Tag: Labour

Chancellor: A Plan for Jobs

Chancellor of the Exchequer Rishi Sunak’s Summer Statement speech to the House of Commons this afternoon:

Mr Speaker,

I stood here in March saying I knew people were worried. And I know they’re worried still.

We have taken decisive action to protect our economy.

But people are anxious about losing their job, about unemployment rising. We’re not just going to accept this.

People need to know we will do all we can to give everyone the opportunity of good and secure work.

People need to know that although hardship lies ahead, no one will be left without hope.

So, today, we act, with a Plan for Jobs.

Our plan has a clear goal: to protect, support and create jobs.

It will give businesses the confidence to retain and hire.

To create jobs in every part of our country.

To give young people a better start.

To give people everywhere the opportunity of a fresh start.

Where problems emerge, we will confront them.

Where support is justified, we will provide it.

Where challenges arise, we will overcome them.

We entered this crisis unencumbered by dogma and we continue in this spirit, driven always by the simple desire to do what is right.

Mr Speaker,

Before I turn to our Plan for Jobs, let me first outline the nature of the challenge.

Our economic response to coronavirus is moving through three phases.

In the first phase, beginning in March, the government announced social distancing measures and ordered businesses to close, halting the spread of the disease.

We put in place one of the largest and most comprehensive economic responses in the world.

Our £160 billion plan protects people’s jobs, incomes and businesses:

  • we supported more than 11 million people and jobs through the job retention and self-employment schemes, alongside billions of pounds for the most vulnerable
  • we supported over a million businesses to protect jobs, through tax cuts, tax deferrals, direct cash grants, and over a million government-backed loans
  • and we supported public services, with new funding for the NHS, schools, public transport, and local authorities

In total, we have now provided £49 billion to support public services since this crisis began.

Analysis I’m publishing today shows our interventions significantly protected people’s incomes, with the least well off in society supported the most.

And this crisis has highlighted the special bond which holds our country together.

Millions of people in Scotland, Wales and Northern Ireland have been protected by the UK government’s economic interventions – and they will be supported by today’s Plan for Jobs.

No nationalist can ignore the undeniable truth: this help has only been possible because we are a United Kingdom.

Mr Speaker,

Four months on, as we carefully reopen our economy, we are entering the second phase of our economic response.

Despite the extraordinary support we’ve already provided, we face profound economic challenges:

  • world economic activity has slowed, with the IMF expecting the deepest global recession since records began
  • household consumption – the biggest component of our economy – has fallen steeply
  • businesses have stopped trading and stopped hiring
  • taken together, in just two months our economy contracted by 25% – the same amount it grew in the previous eighteen years.

And the independent Office for Budget Responsibility and Bank of England are both projecting significant job losses – the most urgent challenge we now face.

I want every person in this House and in the country to know that I will never accept unemployment as an unavoidable outcome.

We haven’t done everything we have so far just to step back now and say, ‘job done’. In truth, the job has only just begun.

Mr Speaker,

If the first phase of our economic response was about protection…

…and the second phase – the phase we are addressing today – is about jobs…

…there will come a third phase, where we will rebuild.

My Right Honourable Friend the Prime Minister has set out our vision to level up, unite the country, spread opportunity, and repair and heal the wounds exposed through this crisis.

I can tell the House we will produce a Budget and Spending Review in the autumn.

And, we will deal too, with the challenges facing our public finances.

Over the medium-term, we must, and we will, put our public finances back on a sustainable footing.

In other words, our Plan for Jobs will not be the last action – it is merely the next – in our fight to recover and rebuild after coronavirus.

Mr Speaker, Let me now turn to the detail of our plan for jobs.

Central to our economic response has been the Jobs Retention Scheme.

Furlough has been a lifeline for millions, supporting people and businesses to protect jobs. But it cannot and should not go on forever.

I know that when furlough ends it will be a difficult moment. I’m also sure that if I say the scheme must end in October, critics will say it should end in November. If I say it should end in November, critics will just say December.

But the truth is: calling for endless extensions to the furlough is just as irresponsible as it would have been, back in June, to end the scheme overnight.

We have to be honest.

Leaving the furlough scheme open forever gives people false hope that it will always be possible to return to the jobs they had before.

And the longer people are on furlough, the more likely it is their skills could fade, and they will find it harder to get new opportunities.

It is in no-one’s long term interests for the scheme to continue forever … least of all those trapped in a job that can only exist because of a government subsidy.

So the furlough will wind down, flexibly and gradually, supporting businesses and people through to October.

But while we can’t protect every job, one of the most important things we can do to prevent unemployment is to get as many people as possible from furlough back to their jobs.

So, today, we’re introducing a new policy to reward and incentivise employers who successfully bring furloughed staff back – a new Jobs Retention Bonus.

If you’re an employer and you bring someone back who was furloughed – and you continuously employ them through to January – we will pay you a £1,000 bonus per employee.

It is vital people aren’t just returning for the sake of it – they need to be doing decent work.

So for businesses to get this bonus, the employee must be paid at least £520 on average, in each month from November to January the equivalent of the lower earnings limit in National Insurance.

The House should understand the significance of this policy. We will pay the bonus for all furloughed employees.

So if employers bring back all nine million people who have been furloughed, this would be a £9 billion policy to retain people in work.

Our message to business is clear: if you stand by your workers, we will stand by you.

Mr Speaker, The furlough was the right policy to support people through the first phase of this crisis.

But now, in this new phase, we need to evolve our approach.

Today, I want to set out for the House a new three-point plan for jobs.

We need to:

  • first – support people to find jobs
  • second – create jobs
  • and third – protect jobs

Mr Speaker,

Let me start with supporting jobs, and in particular the help we want to provide for those who will be hardest hit by this crisis: younger people.

Over 700,000 people are leaving education this year.

Many more are just starting out in their careers.

Coronavirus has hit them hard – under 25s are two and a half times as likely to work in a sector that has been closed.

We cannot lose this generation, so today, I am announcing the Kickstart Scheme:

A new programme to give hundreds of thousands of young people, in every region and nation of Britain, the best possible chance of getting on and getting a job.

The Kickstart Scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.

These will be new jobs – with the funding conditional on the firm proving these jobs are additional.

