John McDonnell
MP for Hayes and Harlington · Labour · United Kingdom
“It is not a laughing matter—I am sorry for interrupting the flow of the discussion. It would be useful if the review looked at NATS’s long-term investment plans, particularly since its partial privatisation in 2001, which I opposed. I thank the Minister for meeting Unite this morning and thanking the workers, who have worked so hard.”
“On a number of occasions, I have raised the case of Lee Cheuk-yan, who many Labour Members will remember was the general secretary of the Hong Kong Confederation of Trade Unions and founder of the Labour party in Hong Kong. He was detained during the democracy movement five years ago.”
“I thank the Minister for his statement. NATS used to be in my constituency and then moved down to Swanwick. Of course, with Heathrow in my constituency, I receive—as I mentioned yesterday—a large amount of correspondence from a whole range of other MPs’ constituents, who think I am responsible for Heathrow airport.”
“I fully agree, and let me also say that wheelchair compensation is significant in this legislation. Most of us have dealt with cases like that. Going back to accountability in the process, a number of different organisations have provided us with notes on the legislation.”
“I apologise to my right hon. Friend; I should have checked this before the debate. The proposed new section 61G refers to priorities and objectives of the Secretary of State, which include a requirement for the Secretary of State to issue a document setting out those priorities and objectives for the CAA.”
“At the moment, when people in my constituency are faced with these problems, they do not know where to go; it is as simple as that. Finally, the debate that we will have on Heathrow expansion and the new policy statement will be interesting, given that we do not know what the flight paths will be. If I was a constituent of my hon.”
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“Yes, as my right hon. Friend the leader of the Labour party pointed out the other day, the timing does put us over a barrel. What is the incentive for the EU in this situation where we have given all the cards to the other negotiators? So we are now faced with a prospect of new trade barriers and the potential for an indefinite backstop, but we have no assessment from the Government of what this will mean for the economy. Astoundingly, according to the Attorney General’s legal advice, “for regulatory purposes GB is essentially treated as a third country by NI for goods passing from GB into NI.” Others have had their say on the constitutional implications of the backstop—a rod that the Government have created for their own back.”
“We do know, however, what the Chancellor thinks of the backstop arrangement because he has said so: “I’ve been clear from the outset that I do not like the backstop. I don’t think the backstop is a good arrangement for our economy, I don’t think it’s a good arrangement for our union.” I fully agree.”
“The backstop could remain permanent. We have had confusion this morning on the advice from the House of Commons Library and the Chancellor about how it could be ended or a transition deal extended in some form. There is absolute confusion at the moment, and we are now undermining the relationship with one of our biggest trading partners as a result. One organisation, the National Institute of Economic and Social Research, has estimated that by 2030 we could see a £70 billion reduction in national GDP, in 2016 prices, as a result. Once the Prime Minister accepted our argument for a transition period, she argued that it was right because it would mean only one change for British businesses. Now we face shifting from a transition period to a backstop arrangement, and then to a free trade deal. This is not what was promised.”
“I believe that under a comprehensive customs union agreement, it is so much more unlikely that there would be any need for that fall-back position, and we would be able to offer permanency in an agreement rather than something that is a defective insurance policy. Others may agree with the Chancellor on his initial assessment, and, in that case, I cannot see why this arrangement—”
“Labour would prioritise a permanent and comprehensive customs union—yes, with a British say in future trade deals. We would deliver a strong, collaborative relationship with the single market—and yes, we would guarantee that the UK does not fall behind in rights for workers, consumers and the environment. Labour has always been clear: we respect the referendum result, but we have always said that we want a Brexit that puts jobs and the economy first—and that is exactly what Labour’s approach will do.”
“Members in this House agree that the Prime Minister’s deal is not a good deal. So over the next few days, and possibly—as was hinted at this morning—for even longer, Members will be searching for a way forward. I believe that Labour’s proposals for a new approach to our European relationship offer that way forward. Our European partners will have seen that the Prime Minister’s deal that they reluctantly endorsed has not proved to secure the support it requires in this House or in the country. I believe that they will see the need, now, for a constructive renegotiation if both their and our own economic interests are to be protected in the long term. Indeed, that is what has happened in the past. Labour’s new deal will secure the economic interests both of ourselves and our European partners. It rests on three posts.”
