendry – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Drew Hendry, the SNP for Inverness, Nairn, Badenoch and Strathspey, in the House of Commons on 19 October 2022.

    A report out today shows that 60% of people across the nations of the UK are worried about their household financial prospects. The same report shows that nine in 10 people have delayed putting on the heating due to concern about the cost.

    Members across the House will have received emails and calls from people who have never before been moved to contact their MP and who are now feeling those concerns for themselves. When those who have felt relatively comfortable start feeling the pinch, imagine what it means for those on the rungs of the ladder below. Then imagine what it means for those who were not getting by at all, who were already suffering from poverty and who had £20 a week cut from their universal credit. It is crushing them. It is destroying families. It is clearing out food banks. It is moving third-sector and support service staff to tears with the feeling of futility. And it is destroying the health of children.

    The actions of this Westminster Government have left vulnerable households abandoned, betrayed and cast aside. This Government laid bare their ideology during the chaotic period of the so-called mini-Budget. Make no mistake, while they were doing that damage, they simply pulled back the curtain on their core ideology. Their error was being so obvious, so blunt, that political spin could not cover it. Their focus has always been on making the rich richer. When their key policies result in poverty but mean £40,000 extra each year for those earning £1 million a year it is a bit of a giveaway, is it not? Only those earning more than £155,000 a year were net beneficiaries of the mini-Budget.

    Of course, this month’s Chancellor has had to scrap this unfunded giveaway to the most well-off, not through genuine contrition but because he was forced to do so. Limp and clearly insincere apologies do not fool anyone. The parachute Chancellor has dropped in to try to close the curtain and return to the drip, drip of chronic austerity that is the usual modus operandi. People now see through it.

    With inflation above 10%, the poor are facing the hardest choices. Food inflation is higher than 10%, which means they have really tough choices. The Chancellor has taken away the two-year energy price cap. Although the cap is welcome, it still means a doubling of prices from last year. Ominously, there will be a review in six months. There is no certainty for increasingly desperate people, while rich bankers will still see their wages rocket, as the cap on their bonuses has been removed.

    James Cartlidge

    On the subject of banking, can the hon. Gentleman confirm that current SNP policy is that Scotland, were it to become independent, would have a currency with no lender of last resort?

    Drew Hendry

    Let me deal with two issues. First, no amount of deflection by Conservative Members will take away from the fact that they are punishing the poor and they have trashed the economy in recent weeks. Secondly, on the prospectus for independence, people in Scotland should have a choice: to have those questions put before them and to vote on them. It is the hon. Gentleman’s Government who are denying democracy in that case.

    James Cartlidge

    Will the hon. Gentleman give way?

    Drew Hendry

    No, I am going to make some progress.

    The Chancellor has ominously set that cap up for a review in six months, providing no certainty for increasingly desperate people, while rich bankers will still be able to see their wages rocket, as I said, with the cap on their bonuses removed. The energy crisis is even more galling for my constituents, and many more across Scotland, as they see their energy being produced from their backyards, yet folk in the colder climate of the highlands pay more per unit for electricity than people anywhere else in the UK—renewable energy suppliers are charged more to connect to the grid than those anywhere else in the UK, and the picture is particularly bleak for those who are off the gas grid.

    Brendan O’Hara (Argyll and Bute) (SNP)

    My hon. Friend will be aware that even on the Government’s own estimates heating oil has gone up by 147% since January, and in constituencies such as ours it is costing more than £1,200 to fill a tank, and sometimes this is with a minimum delivery of 500 litres. Does he share my concern that in these colder, rural and more economically fragile areas of the UK not everyone has £500 to replenish their oil tank? This will not be a choice of turning their heating on or not; they simply will not have the choice, because they will not have the oil or the means to replenish the tank when they need it. This is a crisis.

    Drew Hendry

    My hon. Friend is completely right and he represents a constituency with many off gas grid constituents, as I do. He makes a telling point about the cost of that. What support are the UK Government giving to these people who face twice the bills that other people will? They are giving a measly £100.

    Imran Hussain

    Even today, the Minister refuses to give us figures on the expected windfall revenue. Does the hon. Gentleman agree that the simple fact remains that this Government always side with the energy giants as opposed to ordinary British people?

    Drew Hendry

    The hon. Gentleman makes a fair point. As I said in my opening remarks, the Government’s ideology is that the rich will get richer while the poor will suffer. That has been underlined over the past few weeks like at no other time in this place. The scales have fallen away—

    Hywel Williams (Arfon) (PC)

    I tried to intervene on the Minister on this broad point. Both he and his friends refer continually to growth, but I do not think I have heard any indication from him this afternoon, or elsewhere, as to how that growth will be spread beyond London and the south-east. Is that not a gaping gap in the Government’s policy? It will certainly affect the constituents of the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), as it will my constituents and those in Wales, the north of England and Scotland.

    Drew Hendry

    Again, the hon. Gentleman makes a fantastic point. The growth we are seeing from this Government is the growth in poverty and in inequality. That continues to rise and the Government are very good at driving it forward.

    As I was saying, those off gas grid consumers are being given £100. Scotland is energy rich and a net exporter of energy. Renewable energy is six to nine times cheaper than the gas-fired power our prices are linked to. In Scotland we have the energy, but until we have the power our people will continue to be ignored over their basic needs and their potential.