These will be decent jobs – with a minimum of 25 hours per week paid at least the National Minimum Wage.

And they will be good quality jobs – with employers providing Kickstarters with training and support to find a permanent job.

If employers meet these conditions, we will pay young people’s wages for six months, plus an amount to cover overheads.

That means, for a 24-year-old, the grant will be around £6,500.

Employers can apply to be part of the scheme from next month, with the first Kickstarters in their new jobs this autumn.

And I urge every employer, big or small, national or local, to hire as many Kickstarters as possible.

Today, I’m making available an initial £2 billion; enough to fund hundreds of thousands of jobs.

And I commit today: there will be no cap on the number of places available.

We can do more for young people:

  • traineeships are a proven scheme to get young people ready for work. We know they work, so for the first time ever we will pay employers £1,000 to take on new trainees, with triple the number of places
  • to support 18-19-year olds leaving school or college to find work in high-demand sectors like engineering, construction and social care, we’ll provide £100 million to create more places on Level 2 and 3 courses
  • and the evidence says careers advice works, so we will fund it, with enough new careers advisers to support over a quarter of a million more people.

We will also expand our universal skills offer:

Sector-Based Work Academies provide training, work placements, and a guaranteed job interview in high-demand sectors.

The evidence shows they work, so we will expand them – tripling the number of places.

And we know apprenticeships work, too – 91% of apprentices stay in work or do further training afterwards.

So for the next six months, we’re going to pay employers to create new apprenticeships.

We will pay businesses to hire young apprentices, with a new payment of £2,000 per apprentice.

And we will introduce a brand-new bonus for businesses to hire apprentices aged 25 and over, with a payment of £1,500.

And let me thank my Right Honourable Friend the Education Secretary for his support and commitment in developing these measures.

Mr Speaker,

We know the longer someone is out of work, the harder it is to return. Millions of people are moving onto Universal Credit – they need urgent support to get back to work.

So, we are:

  • doubling the number of Work Coaches in Job Centres
  • increasing the Flexible Support Fund
  • extending the Rapid Response Service
  • expanding the Work and Health Programme
  • and developing a new scheme to support the long-term unemployed

The academic and economic evidence tells us these are among the most effective things we can do.

So I’m investing an extra billion pounds in DWP, to support millions of people back to work.

And I’m grateful for everything my Right Honourable Friend the Work and Pensions secretary, and her incredible team, have done.

£1 billion of support for the unemployed; more money for skills, traineeships, and apprenticeships; and a new, good quality job for hundreds of thousands of new Kickstarters – the first part of our plan for jobs.

Mr Speaker,

The second part of our plan is to support job creation.

That begins with historic investment in infrastructure – creating jobs in every region and nation of the UK.

At Budget, I announced £88 billion of capital funding this year; and last week the Prime Minister announced our plans to accelerate £5 billion of additional investment projects.

We are doubling down on our ambition to level up…

…with better roads, better schools, better hospitals, better high streets, creating jobs in all four corners of our country.

Mr Speaker, As well as investing in infrastructure, we want to create green jobs.

This is going to be a green recovery with concern for our environment at its heart.

As part of that, I’m announcing today a new, £2 billion Green Homes Grant.

From September, homeowners and landlords will be able to apply for vouchers to make their homes more energy efficient and create local jobs.

The grants will cover at least two thirds of the cost, up to £5,000 per household.

And for low income households, we’ll go even further with vouchers covering the full cost – up to £10,000.

On top of the £2 billion voucher scheme, I am releasing £1 billion of funding to improve the energy efficiency of public sector buildings…

…alongside a £50 million fund to pilot the right approach to decarbonise social housing.

Taken together, we expect these measures to:

  • make over 650,000 homes more energy efficient
  • save households up to £300 a year on their bills
  • cut carbon by more than half a mega tonne per year, equivalent to taking 270,000 cars off the road
  • and, most importantly right now, support around 140,000 green jobs

A £3 billion green jobs plan to save money; cut carbon; and create jobs.

Mr Speaker, One of the most important sectors for job creation is housing.

The construction sector adds £39 billion a year to the UK economy;

House building alone supports nearly three quarter of a million jobs;

With millions more relying on the availability of housing to find work.

But property transactions fell by 50% in May.

House prices have fallen for the first time in eight years.

And uncertainty abounds in the market – a market we need to be thriving.

We need people feeling confident – confident to buy, sell, renovate, move and improve.

That will drive growth. That will create jobs.

So to catalyse the housing market and boost confidence, I have decided today to cut stamp duty.

Right now, there is no stamp duty on transactions below £125,000.

Today, I am increasing the threshold to half a million pounds.

This will be a temporary cut running until 31st March next year.

And, as is always the case, these changes to stamp duty will take effect immediately.

The average stamp duty bill will fall by £4,500.

And nearly nine out of ten people buying a main home this year, will pay no stamp duty at all.

Stamp duty cuts; A £5,000 Green Homes Grant; And tens of billions of pounds of new capital projects.

We are creating jobs, the second part of our Plan for Jobs.

Mr Speaker, The final part of our plan will protect jobs that already exist by helping some of our highest-employing but hardest-hit sectors: hospitality and tourism.

Our economy relies on consumption, especially social consumption:

The pubs, cafes, restaurants, hotels and B&Bs that bring life to our villages, towns and cities.

Taken together these sectors employ over 2 million people disproportionately younger, women and people from Black, Asian and minority ethnic communities.

And many rural and coastal communities rely on these industries.

80% of hospitality firms temporarily stopped trading in April and 1.4 million workers have been furloughed, the highest proportions of any sector.

So the best jobs programme we can do is to restart these sectors and get our pubs, restaurants, cafés and B&Bs bustling again.

I know people are cautious about going out.

But we wouldn’t have lifted the restrictions if we didn’t think we could do so safely.

And I’ve seen in the last few weeks how hard businesses are working to make their premises safe.

And if we follow the guidance, and respect what they ask us to do, we can all enjoy summer safely.

In turn, we need to give these businesses the confidence to know that if they open up, invest in making their premises safe, and protect jobs, demand will be there, and be there quickly.

So today, I’m announcing two new measures to get these sectors moving and protect jobs.

