UK Parliament / Open data

Education and Local Government

I will come directly to the hon. Gentleman’s question later in my speech. He is exactly right in one respect: that is a contributory factor for productivity. But he should not look just at the past 10 years if he wants to comment about our infrastructure. The most used phrase by George Osborne when he was Chancellor was to say, while pointing at Gordon Brown, that he never mended the roof when the sun was shining. That is exactly what happened through those Labour years: profligate spending—poor spending, inadequate spending —that nevertheless did not provide the services that we needed.

Now, what has been the effect of that change in productivity? What is the size of the impact? Had productivity continued at the level it had been for the previous 60 years, had we not had the financial collapse, which happened largely under the watch of the Labour Government and the earlier Clinton Administration in the US, then wages, income and the economy would have been about 22% bigger than they are today. The tax take would have been higher, the deficit would have been easier to pay off, austerity would have been more manageable and shorter. All those things stemmed not just from the crash, but from the damage to our ability to recover from the crash as productivity was allowed to collapse. This dramatic and apparently permanent reduction in productivity has had spectacular consequences across the whole of society and the entire economy, and that is what we have to solve.

The productivity problem is a universal problem. No productivity means no progress. How do we deal with that? The answers include education, skills, training, research and investment, and of course, as the hon. Member for Weaver Vale (Mike Amesbury) rightly said, infrastructure. If we are to reset our economy and our society, we must be unflinching in our analysis and in the critique of our own past as well as those of the other parties.

Type
Proceeding contribution
Reference
669 cc925-6 
Session
2019-21
Chamber / Committee
House of Commons chamber
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