Treasury and Work and Pensions

It is a great pleasure to speak in the debate and a particular pleasure to follow the speech made by the hon. Member for South-West Hertfordshire (Mr. Gauke). We heard, as usual, a thoughtful and detailed contribution from someone for whom I have developed a great deal of respect since we were elected last year. I want to focus on three matters: the second paragraph of the Queen’s Speech, which paid tribute to the stability that the Government’s management of the economy has delivered; a couple of the Bills cited in the Queen’s Speech; and several of the points made by the shadow Chancellor and his colleagues. First, on the stability of the economy, the macro-economic framework introduced by the Government has delivered growth of 26 per cent. in the nine years since 1997, compared with 15 per cent. in the nine years before 1997. Historically low mortgage rates have cut costs for the average homeowner by about £4,000 a year. Employment is at a record rate of 29 million, which is up 2.5 million since 1997. More people in my constituency are in work than at any point in our history. Despite those dramatic improvements, one can still see the legacy of the industrial and economic restructuring of the early 1980s, when the industries on which the black country’s prosperity had been based experienced decline. When I left school in the early 1980s, Dudley had high unemployment and some 3,300 young people had been out of work for more than six months. Today, the equivalent figure is just a few hundred, although I want all young people to be in work or training. More than 1,000 youngsters are better off through the new deal. As we consider the next stage of our area’s economic development, I am pleased that the Queen’s Speech showed that we will maintain our focus on training, because skills are a crucial component of a dynamic economy. We must ensure that young people have the skills that they and the labour market need; that is particularly important for an area such as Dudley because it is the only way that those without work will be able to share in this country’s prosperity. It is also, crucially, the only way my area will be able to attract the high-wage, high-skill jobs of the future. Secondly, having been one of those MPs who called on the Government to introduce a climate change Bill in the Queen’s Speech, I am pleased that such a Bill was announced. Climate change is not only the biggest long-term threat that we face, but a great economic opportunity for areas such as mine. We need to look at how we can help manufacturers of the new green technologies—solar panels, energy-efficient boilers and wind turbines—to locate in former manufacturing areas such as the one that I represent. Thirdly, I want to welcome the proposals in the Queen’s Speech to enable more people to move off benefit and give them the support that they need to return to work. Last week, the Opposition discussed how to deal with the problem of the poorest 10 per cent. in society. It was the latest in a long series of eye-catching initiatives to show how much the Opposition have changed. I disagree with those who say that the Opposition do not believe in anything or that they have no policies. On the contrary, it is precisely because of what they believe, because of their values, that their policies cannot work. Let us take last week’s announcement. In his very first interview following the announcement the hon. Member for Bury St. Edmunds (Mr. Ruffley), the spokesman on welfare reform, said that the solution was not ““jacking up benefits”” but"““more active civil citizenship and social enterprise.””" I am as big a supporter of the voluntary sector and the social enterprise movement as anyone, and I recognise the much bigger role that they can play alongside an empowering and enabling public sector. But earlier today the shadow Chancellor attacked the Government’s record on child poverty. We have tough targets to cut child poverty, but he says that they are just an aspiration, and the Opposition fought us every step of the way on those targets. They say that tax credits are a waste of money and that child support should be cut. That is because, whatever they say about the responsibility that we all have to act together collectively as a community, they will not, as a matter of ideology, do what is necessary to deliver social justice and open up opportunity to all. That is why they say that they want to tackle poverty but condemn the increases in public spending needed to tackle it as ““fiscal irresponsibility””. As we heard earlier, the Conservatives have announced the so-called proceeds of growth rule, which, whatever they say, commits them to cutting public spending year in, year out. The right hon. Member for Wokingham (Mr. Redwood) complained earlier that we had not spent enough on transport infrastructure, but the Leader of the Opposition himself admitted that their policy is to spend less. He said:"““As that money comes in let’s share that between additional public spending and reductions in taxes. That is a dramatic difference. It would be dramatically different after five years of a Conservative Government.””" If that rule were in place now, spending would be £17 billion lower than the Government’s plans set out in the Queen’s Speech, and lower still in future. The Conservatives’ tax report, which was also mentioned earlier, was commissioned by the shadow Chancellor and described by him as the framework for policy. Its authors went further and called for £21 billion of unfunded tax cuts. Those, if implemented, would undermine the stability of the economy mentioned in the Queen’s Speech and repeat the mistakes of the past. It is impossible to argue that savings could be made on that scale without hitting hard-working low and middle income families by cutting deep into tax credits and the new deal. Perhaps that is why the Leader of the Opposition said that he wanted to replace public services for the poor with"““a profound increase in voluntary and community support.””" It is the same old ideology of a small state and spending cuts, leaving the vulnerable relying on charity.