First, at the moment, VAT on hospitality and tourism is charged at 20%.

So I’ve decided, for the next six months, to cut VAT on food, accommodation and attractions.

Eat-in or hot takeaway food from restaurants, cafes and pubs;

Accommodation in hotels, B&Bs, campsites and caravan sites;

Attractions like cinemas, theme parks and zoos;

All these and more will see VAT reduced from next Wednesday until January 12th, from 20% to 5%.

This is a £4 billion catalyst for the hospitality and tourism sectors, benefiting over 150,000 businesses, and consumers everywhere – all helping to protect 2.4 million jobs.

But, Mr Speaker, we will go further. The final measure I’m announcing today has never been tried in the UK before. This moment is unique. We need to be creative.

So, to get customers back into restaurants, cafes and pubs, and protect the 1.8 million people who work in them, I can announce today that, for the month of August, we will give everyone in the country an Eat Out to Help Out discount.

Meals eaten at any participating business, Monday to Wednesday, will be 50% off, up to a maximum discount of £10 per head for everyone, including children.

Businesses will need to register, and can do so through a simple website, open next Monday.

Each week in August, businesses can then claim the money back, with the funds in their bank account within 5 working days.

1.8 million people work in this industry. They need our support and with this measure we can all eat out to help out.

A VAT cut to 5%;

And a first-of-its-kind government-backed discount for all;

That’s the third part of our Plan for Jobs.  

So, Mr Speaker,

A £1,000 Jobs Retention Bonus.

New, high quality jobs for hundreds of thousands of young Kickstarters.

£1bn to double the number of work coaches and support the unemployed.

More apprenticeships; more traineeships; more skills funding.

Billions of pounds for new, job creation projects around the country.

A £3 billion plan to support 140,000 green jobs.

And in this vital period, as we get going again:

VAT cut.

Stamp duty cut.

Meals out cut.

Mr Speaker, all part of our Plan for Jobs worth up to £30 billion.

Mr Speaker,

Governments, much less people, rarely get to choose the moments that define them. What choice there is comes in how we respond.

For me, this has never just been a question of economics, but of values:

I believe in the nobility of work.

I believe in the inspiring power of opportunity.

I believe in the British people’s fortitude and endurance.

And it is that value, endurance, more than any other, we need to embody now.

A patience to live with the uncertainty of the moment…

…to find that new balance between safety and normality.

We will not be defined by this crisis, but by our response to it.

It is an unambiguous choice to make this moment meaningful for our country in a way that transcends the frustration and loss of recent months.

It is a plan to turn our national recovery into millions of stories of personal renewal.

Mr Speaker, it is our Plan for Jobs and I commend it to this House.

Anneliese Dodds MP, Labour’s Shadow Chancellor, responding to the Government’s ‘Plan for Jobs’, said: “Labour has repeatedly called on the government to match the ambitions of Labour’s Future Jobs Fund, to rise to the youth unemployment challenge.

“To the extent that the ‘Kickstart’ programme is based on the Future Jobs Fund model, it should help many young people to access work.

“However, the Government are yet to rise to the scale of the unemployment crisis. The urgent priority right now is to prevent additional unnecessary unemployment in the first place by abandoning the Government’s ‘one-size-fits-all’ approach to the removal of the Job Retention and Self-Employed schemes.

“In addition, older people who become unemployed, and those living in particularly hard-hit areas, will also need tailored support.

“Government also urgently needs to get test, track and isolate right, as ultimately the biggest drag on our economy has been the slow public health response, which threatens additional localised lockdowns and which has reduced consumer confidence.”

Responding the UK Chancellor’s Summer Statement today, Finance Secretary Kate Forbes said: “We called for an £80bn stimulus package to build a strong, green and inclusive economic recovery and while there are elements in this announcement to be welcomed, in particular the measures on VAT for tourism and hospitality, overall this package is a huge opportunity missed. It falls well short of delivering what is needed to boost the economy and protect jobs.

“There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty. A half price meal out does not help those struggling to put food on the table.

“Many of the initiatives are short-lived and do not provide long term certainty for business or households. Instead they will simply push the problems back to the end of the year when we will also have to deal with the end of the transition period with the EU.

“Despite announcing new funding measures worth up to £30bn today, most of it bypasses devolution and does not provide the Scottish Government with the funding we need to enable us to tailor an economic response that meets Scotland’s needs.

“Like all governments, we are facing huge spending pressures but we do not have the tools that others have to meet them. Along with the Governments of Wales and Northern Ireland, we set out a reasonable, proportionate set of new financial powers that would enable the Scottish Government to respond effectively. Regrettably, the UK Government has turned a deaf ear to those needs.”

Also responding to measures announced today by the chancellor in his summer statement, TUC General Secretary Frances O’Grady said: “Mass unemployment is now the biggest threat facing the UK, as shown by the thousands of job losses at British Airways, Airbus and elsewhere.

“The government must do far more to stem the rising tide of redundancies. We can’t afford to lose any more good skilled jobs.

“The chancellor should have announced targeted support for the hardest-hit sectors like manufacturing and aviation. Struggling businesses will need more than a one-off job retention bonus to survive and save jobs in the long-term.

“Unions campaigned for a job guarantee scheme. Kickstart is a good first step. But if the government allows vital industries to go the wall, unemployment will surge and the recession will last far longer. 

“The more people we have in decent work, the faster we can work our way out of recession. We must create jobs through more new public investment in new homes, childcare, faster broadband, better transport and green tech.

“The government should have announced extra investment in jobs across all public services – starting with filling the 200,000 vacancies in the NHS and social care. And if the chancellor wants people to have the confidence to eat out, he should have announced a pay rise for hard-pressed key workers rather than dining out discounts for the well-off.”

On sick pay, Frances added: “The government missed an opportunity to strengthen their faltering Test and Trace programme.

“Statutory sick pay is too low for anyone to live on. It’s not viable to ask people to self-isolate if they will be pushed into financial hardship.

“We had hoped ministers would listen, raise the rate and change the rules so low-paid people could afford to do the right thing and comply with self-isolation. Once again, this government fails to understand the real lives of low-paid workers. It is clear that poverty wages and insecure contracts are a public health hazard.”

