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Achieving Economic Growth
18 May 2022
Lead MP
Rachel Reeves
Debate Type
General Debate
Tags
EconomyTaxationBusiness & Trade
Other Contributors: 55
At a Glance
Rachel Reeves raised concerns about achieving economic growth in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Amendment (w) proposes an emergency budget due to the cost of living crisis, highlighting a 40-year high in inflation with prices rising significantly. The amendment criticises Conservative governments for their economic policies that have led to slow growth and high taxation over the past decade. It calls for urgent action including a windfall tax on energy companies' unexpected profits to alleviate financial pressure on families and pensioners.
Rachel Reeves
Lab
Leeds West
High inflation has led to significant price increases, with bills rising by an average of £693. The proposed windfall tax could reduce energy bills significantly. Labour argues that the delay in introducing such a tax is causing families and pensioners to suffer more daily due to increased costs.
Kevin Hollinrake
Con
Thirsk and Malton
No position provided, as his speech was interrupted.
Ellie Reeves
Lab
Lewisham West and East Dulwich
Supports the amendment and calls for urgent action to address the precarious work conditions faced by many workers. Criticises the lack of employment Bill in the Queen's Speech, which would have provided dignity and security to workers.
No position provided as his speech was interrupted.
Kevin Hollinrake
Con
Thirsk and Malton
The hon. Member highlighted the support provided by the Government to households, mentioning a £200 discount on energy bills for all homes and an £150 council tax deduction for 80% of households. He questioned Labour's proposal, asking what percentage of households would receive their suggested £600 per household payment.
Geraint Davies
Lab
Cynon
The hon. Member pointed out that food bank usage had increased from around 26,000 people in 2010 to approximately 2.6 million currently. He argued that under the current government, economic growth is poor compared to previous Labour years and cited a report stating average individuals would be £11,000 better off if on the same growth trend as before.
Nadia Whittome
Lab
Nottingham East
The hon. Member suggested that instead of wage cuts, profits could be reduced to help alleviate financial pressures. She noted that energy companies such as Shell and BP had earned over £12 billion in the first quarter of 2023 and criticised all Conservative Members for opposing a windfall tax.
Matt Western
Lab
Warwick and Leamington
The hon. Member discussed the decline in business investment by about 9%, alongside a significant drop in automotive production, which he views negatively compared to competitors who have strategic plans. He urged for an industrial strategy like those implemented abroad.
Martin Docherty
SNP
West Dunbartonshire
The hon. Member expressed concern over Britain's labour shortages mirroring the US situation rather than Europe’s, affecting the entire UK negatively. He asked for details on how to emulate Europe’s labour market.
Simon Clarke
Con
Newton Abbot
The Minister acknowledged the Government's response to the pandemic, highlighting the resilience of the UK economy and its rapid recovery. He emphasised that the Queen’s Speech aims at creating conditions for economic growth by investing in skills, helping businesses grow, and building infrastructure. Clarke stressed the importance of setting fair tax and welfare policies without worsening problems such as unemployment or public debt. He noted that despite the challenges posed by global inflation and supply chain disruptions, the UK economy remains resilient with low unemployment rates and a projected faster growth rate compared to other G7 nations in 2025-26. The Minister also defended against accusations of mismanagement during the pandemic procurement process, emphasising the speed at which actions were taken under extreme circumstances.
The SNP spokesperson emphasised the need for inclusive economic growth that tackles inequalities, contributes to net zero, and provides high-quality jobs. She criticised the UK government's lack of clear economic strategy post-Brexit, highlighting how GDP growth is forecasted to be lower than other G7 countries. Thewliss also pointed out the negative impact of Brexit on trade, with goods trade reduced by 14.9% by December 2021 and UK exports taking a larger hit than imports compared to EU analysis.
Intervened to correct the record according to ONS data which shows that UK imports from the European Union have fallen, whereas UK exports to the EU have recovered. He challenged Thewliss's assertion regarding trade impacts post-Brexit.
