John McDonnell MP Blog Headlines
The Governor has made an important intervention in the discussion about the future direction of our economy. He is right to point out that there have been losers as well as winners from free trade.
We are going through a lost decade in earnings growth, as the Governor highlights, and the fundamental crisis of productivity will not be solved without major government investment, backed up by an industrial strategy, that can deliver growth in high potential new areas like renewable technology.
The Governor hits the nail on the head in calling for societies to redistribute the gains from trade and technology and to educate and empower its citizens.
Labour in government is committed to tackling the challenges outlined by the Governor of rising inequality, low wage growth, and driving up Britain’s productivity growth so that no-one and no community is left behind.
Today’s Statement places on record the abject failure of the last six wasted years and offers little hope for the future.
The figures speak for themselves: growth down; wage growth down; investment down.
The deficit target, failed. The debt target, failed. The welfare cap, failed.
The verdict could not be clearer.
The so-called “long term economic plan” has failed.
As the Treasury’s own leaked paper revealed, they knew it had failed before the referendum result was announced.
And we now face Brexit, the greatest economic challenge of a generation, unprepared.
The new Chancellor acknowledged the failure himself in October, when he promised a “reset” of economic policy.
“That this House notes with concern the £3.4 billion reductions to the work allowance element of universal credit and the £1.4 billion reductions to employment and support allowance; calls on the Government to reverse those reductions; and further calls on the Government to reintroduce detailed distributional analysis for the Autumn Statement and all further Financial Statements, as was done between 2010 and 2015.”
I want to explain the genesis of the motion I and my honourable friends have tabled for today’s debate.
Traditionally we would seek to hold an Opposition Day debate and use it to have a wide ranging debate second guessing and commenting on what we predict is to be contained in the Autumn Statement. This year we want to try something different.
A radical break with that tradition because next week could be the last chance to head off what is shaping up to be a harmful disaster for many low earners and vulnerable people in our society.
So we have taken two significant issues that are contained in the budget plans announced earlier this year by the Chancellor’s predecessor and which the new Chancellor has the ability and opportunity to intervene upon and reverse.
The first is the plan to cut universal credit and Employment Support Allowance.
And for the later debate, the issue of funding social care.
In withdrawing the ESA and Universal Credit proposed cuts, the new Chancellor would dramatically beneficially impact upon the lives of many, many of our fellow citizens who are low earners but also through their disability often the poorest and most vulnerable in our society. We want to see today if we can assemble across the House a moral...
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