Action plan needed to tackle COVID-19’s effect on BAME community

There have been renewed calls for the UK Government to take real action to protect BAME communities from COVID 19. 

New figures released by the ONS show that the rate of deaths for black males was over three times greater than that for white males of the same age, while the rate for black females was more than twice as great than for white females.

Men of Bangladeshi, Pakistani and Indian ethnic backgrounds also were found to be one and a half times more likely to die than their white counterparts, after adjustments were made for population characteristics.

The ONS’s analysis also found that Muslim, Jewish, Hindu and Sikh people all have higher risks of death.

In recent weeks the GMB trade union has been highly critical of the government’s failure to protect BAME workers from COVID19, with the latest figures a real wake up call.

Rehana Azam, GMB national secretary said: “Why is it that if you are from a black, Asian, and minority ethnic background, are you still more likely to be killed by coronavirus? 

“We’ve known this for weeks, and yet still no major action has taken place to protect BAME communities by government.

“These figures are a huge wake up call. The time for talking is over. We don’t need further data or consultations. We need action from the government, and we need it now.”

British Medical Association (BMA) council chair Dr Chaand Nagpaul has also demanded the Government address the effect of COVID-19 on BAME (black, Asian and minority ethnic) communities – calling for immediate timelines for action plans instead of further consultations and reviews.

Dr Nagpaul asked the Government to implement the recommendations from a recent PHE (Public Health England) review urgently.

Dr Nagpaul said: ‘Our view as a profession, and my view, is that we’ve had enough reports, we’ve had enough reviews, we’ve had previous commissions. We know what the problems are.

“What we now need is an action plan. That’s what we asked for from the publication of the PHE review so each of those recommendations now needs to be populated with timescales of action plans and what needs to be done.

“Remember, the Government commissioned the PHE review – as the commissioner it now needs to respond not with some other commission but really with what is going to be done now. We’ve discussed many of the issues can be addressed very quickly and others may take some time. That’s what needs to happen.”

Marsha de Cordova MP, Labour’s Shadow Women and Equalities Secretary, said: “Across the globe, racial injustice has always had a devastating impact on society, and coronavirus has demonstrated the deadly consequences of when racial inequalities go unchecked.

“These findings are yet more evidence of the need for urgent action on this issue. But instead we have seen denial and delay from the Government.”

 

Chancellor extends furlough scheme until October

The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today.

  • Coronavirus Job Retention Scheme will continue until end of October
  • furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
  • new flexibility will be introduced from August to get employees back to work and boost economy

In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.

As we reopen the economy (at least in England – Ed.), we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.

The scheme is just one part of the government’s world-leading economic response to coronavirus, including an unprecedented package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.

Today the UK government is also publishing new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis.

This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.

Mike Cherry, National Chairman of the Federation of Small Businesses, said: “The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome.

“Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today.

BCC Director General Adam Marshall said: “The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

“The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

Dame Carolyn Fairbairn, CBI Director-General, said: “The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.

“Extending the furlough to avoid a June cliff-edge continues the significant efforts made already and will protect millions of jobs.

“Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step-by-step, while supporting livelihoods.

“Firms will, of course, want more detail on how they will contribute to the scheme in the future and will work with government to get this right.

“Above all, the path of the virus is unpredictable, and much change still lies ahead. The government must continue to keep a watchful eye on those industries and employees that remain at risk. All schemes will need to be kept under review to help minimise impacts on people’s livelihoods and keep businesses thriving.

“The greater the number of good businesses saved now, the easier it will be for the economy to recover.”

Commenting on the extension of the government’s job extension scheme today, TUC General Secretary Frances O’Grady said: “We are pleased ministers have listened to unions and extended the job retention scheme to the autumn. This will be a big relief for millions.  

“Changing the rules to allow part-time working is key to enabling a gradual and safe return to work. And maintaining the rate at 80% is a win for the pay packets of working families.

“As the economic consequences of Covid-19 become clear, unions will keep pushing for a job guarantee scheme to make sure everyone has a decent job.”

Anneliese Dodds MP, Labour’s Shadow Chancellor, said: “The furlough scheme is a lifeline for millions. The Government was right not to pull it away.

“It is welcome that the Chancellor has heeded the call by Labour, trade unions, and businesses for more flexibility in the scheme, to support employees to go back to work part-time.

“The government must clarify today when employers will be required to start making contributions, and how much they’ll be asked to pay. If every business is suddenly required to make a substantial contribution from the 1st August onwards, there is a very real risk that we will see mass redundancies.”

Extension to Furlough Scheme could cost the Government £70 billion

The Chancellor has extended the current Furlough scheme until the end of October but he now has a huge challenge to get this right, say leading tax and advisory firm Blick Rothenberg.

Heather Self a partner at the firm said: “He needs to achieve a “Goldilocks” effect – not too hot, and not too cold.  If he provides too much it will be very expensive and may discourage firms from reopening. If he provides too little thousands of people could lose their jobs.

She added: “It is going to be a turbulent time for the labour market in the Autumn. Some sectors, such as the hospitality and tourism sector, are likely to see significant redundancies, while others such as construction and financial services will be relieved to see a gradual winding-down of support.

From the announcement today, we now know that:

–          Support will be continued to the end of July in full, with employers required to contribute after that date.

–          Part time working will be permitted, but only for some employees

–          The same level of overall support – 80% of wages up to a maximum of £2500 a month – will be maintained

Heather said: ” As the furlough scheme is reduced the Government needs to incentivise business and come up with creative ideas about how business can keep going and retain staff.

“The Chancellor could not go on paying out billions of pounds indefinitely, and everyone understands that, but there needs to be much more joined up thinking between Government and business.”

So far, some 7.5m employees have been furloughed, at a cost approaching £10bn.

The expected costs to the end of July are likely to be around £50bn, with the extension at a reduced level to the end of October perhaps costing a further £20bn.  These are very significant sums, amounting to around 10% of total Government receipts.

As Britain seeks to get back to work, the pressures on different sectors will be very uneven.

While some sectors, such as construction and financial services, are getting back to work, others such as leisure and hospitality will be much slower to recover.

And the position in the tourism and heritage sectors is likely to become critical if they lose the whole of the Summer season.

