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Government's Management of the Economy
23 February 2021
Lead MP
Anneliese Dodds
Debate Type
General Debate
Tags
Business & TradeBenefits & Welfare
Other Contributors: 63
At a Glance
Anneliese Dodds raised concerns about government's management of the economy in the House of Commons. Other MPs contributed to the debate.
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
Ms. Dodds argues that the UK's economic policies over the past decade weakened its economy, making it particularly vulnerable during the coronavirus crisis. She calls for a new partnership between an active state and enterprising business to address deep inequalities and injustices. The lead MP also highlights specific issues such as reversing planned cuts to Universal Credit, reversing key worker pay freezes, providing councils with necessary funding, introducing a British Recovery Bond, and supporting small businesses through start-up loans.
Edward Leigh
Con
Gainsborough
Mr. Leigh questions the lead MP on whether she would make a commitment that any future Labour Government would not spend a greater proportion of national income on the public sector, echoing previous pledges made by Mr Blair and Mr Brown.
Steve Barclay
Con
North East Cambridgeshire
The speaker emphasised the economic and fiscal recovery achieved by the coalition government from 2010, highlighting growth in employment rates across demographics, increases in household income for lower-income households, and significant foreign direct investment. The UK's ability to respond effectively to the pandemic was attributed to its strong public finances due to previous fiscal discipline.
Alison Thewliss
SNP
Glasgow Central
I thank the Opposition for bringing this motion to the House. The UK's resilience has been weakened by Tory cuts and chronic underinvestment in public services, leaving the country ill-equipped to handle the economic impact of coronavirus. I congratulate Labour on catching up with what Scotland already knew: 10 years of damaging austerity and Brexit uncertainty have led to a potential recession even before the pandemic. Labour market statistics from January 2021 show 726,000 fewer people in payroll employment, with a disproportionate impact on young people under 25. The government has failed to address issues such as zero-hour contracts, exploitative minimum wage rates, and fire-and-rehire practices. I argue for devolving powers over employment law to the Scottish Government and extending furlough until at least June 2021. Labour's recovery bonds are unnecessary complications; instead, money should be spent on increasing universal credit and ending harmful policies such as the benefit cap and two-child limit. The government must keep and extend the £20 uplift to alleviate poverty and destitution levels rising under their rule.
Andrew Mitchell
Con
Sutton Coldfield
No other Government in the western world have given such extensive taxpayer support as this UK Conservative Government. Despite fiscal tightening from 2010, which included budget cuts and austerity measures, Britain had the strongest recovery among G7 countries and created more jobs than any previous government. The deficit fell consistently, and we introduced the national living wage while increasing NHS operations and reducing crime. We were also the top recipient of inward investment in the G20. I am proud that our Government kept its promise to spend 0.7% of GNI on international development, urging against breaking this commitment now.
Gareth Davies
Con
Grantham and Bourne
Proud of the UK's lowest unemployment since the 1970s before the pandemic, helping an average of a thousand people into work daily. Emphasises appreciation for businesses, reducing deficits in good times, and providing a fiscal environment that encourages enterprise, innovation, and ambition.
Tonia Antoniazzi
Lab
Gower
Concerned about the financial struggles of constituents due to Tory austerity over eleven years. Highlights issues faced by single parents struggling with debt, precarious employment, and universal credit problems. Questions whether the Government has considered reforming universal credit post-pandemic.
Acknowledges the need for fiscal resilience when the financial crisis struck but criticises Labour's approach of ignoring economic challenges during their tenure. Highlights tax cuts and reductions in income inequality under Conservative rule, advocating that more needs to be done regarding in-work poverty.
Paula Barker
Lab
Liverpool Wavertree
Barker criticises the Conservative approach, highlighting a brutal squeeze on living standards, precarious employment, and significant cuts to public services. She warns of further austerity measures following the pandemic, arguing it leaves workers exposed to economic chaos.
John Lamont
Con
Berwickshire, Roxburgh and Selkirk
Lamont defends Conservative policies, noting that when they took office in 2010, the deficit was high, borrowing rates were unsustainable, and unemployment was up. He argues their actions reduced the deficit by over 80%, halved unemployment, and increased employment to record highs.
Feryal Clark
Lab
Enfield North
Clark criticises the Government's approach to local government funding, noting cuts of over £170 million on Enfield. She warns that a council tax increase will harm communities and undermine public services essential for recovery.
Debbie Abrahams
Lab
Oldham East and Saddleworth
The shadow Chancellor showed a lack of understanding of the current situation. There is a moral imperative to protect citizens from poverty and destitution through social security. The report by the all-party parliamentary group on health in all policies shows that the Welfare Reform and Work Act 2016 has driven poverty and affected children and disabled people disproportionately. Child poverty increases lead to higher infant mortality rates, lower educational attainment, and decreased life expectancy.