    After the Chancellor’s statement, the Scottish National party, through my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown), tried to introduce some certainty for households terrified by the rising energy prices by tabling an amendment to the Energy Prices Bill that would have required Ministers to outline within 28 days how support after April would be provided to households. Labour failed to support that amendment. The Chancellor says that more difficult decisions will have to be made, which means cutting the funding for things that ordinary families and the most vulnerable rely on. We should note that the threat for those struggling by, many of them working people relying on universal credit, has not been lifted; there may be further reductions, on top of the fact that inflation has been three times higher than their last increase. Common decency demands that benefits must be fully uprated. Are the Government capable of that?

    We should also remember that this Government still have not reversed the pernicious £20 a week cut to UC, yet the Chancellor had the cheek to say—this has been repeated today—that the Government’s priority will always be the most vulnerable. Does that include pensioners? This week, he was briefing journalists, including Robert Peston, who said this today, that the Government were abandoning the triple lock. With inflation rampant—today’s figure is 10.1%—this means further hardship for Scotland’s older people. Yet today, the Prime Minister says no. Is this another U-turn? Or is it like when she says that the energy cap will mean no family would pay more than £2,500 per year? Is it just—let me find some parliamentary language—questionable?

    If the Government really mean that they care, they would reinstate the £20 a week to UC, scrap the bedroom tax, get rid of the odious rape clause and uprate benefits in line with inflation. They could choose to follow the progressive lead of the Scottish Government, who have brought in, among a wide package—[Interruption.] The Minister is laughing. The Scottish Government have brought in the Scottish child payment, which has risen now to £25 a week. That is helping to mitigate the callous cut made by his Government. They could choose to follow that progressive lead and to follow what the Scottish Government have done in doubling the December bridging payment from £130 to £260, at a time when families will need it most, in the depth of winter and at Christmas. The Government could pay for much of this by taxing the excess profits of companies that are clearly making them.

    Alan Brown

    My hon. Friend was talking about the Tories not keeping their pledge to protect the most vulnerable, and he has highlighted some awful policies that are making people more vulnerable. In addition, under this Government fuel poverty has increased by more than 50% and now affects 6.7 million households. So to say that the Government are protecting the vulnerable is, unfortunately, a sick joke.

    Drew Hendry

    My hon. Friend has said it all there—it is clear. To hear laughter this afternoon from Government Front Benchers about measures to mitigate poverty is shameful.

    The Government could have taxed some of the excess profits, and companies are daring them to do so. Sometimes, as with the boss of Shell, they are asking the Government to do this. The Government could do this but they will not, because protecting the vulnerable is not what Tories do. It gets worse, because now the Bank of England will react with further interest rate rises, pushing mortgages to unaffordable heights for some homeowners and prospective buyers. As we have heard again today, the Government want to lay all the blame on the illegal war in Ukraine and on global conditions, but everybody knows that much of this is Tory-inflicted. A big part of that is Brexit. It has hamstrung businesses by starving them of vital staff; it has pushed inflation higher through import prices; the UK’s shocking balance of trade has been exposed; and it has ushered in a raft of new tax costs for businesses across the nations of the UK. As the former Bank of England Governor Mark Carney pointed out:

    “In 2016 the British economy was 90% the size of Germany’s. Now it is…70%.”

    That was before the clusterbùrach of the mini-Budget. Labour, with all the backbone of a squid, joined at the tentacles with this Tory ideology, is trying to pretend that somehow it will make Brexit work. Most Labour Members do not believe that, and it flies in the face of all the logic and informed opinion.

    All this chaos is a timely reminder for the people of Scotland about why they should choose a different path. I say to people back home: look at what the Government are doing to you, to your communities, to your businesses, to your families and to your children’s futures. Let us make comparisons with the UK. Other countries similar to Scotland are wealthier and more equal, and have higher productivity, lower poverty, lower child poverty and lower pensioner poverty. Democracy can and will triumph. Scotland has the right to choose a very different path from this one, to build a better future as an independent nation and as an equal partner in the European Union—one that seeks to lift people up, not keep them down, and to live by the values of a welcoming, diverse and compassionate nation.

  • Andrew Griffith – 2022 Speech on the Government’s “Plan for Growth”

    Andrew Griffith – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Andrew Griffith, the Financial Secretary to the Treasury, in the House of Commons on 19 October 2022.

    Our constituents are worried about what the current global turbulence in the economy means for their jobs, their prospects and their families. They want to know that they can afford to get by, and that once the economic storm clouds have passed—which they will—they can thrive. It is these concerns, those of our constituents, that we are thinking about, rather than—I say this in all due seriousness to the hon. Member for Leeds West (Rachel Reeves), because I think she knows better—misrepresenting global trends. We are focused on protecting the most vulnerable and looking after our economy.

    Mr Holden

    I wonder whether my hon. Friend noted, as I did, how little was said about the real cause of the current issues in the global markets: Russia’s illegal invasion of Ukraine, driving energy prices up across the globe, driving inflation up across the globe, and driving interest rates up. There was no mention of that from the Opposition. Whose side are they on when it comes to these situations? It is clear to me that they are not paying attention to the real issues underlying the global markets, and they do not understand what is going on.

