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Queen's Speech 2014

Ms Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op):

It gives me great pleasure to react to today's Gracious Speech.

Today's Queen's Speech should have laid out a grand plan for this country, tackled some of the issues that matter to my constituents and set the tone for how the general election will be fought in a year's time. It should have raised the level of that debate and ensured that the Government of the day addressed the issues that matter to people. Sadly, it falls short on those points, possibly because the coalition has run out of steam as a working operation.

Any Government need to act to improve people's lives, but we heard a rather ragtag set of measures that will go only part of the way to tackling some issues. I want to touch on three of those issues in particular, and on a number of smaller issues that Her Majesty mentioned earlier today. I will touch first on housing, which is a huge issue in my constituency, secondly on the child care measures that the Government are introducing, and thirdly on infrastructure, particularly broadband, which is crucial in my constituency.

Housing is a huge issue in Hackney South and Shoreditch and in Hackney borough as a whole. Prices are rising for those who want to buy homes, and rents are spiralling out of control, yet alongside those seismic economic changes there has come no greater security for highly mortgaged home owners or private tenants. I say "seismic" because the average house price increase in Hackney from 2013 to 2014 has been 19%, which is not affordable in any way and is causing a great deal of difficulty. Although this was not in the Gracious Speech, the Government's calls for social housing rents to increase to 80% of those private rents are pricing the poorest, the low-paid and the moderately paid out of my city and my borough. I applaud Hackney council"”led by the newly elected mayor, with 59% of the popular vote"”for standing up to the Government and saying, "No, Hackney will not raise rents on new social housing to 80% of incredibly high private rents".

I mentioned high rents, so perhaps I should give the House a couple of examples"”I imagine they are rather different from rents in your constituency, Mr Speaker, affluent though it may be. The median gross monthly rent for a one-bedroom flat in Hackney between October 2012 and September 2013 was £1,235, and for a three-bedroom flat it was just short of £2,000 at £1,993"”out of the reach of families. If we add to that child care costs and the other costs of living that we know are causing families trouble, and which my right hon. Friend the Member for Doncaster North (Edward Miliband) is constantly highlighting, how can a family afford to rent privately in Hackney? My constituency has more people renting privately than owning outright, with 12,899 people renting privately and 10,394 owing their homes. This is a real issue now for people, but what have the Government said about it in today's Gracious Speech? Nothing. That is in contrast to those on the Labour Front Bench, who I am pleased to say are looking at reform.

I declare an interest as a landlady. I welcome the measure to introduce three-year tenancies when tenants want them, putting power in the hands of tenants. With the 19% increase, the average property price in Hackney has risen from £441,000 last year to £525,000. Again, what family can afford that? Banks are constantly restricting borrowing, and even with the Government's initiatives to try to improve borrowing, the problem in Hackney is not even scraped.

What is the solution? It is, of course, to build more homes. I was pleased to hear Her Majesty say that the Government will sell Government land for housing, but I am somewhat sceptical of that promise because over 20 years we have seen"”I have seen this directly as an elected representative in London"”how Treasury rules have stymied such moves at each stage. I remember being a councillor in Upper Holloway in the constituency of my hon. Friend the Member for Islington North (Jeremy Corbyn) when the Royal Northern hospital site was being sold off and we sought to turn that into housing. What better legacy could there be for a former hospital than to improve public health by having decent, family housing for people in need? But no, it had to be sold, mostly for private housing and to the highest bidder.

Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab):

That point accentuates the difference between the Opposition and the Government. When the right hon. Member for Wokingham (Mr Redwood) talked about giving people the opportunity to buy houses, it demonstrated an obsession by the Government with buying homes, even though a lot of people are looking for rented, affordable accommodation and do not want to buy homes. The numbers that my hon. Friend gave the House demonstrate why they cannot buy a home, and that is why we should build more council houses.

Ms Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op):

Absolutely; I completely agree with my hon. Friend. We need a complete, radical overhaul of the rental market so that it is a stable, long-term investment for investors that provides stable long-term housing for families. One reason there has been discussion about the three-year tenancy is that many single young professionals do not want to tie themselves down, but families do. What family would choose to rent privately if they did not have to? They are pushed from pillar to post.

The Government talk about Government-owned land being made available, and we need clarity on that, which I will be seeking over the next days, weeks and months. For example, does it include land owned by the national health service's PropCo? That amorphous body was set up and has snatched land from the hands of local communities"”land such as the St Leonards hospital site, which was passed to the centre of the NHS and PropCo, rather than being available for local decisions and local housing. That site is now in the hands of a central organisation. Local people are crying out for affordable, decent homes, but what is the incentive for PropCo to provide that? As with all Departments, the incentive is to maximise income from the sale of the land, which does not mean social housing. Social housing will not provide maximum revenue, but it will give long-lasting social and economic benefits to hundreds and thousands of families across London and the UK who really need it. Those people are working but cannot afford to rent or buy in the private sector, and they certainly do not qualify for other social housing. We need to increase the supply to make that more available.