Bernard Jenkin
Con
Harwich and North Essex
Asked Alison Thewliss to explain how leaving the United Kingdom would affect business and living standards in Scotland, suggesting a potential negative impact if Scotland were to follow the SNP's suggestion.
Damian Green
Con
Ashford
Mr Green supports many of the Bills in the Queen’s Speech, emphasising the importance of raising productivity and growth as a long-term solution for the British economy. He welcomes the Chancellor's focus on spreading economic activity across the country, citing an example where aligning all regions with London's productivity levels would boost GDP by £180 billion. Mr Green also commends the Schools Bill for its potential to increase workforce productivity through higher standards in education. Furthermore, he highlights the importance of science and technology, particularly noting the genetic technology Bill as a key initiative. However, he expresses concerns over the media Bill's impact on Britain’s creative industries, advocating for Government action that listens to industry voices rather than imposing changes based solely on government consultations.
Hilary Benn
Lab
Leeds South
Mr Benn highlighted the difficulties faced by British businesses post-Brexit, including increased red tape and costs imposed on UK exporters while EU exporters face fewer checks. He criticised the Government's handling of labour shortages in agriculture and the impact on food security. Additionally, he discussed the Northern Ireland protocol, urging both sides to find a practical solution through patient diplomacy rather than threats or legal action.
Nadia Whittome
Lab
Nottingham East
This Queen’s Speech provides mediocre answers to wrong questions regarding the cost of living crisis, housing, and energy prices. The Government acknowledges issues but fails to act meaningfully. They have cut public sector wages and increased zero-hours contracts since coming into power in 2010. We need a publicly owned energy system, above-inflation minimum wage increase, restoration of universal credit cuts, rent controls, and protections against conversion therapy for young trans people.
Bernard Jenkin
Con
Harwich and North Essex
Welcomed the Queen’s Speech but expressed concerns about the conversion therapy Bill, noting that it might stoke disputes over transsexuality. Also welcomed legislation to protect the Belfast/Good Friday agreement and discussed global supply chain disruptions caused by Russia's war in Ukraine. Emphasised the need for a substantial policy response to the energy and economic crisis, suggesting immediate restoration of the £20 uplift in universal credit, abolition of VAT on domestic fuel, and other measures.
Chris Bryant
Lab
Rhondda and Ogmore
Mr Bryant criticised the Queen's Speech for lacking a comprehensive legislative programme and significant measures. He highlighted missing Bills such as those on fire and rehire bans, economic crime, seizing assets from sanctioned individuals, and human rights that could be counterproductive.
Harriett Baldwin
Con
West Worcestershire
Endorses the Chief Secretary's comments on the range of important Bills in the Queen’s Speech. Acknowledges the challenges faced by the Chancellor and highlights his effectiveness during the pandemic, including initiatives like the furlough scheme and small business income support. Emphasises the strength of the current job market with record low unemployment rates and high vacancies. Supports the Bank of England's independence and its mandate to achieve 2% inflation. Defends the Government’s approach to windfall taxes and social welfare measures, such as the council tax rebate and pension credit entitlements.
Sarah Olney
Lib Dem
Richmond Park
The speaker highlighted the limitations of the Queen’s Speech in promoting economic growth, particularly noting the lack of a clear plan to address high inflation, skill shortages, and declining trade. She mentioned that there are more job vacancies than unemployed people, which indicates a skills mismatch and labour shortage, especially in the care sector due to low wages. The speech also pointed out that UK exports remain below pre-pandemic levels and trade as a share of GDP has fallen by 12% since 2019. Sarah Olney raised concerns about free trade agreements with Australia and New Zealand potentially harming British farming, and highlighted how Brexit red tape is affecting businesses in her constituency. She emphasised the need for more insulation initiatives to help low-income families manage fuel costs and reduce carbon emissions. Lastly, she called for increased funding and support for mental health services, particularly for children and young adults affected by the pandemic.
