Pat McFadden
MP for Wolverhampton South East · Labour · United Kingdom
“In his review Alan Milburn considered that issue and said that, “the UK’s NEET crisis is much more long-term and deep-seated than any decisions taken in the last few years.” As I said earlier, 400,000 more people are in work this year than last year, and the number of young people in employment is up since the election.”
“Since our last DWP questions, both Alan Milburn and the Pensions Commission have published their respective interim reports on young people and on the current state of saving for retirement. I look forward to receiving their final reports later in the year.”
“As Alan Milburn pointed out in his recent report, the UK’s NEET crisis is much more long-term and deep-seated than any decisions taken in the last few years. There are 400,000 more people in work than last year. The number of young people in employment is up by 74,000 since the election.”
“I thank the right hon. Gentleman and send him commiserations for whatever has left him reliant on his crutches today. I am happy to congratulate the businesses he mentioned in his constituency. He raises a serious point: it is important not only to come up with the right policy, but to make it simple for businesses to use.”
“My hon. Friend is right, and I thank Cardiff football club for being a partner. We are supporting nearly 1 million young people and creating up to half a million opportunities for jobs and training.”
“We are making strong progress on expanding youth hubs, with around 130 already in operation across Great Britain. In March, I announced the locations that we want to open in this year, and I have just announced a further 180 locations for the following two years.”
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“Things people cannot buy, bills they cannot pay, places they cannot go, coping with worries they never previously had to think about—all of this is the price of lower incomes, and those lower incomes are the result of 12 years of anaemic economic growth. This is the Conservative party’s mess, and the British people are being asked to pay the bill. The Chief Secretary to the Treasury quoted Ronald Reagan in his opening speech yesterday, but there is another Reagan quote that should haunt the Government right now. He asked, “Are you better off than you were before?” and the answer is no. The Chancellor announced a series of tax rises, asking the British people to pay more, and he did so at a time when inflation is already making it harder to pay the bills.”
“The UK economy’s growth has been consistently weaker than the OECD average, and that difference is now worth £10,000 per year for every household. We do have global pressures—no one denies them—but think how much stronger people would feel in facing today’s pressures if incomes had been that much higher. That is the ghost of growth past, and the forecast for the ghost of growth future is for the UK to be at the bottom of the OECD growth league, with the possible exception of Russia, for the next two years. All of this is felt in people’s pockets. Income is set to decline by 7% in real terms over the next two years. That is a £1,700 per household reduction in spending power.”
“I will tell the hon. Member one thing about taxation: the burden is much higher under this Government than it was under the Government in which I served as a Minister. That mini-Budget was a mistake for which the country and the public will be paying for a long time. In every one of the constituencies of Government Members, the two-year and five-year rates on mortgage renewals are still higher today than they were before that mini-Budget. Their constituents are still paying the price for their economic irresponsibility. Apart from the economic effects, it also caused damage to the international standing of our country. We became a poster child for economic mismanagement—a point that the Prime Minister himself admitted at last week’s G20 summit in Bali. But the failure is not just over 12 weeks; it is year on year.”
“The consequences of September’s disastrous mini-Budget continue to be felt, as we will see in the autumn statement on Thursday—the third Budget statement in two months from the fourth Chancellor since the summer, presided over by the fifth Prime Minister in six years. Whatever they represent, it is certainly not stability. Mortgage rates are still well above what they were before the mini-Budget. I have a constituent who is a first-time buyer, and he is facing a £200-a-month increase on his mortgage quote compared with before the mini-Budget. Why should my constituent, and thousands like him, pay the price in their mortgage payments for the economic damage caused by the Government’s recklessness?”
“I know that, after 12 years, the Government quite like stealing our ideas, such as the windfall tax and the energy price freeze, so let me offer a suggestion. High deposit demands, increased unaffordability due to price rises and, now, rising mortgage rates all mean it is increasingly difficult for first-time buyers to get on the property ladder, so will the Government consider Labour’s proposal for a mortgage guarantee scheme, as operates in countries such as Canada, to help first-time buyers get on the property ladder and to protect them from negative equity in times of market turbulence? Would that not be a practical idea to stop people being trapped in the private rented sector and to help them buy a home of their own?”