Between 2010 and 2019, under a Conservative Government, an additional 3.8 million people were employed in the UK. During the pandemic, the Chancellor's schemes supported businesses across the country, including £7 million in coronavirus business interruption loan scheme loans and over 3,400 employees furloughed in Ynys Môn.
Tan Dhesi
Lab
Slough
The coalition agreement prioritised deficit reduction, leading to cuts across public services, with the poorest suffering most. During the pandemic, food banks saw a 37% increase in demand. The pandemic revealed both the resilience of communities and the fragility of public services due to years of neglect.
Chris Clarkson
Con
Bolton North East
Clarkson criticised Labour Members for their lack of coherent policy proposals, highlighting the Government's achievements in economic recovery since the pandemic. He emphasised that the government had managed to lift millions out of income tax and reduce the national deficit by 80%, contrasting this with Labour's record of economic mismanagement.
Grahame Morris
Lab
Easington
Morris highlighted the weaknesses in the UK economy exposed by the pandemic, criticising the Conservative government for undermining public services and increasing national debt. He also pointed out that real-terms wages have fallen year on year for 10 years.
Julie Marson
Con
Isle of Wight
Marson defended the Conservative Government's economic policies, stating that they had managed to reduce Labour's deficit by 80% and supported the NHS through the pandemic. She also criticised Labour for offering no vision for the future.
Claire Hanna
SDLP
Belfast South and Mid Down
Hanna called for social democratic approaches to transform the economy, arguing that existing inequalities have been exposed by the pandemic. She emphasised the need for a real living wage and maintaining the universal credit uplift.
Labour's criticism of economic failure is misplaced; under Conservative governance, Stoke-on-Trent has seen a local economy renaissance following decades of Labour neglect. Policies such as the climate change levy were reversed to support manufacturing growth and economic stability. The Government’s focus on levelling up opportunities will continue to build back better post-pandemic.
Angela Eagle
Lab
Wallasey
Since 2010, Conservative Governments have embraced a market fundamentalist approach, using the global financial crisis as an excuse for deep cuts and tax breaks for top earners. This has led to increased poverty, weakened public services, and inadequate preparation for crises such as the current pandemic and Brexit. The Government's response reveals their ideological choice rather than economic necessity.
Jerome Mayhew
Con
Broadland and Fakenham
The past decade has seen decisive action to repair public finances while maintaining growth, reducing the deficit by over 80%. This financial stability allows for substantial pandemic support. Conservatives have also reduced inequality and improved living standards for low-paid individuals compared to pre-2010 levels. The motion's call for increased public sector pay lacks fairness given private sector wage declines.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
The gig economy has exacerbated structural inequalities, with black and minority communities more vulnerable to unemployment and death due to the pandemic. Time is needed to reform this economy for a fairer recovery post-crisis.
Lee Rowley
Con
Warley
Scratching his head at the Labour motion, Lee Rowley argues that the past decade's UK economic policies have repaired much of what was left in disarray by Labour. He highlights achievements such as record employment rates and tax cuts, while criticising Labour for lacking credible alternative policies.
Suzanne Webb
Con
Stourbridge
Suzanne Webb emphasises the economic growth under Conservative Governments over nine consecutive years, including tax cuts and a reduction in inequality. She also praises the unprecedented financial support during the pandemic, stating that this is on solid foundations laid by sound fiscal management.
Dave Doogan
SNP
Angus and Perthshire Glens
Doogan criticises Conservative economic policies for increasing national debt significantly. He notes the government's failure to protect vulnerable workers during the pandemic and highlights Scotland’s superior growth rate compared to the UK since devolution.
Ben Everitt
Con
Dorset West
Everitt argues that Labour took their eye off economic stability, leading to a banking crisis. He contrasts this with nine years of Conservative-led economic growth and fiscal responsibility, highlighting record employment rates.
Toby Perkins
Lab
Chesterfield
The Chancellor's decision to not respond to the debate about past economic policies is telling and likely due to a desire to distance himself from them. The coalition Government in 2010 did not inherit an economy that was shrinking or a ballooning deficit as claimed, but rather one growing at 1.7% before austerity measures were implemented, which stifled recovery efforts. George Osborne's decision to cut school and college building programmes, NHS spending, and local government services was both economically unwise and politically motivated. The current Government must avoid repeating past mistakes.