Heather Self said: “Enabling part time work is welcome, as it will permit a gradual return to work.  But the Chancellor said this would only be available to businesses “currently using” the scheme – it is not clear what the cut-off date will be for businesses still considering whether they need to furlough employees.

“The Chancellor needs to pay attention to the needs of different sectors, difficult though this may be.  Leisure and hospitality businesses are unlikely to be able to cope with reopening fully by the end of July, and may need to contemplate redundancies.

“Additional support beyond the furlough scheme will be needed for a long time – whether loans such as the CBILS scheme, or grants, or incentives such as an increase in the Employment Allowance to encourage employers to maintain their staff levels, or even take on new employees.”

Enough is enough!

Councillors will meet tomorrow to discuss six steps for boosting sustainability, tackling poverty and improving residents’ wellbeing over the course of the next decade. The meeting comes a week before the city council sets it’s budget – a budget which UNISON says will slash council services with another £33 million in CUTS in the year ahead.

Designed to secure Edinburgh’s spending priorities, in the context of increasingly challenging financial circumstances, the six programmes of work are contained within a report detailing the next phase of the Council’s Change Strategy.

Members of the Finance and Resources Committee will consider the suggestions alongside detailed proposals for agreeing the city’s annual budget next week (20 February) and planned savings of £87.3m over the next three years.

One year into a four-year plan, the Change Strategy has already achieved savings of over £30m for the Council, while delivering improvements to frontline services across the city and major investment towards health and social care, the building of new schools and thousands of affordable homes.

Since last year’s budget, the Council has made significant progress against its target to deliver 10,000 new affordable homes by 2022, with 2,000 homes currently under construction across 35 sites.

A £153m improvement is making upgrades to nearly 600 buildings, with £67m spent building new or refurbishing schools, while an additional £15.7m has been put towards health and social care.

The start of the tram to Newhaven extension is underway – we’ll have to wait and see what the final cost of that particular project will be – and more than £7.4m has been invested into active travel and cycling around the city, alongside an £11m street lighting upgrade to LED.

The next phase of the council strategy builds on this work, identifying six programmes with practical steps for continuing to achieve Edinburgh’s spending priorities in this year’s Council budget and beyond.

The six programmes are:

  • Prioritising poverty and wellbeing

Developing a long-term Prevention Strategy based on the results of the Edinburgh Poverty Commission and the findings of the Homelessness Taskforce, and redesigning Council services which maximise residents’ wellbeing.

  • Working to reach net zero carbon

Co-sponsoring the establishment of the Edinburgh Commission for Climate Action – an independent body that will advise and support the whole city to play its part in protecting our environment for future generations – and building on the city’s Net Zero short-term improvement plan with a City Sustainability Strategy.

  • Building an inclusive city

Finalising and actioning a new City Plan and City Centre Transformation strategy to guide the future shape of the city and fulfilling the ambitions of Edinburgh’s 10-year City Mobility plan to change the way that people move around the city.

  • Operating a 21st Century estate

Launching a new Land and Property Commission to better identify sites for new housing, release depots and yards for redevelopment and capital for investment, reduce costs and carbon emissions – complemented by a new Estate Strategy examining all aspects of how the Council runs and maintains buildings and land.

  • Being an efficient and modern Council

Paying the baseline Living Wage to all employees, working to close the gender pay gap and improve diversity, and breaking down stigma associated with mental health conditions. We will also be reviewing senior management structures and costs.

  • Empowering citizens and empowering colleagues

By introducing new standards for consultation and co-designing services across the Council and fulfilling our commitment of 1% of council budgets being invested through participatory budgeting by 2021.

Council Leader Adam McVey said: “We need to think big and be bold to become the type of city people have told us they want to live and work in – an inclusive, sustainable and progressive city which prioritises frontline services and its most vulnerable citizens, puts an end to poverty and acts now against climate change – and we shouldn’t be afraid to make challenging decisions in order to get there.

“That’s why we’re changing the way we do things, committing to a longer term, three-year budget plan, paving the way for record capital investment in areas like new schools, new affordable new homes and sustainable transport. The six steps outlined in this report will make sure we remain focused on our key aims while providing the best services possible for the people of Edinburgh.”

The SNP can’t run the city on their own, of course, and they are supported by Labour in a ‘Capital Coalition’ which has been coming in for increasing criticism.

Capital Coalition Depute Leader, Labour’s Cllr Cammy Day, said: “Like all Councils, we’re facing unprecedented levels of financial uncertainty and we’ll need to make tough choices in order to prioritise the big changes Edinburgh wants and needs.

“The six areas have been shaped by many years of feedback, through our budget consultations with tens of thousands of Edinburgh residents. This is about focusing on frontline services which lift people out of poverty and support Edinburgh’s ambitious sustainability goals.

“Most councils will currently be considering how to set a one-year budget. We’re going further by looking at how we will balance our budgets over the next three years. We’ll do this while also continuing to push for the powers we need to introduce innovative new funding mechanisms for Edinburgh, such as the tourist tax and workplace parking levy.”

ENOUGH IS ENOUGH

Local government trade union UNISON is urging it’s members and the general public to say ENOUGH IS ENOUGH and stand up for our local jobs and services.

The union is holding a Council Budget Day Lobby from 08.30 – 10:00 at the City Chambers on the High Street

  • Stress levels at breakdown point
  • Further £33m in cuts.
  • Health & Social Care Funding Crisis
  • Hundreds of jobs to go
  • Outsourcing back

Council will set budget on 20 February

The city council has announced a new timetable to enable councillors to agree a three-year budget on 20 February.

Following confirmation from the Scottish Government that the Cabinet Secretary for Finance, Economy and Fair Work intends to outline his spending plans on 6 February, a special Finance & Resources Committee has been added to the council diary on 14 February, where proposals for spending and investing will be considered in more detail.

A series of proposals developed by Council officers, which have been shared with all political groups in the City Chambers, will be developed into Coalition proposals and published on 10 February.

No decisions have yet been made and officers continue to explore a number of options based on previous feedback from residents and council employees.

However whether the budget is for one year or three, one thing is inevitable: communites face yet more cuts to services.