“It has destroyed the Conservative party’s claims to be the party of economic competence and of sound money. The real-life impact of what the Government have done has been to place a Tory risk premium on the country’s borrowing costs and a Tory premium on people’s mortgage rates.”
“Immediately after the mini-Budget, there were two days with the biggest daily rises in gilt yields in 20 years. Over four days, the rise was twice as large as the biggest rise since 2000. The Bank of England says that “the scale and speed of repricing…far exceeded historical moves”. Following the mini-Budget, gilts moved more in one day than in 23 of the past 27 years. No such moves happened in gilts in dollars, euros or other major currencies. There were global factors before the mini-Budget, but as my hon. Friend the Member for Chesterfield (Mr Perkins) said, the global context was a reason not to act in such a rash manner, not a reason to behave with all the restraint of a couple of trigger-happy pyromaniacs. This crisis was not born of global conditions, but made in Downing Street.”
“This country has been through very significant economic damage in recent weeks: a run on the pound, a spike in gilt yields that has increased the cost of Government borrowing, emergency interventions from the Bank of England to prop up the country’s pension system, and a spike in mortgage rates that will add to the household costs of millions of people to years to come. All of it has been self-inflicted—not an act of God, not the result of global conditions, but the result of using the country for an ideological experiment. To deal with the argument that the Financial Secretary made at the beginning of the debate—essentially, that this is all global—I will quote from a letter from the Bank of England to the Treasury Committee. If any Conservative Member wants to intervene to say that any of it is wrong, they can be my guest.”
“I am pleased to conclude the debate on behalf of the Opposition. I welcome the new Chief Secretary to the Treasury to his position. His colleague the Exchequer Secretary is an old-timer: she has been in post for six weeks. No doubt she is sitting at the Treasury talking about the old times back in September. I thank all right hon. and hon. Members who have contributed to the debate. We have heard many powerful speeches about the impact of inflation and rising energy costs, the pressures on business, the UK’s international reputation and the impact of rising mortgage rates. If you will forgive me, however, Mr Deputy Speaker, I want to single out the speech of the hon. Member for Hazel Grove (Mr Wragg), who not only spoke about his own health issues, but added his voice to those of Conservative Members calling for the Prime Minister to go.”
“Her argument, in effect, is “Please keep me here so that I can be what I am not.””
“Now everything she believes in has had to be burned in front of her to try to keep this zombie Government carrying on. This is not a case of “too far, too fast”, as she has claimed, or of a minor policy U-turn. It is a repudiation of everything that she stands for. It is a total and utter reversal. The one surviving policy that the Prime Minister keeps praying in aid, the energy price guarantee, is the one policy that she campaigned against throughout her leadership campaign, saying that she was opposed to handouts. The question now is, what is her premiership for? Is it for the policies that she really believes in—those in the mini-Budget, now rejected and lying in ashes—or is it for the revenge of the orthodoxy that she so disdains? Each dose of the medicine she takes entails embracing that which she has so publicly rejected.”
“Now, belatedly, by commissioning the OBR report and singing the praises of an independent Bank of England after spending all the summer undermining it, they have signed themselves up for the speed awareness course; but it is too late, because people will continue to pay the price of what they have done. We have now had two fiscal events with no report from the OBR. This was not just about what was done, but about how it was done. The whole country is paying a price for the Conservative party’s contempt for the institutions that safeguard our economic credibility. And where does it all leave the Prime Minister? The mini-Budget was not a surprise to her; it was not imposed on her; she was 100% its co-author. It embodied her beliefs, her world view, the central core of the campaign on which she fought and won the leadership contest.”
“We have never argued that there was no need for borrowing. The point we made was that much more of this could be funded by a windfall tax. If the hon. Gentleman thinks that that is some sort of revelation, I can only ask him where he has been living for the last few months. The Prime Minister and the Chancellor of September behaved like student pamphleteers. When the Prime Minister stood up at her conference and attacked “vested interests dressed up as think tanks”, it was an announcement worthy of the gold medal for lack of self-awareness, for never has there been a Government more symbolic of the failure of think-tanks on influential thinking than the one that she leads. The Prime Minister and her ideological soulmate got the keys to the Treasury Ferrari, took it for a joyride and then crashed it into a ditch.”