Andrew Selous
Con
South West Bedfordshire
Andrew Selous discussed the economy, highlighting a decrease in unemployment and praising job creation efforts. He noted that Ukraine's conflict impacts grain prices and fertiliser production. Concerning housing costs, he stressed the unsustainable high rents for people on lower incomes. He proposed building zero-energy-bill homes to alleviate energy bills and help meet greenhouse gas emission targets. Selous also raised concerns about debt interest and the need for support for vulnerable populations, including disabled individuals and pensioners. Additionally, he addressed issues with insufficient general practice capacity in new housing developments, advocating for better planning. In the context of education, he commended progress on lifetime skills and T-levels but highlighted a need to address shortages in computer numerical control operators.
Rupa Huq
Lab
Ealing Central and Acton
The Queen’s Speech lacks direction, with too many Bills that do not address current issues such as the cost of living crisis. The Government is avoiding major decisions and focusing on ideological hobby horses instead of practical solutions. There are no significant plans to tackle inflation or energy costs, and measures like banning buy-one-get-one-free promotions for junk food have been delayed. Additionally, the proposal to privatise Channel 4 is criticised by prominent Conservatives, highlighting a lack of internal support.
Crispin Blunt
Con
Reigate
Gave general support to the Queen’s Speech, highlighted enthusiasm for the Levelling-up and Regeneration Bill as it aims to deliver practical levelling up and regeneration. Supported the genetic technology Bill for its potential economic growth in science and research. Acknowledged the Northern Ireland Troubles (Legacy and Reconciliation) Bill's result of consultation and wise reflection on dealing with difficult issues. Welcomed the Social Security (Special Rules for End of Life) Bill for extending benefits to those facing end-of-life scenarios from six months to 12 months. Supported the Public Order Bill but suggested exploring civil sanctions rather than criminal ones for protesters disrupting society. Advocated for including gender identity within the conversion therapy ban Bill's scope. Showed caution about supporting public bodies engaging in boycotts of Israel under the fourth Geneva Convention, despite understanding Government concerns on antisemitism. Emphasised the importance of upholding the rule of law and exploring all options before overturning the Northern Ireland protocol.
Stephen Kinnock
Lab
Aberavon Maesteg
The Labour party criticises the Conservative Government for failing to address rising household bills, economic growth, and resilience in the face of global challenges. Despite promises to ease costs for families, no substantive action was proposed. The speech calls for scrapping national insurance rises, reducing energy bills significantly, expanding support measures like the warm home discount, and implementing a windfall tax on oil and gas companies profiteering from high prices. It also highlights the need for long-term economic reforms including increased investment in research and development to close the productivity gap with other nations, revitalising manufacturing sectors, and countering exploitative employment practices such as those seen at P&O Ferries.
Edward Leigh
Con
Gainsborough
The hon. Member for Gainsborough argues that while the current Government has faced significant challenges such as a global pandemic and war in Europe, it is important to focus on economic growth and addressing issues like the cost of living crisis. He highlights the high tax burden families are facing due to inflation and urges the Chancellor to consider reducing the overall tax burden. Additionally, he emphasises the importance of building more housing to help young people enter the housing market and controlling immigration levels.
Clive Lewis
Lab
Norwich South
The hon. Member for Norwich South challenges the focus on GDP growth as a measure of economic success, arguing that it has contributed to rising inequality, erosion of democracy, and the climate crisis. He argues that focusing solely on GDP growth allows politicians to avoid addressing distributional issues, leading to public dissatisfaction with their lived experience not being reflected in political discourse. Furthermore, he questions how unlimited growth can be sustained on a finite planet and calls for new tools to measure wellbeing, democratic health, and ecological impact.
Mark Pawsey
Con
Rugby
Successful growth will be delivered through the effective role of the private sector. The economy and individual businesses face challenges such as supply chain problems, inflation, and workforce recruitment. Unemployment is at its lowest since 1974 and job vacancies are at a record high with more vacancies than people looking for work. Businesses struggle due to staff shortages which affect service levels and miss opportunities. There's a loss of experienced workers aged 50-70 who left jobs during the pandemic, many of whom would consider returning to the workforce under flexible conditions. The Government should focus on re-engaging this demographic. The ONS over-50s lifestyle study suggests that many left due to stress but are willing to return with a preference for part-time work and flexibility.