“Let me press on. A variety of commentators have criticised the Prime Minister’s proposals, none more scathing than Mervyn King, the former Governor of the Bank of England. Leaving aside his description of the Government’s handling of this issue as “incompetence of a high order”, overall he says: “It simply beggars belief that a government could be hell-bent on a deal that hands over £39 billion, while giving the EU both the right to impose laws on the U.K. indefinitely and a veto on ending this state of fiefdom.” Many will share the view expressed by Nicole Sykes, the CBI’s head of EU negotiations, which were revealed in an email where she said that there is “no need to give credit to negotiators I think, because it’s not a good deal.” Let me move on to my third point, which is Labour’s alternative. I believe that the majority of hon.”
“We will have a say in the future of those trade deals in our relationship with the European Union, and it will reflect the size of our economy and its contribution to the European Union overall.”
“Indeed, many of us believe that it has been the economic failures of the past and the present that helped to deliver the Brexit vote. I take no pleasure in saying that it was a vote from which the Government seem almost determined to learn nothing. We have an economy that has seen wages grow more slowly than in any other advanced country in the G20.”
“Let me press on now. My fourth and final point is the vulnerability of our economy to a bad Brexit, and, indeed, the vulnerability of so many of our people—the people we represent. The Prime Minister’s deal does not give the certainty our country needs. Even the trickle of muted support from businesses when the deal was first done has now been replaced by a deafening silence. That is because businesses and trade unions alike now understand that under the Prime Minister’s deal we are facing, in 2020, more uncertainty as this Government then decide whether to extend the transition or fall into an unlimited backstop. If a bad Brexit is forced upon our country, and the economy and jobs are not protected, many of our people who have suffered from eight years of austerity will suffer even more.”
“I thank the Father of the House for his intervention. Let me make this clear. First, we want a permanent customs union, and we want to ensure we have a future say in future trade deals that reflects the strength and size of our economy. Secondly, we want a close collaborative relationship with the single market, which we believe we can achieve, but we also want the ongoing protection of regulations on employment, the environment and consumer rights. Those are the negotiations that we wish to undertake—if not in government, as a Parliament.”
“I think the hon. Gentleman has already intervened twice. That is absolute generosity. I will press on, because I know that many other Members wish to speak. The Government need to recognise what motivated the Brexit vote. Over time, industries that sustained whole communities around the country have been destroyed or allowed to wither, tearing the heart out of our towns, from fishing ports to mining and manufacturing communities. This week’s report from the Joseph Rowntree Foundation should be a wake-up call to us all. It confirmed that 1.5 million people are living not just in poverty, but in destitution, including 365,000 children. If we are to learn anything from the referendum vote, it is that so many of our people want change, and the decision on Brexit is fundamentally a choice about the kind of country we want to live in.”
“Let us work together to secure the long-term interests and future prosperity of our country and our constituents.”
“We need a major package, but one of the key criteria of that package is that it has to go beyond London and the south-east. It has to ensure that we invest in our regions, coastal towns and small towns—not just the cities. It has to bring everyone with us, as the result of a prosperous economy where prosperity is shared by everybody. Labour has set out our stall. We stand for change, for an economy that works collaboratively and closely alongside our European partners, for an economy that invests in all the regions and nations of the UK, and for higher wages, driven by investment in skills and greater trade union rights. That is what our proposal embodies. I firmly hope that Members will agree to reject the prospect of no deal. Let us accept that the Prime Minister’s deal will not protect our economy and has to be rejected.”
“I say to the right hon. Gentleman: do not judge our ability to negotiate on the basis of the incompetence his party has shown for two years.”
“(Urgent Question): To ask the Chancellor of the Exchequer if he will make a statement on the Government’s publication of the economic and fiscal analysis of various Brexit scenarios.”
“To be frank, if the Minister’s Government are not prepared to put jobs and the economy first in their Brexit negotiations, is it not time that they stepped aside and allowed Labour to negotiate that deal?”
“Under the hard Brexit some Government Back Benchers have been promoting, it would be 7% smaller. Only a Chancellor who talks about “little extras” for schools would talk about this kind of effect as being “a little smaller”. Can the Minister confirm that no deal is not an option the Government will allow to happen? Does the Minister agree that the one thing this document shows is that the deal on the table is even worse than the abandoned Chequers deal? Have the Government done any analysis whatsoever of the actual proposed backstop arrangements and will they be published in advance of the vote in a few days’ time? What fiscal assumptions is the Department making about extending the transition period, given that there may be no limit to what the European Union could ask for in return for such an extension?”