“It has reduced the Conservative party to its current abject state, and has served as the rationale for attacking one institution after another. Politics begins with wanting to change the world, but what have this Conservative Government been reduced to? Attacking tofu. What other forms of food will now be lined up in the culture war that is all that is left for them? The disaster of the past few months should result not just in a few policy U-turns, but in turning away from the politics that drove those decisions and has done such harm to the country. This country has great strengths: world-leading services, great high-value manufacturing, creative industries with global reach, some of the best universities in the world, and a fantastic workforce. It deserves much better than this Conservative Government.”
“Now they want to make people pay twice through cuts to public services. It is the ultimate in governmental arrogance. They get to mess up the country through a giant ideological experiment and then ask everyone else to pay the price. That is not a political virility test; it is a candid admission of failure. The roots of that failure lie not just in one or two policy errors but in something deeper. They lie in the triumph of ideology over evidence. They lie in the view that all that is needed is blind faith—the test that someone is a true believer—and the view that anyone who questions or points out inconvenient truths is a doom-monger, part of the blob, and not a proper patriot. That destructive ideology has done great harm to our politics.”
“I have noticed one thing about the new Chancellor, though: he is not pretending that it is year zero. He is owning the record—all 12 years of it—and he now wants to implement a version of what was done after 2010. We have gone from an economic policy of having to borrow from communities such as mine in Wolverhampton South East to fund a tax cut for people earning over £150,000 to a policy of those communities having to pay for the chaos caused by the first policy. We can see what the plan is. Having crashed the economy and brought a new dimension of pity, bemusement and risk to the term “global Britain”, the Government now want the acid test to be support for their public expenditure cuts. They have already made people pay once for their mismanagement through higher mortgage rates.”
“Now the new Chancellor has been sent down from the mountain, come among us, as he says, to restore confidence and stability—but who destroyed confidence in the UK? Who created the instability? Who fashioned the Tory risk premium? I am too polite to call it what they are calling it in the City, which is “the moron premium”. It was the new Chancellor’s own Government. Let us be clear: no one was talking about spending cuts before the mini-Budget of 23 September, so the cuts are a result of what the Government have done. There has been no emergency central bank intervention to rescue pensions in the United States, Germany or France. The global circumstances that the Government refer to were the reason not to take such reckless risks with the public finances.”
“My hon. Friend is right. In fact, the only discussion on the Conservative Benches is about how to do precisely that. We cannot believe anything the Prime Minister says. Only seven days ago, she stood at that Dispatch Box and promised there would be “absolutely” no spending cuts. Five days later, the new Chancellor—October’s Chancellor—told us that the cuts had to be eye-watering. Conservative Members know that this is an impossible basis for leadership, and that it leaves the Prime Minister in an untenable position. They are remembering the words of the song that was played at their party conference as she came on to the stage: “You've done me wrong, your time is up…there's no way back…you’re movin' on out”. Three cheers for M People: not just a great band, but one with the political foresight of Nostradamus.”
“On a point of order, Mr Deputy Speaker, the motion that the House has just passed, with no opposition from the Government, “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.” Both those pieces of information are very important. The House has just called on the Government to publish them immediately. I seek your help in making sure that that happens.”
“Why should people who have worked hard to buy their own home pay the price for the Government’s mistakes?”
“With your permission, Mr Speaker, I wish to send my condolences to the families of all those killed in the tragic accident in Creeslough, County Donegal, last week. My parents came from quite nearby. It is a beautiful place with a close community, and they are very much in our prayers right now. I welcome the Minister to his place. I am sure that he and the Chancellor’s team wanted their first Budget to be remembered, perhaps even studied in years to come. Well, they have certainly achieved that ambition. Two-year fixed mortgage rates are above 6% for the first time since 2008, and they have risen sharply since the Chancellor’s mini-Budget. Everyone coming off such a rate will face much higher payments over the coming year, possibly hundreds of pounds a month more.”