The Opposition is attempting to deflect blame from their own record during the 2008 crisis by pointing fingers at the current Government for inherited economic challenges. Since 2010, our economy has grown faster than Italy, France and Japan, with Conservative Governments creating a robust foundation that allowed us to tackle the pandemic effectively. The growth of 19% since then underscores our ability to address crises while maintaining financial stability.
Olivia Blake
Lab
Sheffield Hallam
The aftermath of the 2008 crisis has led to insecure employment conditions and a widening gap between the rich and poor. Despite claims that the public sector was protected, many in it face substantial workloads and low pay, particularly nurses who currently have a significant number of unfilled positions. The private sector also struggles with issues such as zero-hour contracts which rose from 143,000 to nearly a million by 2016. These conditions are exacerbated during the pandemic, where furloughing is less likely for low-paid workers due to job insecurity and financial constraints.
Bury South
Wakeford highlighted the Conservative government's economic management since 2010, emphasising that despite criticisms from Labour and others, employment reached a record high before the pandemic. He noted significant tax cuts for millions of taxpayers and improvements in national insurance thresholds, leading to more money flowing into local economies. Additionally, he praised investments in infrastructure, healthcare, and levelling-up initiatives. Wakeford also criticised Labour's track record of economic mismanagement and austerity policies.
Dwyfor Meirionnydd
Saville-Roberts thanked the Opposition for organising the debate but pointed out that both Labour and Conservatives have contributed to economic mismanagement in Wales. She highlighted the structural inequalities within the UK, particularly regarding fiscal disparities between regions. Saville-Roberts criticised Conservative austerity measures as well as Labour's lack of effective action while in power in Wales. She urged the Chancellor not to introduce premature tax rises but instead focus on business investment and support for long-term unemployment.
Gibson emphasised that the Conservative government's careful economic management has allowed significant financial support during the pandemic, including substantial infrastructure investments in Darlington. He criticised Labour for mismanaging the economy over a decade and highlighted the reduction of the deficit by 80% under successive Conservative governments. Gibson praised the Conservatives' plans for record investment in the NHS, railways, roads, education, and left-behind communities.
Stephen Kinnock
Lab
Aberafan Maesteg
Kinnock criticised the Conservative government's failure to recognise the importance of partnership between business and state for economic growth. He pointed out underinvestment in research and development compared with other countries, as well as a lack of support for British manufacturing and critical infrastructure supply chains. Kinnock proposed measures such as incentivising young businesses through start-up loans and fostering long-term investment over short-term gains.
The speaker criticises Labour's economic mismanagement and highlights the Conservative party’s success in repairing the damage left by previous Labour governments. He mentions that when they took over in 2010, there was a deficit of £153.1 billion which was reduced through conservative policies leading to nine years of uninterrupted growth. The speaker also notes the positive impact of start-up loans on entrepreneurs.
Kate Osborne
Lab
Jarrow and Gateshead East
The speaker argues that a decade of Conservative spending cuts has weakened the economy, making it unprepared for crises such as the pandemic. She advocates for extending the coronavirus job retention scheme, outlawing 'fire and rehire' practices by employers, maintaining the £20 a week uplift to universal credit, and providing economic certainty during recovery.
Mary Foy
Lab
City of Durham
The speaker discusses how austerity policies have made communities more vulnerable to the pandemic. She calls for an immediate extension of the furlough scheme, a pay rise for key workers, and highlights the importance of economic support alongside restrictions to keep people safe. The underlying vulnerability caused by poor health conditions due to previous cuts should be addressed with new initiatives aimed at reducing inequalities.
Robbie Moore
Con
Keighley and Ilkley
Critiques the Labour party's economic vision, stating it lacked substance and failed to address the challenges of the pandemic. Emphasises that the Conservative government entered the crisis with a sustainable level of public finances, which allowed for significant financial support during the pandemic.
Zarah Sultana
Lab
Coventry South
Highlights the disproportionate impact of the pandemic on the most vulnerable and exposes instances of corruption in the handling of covid contracts. Advocates for a green new deal that combats social injustice and climate change through investment in green technology, infrastructure, and services.
Aaron Bell
Con
Newcastle-under-Lyme
Defends the Conservative government's economic policies and argues that difficult decisions over the past decade allowed for a strong response to the pandemic. Highlights achievements such as record employment levels, reduced inequality, and increased investment in towns.