    Andrew Griffith

    My hon. Friend has made a very important point. I think the whole House will want to acknowledge not only the impact on our economy of covid and the measures that Members on both sides of the House supported, but Putin’s invasion of Ukraine. It does us a great disservice to try to be over-partisan about the impacts of global trends that are happening in every western economy.

    Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)

    The Minister has a strong track record of being knowledgeable about finance in the private sector, so will he acknowledge that the mini-Budget caused huge chaos in the markets? Notwithstanding the international issues which are a backdrop to this, this Government have scored an own goal by making the position a hell of a lot worse. Surely the Minister, with his financial background, will acknowledge that.

    Andrew Griffith

    The Chair of the Public Accounts Committee has made some fair points. We have acknowledged that mistakes have been made—the Prime Minister herself has said that—and I am happy to say it in the spirit in which the hon. Lady acknowledges that there are wider factors at work in the economy. It ill behoves the House to make those over-partisan points when our constituents are looking to us collectively for what we are able to do.

    Mr Perkins rose—

    Rushanara Ali rose—

    Barbara Keeley (Worsley and Eccles South) (Lab) rose—

    Andrew Griffith

    I will make a little progress and then come back to hon. Members, if I may.

    The most important thing we can do now, in the national interest, is cement that financial and economic stability. That is what is vital for all those who are concerned about their jobs, those who have to pay their mortgages, and those who are saving for retirement. It is essential for businesses investing for the future, and for society as we get through the bout of rising prices.

    Margaret Greenwood (Wirral West) (Lab)

    Last month the Bank of England had to step in with a promise to buy up to £65 billion of Government debt after pension funds managing huge sums on behalf of retired people across the country came close to collapse amid an unprecedented meltdown in UK Government bond markets following the Government’s mini-Budget. Last week the Bank had to step in again. BT’s pension scheme has revealed that the value of its assets has plummeted by an estimated £11 billion in recent weeks. Will the Minister apologise for the chaos that his party has brought to the pensions sector, and what can he say to my constituents to reassure them that their pensions are actually safe?

    Andrew Griffith

    I think we all have constituents who are rightly worried in these times of global turbulence and increasing interest rates in every part of the world. The hon. Lady will forgive me, I hope, if I do not comment on the specific operations of the Bank of England, which I think would be inappropriate—other than thanking hard-working officials for the intervention that they have made over the last couple of weeks.

    Mr Perkins rose—

    Andrew Griffith

    I will give way one more time, and then, if Members will forgive me, I will make some progress.

    Mr Perkins

    I am grateful to the Minister.

    Of course global factors meant that the situation was dangerous, but will the Minister acknowledge that it is precisely because of those global factors that the new Prime Minister and Chancellor had to tread very, very carefully? That is why what they did was so reckless and so damaging.

    Andrew Griffith

    I am not sure that I can fully accept what the hon. Member says, but the Government are committed to the independence of our institutions. It is very important that people understand that. Both the Bank of England and the Office for Budget Responsibility have a valuable role to play, which is why when the Chancellor presents his forecast to the House in just eight parliamentary days’ time he will ensure that it has been fully presented to, and signed off by, the Office for Budget Responsibility.

    John Glen (Salisbury) (Con)

    I recognise the value of stability and predictability. Given the changes to the corporation tax rate, and given that under the previous Administration my right hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) was going to reduce the bank corporation tax surcharge from 8% to 3%, could the Minister confirm the Government’s intentions, and the assessment made of the effect for banks on competitiveness in financial services?

    Andrew Griffith

    I thank my hon. Friend, and pay tribute to my right hon. Friend the Member for Richmond (Yorks) (Rishi Sunak) for all that he did to put the economy in a strong position, and to navigate the very difficult shoals of the unprecedented covid pandemic.

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

    Will the Minister give way?

    Andrew Griffith

    I will make a little progress and then give way. As the Chancellor said, at this point all measures remain on the table. My hon. Friend the Member for Salisbury (John Glen) will indulge me if I do not announce that policy at the Dispatch Box today. His point is well understood, and others have made it to me, as Financial Secretary.

    John Glen

    May I simply point out that, if the rate is retained as an 8% surcharge, banks will be paying 33%? When added to the employment costs for national insurance, they may have issues in terms of competitiveness. If that is necessary, could the Minister please make it clear to banks and the markets, so that they can plan for the future?

    Andrew Griffith

    As I said a moment ago, we have just eight sitting days now until the statement. Part of my role is to stay in very close touch with our highly valued banking community, and to continue to drive the competitiveness of the United Kingdom as a place for the financial services sector to make the prodigious contribution to the economy that Conservative Members particularly value. As the Chancellor said, we will continue to prioritise fiscal stability, and the United Kingdom will always pay its way. We will fund our promises, and we remain committed to fiscal discipline. That means that we will do whatever is necessary to ensure that debt as a share of the economy comes down in the medium term.

    Rushanara Ali

    I know that the Minister is relatively new to the job; I hope that he lasts longer than some of his predecessors. The Bank of England has made it clear that the mini-Budget has caused a material risk to the UK’s financial stability. As has been said, our constituents’ mortgages have gone up, and will be going up by £500, and by up to £900 in London and the south-east. Will he tell us what his Government will do to bring down those mortgages rates, many of which will be a direct consequence of the mini-Budget’s failures and fiasco?