“The Chancellor promised us that the House would have a detailed economic analysis of the options ahead of the meaningful vote on Brexit. The least we could expect is that, instead of touring the broadcast studios, the Chancellor would be here himself to present an oral statement on the information. Let us be clear. We are now in the ludicrous position of seeing an analysis produced today on the economic implications of Brexit, which is in fact largely an assessment of the Chequers proposals abandoned months ago. What the analysis produced by the Treasury today shows us is that if a no-deal scenario with no net EEA migration comes to pass—something the Government have recklessly, if incredibly, been threatening—we could see GDP almost 11% lower compared to today’s arrangements.”
“There are reports that the Cabinet has been briefed on a possible deal with the EU that includes a customs union that can be ended through a review mechanism at any stage in the future. So after two years of uncertainty, of business holding back investment and of jobs relocated abroad, we are now presented with a fudge that gives no guarantees on a long-term basis of our future trading relationship. Investment in our economy today is the lowest in the G7 and falling. If a customs union with our largest trading partner can be ripped up at any stage, how does the Chancellor expect businesses to have the confidence to bring forward the long-term investment needed to support our economy?”
“Well, it is interesting, because the Chancellor knows then that a free trade agreement without a permanent customs union will not protect our economy from the damage that a hard Brexit would cause, so to guarantee frictionless supply chains, we need a secure, permanent customs union with the EU. Businesses and workers are looking to the Chancellor to fight their corner, so will he join me and MPs across the House in calling on the Prime Minister to do the sensible thing and agree a permanent customs union that protects our economy, and yes, the livelihoods of millions of our people?”
“Even with yesterday’s Budget, two thirds of the welfare benefit cuts planned by the Government will still roll out. Outside the NHS, departmental budgets are flat, and the Resolution Foundation this morning revealed that some Departments faced a further 3% cut in their budgets by 2023. Austerity is not ending. For most people, ending austerity is about not just halting some of the cuts planned by the Government, but lifting the burden that austerity has imposed upon them and their communities over the last hard eight years.”
“Four weeks ago, the Prime Minister promised to end austerity. She raised people’s hopes—the hopes of teachers that they would no longer have to rely on begging letters to parents to fund the running of their schools; the hopes of police officers that the safer neighbourhood teams would return to tackle the rise in violent crime; and the hopes of local councillors of all political parties that they would have the resources to support local families in need at a time when a record number of children are being taken into care. Those hopes were dashed yesterday. At best, those people got what the Chancellor described as “little extras”. No wonder so many teachers, police officers, local councillors and others feel bitterly disappointed at the Prime Minister’s broken promise, because yesterday’s Budget was not the end of austerity.”
“They are seeing this Government hand out £110 billion in tax cuts to the rich and corporations while their services are being cut and their children are forced into poverty.”
“To be absolutely clear, the Chancellor gave the impression yesterday that there would be no departmental cuts, but the Resolution Foundation has said that, although some Departments will be protected, others will have a 3% cut as a result. I call that continuing austerity. Ending austerity is about more than that; it is about ending and repairing some of the damage that has been inflicted on our society and, yes, has undermined some of the social fabric we rely upon. Yesterday, the Chancellor claimed that this was a “turning point”. It is, but not in the way he suggested. This is not the end of austerity, but it is the beginning of the end of the dominance of an economic theory and practice that has wreaked havoc on our communities. People no longer believe the myth that austerity was necessary.”
“We are currently seeing local councils—the first wave has been Conservative—virtually going into administration. That must say something about the impact of a 50% cut in local government funding over the last eight years. People no longer accept the trickle-down economics that has gripped the Tory party for four decades.”
“What was surprising yesterday was how lacking in self-awareness the Chancellor and his colleagues were and how out of touch they were with the reality of our people’s day-to-day lives. His speech reflected how ideologically crushed the Tories are. They are so bereft of ideas that the Chancellor yesterday, in a major parliamentary speech, was reduced to toilet gags. They are so bereft of ideas that they made a pathetic attempt to imitate Labour policies.”
“I will in due course. The Parliamentary Private Secretary has done his job and handed out the briefings and questions to everyone. I respect the hon. Gentleman for his diligence and I will allow some interventions but, to be frank, people out there are fed up with parliamentary banter and want a debate that reflects the real world. People no longer accept the trickle-down economics that has gripped the Tory party for four decades—the idea that somehow if we cut taxes for the rich and the corporations, this wealth will trickle down to everybody. They no longer accept “public sector bad, private sector good”. They no longer accept privatisation and deregulation; in fact, those are anathema to most people now.”