“This morning, the Bank of England made a further intervention in the markets, warning of “a material risk to UK financial stability”. That risk comes directly from the Chancellor’s mini-Budget two and a half weeks ago. How much more will Government borrowing cost next year as a result of the rising gilt yields since the Chancellor’s statement on 23 September?”
“It is true that inflation is affecting a number of countries, but why does the Chancellor think that the UK has the highest inflation in the G7, and why is UK economic growth forecast to be lower than in any country in the G20 next year, with the sole exception of Russia?”
“The Chancellor said “celebrate”. I am not sure that there is much to celebrate in the figures that I quoted to him. Does he accept that the weakness of the pound, which increases the prices of our imports, is a major contributory factor to the inflation being experienced by our constituents, along with a continuation of the trade frictions caused by the Government’s Brexit deal? Does he have any plans to address that? I am not talking about rerunning the Brexit argument. He could take one step, which is to reach an agrifood agreement with the EU, as New Zealand has. That would reduce costs and bureaucracy for our farmers, for our businesses and, most of all, for our constituents.”
“Even the Government’s supporters do not seem to believe that the announcements made by No. 10 will be followed through with any proper delivery. The Government were supposed to take us forward to the future, but as we read the news each day, it feels more and more like a step back in time towards the 1970s. In another, more candid remark, also on Saturday, the Prime Minister admitted that since the Conservatives took office the UK economy had “not grown as it should”.”
“The Prime Minister told us at the weekend, speaking from the Commonwealth Heads of Government meeting in Rwanda, that he was “actively considering” his third term in office. The shadow Secretary of State for Transport, my hon. Friend the Member for Sheffield, Heeley (Louise Haigh), replied that she was actively considering marrying Ryan Reynolds. While the Prime Minister considers his future, here at home concerns are more prosaic and more real. In area after area of life, standards of service that used to be taken for granted have crumbled, leaving people facing delays and backlogs for basic services, and all this is coming on top of the cost of living crisis, which is biting deeper with each passing week. As each new backlog and delay builds up, the Government look more and more powerless to address them.”
“I beg to move, That this House notes that UK economic growth is forecast to grind to a halt next year, with only Russia worse in the OECD; further notes that GDP has fallen in recent months while inflation has risen to 9.1 per cent and that food prices, petrol costs and bills in general are soaring for millions across the country; believes that the Government is leaving Britain with backlogs such as long waits for passports, driving licences, GP and hospital appointments, court dates, and at airports; and calls on the Government to set out a new approach to the economy that will end 12 years of slow growth and high taxation under successive Conservative governments. It is my pleasure to speak to the motion in the name of the Leader of the Opposition, and those of me and my right hon. and hon. Friends.”
“I had anticipated one or two interventions on strikes, so let me say to the right hon. Gentleman that whoever’s responsibility the strikes are, it is certainly not that of a party that has been in opposition for 12 years. He and the Ministers he supports will have to take responsibility for the industrial strife they are presiding over. I say that to him in the anticipation of other interventions in the same vein.”
“Victims of crime have a right to expect a trial in a reasonable amount of time after that crime has been committed. In the year before the pandemic—I repeat, before the pandemic—the number of cases awaiting trial at Crown courts grew by 23% to more than 40,000.”
“Not at the moment. I am grateful for the Prime Minister’s candour on economic growth. That is a very important admission, because without good economic growth the country is less prosperous, the fiscal position is weaker—in fact, it is weaker to the tune of some £40 billion a year compared with the pattern of economic growth we had in the first decade of this century—and people’s wages are lower by thousands of pounds a year. We know that people are paying higher taxes due to the Government breaking their manifesto pledges, but let us see what they are getting for their money. It is often said in this place that the first duty of Government is to protect their citizens and that justice delayed is justice denied. Both those statements are true, so let us look at what is happening with access to justice.”
“They are not just a symptom of the pandemic: we must remember that in the year before the pandemic the number of cases awaiting trial had grown by 23%.”