I represent one of the youngest constituencies in the country with more than one in five Hackney residents under the age of 16. I think"”rather to my horror given that I am a shade over 21 these days"”that more than a third of residents are under 35. Those taxpayers of the future"”those young people"”need access to quality child care and early years education. Their parents need affordable, available child care to help them to work when they want and when they can do so. Instead, the Government take a muddled and ineffectual approach. The Queen's Speech includes a £2,000 cashback offer for a working parent if they spend £10,000 up front on child care, but for many parents who access workplace child care vouchers, such as me, the existing system works. Instead of adjusting a system that works and perhaps extending it, the Government want to rip it up and start again, adding complexity to the system and confusion for parents. Many child carers might have to register with new schemes. Only this Government would reinvent the wheel to make things more confusing.

The Government are promising to give with one hand, but let us not forget that, with the other, they have removed certain child tax credits and child benefit from higher income earners, of whom there are a number even in my poor constituency. If someone has three children, they would have to earn £4,000 gross extra in order to replace the child benefit. The giveaway is a little less generous for many.

To make matters worse, there are rumours"”I hope the Government will clarify them"”that Atos will run the new scheme. Atos was ripped to shreds in the Public Accounts Committee, of which I have been a member, for its abhorrent handling of the personal independence payments contract. I hope that, if the Government are minded to go ahead with that crazy approach"”reinventing the wheel by introducing the new scheme of which I cannot see the benefits compared with current provision"”they take a sensible approach on who delivers it. I am not here to protect the reputation of the Government, but I am here to protect the parents who will use the scheme and who need it to help to pay for their child care. You could not make it up, Mr Deputy Speaker. It is like an episode of "Yes, Minister". Ministers are not saying yes or no and are confused about what they are trying to do.

I am perhaps more radical than Opposition Front Benchers because I have previously called for a child care revolution in the UK"”the shadow Chancellor would probably not like to commit to that, but I am working on him. I look to Denmark as an example. The day care Act there means that local councils provide 8 am to 5 pm child care for everyone. The better-off contribute and the poorest get free child care. We see that in some exemplary local authorities in the UK. My children have been through local authority child care where people pay according to their means, which means that children mix and get good quality child care. It is not universal, but I would like it to be universal. In Denmark, the provision means that 76%"”more than three quarters"”of women work. Child care is a priority in Denmark and other parts of Scandinavia, and children and parents are at the centre.

Mr Angus MacNeil (Na h-Eileanan an Iar) (SNP):

The hon. Lady makes a good point on child care. When women are back in the workplace, increased tax revenue pays for those very schemes.

Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op):

In the past when I have raised that in the House, Government Members have accused me of saying, "Women must work and should always work." I am a great supporter of maternity leave and benefits, which allow women to take a good year off when they are nursing their child. Those who can afford it and find a way can take longer. Women are the first educator of children and it is important that people make their own choices, but many women"”women at the school gates whom I have met over the years"”want to work and often have to give up work or reduce their working hours because of the lack of affordable, available, safe and secure child care.

For the economic recovery, that proposal is a no-brainer. We need everybody on board the boat to be rowing in the same direction. Allowing parents and particularly women to work is crucial. That proposal makes economic sense, gives women full access to the workplace and removes the discrimination that exists for women who are parents.

I was interested to see that the Queen's Speech includes an infrastructure Bill. I am not privy to the No. 10 press briefing, which has the full details, but according to leaks to today's papers and other information, the Bill does not include broadband. I believe it should, and I am not alone. I represent an inner-city constituency where speeds and physical connectivity are woeful and inadequate for many businesses, and yet for the past couple of years everybody has passed the buck, saying, "It is somebody else's fault and somebody else's problem." The Public Accounts Committee has seen the well-documented problems with the rural broadband programme. I am frustrated"”I am not the only one"”by the intractable nature of this problem, with everyone blaming somebody else and even BT saying that in Shoreditch in my constituency only two thirds of businesses have access to fibre-optic broadband. Quite simply, the Government have to get a grip. The Bill could provide a vehicle for that, but some issues do not need new legislation. Some of this is about enacting what can already be achieved through existing measures.

I ask the Government to do two things in particular. First, they should recognise that universal superfast broadband is as much infrastructure as a new road or railway. Infrastructure is not necessarily about big physical projects, and universal superfast broadband is vital to the future of Britain's economy and to equality across the piece. Secondly, the Government should come up with an affordable plan that delivers infrastructure and, critically, a competition regime that delivers for households and businesses.

There are a few other measures that warrant a mention. The draft riot damages Bill is very welcome and I give the Government credit for that. I saw the challenges at first hand that businesses in my constituency suffered after the August 2011 riots. I think of Siva in his shop on Clarence road, which I visited the day after it was trashed. It was his life's work. He had worked seven days a week for nine years or so to support his young family and to establish them here in the UK. He saw his livelihood damaged. Steps to improve, speed up and simplify access to funds are vital if riots happen again, although I hope the draft Bill is never needed. I will be watching the detail to ensure that my experience, and those of other colleagues whose constituencies suffered, will be taken into account. I hope Ministers are listening to that experience in drawing up the proposed legislation.