    Andrew Griffith

    I was in the process of telling the hon. Lady exactly what the Government will do. No one should trivialise the impact of rising global interest rates on mortgages. The last time mortgages were at this level was under her Government, and not after the backdrop of a global pandemic and a war on European soil.

    Imran Hussain (Bradford East) (Lab)

    Will the Minister give way?

    Andrew Griffith

    No, I think I have been relatively generous in taking interventions from the Opposition. I will make some progress, because I am sure that many people would like to speak. As the House knows, we will publish the medium-term fiscal plan, which will be fully reported on by the OBR and will set out our approach to fiscal responsibility: the variable that we can control in Government to help to reduce rates of interest going forward. We remain committed to pursuing growth as the driver of prosperity for all.

    Anna Firth (Southend West) (Con)

    Does my hon. Friend agree that the Government’s policy of creating investment zones will boost business and create jobs—for hard-working people in Southend West, I hope, and across the country? It is the essence of financial responsibility, and will put us on the path to long-term growth and long-term financial health.

    Andrew Griffith

    My hon. Friend the new Member for Southend West makes a very important point. We are absolutely committed to investment zones. I wish her success in her campaign to attract one to Southend-on-Sea. As the Secretary of State for Levelling Up, Housing and Communities has noted, this will be a transformational programme for the whole United Kingdom, and I hope that many Opposition Members get behind it and seek to attract such zones to their own constituencies.

    We are continuing to deliver support for families by cutting national insurance, and we will save an average of £330 for 28 million hard-working people. We will deliver reforms to boost housing supply and accelerate infrastructure projects across the country, enabling growth where it is needed the most.

    James Cartlidge

    Last week, we considered the Health and Social Care Levy (Repeal) Bill. I spoke in the debate, and said that I hoped that the repeal would not lead to the cap on social care being watered down. As I understand it, the cap may now be delayed or even not come into force at all. We should all be very concerned about that. One of the greatest achievements of the previous Prime Minister was finally introducing a tangible policy on social care. Does the Minister accept that when we repealed the levy it would have been better had we known then that it would have a material impact on social care policy?

    Andrew Griffith

    My hon. Friend makes his point typically strongly. He, like me, will look forward to hearing the medium-term fiscal strategy shortly. The hon. Member for Bethnal Green and Bow (Rushanara Ali) asked what we will do to protect households with their interest rates and mortgages.

    Barbara Keeley

    Will the Minister give way?

    Andrew Griffith

    I will not give way at the moment. The difficult decisions that were taken by the Chancellor earlier this week will ensure that we continue to grow the economy. Those decisions will raise around £32 billion every year. Perhaps the Opposition will use the opportunity of the debate to enlighten the House, but to date they have said very little about how they would find the money to do that.

    Geraint Davies

    Will the Minister give way?

    Andrew Griffith

    Not at the moment.

    That brings me to our energy price guarantee, which is a landmark policy that will help millions of people to get through this most difficult winter. Independent and external forecasts expect it to reduce inflation by around five percentage points. It is one of the most generous schemes in the world, and was the biggest single expense in the growth plan, with an estimated cost of around £60 billion between now and the end of March.

    Edward Timpson (Eddisbury) (Con)

    I think the whole House and many of our constituents can support the energy price guarantee and support scheme, but in constituencies such as mine many households are off-grid. Although there is a separate scheme, there is an issue of dual use on a single site. To ensure that there is parity and equity in rolling through that scheme, will the Minister undertake to ensure that there is an ongoing review, to ensure that none of my constituents misses out on the forthcoming generous support from the Government?

    Andrew Griffith

    Just like the constituents of Arundel and South Downs, I do not want the constituents of Eddisbury to face any prejudice. My hon. Friend makes his point well, and I am sure that the Energy Minister will be listening.

    Alan Brown (Kilmarnock and Loudoun) (SNP)

    If the so-called energy price guarantee will reduce inflation by 4% or 5%, what will inflation go to in April 2023 when the Government remove it?

    Andrew Griffith

    I have learned not to make forecasts in life.

    Alan Brown

    You just did.

    Andrew Griffith

    I was citing external forecasts, rather than making forecasts of where energy prices in an unprecedented moment of global volatility will be six months hence. Maybe the hon. Member has a greater insight into that.

    Alan Brown

    I feel I have.

    Andrew Griffith

    No. Treasury officials will lead a review regarding the appropriate measures to support households and businesses with their energy needs beyond April, but without the taxpayer picking up an inappropriate share of the burden.

    Dr Luke Evans (Bosworth) (Con)

    The energy plan means that the most vulnerable get up to £1,200 in support. When it comes to the review in April, will the Minister ensure that the most vulnerable people are again at the forefront of getting that support?

    Andrew Griffith

    Yes.

    Barbara Keeley

    Will the Minister give way?

    Andrew Griffith

    No, I am going to make some progress.

    I have talked about the measures that we are taking to support growth, and about the tough decisions that the Chancellor spoke about in the House on Monday. I reiterate that, as we must not sugar coat it. In common with every other major economy, we face economic challenges at this time for three reasons.

    First, there is the cost of covid. Through the first two years of the pandemic, the Government borrowed more than £300 billion more than had been forecast in March 2020—about £260 billion more in 2020-21 and £70 billion more in 2021-22—to fund emergency covid support, which had support on both sides of the House.