Dwyfor Meirionnydd
The Conservative party's economic record over the past 12 years has been marked by failures and ideological choices that have exacerbated the cost of living crisis in Wales. The Levelling-up and Regeneration Bill does not address previous mistakes or deliver for the future, falling short on promised funding and devolved power. Sources indicate a failure to maintain current standards across most of the UK, especially Wales. There is an urgent need for an honest funding settlement, devolved engagement, and focus on delivery rather than glossy announcements. The Queen’s Speech fails to address the underfunding of HS2 and its approach to rail infrastructure does not work with Welsh solutions. The lack of clarity in how the new UK infrastructure bank will align with devolved institutions is a concern. Plaid Cymru calls for an emergency Budget, including measures like a windfall tax and increased energy bill support. Additionally, there are missed opportunities such as the devolution of the Crown Estate and establishing a Welsh national energy company to support local renewable generation.
Kevin Hollinrake
Con
Thirsk and Malton
SMEs are crucial for driving economic growth. Competition is vital as it drives down prices, increases choice, and makes businesses more efficient. However, net migration into the UK dropped significantly in 2020, causing labour shortages that drive inflation. SMEs face challenges such as red tape at borders leading to a reduction in exports to the EU by 45%. There is a need for levelling up opportunities nationwide, especially focusing on productivity per capita gaps between northern and southern regions of England. Vital equity investment measures like EIS and SEIS should be extended beyond their current expiry date of 2025 with enhanced tax breaks. Regional mutual banks could play a significant role in expanding lending during economic crises to support SMEs.
Tan Dhesi
Lab
Slough
This Queen's Speech fails to address the pressing issues faced by ordinary Brits. It does not propose any real help for those struggling with high food and energy costs, soaring inflation, negative growth forecasts, insecure work, inadequate wages, and insufficient funding for local youth services and community safety. There is no mention of workers' rights or a plan to build 300,000 homes annually by the mid-2020s. The Speech also fails to tackle the issue of unsafe cladding in Grenfell-like buildings. Ministers should focus on decarbonisation, public transport improvements, and green industry jobs instead of privatising Channel 4 or arguing over human rights.
Welcomes the Queen’s Speech's focus on strengthening the economy and achieving economic growth. Supports investment in local infrastructure like the A50-A500 corridor, which is home to major manufacturing brands, to improve connectivity for business and create jobs. Advocates for levelling up towns with projects such as the £23.8 million award from the towns fund for Burton regeneration and a bid for the second round of the levelling-up fund. Promotes the brewing sector in her constituency and calls for a permanent hospitality VAT rate of 12.5% to support businesses hit hard by the pandemic and cost-of-living crisis.
Yasmin Qureshi
Lab
Bolton South and Walkden
The speaker expressed disappointment with the Gracious Speech for not addressing the cost of living crisis adequately. She highlighted several issues such as high inflation, slow economic recovery, rising interest rates, and falling real wages, emphasising the severe impact on constituents who must choose between heating and eating. Yasmin Qureshi criticised the Government's indifference towards ordinary people and quoted historical statements from key government figures that she believes reflect contempt for working-class individuals. She also addressed recent Home Office claims suggesting solutions like moving to better-paid jobs or taking on more hours, arguing that these are not practical options in her constituency. The speaker proposed a windfall tax on oil and gas companies to fund support packages for families, removal of VAT on energy bills for the lowest paid, increasing universal credit allowance, and expanding the warm home discount to help reduce energy costs.
Matt Rodda
Lab
Reading Central
During an intervention, Matt Rodda agreed with Yasmin Qureshi's assessment of the problem and emphasised the urgent need to address poor insulation in homes occupied by some of the poorest constituents. This highlights a specific issue that exacerbates living conditions for those already struggling financially.