Council Leader Adam McVey said: “Despite the uncertainty brought about by delays to the UK Government’s budget announcement, we’re committed to setting a balanced three-year budget for Edinburgh – paving the way for record capital investment in our schools and transport over the next 10 years.

“We’ve already started outlining our long-term plans for making the city more sustainable and accessible while managing our city’s growth more fairly and effectively. But to reach these goals, we need to act now and make the smartest use of the resources we have available.

“Yes, there will be some difficult decisions we’ll need to make – that’s no secret. But it’s extremely disappointing that budget information, much of it inaccurate, has found its way into the public domain, causing unnecessary alarm in our communities.

“We won’t let this cloud the process or stand in the way of our priority, which is to agree the best budget for the people of Edinburgh; one that supports people out of poverty, responds to the climate crisis and allows our residents to share in our city’s success.”

The ciy council is currently run by a SNP – Labour ‘Capital Coalition’ – the majority SNP group supported by Labour’s twelve  councillors.

Council Depute Leader, Labour’s Cammy Day, added: “While many Councils across the country will be meeting next month or even later to set a one-year budget, we’re going further, outlining our spending plans until March 2023.

“Despite challenging budgets and continued pressure on local government finance, we will set a three year budget to allow the Council, partner organisations and our residents some certainty for the next few years.

“We will prioritise and invest in the areas our citizens have told us really matter to them, with a focus on poverty and sustainability. I’m confident that our future planning will see the capital city with a positive and progressive outlook for the future.”

A tale of two leaders

Johnson’s ‘people’s government’ and Corbyn says sorry

Election fallout continued today as Labour leader Jeremy Corbyn issued a public apology to supporters. Corbyn, certainly the most criticised opposition leader (since the last one!) by both hostile media and elements within his own party, announced on Friday morning that he will not fight the next general election as leader but will stay on to oversee an inquiry into what went wrong for the ‘People’s Party’.

The general election delivered a resounding victory for the Conservative Party, who fought a single-issue campaign of ‘Getting Brexit Done’. The voters – at least in England – bought it, and the Tories celebrated their greatest victory since the days of Margaret Thatcher with 365 seats, an overall majority of 35 – a result beyond their most bullish predictions.

On Friday, Boris Johnson – who throughout the general election campaign was criticised for hiding from scrunity (one one occasion, quite literally, in a fridge) told the nation: 

This morning I went to Buckingham Palace and I am forming a new government and on Monday MPs will arrive at Westminster to form a new parliament and I am proud to say that members of our new one nation government – a people’s government – will set out from constituencies that have never returned a Conservative MP for 100 years and yes they will have an overwhelming mandate, from this election, to get Brexit done and we will honour that mandate by Jan 31

And so in this moment of national resolution I want to speak directly to those who made it possible, and to all those who voted for us, for the first time, all those whose pencils may have wavered over the ballot and who heard the voices of their parents and their grandparents whispering anxiously in their ears – I say thank you for the trust you have placed in us and in me and we will work round the clock to repay your trust and to deliver on your priorities with a parliament that works for you.

And then I want to speak also to those who did not vote for us or for me and who wanted and perhaps still want to remain in the EU and I want you to know that we in this one nation conservative government will never ignore your good and positive feelings – of warmth and sympathy towards the other nations of Europe because now is the moment – precisely as we leave the EU – to let those natural feelings find renewed expression in building a new partnership, which is one of the great projects for next year.

And as we work together with the EU as friends and sovereign equals in tackling climate change and terrorism in building academic and scientific cooperation, redoubling our trading relationshipI frankly urge everyone on either side of what after three and a half years after all an increasingly arid argument I urge everyone to find closure and to let the healing begin because I believe – in fact I know, because I have heard it loud and clear from every corner of the country –  that the overwhelming priority of the British people now is that we should focus above all on the NHS, that simple and beautiful idea that represents the best of our country with the biggest ever cash boost: 50,000 more nurses, 40 new hospitals as well as providing better schools, safer streets and in the next few weeks and months we will be bringing forward proposals to transform this country with better infrastructure, better education, better technology.

And if you ask yourselves what is this new government going to do, what is he going to do with his extraordinary majority? I will tell you that is what we are going to do we are going to unite and level up – unite and level up – bringing together the whole of this incredible United Kingdom: England, Scotland, Wales, Northern Ireland together, taking us forward unleashing the potential of the whole country delivering opportunity across the entire nation.

And since I know that after five weeks frankly of electioneering this country deserves a break from wrangling, a break from politics, and a permanent break from talking about Brexit.

I want everyone to go about their Christmas preparations happy and secure in the knowledge that here in this people’s government the work is now being stepped up to make 2020 a year of prosperity and growth and hope and to deliver a Parliament that works for the people.

Thank you all very much and happy Christmas.

LABOUR PARTY leader Jeremy Corbyn has issued a public apology to Labour supporters over his party’s heavy defeat in the general election. Writing an open letter in the Sunday Mirror and the Observer today, he acknowledged the party’s failings in the poll and said he accepted his responsibility for it.

‘I will make no bones about it. The election result on Thursday was a body blow for everyone who so desperately needs real change in our country.

To every single person who voted for the Labour Party – everyone who shared the hope that Britain could be a fairer country that works for the many, not the few – I say thank you, from the bottom of my heart.

And to the Sunday Mirror and its readers, your support has been such a source of strength. I wanted to unite the country that I love but I’m sorry that we came up short and I take my responsibility for it.

I remain proud of the campaign we fought. I’m proud that no matter how low our opponents went, we refused to join them in the gutter. And I’m proud that our message was one of hope, rather than fear.

Millions of people saw in our manifesto a better future for themselves and their communities. Our policies to protect the NHS, end austerity, invest in every part of our country and tackle inequality, were popular with voters who saw through a ferocious smear and fear campaign against us.

But despite our best efforts, this election was ultimately about Brexit. The Tory campaign, amplified by most of the media, managed to persuade many that only Boris Johnson could “get Brexit done.”

That will soon be exposed for the falsehood it is, but in this election it overpowered our attempt to reach across the divide and bring our country together

We will learn the lessons of this defeat, above all by listening to those lifelong Labour voters who we’ve lost in working class communities. This party exists to represent them. We will earn their trust back.