    Secondly, interest rates are rising around the world on the back of increased costs and Putin’s war in Ukraine.

    Jerome Mayhew (Broadland) (Con)

    We recently heard that inflation in this country has risen to 10.1%, but is the Minister aware that the European Union reported its inflation figures this morning, and inflation in the eurozone has risen to 10.9%?

    Andrew Griffith

    My hon. Friend is absolutely right. I was aware of that, and inflation is 11% in Germany and 17% in the Netherlands. I hope that the hon. Member for Leeds West is listening, because we are seeing this phenomenon in all major developed economies. She has a background in economics, and I hope she can devote some of her energy to sharing her wisdom and insight with colleagues.

    When it comes to interest rates, the Federal Reserve has implemented three consecutive increases of three quarters of a basis point, and the European Central Bank has increased rates at its last two meetings, including its largest ever single rate hike in September. As we hear contributions from Opposition Members, I hope that we will hear a little more about the broader context and a little less about attributing the situation to this Government.

    Mike Amesbury (Weaver Vale) (Lab)

    I thank the Minister for being generous with his time. If it is all the fault of the global economy, why was the 38-day Chancellor sacked?

    Andrew Griffith

    The hon. Gentleman is generous with his comments. In fairness, it is not the Government’s position that it is all the fault of the global economy, which is why the Prime Minister apologised and changed her Chancellor, and why different, difficult decisions have been made. In the spirit of having a proper debate on these matters, I hope the hon. Gentleman will accept that I was not saying what he suggests. I was introducing, and will continue to introduce, the very important broader context of these economic issues.

    Several hon. Members rose—

    Andrew Griffith

    I am going to finish as quickly as I can.

    I have already said that difficult decisions will have to be made. Those decisions will never be made at the expense of the most vulnerable, and I welcome the fact that my right hon. Friend the Prime Minister today reconfirmed at the Dispatch Box our commitment to protecting the triple lock, which was noticeably not forthcoming from the Opposition Front Bench.

    The fact is that since the 2008 financial crisis we have all been held back by weak economic growth. For 14 years, people’s living standards—especially the living standards of the most vulnerable, whom the Opposition claim to talk about—have not been rising as quickly as they should have been. The bottom line is that by accepting the status quo, without taking any action at all, we would condemn ourselves and future generations in Britain to decline.

    We face challenges, but we should address them from a place of optimism. I remind Members that the fundamentals of the UK economy remain resilient, with unemployment at its lowest level in nearly 50 years and with the UK forecast to have the fastest growth in the G7 in 2022. We have incredible strengths.

    I met investors this morning, and they talked about the capital they want to put to work in the United Kingdom, in science, research and technology. We have some of the world’s best universities, and those who would underestimate and talk down our prospects should not forget that we have one wonderful thing: the British people. With credibility and conviction, we are going to deliver the roads, railways and broadband we need. We will recruit the best doctors, empower the best teachers and back the bravest soldiers. And when conditions allow, when it is consistent with sound public finances, we will continue to cut taxes to further unleash economic growth.

    A few weeks ago, the Government took a bold approach to resetting our ambition for the growth rate of the economy, protecting our public services and delivering sustainably low taxes. That remains the most important challenge of our time. The question earlier this week was whether we would take action to protect the economy or whether we would not. Our response should leave nobody in any doubt that we are a Government who choose action in the national interest.

  • Rachel Reeves – 2022 Speech on the Government’s “Plan for Growth”

    Rachel Reeves – 2022 Speech on the Government’s “Plan for Growth”

    The speech made by Rachel Reeves, the Shadow Chancellor of the Exchequer, in the House of Commons on 19 October 2022.

    I beg to move,

    That this House regrets the long-term damage to the economy as a direct result of the mini budget, where mortgage rates for households have risen and the stability of pension funds has come under threat; notes that despite substantial U-turns in policy since the mini budget, the Government’s funding position has deteriorated, the cost of borrowing is expected to be higher for many years and the UK’s fiscal credibility has been undermined, all while many energy producers continue to make record windfall profits; therefore calls on the Government to take all necessary steps to stabilise the economy and make it work for ordinary working people and business through a plan for growth that puts them at its heart; and further calls on the Government to publish the Office for Budget Responsibility forecasts immediately alongside Government estimates of windfall profits for the next two years from energy producers in the UK.

    We are here because of a Tory crisis made in Downing Street but paid for by ordinary working people. The Conservative mini-Budget of 23 September will go down in history as the day that the British Government chose to sabotage their own economy. We saw the Conservatives hurl unfunded tax cuts towards the wealthiest, with excessive borrowing and yet more Government debt. The Government set our economy ablaze and, as a direct result, in the past four weeks we have experienced chaos in financial markets, repeated emergency interventions from the Bank of England, warnings from the ratings agencies and rebukes from the International Monetary Fund. Those costs are passed directly on to working people.

    Justin Tomlinson (North Swindon) (Con)

    I thank the hon. Member for being generous in giving way so early. Does she join me in welcoming last week’s employment statistics, with the highest rate since 1974? In my constituency alone, 920 extra people were in work compared with 12 months ago.