“Yes, it is faced with different challenges from those of leafy Surrey, for example, but most of all our constituents, wherever they are, rely on the NHS, local schools, the police and local council services, so all of us should have some idea of what the public services that support our constituents have been going through.”
“A former Local Government Minister gets to his feet in this House and does not express a word of apology for what the Government have done to local government. For some time, I have had concerns about the nature of the whole debate on austerity. First, many—I accept not all—in the Conservative party seem to have no appreciation of what austerity has meant and continues to mean for our society. I thought at one point that that was because many Labour MPs such as me represented constituencies with a different demographic to many Conservative constituencies. I represent a working class, multicultural London constituency.”
“Not at the moment, if the hon. Gentleman does not mind. What shocked me yesterday was that the Chancellor delivered a Budget that so clearly failed to address the desperate needs of our society after eight years of austerity. Let us look at just some elements of the human cost of austerity and what the Chancellor brought forward in the Budget.”
“I respect the right hon. Gentleman’s views on Brexit because I campaigned for remain as well, but it behoves any Liberal Democrat to come to this House with a bit of humility after serving with a Tory Administration that savaged our public services. Let me look at some of the elements of human suffering. Health workers are having to cope with the biggest financial squeeze in the NHS’s history.”
“And that despite the head of counter-terrorism warning that counter-terrorism work relies on regular policing being properly funded. Teachers’ pay has fallen by 4% since 2011 and the schools budget has been cut by £3 billion in real terms. Some 36,000 teachers have left the profession in a year —the highest since records began.”
“That is an essential element of the reconstruction that Labour will have to do when we come to power. The Institute for Fiscal Studies said that a rise in health spending of 3.3% was needed just to maintain the current stretched service, and that at least 4% was needed to improve it. Instead, according to the Nuffield Trust, what we got amounts to just a 2.7% increase in overall health spending in real terms next year. Police officers have seen 21,000 of their colleagues’ jobs cut since 2010. As a result, violent crime is on the rise. The independent police watchdog is warning that “the lives of vulnerable people could be at risk.” What did the police get yesterday? Some £160 million for counter-terrorism—far less than is needed—and not a penny more for neighbourhood policing.”
“My hon. Friend has got it exactly. It takes something, does it not, to have headteachers marching on Downing Street? That has never been seen before. Just what did yesterday’s Budget do to tempt teachers back? What the Chancellor offered was “little extras”. It was an insult, especially when 60% of teachers are not getting a pay rise this year. There are now 4 million children living in poverty, 500 children’s centres have closed, 500 children’s playgrounds have closed and 128,000 children are living in temporary accommodation. When children’s social care faces a funding gap of £3 billion by 2025, what did the Chancellor offer? Just £84 million for just 20 councils. That will not even scratch the surface of the problem.”
“No. We have a record number of children coming into care. I know what coming into care means for a child: they are scarred for life. Why are they coming into care? Because there has been a 40% cut in funding to councils for early intervention to support families. Let the Government justify that. On young people, the YMCA reports that spending on youth services has fallen by 62% since 2010. The average graduate comes out of university with a £50,000 debt. The IFS describes home ownership among young people as having collapsed completely. Tragically, with the mounting pressure, a decades-long decline in suicide among men has been reversed since 2010.”
“Of course we welcome more money for mental health, but what was required was £4 billion, not £2 billion; and that £2 billion was contained within the £20 billion that had already been announced, so it is not additional money. There are some things that we can work on on a cross-party basis in this House, but we have to be honest about the needs and the requirements, and we have to be straightforward in saying how they can be funded.”
“The facts speak for themselves. To make a real difference to the lives of young people, the Chancellor needed to address the housing crisis, deal with the toppling mountain of student loans, and restore work allowances for single people and couples without children. Instead we got piecemeal, unambitious housing announcements and re-announcements, nothing on student finances, and nothing on universal credit recipients who are single and without children.”
“The share of the Government’s tax and benefit changes impacting on women increased from 86% to 87%—another year with an increase. The 1950s women, who have been treated so unjustly, have been overlooked once again. The victims of possibly the harshest cruelty inflicted by this Government are disabled people. A UN inquiry into the rights of persons with disabilities found this Government guilty of “grave and systematic violations” of their human rights. When have any UK Government been charged with that by a UN body? Never. To be frank, we know—”
“I will come on to the plight of disabled people, who seem to have been a particular target for this Government, given how they have withdrawn funding and services. On older people, there were more than 31,000 excess winter deaths among the over-65s in 2017, and well over 150,000 elderly people are in arrears in their social care payments. The Local Government Association, which works on a cross-party basis, said that £1.5 billion was needed by 2020 just to fill the funding gap in adult social care. The £650 million that was announced yesterday is less than half of that. What comes out of the analysis is this. The burden of austerity has fallen disproportionately on who? On the shoulders of women. Yesterday, that did not just continue; it got worse.”