Kevin Hollinrake
Con
Thirsk and Malton
Labour's motion criticising the past decade of UK economic policy is misguided. The Labour Government inherited a strong economy but later overspent, leaving behind a £153 billion annual deficit before the crisis. They offer no solutions to current issues like rising debt and demographic challenges, only criticism.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
The Conservative economic system led to over-reliance on precarious jobs and corporate debt, with austerity measures failing to drive growth. Local council budgets were cut by £138 million, public health grants decreased, NHS staff shortages persist, homelessness increased, food bank usage rose, and wage stagnation continued. The Government's rhetoric during the pandemic was hollow, as they downgraded the public sector’s crisis response capacity.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
European Union investment in infrastructure projects across Scotland helped arrest depopulation. The shared prosperity fund is crucial for continued development post-Brexit. Additionally, the proposal to site a vertical space port in Sutherland could provide significant employment opportunities and income for the UK.
Kim Johnson
Lab
Liverpool Riverside
The Government's actions have increased wealth disparity, with billions squandered on private firms that failed to deliver essential services. The practice of fire and rehire is now being increasingly used by employers to exploit their staff. British Gas engineers have been standing on picket lines for months, risking exposure to covid-19 while ensuring homes had heat and power. Their struggle highlights the potential domino effect of job insecurity across the country.
Jim Shannon
DUP
Strangford
The DUP acknowledges the Government's regional strategy and support during the pandemic, which has helped to maintain employment levels despite the economic downturn. However, the deficit is now expected to be £384 billion higher than anticipated, highlighting the need for continued investment in our workforce as a means of recovery. It is crucial that we support small businesses and self-employed individuals who are struggling during this time.
James Murray
Lab Co-op
Ealing North
The UK entered the pandemic with shaky economic foundations, exacerbated by Conservative policies over a decade. The Chancellor's decisions have undermined public health efforts and left us with one of the worst economic crises among major economies. We need fiscal measures that stimulate job creation and investment, such as start-up loans for businesses and long-term financial planning to address long-term challenges like social care, housing, and climate change.
Steve Barclay
Con
North East Cambridgeshire
The House is united in its desire to build a stronger economy, but the Labour party seems focused on past failures. The coalition Government inherited unsustainable public finances and an economy in deep malaise, but worked to bring the national finances back to strength, reducing the Budget deficit and increasing employment by over 3.8 million people since 2010.
Christine Jardine
Lib Dem
Edinburgh West
Not specified in this text block but referenced as wanting to discuss past Labour policies.
Mitchell
Con
Sutton Coldfield
The Leader of the Opposition is following the Government's agenda on levelling up. The last Labour Government was borrowing £1 for every £4 they spent.
Gareth Davies
Con
Grantham and Stamford
Before covid, unemployment levels were at their lowest since the 1970s, thanks to reducing the deficit in good times to be stronger during bad times.
Paul Maynard
Con
Blackpool North and Cleveleys
The financial resilience now is due to difficult decisions taken over the last decade. The top 1% pay a greater share of tax than under the previous Labour Government.
Clarke
Con
Middlesbrough South and East Cleveland
The bold plans to build back better offer opportunities for areas such as Teesside.
John Lamont
Con
Berwickshire, Roxburgh and Selkirk
The deficit has been reduced over the last decade, ahead of the pandemic, enabling us to enter it from a position of strength.
Lee Anderson
Lab
Ashfield
The Government is making practical differences in constituencies like Ashfield with funding from future high streets and towns funds, unlike wasteful PFI schemes under Labour.
Virginia Crosbie
Con
Ynys Môn
Covid support has made a material difference in her constituency.
Chris Clarkson
Con
Heywood and Middleton
The briefing for the Leader of the Opposition’s speech was akin to Beveridge reports but contained little substance.
Julie Marson
Con
Hertford and Stortford
Resilience from decisions over the last decade enabled the package of covid support, praised by the IMF and others.
Jack Brereton
Con
Stoke-on-Trent South
Increased prosperity in constituencies such as his is a source of pride for what the Government is delivering.
Jerome Mayhew
Con
Broadland
The reduction in the deficit by more than 80% since Labour was last in power enabled the Chancellor's package of support.
Lee Rowley
Lab
North East Derbyshire
Over the last decade, the economy has been turned around from that inherited from the previous Labour Government and their fixation on simply spending more.
Suzanne Webb
Con
Stourbridge
The economic response was unprecedented, particularly in supporting jobs and businesses with the Chancellor’s £30 billion plan for jobs.
Bury South
Nine years of economic growth have been delivered through tax cuts and schemes like the national living wage. The poor delivery of Labour local authorities is in contrast to this.
Peter Gibson
Con
Darlington
Government support has helped businesses in his constituency, and it is crucial for the levelling up agenda.
Imran Ahmad Khan
Lab
Wakefield
The economic legacy left by Labour after its time in government was poor compared to the growth and repair of public finances seen over the previous decade.
Kevin Hollinrake
Con
Thirsk and Malton
Labour's policy proposals have flaws, with little substance brought forward during this debate.
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