“I refer the hon. Member to the answer I gave some moments ago. As I have said, the number of cases grew by 23% to over 40,000 before the pandemic, and that number now stands at 57,000. For magistrates courts, the number is 364,000. The typical wait for a case of robbery to come to court is two years, and for rape it is often three years. No wonder that in a recent sexual offences case that had been delayed for more than three years the presiding judge, Patrick Thompson, branded the delays “absolutely farcical” and said: “How this is justice is beyond me.” He is not alone in his judgment. These delays leave victims without redress and without justice and with the crime that they have suffered hanging over them.”
“My hon. Friend is absolutely right. As she outlines, these backlogs have real and important human effects; they are not just numbers on a page.”
“These delays are not the fault of NHS staff or the patients; they are the result of 12 long years of the Conservatives presiding over the system we have and it is time they took responsibility for the backlogs and the delays that have resulted from their long period in office.”
“The number waiting more than 18 weeks is now 2.5 million, but even before the pandemic that number was nearly three quarters of a million. Some 840,000 patients were told in April that they will have to wait more than a month for a GP appointment—if they can even get through to the surgery in the first place. Millions of people are struggling to get any access to NHS dental treatment. Last year 2,000 dentists left the NHS, almost one in 10 across the whole country. There are 4,500 fewer GPs than in 2013, and Conservative manifesto promises to increase the number of GPs have been broken repeatedly.”
“I will make some progress. This is happening not just in the field of justice. Record numbers of patients are waiting for NHS treatment, and they are waiting longer than ever: the waiting list for NHS treatment is now 6.5 million, with more than 300,000 patients having been on the list for over a year. Given that the system had to focus on dealing with covid, some might point to pandemic effects. There would be some justification for that argument if we had not gone into the pandemic with waiting lists that had already rocketed, but we went into the pandemic with waiting lists of 4.4 million patients, almost double the number on the lists when this Government came to power. Long waits and more people waiting are not just features of the pandemic.”
“My hon. Friend is right. In a debate on the subject last week, the shadow Health Secretary, my hon. Friend the Member for Ilford North (Wes Streeting), outlined a horrific case.”
“To govern is to take responsibility, and the problem with saying that it is all about the post-pandemic situation is that waiting lists had almost doubled before the pandemic. I could give the hon. Member the figures again, but I do not want to read them out twice. It is not just about the NHS. There are also delays at our ports. We have seen long queues of lorries—the delays are well known—and increased costs and bureaucracy for exporters.”
“The number of cases taking more than six months to decide has been up every quarter since the Home Secretary took office, and the backlog has tripled in the last three years. That matters because delays cost money and leave everyone in limbo.”
“My hon. Friend is absolutely right. I remember seeing the driving down of waiting times and waiting lists in government, and never at any point did anyone say, “We can take our foot off the gas” because there might have been problems in Germany or somewhere else. We took responsibility for the system that we were running. As I said, there have been large queues at the ports. The Government do not need to rerun the Brexit argument—Ministers should have realised that we can leave only once—but there are things that they could do. They could at least seek a veterinary agreement with the EU—even New Zealand has one—which would be a better deal for our farmers and our food industry and may cut the bureaucracy and delays at our ports. Let us take the asylum system, which is of significant concern to our constituents.”
“That is where the backlog begets workforce issues, because, until those people get their new licences, they often cannot return to work. I appreciate that none of that may be as exciting as the latest wedge issue thought up in No. 10, but delivering on basic governance is the Government’s job, and it is time to do that job. The duty of service delivery does not go away. At the heart of this are two issues: getting the workforce right and making the most of new technology.”
“On passports and driving licences, people are being asked to wait up to 10 weeks for a passport—a standard that was itself breached more than 35,000 times in the first quarter of the year according to the Home Office. That is where backlogs beget backlogs. There are reports of travellers being asked to seek emergency travel documents because passports have not been issued, but now—this is the least surprising news ever—there is a queue for those documents, too. Three quarters of a million drivers are waiting for their licences to be processed because of the backlog at the Driver and Vehicle Licensing Agency. A large proportion of those drivers have medical conditions and need specific permission to keep driving.”
