Shadow Leader of the House of Commons, Jesse Norman, tackles the Government on its claims to support working people and growth, when its policies such as the national insurance increase and the largest tax rise for a generation will push up interest rates and inflation, and make it harder to grow a business and employ people.
Jesse Norman (Hereford and South Herefordshire) (Con)
Thank you very much indeed, Madam Deputy Speaker. I am sure that the whole House will want to join me in wishing a very happy birthday today to His Majesty the King.
The last few days in global politics have been extraordinary, featuring one of the most incredible comebacks of modern times. It was wildly hard to predict, many people have panicked at the possible consequences, and some are still in a state of denial—but even so, I must say that I am delighted to have been appointed as shadow Leader of the House of Commons.
I pay tribute to my immediate predecessors: the Luke Skywalker of the Conservative party, my right hon. Friend the Member for Croydon South (Chris Philp), and the great Obi-Wan Jedi sabre-wielding master—or mistress—of the Despatch Box herself, the former Member for Portsmouth North, Penny Mordaunt. As it was with the Galactic Empire, so it is with the Labour party. Recent events have reminded us of the truth of the ancient saying: power reveals.
So it is with this new Government. What have their first chaotic few months in office revealed? First, we know that they like to say one thing and do another.
They talk about supporting working people, but the rise in national insurance will hit all working people. They talk about growth, but have imposed the largest tax rise for a generation, pushing up both interest rates and inflation. Only last week, we saw a reported 64% rise in companies filing for insolvency compared with the same week last year—and that is before all the red tape of the new Employment Rights Bill, which will make it harder than ever to give somebody a job and grow a business.
Madam Deputy Speaker, there is so much sheer incompetence here. To take one example, the Government have raised employer national insurance, lowered the income threshold and increased the minimum wage, all at the same time. No one seems to have noticed that the combined effect of those measures is to raise the cost of hiring an entry-level employee not by 2% but by something closer to 12%. That is a terrible blow, especially to the retail and hospitality sector. I ask the Leader of the House: was that deliberate or just a mistake? Will she ask the Treasury to publish an assessment of the total impact of those three measures before any legislation comes to this House?
Secondly, we know that the Government are willing—even keen—to play the politics of division. They have favoured public sector workers over private sector ones. They have driven away entrepreneurs and business creators. As we have heard this morning, they have been punitive on rural areas. The rise in national insurance puts huge pressure on already struggling rural GPs, care homes, dentists, pharmacists and hospices. Mental health and disability charities have already expressed their deep concern. We heard from the Dispatch Box just now that the Government hear the concerns, but if they did understand them, why have they not done anything so far? Why did they not address those concerns in advance?
Meanwhile, the agricultural tax changes will afflict vastly more farming families than the Treasury estimates—families who work all hours, whatever the season, on very low margins. I can see the embarrassment written all over the faces of Government Members, many of whom represent rural areas for the first—and very likely now the last—time.
Thirdly, we know that the Government seem to have zero appetite to take on vested interests or reform our hugely pressured public services. They have shovelled out cash to their union friends, who have been delighted to stick to their fax machines and similarly ancient working practices. What have the Government got in return for all those millions? No commitments to make any efficiencies whatever. Nor do the Government seem much interested in legislation. They have not presented many Bills and the Bills so far have often included not carefully drafted law, but simply a vague and sweeping arrogation of new powers. This is what Governments do when they do not know what to do.
The Government are even hiding behind the very early presentation of a private Member’s Bill on assisted dying—one of the most sensitive and complex issues that we face. The Prime Minister himself promised Esther Rantzen in March that he would make time to debate these issues, but yesterday he refused the request of my right hon. Friend the Member for Wetherby and Easingwold (Sir Alec Shelbrooke) to give the Bill more time on Report. Will the Leader of the House now give that commitment?
The astonishing fact is that after 14 years in opposition, the Labour party came into office with almost no real plans. Instead, we have a Government who have already lost their way—a Government with no real sense of urgency, and no positive flavour or theme of any kind. I ask the Leader of the House this: we know what and who this Government are against, but what is this Government for?