    Rachel Reeves

    The truth is that a million people are missing from the labour market and half of those have long-term health conditions. We need to do much more to get those people back to work. One reason why unemployment is low is that so many people are not even looking for work because they are waiting for NHS operations, with waiting times at an all-time high.

    Today, we learn that inflation has gone above 10% again; food inflation is at more than 14%; and in the last year alone, electricity prices are up 45% and gas prices have doubled. Despite all the extraordinary and unprecedented U-turns in recent days, the damage has been done. This Conservative Government have wrecked people’s finances and snuffed out the dream of home ownership for millions. Some 1.8 million people across the UK will pay higher mortgage bills by the end of next year—on average, they will pay £580 extra every single month—because of the reckless actions of the Government. In my Yorkshire constituency, the cost will be £360 extra a month. In the constituency of the Financial Secretary to the Treasury, the hon. Member for Arundel and South Downs (Andrew Griffith)—who is about to respond to me—it will cost people £640 extra every single month in higher mortgage payments. Families cannot afford to pay those higher mortgage costs, and they certainly cannot pay them with apologies from the Prime Minister. The public will not accept that the arsonists who inflicted this damage can put out the fire. The Tories can never be trusted with our economy again.

    Mr Toby Perkins (Chesterfield) (Lab)

    I congratulate my hon. Friend on the motion that she has tabled. It seems utterly unarguable that the crisis being wrought upon our constituents is to be laid squarely at the feet of the Government. It would appear that the Government agree, because according to briefings on Twitter, they do not intend to vote against the motion. Does my hon. Friend agree that the fact that the Chancellor has not turned up to defend the record and that Conservative Members do not even seem to disagree with the motion means that we can all agree that this is the Government’s fault?

    Rachel Reeves

    I agree that it is a shame that October’s Chancellor is not in his place today. This crisis has been co-written by every single member of the Cabinet and every single member of the Government. The Minister for the Armed Forces and Veterans was crystal clear yesterday in pointing out that all Cabinet Ministers had approved and are responsible for Government decisions, including the disastrous mini-Budget. There is no credibility or stability with this Government, just a shambles. All the time, businesses are looking at the state of the Government and deciding where and whether to invest. The Tories’ recklessness and enduring incompetence will cost jobs and investment here in Britain. The Conservatives should not be put in charge of a tombola, let alone the British economy.

    Jim Shannon (Strangford) (DUP)

    I commend the hon. Lady for what she is saying. Let me back up her comments on economic growth. We need small and medium-sized enterprises to be able to survive and to get through this period. In my constituency, a business—a Japanese restaurant—opened some two months ago. It is doing really well and it employs staff, but its bills are going up from £900 to £3,000. It is clear that unless something happens soon for businesses that are productive and create jobs, they will no longer be there. Does the hon. Lady agree that we need to have a process that helps businesses?

    Rachel Reeves

    I thank the hon. Gentleman for that intervention. Small businesses, such as the restaurant that he mentions in his constituency, are the backbone of all our constituencies and our economy more widely. An energy bill increase from £900 to £3,000 is not affordable for small businesses. The Government need to do more to help.

    David Rutley (Macclesfield) (Con)

    I know that the hon. Member takes economic issues very seriously. Protecting pensioners will obviously be a key priority. Does she join me in welcoming the Prime Minister’s confirmation that the triple lock will be protected, and can she set out Labour’s policy on that vital area?

    Rachel Reeves

    On Monday, the Chancellor said that he could not rule out breaking the triple lock, and on Wednesday, the Prime Minister said something else. We do not know which one speaks for the Government, but Labour is clear that we support the triple lock. It was in our manifesto and, unlike the Conservative party, in government we would stick by what we promised.

    Strong and independent economic institutions are essential for making Britain a great place to invest. That is why undermining the Bank of England, sacking the respected permanent secretary at the Treasury and gagging the Office for Budget Responsibility have all added to borrowing costs for Britain—for Government and for families.

    On Monday, we saw yet again the ridiculous spectacle of a Conservative Chancellor coming to the House of Commons to announce huge changes in Government economic policy without any sort of independent forecast. Failing to publish a forecast was a significant contributor to the lack of market confidence when the Government unleashed their mini-Budget three and a half weeks ago, yet no lessons have been learned.

    The Government cannot build confidence in Britain by flying blind. That is why we are asking all MPs to vote today to publish immediately the current assessments and forecasts from the Office for Budget Responsibility. For the sake of our economic stability, they must not remain hidden for a further two weeks. If the Chancellor refuses, the country will rightly ask, “What have they got to hide?”

    Sir Stephen Timms (East Ham) (Lab)

    My hon. Friend touched on the point that one of the new Prime Minister’s very first decisions was to sack the permanent secretary to the Treasury. Can my hon. Friend shed any light on why that decision was made? Was it, as appears very likely, because he was set to warn the new Chancellor about the consequences of the policies that he wanted to announce?

    Rachel Reeves

    As a former Treasury Minister, my right hon. Friend knows how things are supposed to be done. We cannot ask September’s Chancellor why he sacked the respected permanent secretary, because he is no longer in his place, but a Labour Government would respect the Bank of England, respect the independent civil service and remove the gag on the Office for Budget Responsibility.