“I have given way to the hon. Gentleman once. Many have taken their own lives as a result of the welfare reforms imposed upon them since 2010, and the Government— [ Interruption. ]”
“We got no mention of climate change, no reversal of cuts to renewable energy, and no significant environmental policy.”
“I understand the hon. Member for Croydon South (Chris Philp); he gets excited at times, but as someone who has been excited myself at times, I completely understand. The Government have been repeatedly forced by the courts to change how they are treating disabled people. They do not seem to have learned their lesson yet, so yesterday we saw no restoration of disability premiums, no end to the cruel social security freeze, and no end to dehumanising and unreliable work capability assessments. The Government are also putting the livelihoods of future generations at risk. A few weeks ago the world’s leading authority on climate change said that avoiding dangerous climate change would require “rapid, far-reaching and unprecedented” action. What did we get yesterday?”
“Because it was not on a scale that would have had sufficient impact. I welcome interventions, but I think we should have a rule that when Members intervene they should describe their background, in this case as advisor to George Osborne, who cut back on the solar energy industry, who undermined wind power in this country, and who set us back so that we will never meet our climate change targets. The impact— [Interruption.] Calm down, calm down—George Osborne used to say that to me, and I said “I’ll calm down when you resign,” and he did. The impact on the self-employed and small businesses has been equally stark. Some 51,000 high street stores closed last year. Wages for the self-employed have collapsed to around the same level as 20 years ago.”
“Yesterday the Chancellor’s speech, with references to “Labour’s recession,” demonstrated that he is trapped in a time warp of a political propaganda exercise by the Tories of a decade ago. [Interruption.] I thought they would like that one. Let us be clear: the financial crash was the result of greed and speculation, and a lack of regulation that goes right back to the 1980s. Austerity was always a bad idea.”
“My hon. Friend is right. Yesterday we needed serious action to address the bias against high streets, which has led to so many empty shops. Instead we got legislation that will help turn shops into flats. We then had a huge media presentation about an online tax being introduced: it was said that £400 million will be found from this online tax in a few years’ time. At the weekend the Tax Justice Network said the top five tech companies have avoided £5 billion-worth of tax. My second concern about the austerity debate is that if we understand and appreciate what people have been forced to go through with austerity, only callous complacency could drive us to inflict those policies on people.”
“Real weekly average earnings are still lower today than they were in 2010. The Resolution Foundation reports this morning that real wages will not have fully recovered until 2024. Ten years after the crash, we should be clear about the causes of the financial crisis. The Chancellor seemed confused on that point yesterday. It was not the deficit that caused the crisis; it was the crisis that caused the deficit. It was a crisis— [Interruption.] They don’t like to hear the truth. It was a crisis that resulted from the casino economy that the Tories helped construct right from the 1980s and supported every step of the way.”
“I always said George Osborne would get it right one day. The consensus among economists, and the evidence of recent history, is absolutely clear. The worst possible response to a recession is for a Government to cut their own spending. In a recession, the Government should be there to support businesses and households. Instead, at the moment when Government support was most needed to help people back on their feet, Conservative Chancellors chose to impose the most severe spending cuts in generations. They did not have to, and they should not have done. The Tories were warned that austerity would lead to slower growth and lower wages, and it has. The economic experts the Tories chose to ignore were proved right. Growth since the financial crisis, under Conservative Chancellors, has been the slowest after any recession in modern times.”
“Here is an answer: it is called a fair taxation system. It was the ideology of neoliberalism that said markets were always right, that regulation was simply a barrier to growth, and that, ultimately, greed was good. The financial system this ideology helped design collapsed 10 years ago, and it was Conservative Chancellors who took the political decision to force working people, not the bankers, to pay the price for it.”
“In the weeks and months ahead, people will recognise that the Prime Minister’s promise has been broken. There are rumours that this was possibly a pre-election Budget with pre-election tax giveaways. If the Conservatives are contemplating a general election, let me say on behalf of the Labour party: bring it on.”