Jerome Mayhew

Madam Deputy Speaker, you do not need me to tell you that this is a deeply unhappy Government. It is a deeply unhappy party sitting on the Government Benches, and Labour Members do not appear to understand that their core problem is a lack of economic growth. If the Labour Government were presiding over fast economic growth, the taxes would come rolling in, their ability to spend on their pet welfare projects would be unlimited, and they would be riding high in the polls. They used to know that. When they came into office, they said that their No. 1 mission was to deliver economic growth, yet what we have seen in the two years since is the most appalling example of a fundamental misunderstanding of how an economy works. Instead of bringing in policies to increase economic growth, we have entered into the depressing doom loop of increased taxes to fund increased welfare, leading directly to reduced economic activity, which leads to increased welfare needs and therefore an increased need for tax rises. We need a leader and a Government who have a plan, not just words, to support economic growth—something that reverses the welfare taxation doom loop. And what do we have in the King’s Speech? Where is the welfare reform bill? It is an appalling statistic that we now spend more on welfare than we recover in income tax. Four million adults receive PIP—the figure has gone up by half a million since the last general election. The Centre for Social Justice came out with a really terrifying argument the other day: according to its analysis, 25% of all full-time workers would be better off receiving benefits than they are in employment—a quarter of the working population. Yet, in this King’s Speech, there is nothing to fix the relationship between welfare and the productive economy.