“Well, the Government have chosen the route that we discussed in the Chamber last night. I do not want to repeat that, but other routes are available to them to reduce the bureaucracy experienced by our farmers and exporters. The delays in asylum matter because they cost money. Seventy-five per cent of asylum claims are eventually endorsed, but, until they are decided, legitimate claimants cannot make a positive contribution to the country by taking up a job, and claimants who are denied cannot be removed from the country. It is neither in the interests of those who seek refuge nor in the national interest to have a system so beset by delays and backlogs. It is certainly not value for money for the taxpayer, either.”
“We have the highest tax burden since the 1950s, but people cannot get a passport or an appointment with a dentist. That is simply not a good enough deal for the British public. The Prime Minister says that he wants another two terms in office, but our public services cannot afford another two terms of backlogs and chaos. This Government are not really governing any more. They are simply campaigning.”
“It was a time when years of change were compressed into months—in education, in the way we work, in the way we shop and pay for things, in accessing healthcare and so on. The question is how we make the most of what we have learned, and of all the other rapid changes in daily life that are powered by technology, to reform our public services for the future. Our ambition should not be just to return to where we were in 2019; it should be to improve, so that we can have high-quality public services for all. We already knew that the Conservatives were running a high-tax, low-growth economy—we have said that many times—but the backlogs that I have outlined in public services, in area after area, show that it is also a high-tax, low-delivery economy.”
“The point of all this is that we should use the talent and energy of everyone who can make a contribution, and address any barriers to work that they face, but that is not the Government’s response to the backlogs; they have proposed staffing cuts of 20%. How will that help anyone to get a passport, driving licence or health treatment quicker, or get their case to court sooner? Is it really the best that the Government can come up with? Is it even a real response, or just another initiative thrown up to provoke a debate that distracts attention from the real issues that people face? The issue is not just about the workforce; it is also about using innovation and technology to make public services better for the public. Covid has been described as the great acceleration.”
“I have to say to the Minister that looking the other way will not make the workforce issues go away. Why are the Government so resistant to the forward planning needed by the NHS? The question is how we make the most of our potential workforce, and help those who could go back to work to do so. Many people in this country are suffering from long covid. There are people with mental health issues, and people for whom childcare costs are a barrier. We support an expansion in mental healthcare, so that we get support to those who need it within a month, and we support mental health hubs in our local communities. More breakfast clubs and after-school activities would not only be good for children but would help parents get back to work, too.”
“I have already mentioned that when people with medical conditions cannot get a new driving licence approved, it can prevent their return to work. The Access to Work programme is there to help people with disabilities into work, but people face delays of up to 12 weeks in their application being processed, and the waiting list for decisions has quadrupled over the past year. That holds people back from taking up jobs and makes the staff shortages worse. The NHS employs some 1.2 million people, but it went into the pandemic with 100,000 unfilled vacancies. We have argued for a forward plan for NHS staffing, and for training so that the vacancies can be filled. That was supported by the cross-party Health and Social Care Committee, but fiercely resisted by the Government.”
“I detect a pattern with these interventions. They seem to be saying that the problem is everyone’s responsibility except the Government’s. There is no escaping 12 years in office. There are two issues at the heart of this: workforce and technology. Staff shortages are common in many areas. The unemployment figures have fallen, but so too has the overall number of people in employment. More than half a million people have left the labour market since the pandemic. They are from all age groups, but the biggest group is the over-50s, and their biggest reasons for leaving the labour market are ongoing health issues and caring responsibilities. This is where the delays and backlogs become a vicious circle.”
“I am glad that the hon. Member had the opportunity to make that point, whether he is wearing a tie or not. The sole purpose of the Government is the survival of the Prime Minister. They have trashed standards in public life, as we have seen; they have damaged our standing in the world; and they are now trashing service delivery. When people pay the price for Government dysfunction in constant delays and backlogs, which have a damaging effect on quality of life; when the things that we used to take for granted become an endless slog and a debilitating battle; and when all this comes at the price of broken tax promises, people conclude that they cannot rely on the Prime Minister and on this Government. That is what is happening. As long as he and they remain in office, the chaos that has led to Boris Johnson’s backlog Britain will continue.”