    Today’s inflation numbers show the impact that higher gas and electricity bills are having on family finances. The Government’s mistake when they announced their package a month ago was putting its entire cost on Government borrowing. Under Labour’s plans, energy producers—including the oil and gas industries, which have said themselves that they have more money than they know what to do with—would have been asked to pay their fair share. Our plan did what a responsible Government should: it put forward a fully costed and fully funded package to freeze bills this autumn and winter.

    The Conservatives have left tens of billions of pounds on the table and have pushed all the costs on to current and future taxpayers for years to come. Now, because of their irresponsible and reckless approach, they have gone back on their word. According to the Resolution Foundation, that could mean that a typical bill will rise to at least £4,000 from next April.

    James Cartlidge (South Suffolk) (Con)

    The hon. Lady is being very generous in giving way. Can she confirm that whatever her policy on windfall tax is, the overwhelming majority of her energy support package would have been paid for by borrowing?

    Rachel Reeves

    The point is that the Government are leaving billions of pounds of unneeded and unnecessary borrowing on the table. Why leave that money on the table when even the energy giants are saying that they have more money than they know what to do with? All that money has been put on borrowing and debt to be paid back by current taxpayers. Tens of billions of pounds have been left on the table by this Tory Government.

    It has always been a question of who pays for support with bills. The Conservatives always put it on the never-never, but in the end it is working people who pay the price. In August, Bloomberg reported that the Government’s estimates of energy company windfall profits in the UK over the next two years could be £170 billion. The last Chancellor disputed that and so did the one before, but neither of them confirmed the actual figure. Why not?

    Labour’s fiscal rules would protect the economy and protect families. We should not borrow a penny more than is absolutely necessary. That is why our motion

    “calls on the Government to publish the Office for Budget Responsibility forecasts immediately alongside Government estimates of windfall profits for the next two years from energy producers in the UK.”

    Doing so is in the public interest. Refusal to publish will only confirm that the Government are again putting the profits of energy giants ahead of the sky-high bills for families, pensioners and businesses.

    Rushanara Ali (Bethnal Green and Bow) (Lab)

    Does my hon. Friend agree that the Government have still not learned a single thing? If they had learned anything from their mismanagement, the Prime Minister and the new Chancellor would have committed to using the profits of energy companies. That is what they should be doing: as my hon. Friend says, the companies want to be taxed to pay for the Government’s failures, rather than the Government cutting public services and hiking mortgage interest. Does she also agree that the Government need to get their priorities straight when it comes to getting rid of the cap on bankers’ bonuses?

    Rachel Reeves

    As a member of the Treasury Committee, my hon. Friend understands the issues well. The chief executive of BP says that his company is like a cash machine at the moment. We should be ensuring that companies pay their fair share. The war in Ukraine and the illegal invasion of Ukraine mean windfall profits that they could never have dreamed of, but they also mean the highest bills ever for families and pensioners, so the energy companies should pay their fair share.

    Anna McMorrin (Cardiff North) (Lab)

    My hon. Friend is making an excellent speech. Professor Sinha, the author of the Institute of Health Equity’s report on fuel poverty, has said that there is no doubt that children will die this winter. In July alone, 12,000 more people phoned the Samaritans. Those are the dire consequences of these political actions, yet our energy companies are taking the profits.

    Rachel Reeves

    My hon. Friend leads me on to the important issue of public services, which the Chancellor has been quick to put in his sights. This week, the respected Institute for Government gave its assessment of the state of public services after 12 years of Conservative Governments:

    “Public services are in a fragile state…Patients are waiting half a day in A&E, weeks for GP appointments and a year or more for elective treatments. Few crimes result in charges…Pupils have lost months of learning”.

    What an absolutely devastating verdict on the Government’s stewardship of our public services.

    Even the Home Secretary, when she is not arguing with tofu, admits that police forces are so stretched that they cannot respond to the victims of crime. The Tories are living on another planet if they think that after a decade of imposing austerity they can come back with season 2, wildly swinging the axe over the country’s already struggling public services.

    Catherine McKinnell (Newcastle upon Tyne North) (Lab)

    My hon. Friend is spot on and Conservative Members should be listening to her speech. We have seen 12 years of cuts to our public services and facilities, but one small glimmer of hope for people in my city was the successful levelling-up bid for a leisure centre in the outer west of Newcastle. However, the project has now been undermined because of the disastrous economic outlook and soaring inflation costs, which are partly a result of the mini-Budget. Does my hon. Friend agree that the Government must not backtrack on their promises? They must support such projects despite the rising inflation costs that are now undermining local government’s ability to deliver them.

    Rachel Reeves

    Levelling up has truly been replaced by trickle down, and my hon. Friend’s constituents are paying the price.

    We need strong public services focused on early intervention and prevention, reducing greater demand with better outcomes for people. We need the Government to stick to their manifesto commitments, including uprating benefits and pensions in line with inflation. It should not be working families, pensioners and the most vulnerable who pay the price for these Tory mistakes.

    Mr Richard Holden (North West Durham) (Con)

    Will the hon. Lady give way?

    Rachel Reeves

    I will make a bit more progress.

    Labour will get value for every pound of taxpayers’ money. That is why I announced last year that a Labour Government will introduce an office for value for money, tackling the endemic waste that we have seen under the Tories. Under the Conservatives, £11.8 billion of public money was handed to fraudsters and organised criminals because of a refusal to include the most basic security checks for covid support. That is before we get to the £7 billion spent on unusable personal protective equipment, the £13 billion wasted on failed defence procurements and the millions and millions flushed down the drain by this Government’s outsourced Serco test and trace system.