Make no mistake: Labour is the greatest force for progressive change this country has ever known, and although this wasn’t our moment, our time will come again under new leadership. We will never give up on the commitment and determination to build a fairer and more decent society.

Elections always result in winners and losers. Only time will tell if the biggest losers after this bruising battle could be those who still believe in a United Kingdom.

Oh, Jeremy Corbyn: Labour leader’s eve of poll appeal

Speaking while out on the campaign trail last night Jeremy Corbyn, Leader of the Labour Party, said:

“Tomorrow, people across the UK will go to vote and they have a choice. They can elect a government that they can trust. They can elect a government that will eliminate child poverty, end the cruelty and injustice of Universal Credit, give hope to the next generation by investing properly in health and education and deal with the climate emergency on the world stage.

“The only way of getting rid of a Tory government is voting Labour across the country. We need an end to austerity and a government that will give real hope and real security to people.

“There’s an issue of trust in politics. As out manifesto sets out, we want to create a society that works for everybody. But on the other side, can you honestly trust a Prime Minister who cannot tell the truth about talks with the Americans over the privatisation of our National Health Service?

“Who cannot tell the truth about the Brexit negotiations that he has so far failed to deliver on, or one who keeps on making promises that turn out to be a mirage the following day. When you go to vote, you need to know that the people you’re electing not just mean what they say but say what they mean and carry it out when they go into government.

“The choice is clear. Theirs is the party of billionaires, ours is the party of the many. Tomorrow you can vote for despair and vote for the dishonesty of this government, or you can vote Labour and get a government that can bring hope to the future.”

Tory government survives vote of confidence

Theresa May’s government survived a vote of confidence at Westminster last night, winning by just 19 votes 325 – 306.

In a Downing Street statement following the vote late last night, Prime Minister Theresa May said: “This evening the Government has won the confidence of Parliament.

“This now gives us all the opportunity to focus on finding a way forward on Brexit.

“I understand that to people getting on with their lives, away from Westminster, the events of the past 24 hours will have been unsettling.

“Overwhelmingly, the British people want us to get on with delivering Brexit, and also address the other important issues they care about.

“But the deal which I have worked to agree with the European Union was rejected by MPs, and by a large margin.

“I believe it is my duty to deliver on the British people’s instruction to leave the European Union. And I intend to do so.

“So now MPs have made clear what they don’t want, we must all work constructively together to set out what Parliament does want.

“That’s why I am inviting MPs from all parties to come together to find a way forward. One that both delivers on the referendum and can command the support of Parliament.

“This is now the time to put self-interest aside.

“I have just held constructive meetings with the leader of the Liberal Democrats, and the Westminster leaders of the SNP and Plaid Cymru.

“From tomorrow, meetings will be taking place between senior Government representatives, including myself, and groups of MPs who represent the widest possible range of views from across Parliament – including our confidence and supply partners the Democratic Unionist Party.

“It will not be an easy task, but MPs know they have a duty to act in the national interest, reach a consensus and get this done.

“In a historic vote in 2016 the country decided to leave the EU.

In 2017 80% of people voted for Parties that stood on manifestos promising to respect that result.

“Now, over two and a half years later, it’s time for us to come together, put the national interest first – and deliver on the referendum.”

Come together? That appears very unlikely – Leader of the Opposition Jeremy Corbyn says Labour will not talk to the Tories unless a No Deal Brexit is taken off the table. 

Earlier, Mr Corbyn moved the motion of no confidence in the government. He said:

Mr Speaker, I move the motion that this House has no confidence in Her Majesty’s Government.

Last night the Government was defeated by 230 votes. The largest defeat in the history of our democracy. The first Government to be defeated by more than 200 votes.

Last week they lost a vote on the Finance Bill. That what’s called supply. Yesterday they lost a vote by biggest margin ever. That what’s regarded as confidence.

By any convention of this House, by any precedent the loss of confidence and supply should mean they do the right thing and resign.

Mr Speaker, the Prime Minister has consistently claimed that her deal, which has now been decisively rejected was good for Britain, workers, and businesses.

If she is so confident of that, if she genuinely believes it, she should have nothing to fear from going to the people and letting them decide.

In this week, in 1910, the British electorate went to the polls. They did so because Herbert Asquith’s Liberal government had been unable to get Lloyd George’s People’s Budget through the other place.

They were confident in their arguments and went to the people and were returned.

It is still how our democracy works. When we have a government that cannot govern, in the absence of a written constitution, it is these conventions that guide us.

If a government cannot get its legislation through Parliament, it must go to the country for a new mandate and that must apply when it is on the key issue of the day.

We know the Prime Minister is not against snap elections on principle because she herself went to the people in 2017, saying “Give me the mandate I need”.

She bypassed the Fixed Term Parliament Act, which was, as my Rt Hon Friend, the Shadow Foreign Secretary pointed out, designed to give some stability to the Tory-Lib Dem coalition government, to ensure that the Lib Dems couldn’t hold the Conservatives to ransom by constantly threatening to collapse the coalition. The Fixed Term Parliament Act was never intended to prop up a zombie government.

And there can be no doubt that this is a zombie government:

Defeated last night by the largest margin of any government ever.

In December it became the first government ever to be held in contempt by Parliament.

Last week it became the first government for more than 40 years to lose a vote on a Finance Bill.

And a shocking first for this government is forcing a heavily pregnant member of this House to delay a scheduled caesarean to come to vote and all because of their cynical breaking of the trusted pairing arrangements in this House which have endured for decades.

Nothing demonstrates the sheer incompetence of this government quite like the Brexit negotiations.

Yesterday’s historic and humiliating defeat was the result of two years of chaos and failure.

It is now clear this government is not capable of winning support for its core plan on the most vital issue facing this country.

The Prime Minister has lost control and the government has lost the ability to govern.

Within two years they have managed to turn a deal from what was supposed to be ”one of the easiest in human history” into a national embarrassment.

In that time we have seen the Prime Minister’s demands quickly turned into one humiliating climb-down after another.

Brexit ministers have come and gone but the shambles has remained unchanged, culminating in an agreement which was described by one former Cabinet minister as “the worst of all worlds”.