Paul Howell
Con
Sedgefield
Supports the Queen's Speech and discusses the importance of economic growth, investment in manufacturing, resilience of national assets, and education policies such as lifelong loan entitlement. He highlights the significance of local businesses, clusters development, and existing platforms for enterprise like NETPark.
Mhairi Black
Lab
Paisley South
Critiques the Government's economic record, highlighting slow growth in G7, regional inequality, reliance on food banks despite employment. Calls for solutions like closing tax loopholes and creating a windfall tax for energy companies instead of Bills focused on cultural wars. Expresses concern over measures that undermine freedom of speech, assembly, and human rights. Raises fears about Britain's drift towards fascism.
Julie Marson
Con
Hertford and Stortford
Supports the Government's legislative agenda outlined in the Queen’s Speech. Acknowledges challenges posed by global events, including the pandemic and Russia's invasion of Ukraine. Emphasises the economic impact and stresses that Conservative government intervention has provided £400 billion to support lives and livelihoods, with current measures totaling £22 billion for fuel duty reduction, raising national insurance thresholds, increasing the national living wage, etc. Highlights the importance of supporting businesses and innovators in managing global crises.
Geraint Davies
Lab
Carmarthen West and South Pembrokeshire
Critiques the Government's economic policies, pointing out that while they claim a strong economy, food bank usage has increased 100-fold since Labour left office. Highlights inflation at a 40-year high due to tax increases and departmental spending freezes. Discusses Labour’s record of growth and public investment before 2010, contrasting it with the current debt-to-GDP ratio doubling under Conservative rule. Advocates for a windfall tax on oil companies benefiting from increased prices due to geopolitical events such as Russia's invasion.
Mark Fletcher
Con
Bolsover
Cherishes democracy in the UK, criticises flippant comments about it. Supports the Levelling-up and Regeneration Bill for Bolsover, Derbyshire, and the east midlands to address economic growth issues. Emphasises the need for devolution settlement and regional Mayors to facilitate investment. Discusses planning reforms to improve housing and infrastructure in areas like Bolsover. Highlights importance of public transport and post-16 education facilities. Welcomes conversion therapy Bill.
Margaret Ferrier
Lab
Rottenrow East
Welcomes aspects of the Queen's Speech but criticises its lack of attention to the cost of living crisis. Supports community regeneration projects like Shawfield in Glasgow for levelling-up investment. Advocates for flexible funding criteria and equitable distribution across nations. Discusses importance of access to cash, consumer rights, economic crime Bill, and energy security. Criticises government's inadequate response to the price cap crisis affecting households and businesses.
Anthony Browne
Con
West Sussex
Mr Browne supports the UK economy's strength despite facing challenges such as a pandemic and war, and emphasises the importance of economic growth to address issues like high inflation and cost-of-living crises. He advocates for Bank of England independence and calls for measures to promote higher economic growth, including improving skills, infrastructure, and innovation. He also highlights specific Bills aimed at businesses, praising their potential benefits and underlining the need for proper implementation.
Ben Everitt
Con
Milton Keynes North
Agrees with Taiwo Owatemi on issues related to planning systems but expresses optimism towards proposed solutions. Acknowledges economic recovery post-COVID-19 and innovation driven by government schemes such as the furlough and kickstart programmes. Emphasises Milton Keynes' potential for technological advancement, highlighting driverless car trials and Starship robots delivering groceries locally. Advocates for expansion of companies like Starship to support net zero targets. Stresses the importance of investing in education and institutions that can deliver necessary skills training for future jobs.
Kim Leadbeater
Lab
Spen Valley
The Prime Minister claims to be a man of action, yet the Queen's Speech lacks bold and transformational measures needed to address the cost of living crisis. Families in her constituency need an emergency Budget now for immediate relief and long-term financial security. The Government’s low-growth, high-inflation economy is causing hardship and mental health issues among constituents. She calls for fair taxation policies that help all citizens rather than just the privileged.