    This week, we have read reports that the Treasury is shutting down the taxpayer protection taskforce that it belatedly set up in March to try to retrieve the money that the Government gave to the fraudsters. The taskforce should not be shut down; it should be empowered to get taxpayers’ money back.

    As for the £3.5 billion handed out to friends of and donors to the Conservative party, many of whom failed to deliver on those contracts, in business if you award a contract and it does not deliver, you claw the money back. The Government must now strain every sinew to get that money back, because taxpayers demand it, and that comes before the cuts and the austerity that this Government are about to unleash.

    The Government say that working people now have to put up with eye-wateringly difficult decisions, but there are so many easy decisions that the Government could make to stop families feeling the pain. Why keep in place an outdated and unjustifiable non-dom tax status loophole which means that some of the wealthiest pay no tax on their incomes while ordinary working people face the highest tax burden in 70 years in this low-growth, high-tax economy? Labour’s principle is clear: if you make Britain your home, you should pay your taxes here. Research carried out at the London School of Economics and Warwick University has shown that the UK’s non-dom system costs us £3.2 billion a year.

    Look at the tax break for private equity managers, which was cooked up in the 1980s by a Conservative Government—a tax break of nearly £200,000 each for 2,000 private equity bosses every single year! It is not right that bosses pay a lower rate of tax on their bonuses than workers do on their wages. It is indefensible, so Labour will abolish it. At present, private schools enjoy charitable status which makes them exempt from both business rates and VAT at a cost of £1.7 billion every year, but here is the truth: private schools are not charities. We will end that exemption, and put that money back into our state schools.

    That is what a fair tax system looks like, and that is what Britain will get with a Labour Government: fiscal responsibility, and a fair tax system that puts working people first. Labour will stabilise the economy by being responsible with public finances through our strong fiscal rules. It is on that foundation that our green prosperity plan will invest in the jobs and industries of tomorrow as we meet our climate obligations and secure our energy supply here in Britain. There are great opportunities for the industries of the future, and opportunities for Government to partner with industry and invest in, for instance, domestic renewables such as wind, hydrogen and carbon capture, and nuclear as well. Labour will create a national wealth fund so that when we build British industry, the public will have a stake and receive a return on those investments. The next Labour Government will buy, make and sell more here in Britain, with an industrial strategy that is pro-worker and pro-business. We will breathe new life into our high streets by calling time on the outdated model of business rates. That is a real plan for the future, not lurching from crisis to crisis like the Conservatives.

    Mr Holden

    Will the hon. Lady give way?

    Rachel Reeves

    No. I have almost run out of time. I have been speaking for 20 minutes, and I have taken a great many interventions.

    So much damage has been done to our economy by the Conservatives’ reckless mini-Budget, but the Government can prevent things from becoming even worse. Today they can show that they have listened, and publish the OBR forecasts and assessments that they are sitting on so we can know the true state of our public finances and our economy. They should publish the assessments that they already have of the windfall profits of the energy giants in the next two years, and then set out clear steps to introduce a proper windfall tax. It is a sign of how far off the road of competence and responsibility this Conservative Government are that they have not already done those basic things.

    People can no longer afford the cost of Tory failure. We need a stronger and fairer economy from a Government committed to financial responsibility, and a serious plan for growth that puts working people first. The very least the Government can do is publish the numbers, and I urge all Members to support this motion to ensure that they do exactly that.

  • David Frost – 2022 Article Calling for Liz Truss to Resign (Lord Frost)

    David Frost – 2022 Article Calling for Liz Truss to Resign (Lord Frost)

    Comments made by David Frost, Lord Frost, in the Daily Telegraph on 19 October 2022. The full article is at https://www.telegraph.co.uk/news/2022/10/19/liz-truss-has-go-tory-party-have-chance-recovering/.

    We are where we are. I am very sorry about it, because I had such high hopes. Whatever happens to her ministers or the stability of the Government in the next few days, Truss just can’t stay in office for one very obvious reason: she campaigned against the policies she is now implementing. However masterfully she now implements them – and it doesn’t seem that it will be very masterfully – it just won’t do. She said she wouldn’t U-turn, and then she did. Her fate is to be the Henry VI of modern politics – a weak figurehead, unable to control the forces around her, occasionally humiliated, and disposed of when she has become inconvenient. Better to go now.

    Then the party must do two things: avoid making the economic situation even worse by repeating the policies of the Cameron government in totally different circumstances; and recover some political legitimacy for carrying on – because in our system legitimacy does matter. Liz Truss must leave as soon as possible. Her successor, whoever it is, must be capable, competent, and able to communicate effectively.

    In the present circumstances, the only possible way forward is a minimal programme which reflects the centre of gravity of the party and the issues raised in the leadership campaign, and which creates clear dividing lines with Labour. That means keeping the aspiration to boost growth and reduce taxes and the size of the state over time, though sadly that can’t now happen until after an election. It means real fiscal discipline now, while protecting the poorest, and avoiding irrational capital spending cuts. And the party needs to find it within itself to do some, no doubt very limited, supply-side reform and to get behind a proper fix for illegal immigration in the Channel.