Let’s be clear, the deal the Prime Minister wanted this Parliament to support would have left the UK in a helpless position, facing a choice of either seeking and paying for an extended transition period or trapped in the backstop.

The Prime Minister may claim the backstop would never have come into force but who has confidence in this government’s ability to negotiate a future trade deal with the EU by December 2020 after the shambles we have all witnessed over the past two years?

This Frankenstein deal is now officially dead and the Prime Minister is trying to blame everybody else.

Mr Speaker let me be clear the blame for this mess lies firmly at the feet of the Prime Minister and her government, which time after time has made hollow demands and given false promises.

They say they want this Parliament to be sovereign yet whenever their plans have come up against scrutiny they have done all they can to obstruct and evade.

The Prime Minister’s original plan was to push through a deal without the appropriate approval of this Parliament only to be forced into holding a meaningful vote by the courts and by members of this House.

Mr Speaker, since losing its majority in the 2017 general election the Government has had numerous opportunities to engage with others and listen to their views, not just here in Westminster but across the country.

Yesterday’s decisive defeat is the result of the Prime Minister just not listening, ignoring businesses, trade unions and members of this House.

Instead she has wasted two years recklessly ploughing on with her doomed strategy.

And even at the last, when it was clear her botched and damaging deal could not remotely command support here or across the country, she decided to waste even more time by pulling the meaningful vote on the empty promise of obtaining legal assurances on the backstop.

Some on the government side have tried to portray the Prime Minister’s approach as stoical.

Mr Speaker, what we have seen over the past few months is not stoical. Instead we have witnessed is a Prime Minister acting in her narrow party interest, rather than the public interest.

Her party is fundamentally split on this issue, constraining the Prime Minister so much that she simply cannot command a majority in this House on the most important issue facing the country, without rupturing her party. And it is for this reason that this Government can no longer govern.

Yesterday the Prime Minister shook her head when I said that she had treated Brexit as a matter only for the Conservative Party. Yet within half an hour of the vote being announced the Hon member for Grantham & Stamford (Nick Boles) commented “She has conducted the argument as if this was a party political matter rather than a question of profound national importance”. I know many people across the country will be frustrated and deeply worried about the insecurity around Brexit but if this divided Government continues in office the uncertainty and risks can only grow.

And Mr Speaker it is not just over Brexit that the Government is failing dismally letting down the people of this country. There has been the Windrush scandal the shameful denial of rights the detention and even the deportation of our own citizens. The Government’s flagship welfare policy Universal Credit is causing real and worsening poverty. And just yesterday under the cover of the Brexit vote they sneaked out changes that will make some pensioner households thousands of pounds worse off.

Those changes build on the scourge of poverty-causing measures inflicted on people in this country: the bedroom tax, the two child limit and abominable rape clause, the outsourced and deeply flawed Work Capability Assessment, the punitive sanctions regime and the repugnant benefit freeze.

People across the country whether they voted Leave or Remain know that the system isn’t working for them.

Food bank use has increased almost exponentially and more people are sleeping on our streets the numbers have shamefully swelled every year. They used to be the party of home ownership now they’re the party of homelessness.

Care is being denied to our elderly with Age UK estimating at 1.2 million older people are not receiving the care they need. £7 billion has been cut from adult social care budgets since 2010.

Our NHS is in crisis, waiting time targets at A&E and for cancer patients have not been met since 2015. They have never been met under the government of this Prime Minister. The NHS has endured the longest funding squeeze in its history, leaving it short-staffed to the tune of 100,000 and NHS trusts and providers in over £1 billion deficit.

And the human consequences are clear. Life expectancy is now going backwards in the poorest parts of our country and stagnating overall. This is unprecedented. Another shameful first for this government.

Mr Speaker, I know some members of this House are sceptical and there are sceptical members of the public, but I truly believe that a general election would be the best outcome for this country. As the Prime Minister pointed out in her speech yesterday both the Labour Party and the Conservative Party stood on manifestos that accepted the result of the referendum. Surely any government would be strengthened in trying to renegotiate Brexit by being given a fresh mandate from the people for their chosen course?

I know many people at home will say we have had two general elections and a referendum in the last four years. For the people of Scotland it is two UK-wide elections, one Scottish Parliamentary election and two referendums in five years. So while Brenda from Bristol may gasp “not another one?” spare a thought for Bernie from Bute. But Mr Speaker the scale of the crisis means we need a government with a fresh mandate.

A general election can bring people together, focus on all the issues that unite us, the need to solve the crises in our NHS our children’s schools and the care of our elderly.

And we all have a responsibility to call out the abuse that has become too common whether that’s the abuse of members of this House going about their business or the racist abuse and attacks that too many of our constituents have faced since the toxic debate of the last referendum and this government’s hostile environment policies.

Many media pundits and members of this House say there is currently no majority in the House for a general election. This House will decide.

But Mr Speaker, it is clear there is no majority for the Government’s Brexit deal and there is no majority for No Deal.

Mr Speaker, I pay tribute to all members of this House who, like the Labour frontbench, are committed to both opposing the Prime Minister’s bad deal and ruling out the catastrophe of ‘No Deal’.

But I do believe that following the defeat of the Government’s plan, a General Election is the best outcome for the country, as the Labour Party Conference agreed last September.

A General Election would give new impetus to negotiations, a new Prime Minister with a new mandate, able not just to break the deadlock on Brexit but to bring fresh ideas to the many problems facing our constituents: low pay and insecure work, Universal Credit and rising poverty, the scandal of inadequate care for our elderly, the crisis of local councils, health services and schools starved of resources, the housing and homelessness crisis.

Mr Speaker, if the House backs this motion today then I welcome the wide-ranging debates we will have about the future of our country and the future of our relationship with the European Union.

As I said before, a Prime Minister confident of what she describes as “a good deal” and committed to tackling burning injustices should have nothing to fear from such an election.

But Mr Speaker, if the House does not back this motion today then it is incumbent on all of us to keep all options on the table that rule out a disastrous ‘No Deal’, and to offer a better solution than the Prime Minister’s deal which was so roundly defeated yesterday.

This Government cannot govern and cannot command the support of Parliament on the most important issue facing our country.

Every previous Prime Minister in this situation would have resigned and called an election and it is the duty of this House to lead where the Government has failed.