Chris Loder
Con
West Dorset
Welcomes several Bills in the Queen's Speech, particularly those relevant to rural areas such as his constituency of West Dorset. He highlights the need for levelling-up initiatives and improved access to procurement systems for small businesses. Supports measures in the transport Bill aimed at improving regional rail connectivity. Commends the Animal Welfare (Kept Animals) Bill for addressing animal welfare issues, including unnecessary non-stun slaughter practices.
Sarah Green
Lib Dem
Chesham and Amersham
The debate is marked by the lack of urgency in addressing the cost-of-living crisis. Sarah Green criticises the Government's failure to recruit sufficient police officers despite promises, highlighting a 29-officer shortfall in Thames Valley Police since 2021. She also expresses disappointment with the Home Office’s attempt to push through controversial legislation and welcomes the apparent shift towards giving communities more say over developments but urges for specific environmental protections. Concerned about transport funding neglect in her constituency despite the HS2 project, she calls for a reassessment of the latter's costs and benefits.
Supporting the Queen’s Speech, Duncan Baker emphasises the need to stimulate economic growth by boosting confidence among businesses and job seekers. He highlights the potential of rural areas like North Norfolk for economic development, noting that remote working has opened up new opportunities for work-life balance. The speaker also cites an example of a robotics company relocating its headquarters to his constituency as evidence of economic growth possibilities in rural regions.
Martin Docherty
Lab
West Dunbartonshire
Discussed the sustainability of economic growth, highlighting issues such as energy storage and transportation. Criticised unthinking deregulation that favours rentier capitalism over an economy focused on doing things rather than having them. Emphasised the importance of public ownership and regulation of key industries to ensure resilience against external shocks.
Tahir Ali
Lab
Birmingham Hall Green and Moseley
Criticised the Government for a lack of ideas and leadership in addressing the cost of living crisis. Highlighted issues such as inflation, wage stagnation, and rising costs impacting small businesses and consumers. Called for a windfall tax on oil and gas companies to help with energy bills and criticised recent legislation like no-fault evictions.
Jonathan Reynolds
Lab Co-op
Stalybridge and Hyde
Reynolds criticised the Queen’s Speech for not addressing pressing issues such as high inflation, soaring energy bills, food price increases, and widespread food poverty. He argued that economic growth under the current government has been slower than historical averages and called for immediate action through an emergency Budget and a windfall tax on oil and gas profits to cut household bills. He also highlighted the absence of promised measures like the employment Bill which would improve flexible working rights, ban fire and rehire practices, and reform sick pay policies.
Rachel Reeves
Lab
Leeds West
She presented an argument against the Government's policies, advocating for more regulation and higher spending to combat inflation.
Nadia Whittome
Lab
Nottingham East
Her speech was seen as a continuation of socialist policies that oppose the current government’s deregulation efforts.
Alison Thewliss
SNP
Glasgow Central
She criticised the lack of funding from Brussels and highlighted specific financial support provided by the UK Government for Scotland, including city growth deals and green freeports.
Asked the Minister to update on progress towards reducing the punitive 150% tariff on Scotch whisky, which impacts approximately 400 jobs in his constituency.
Welcomed from the Dispatch Box the first overseas deal that was cut between Northern Ireland and Australia, highlighting a partnership between Wrightbus in his constituency and Volgren in Australia to put hydrogen buses on Australian streets.
Tan Dhesi
Lab
Slough
Asked whether it was right for more than £4 billion to be written off as unrecoverable fraud. Also questioned if the Minister who resigned over this matter was wrong to do so on a principle.
Emphasised that leaving EU regulations offers an historic chance for innovation and regulatory reform, reducing business regulation costs which are too high. Highlighted the opportunity to remove bad EU law with a Brexit freedoms Bill and proposed a Procurement Bill to ease life for small businesses.
Government Response
The Government has responded to the challenges posed by global inflation and supply chain disruptions through a variety of measures, including supporting businesses with tax incentives and encouraging investment in key sectors such as technology. Clarke also highlighted the importance of the UK Infrastructure Bank and its role in boosting private sector confidence and unlocking further investment. He emphasised that these policies aim at creating conditions for economic growth, which is crucial to addressing cost-of-living challenges.
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