On access to business finance, I welcome anything that improves the delivery of finance, in particular for small and medium-sized enterprises. I was in Shoreditch yesterday for the launch of LaunchPad Labs, which is helping small and medium-sized enterprises to set up by providing mentoring and access to financial advice. There is a critical difficulty for a business when turnover reaches about £20,000 and needs to grow to about £60,000"”the financing challenge. At the moment, the Government's track record has been woeful. Project Merlin promised a lot in encouraging banks to lend more, but it is not delivering for businesses. Frankly, high street banks are derelict in their duty. They do not understand businesses in their community and they are not lending to them properly. The correlation between people's borrowing and the lending that banks do back to the community does not match. In all the discussions on finance, we are letting high street banks off the hook.

On pubcos, I have already seen too many pubs close in my constituency. This is probably too little too late for many, but any measures that begin to put power back into the hands of landlords"”business people trying to run their businesses"”and away from the big companies that force a particular business model on them, can only be welcomed.

On public sector redundancy clawback, we understand that the Government may be offering to claw back the money from people who have been made redundant and are then rehired, particularly in the NHS. I have raised this issue in the House repeatedly. My simple view is this: if it is the same pension scheme it is the same employer. If someone who is made redundant takes a redundancy package and then gets a job with the same pension scheme within a few weeks, that redundancy payment is null and void and should be returned.

I acknowledge and support some of the proposed measures relating to the plastic bag tax. People use far too many plastic bags. From my many trips to the Republic of Ireland, I know that a tax can change attitudes. We have to be careful, however. We must not get too excited and think that a tax simply solves the problem. The British Plastics Federation, which is based in my constituency in Rivington street, has told me that carrier bags make up 0.02% of household waste in the UK.

Mr Jim Shannon (Strangford) (DUP):

Northern Ireland is an example of how well it can be done. It has achieved an 80% reduction in the use of plastic bags and contributed £6 million to the Department of the Environment to use on environmental and consultation projects. It can do good even in a small place such as Northern Ireland, which has a population of 1.75 million people.

Ms Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op):

I thank the hon. Gentleman. Both Northern Ireland and the Republic of Ireland have set an example for the British Isles on this measure. I am in broad support, but we should look closely at measures on which the House agrees because of potentially perverse outcomes. Keep Britain Tidy says that carrier bags account for about 3% of the rubbish at sites that it observes. With DEFRA acknowledging that re-use stands at about 78% to 80%, with up to 50% of plastic bags taken from a supermarket being used as bin liners, we need to be clear that if people are not getting plastic bags at the supermarkets, they may well be buying bags elsewhere, so we need to think more about the consequences. It is about looking at the issue in the round. In Northern Ireland and Ireland"”Eire"”I have seen this working.

On a recent visit to Rwanda with the Commonwealth Parliamentary Association, I discovered, after arriving there and turning up at the presidential palace with my leaking mosquito repellent in a polythene bag, that the country had some time ago banned all polythene bags. Happily, I was let into the presidential event, after my polythene was confiscated on the way in, but it showed that a country such as Rwanda"”20 years ago it faced a horrific situation"”can make many strides ahead of the UK on the issue. I support the Bill, but believe that we need to reflect more on the consequences.

We have talked a lot about the successes following the Olympics, but very little, I think, about the Olympic legacy. As an MP representing a constituency that hosted part of the Olympics and still has the Copper Box and other Olympic facilities, I know that we have not seen the dividends that we should have done. For physical activity across the board, we have seen activity levels rise, but it is the same active people doing more rather than inactive people taking up sport.

I believe the Queen's Speech provided an opportunity for the Government to revisit the issue of VAT on some fitness activities. In my constituency and many others up and down the country, GPs have for many years prescribed fitness activities at the local leisure centre, but when that prescription runs out, individuals have to pay if they want to continue, with the taxman"”or, with Lin Homer as the permanent secretary, the taxwoman"”taking a cut very quickly. A tax of 20% on fitness seems perverse, reducing the likelihood of people continuing with their health measures. I am not talking about reductions for luxury gyms, as the issue is sometimes reported, because many of my constituents are very poor and have to count every penny in every pound at the end of the week. Constituents such as a young woman who came to see me at my surgery the other week"”she is contemplating surgery to deal with her weight problem, but she is not on a high income; she is a single parent not working at the moment but wanting to work"”find it hard to pay for these things. She wants to be fit and active and to live long so she can be a good mother to her child, but having to pay an extra 20% for her fitness regime would make a considerable difference, possibly putting her off continuing with it.

There is, then, a little to be welcomed in the Queen's Speech, but I think it is a missed opportunity, failing to tackle the cost-of-living issues that my constituents and people I have spoken to elsewhere really feel on a day-to-day basis. It seems but a drop in the ocean in comparison with the problems that constituents are facing. I will work to try to improve such measures as are in place to ensure that my constituents benefit as much as possible from the meagre offering they have been dealt.