Contribution
It has been a pleasure to sit here for a number of hours and hear some views that are, frankly, special.
Let me start with some of the factors that have been completely missed from not only this debate but the King’s Speech. I do not think the realisation in this place takes the reality of our situation very seriously. We are broke. We owe not only £2 trillion to the debt markets—which, I am afraid, despite orders to foreigners to hand over more money, we do not control—but £10 trillion to people to whom we promised pensions and the businesses that built our schools and hospitals the last time we had a Labour Government.
We find ourselves in a situation where the conversation in this House has reached a point of unreality, because we are not addressing a very simple fact: inflation is coming down the tracks very quickly because of the decisions to challenge the energy markets directly in places such as Iran. We are seeing enormous pressures steaming up from Iran, from the strait of Hormuz, from the lack of gas flowing and from the absence of fertiliser. They are about to hit us in the grain markets in September, when the first harvest is not complete, and they will hit us in the meat markets in the spring, because that grain will not have led over the winter to the growth of animals for protein.
We are storing up a whole series of challenges for ourselves. Yet here we are talking about how much more we can spend and how much more we can get individuals to put their hands in their pockets, with the promise that they will get the money back in four, 10 or 20 years’ time. I am afraid that is simply not realistic. It is nothing to do with the credibility of this Prime Minister or whomever the Labour party chooses next; it is down to the simple reality that about a year ago, the Government refused to take the first and only decision that would have strategically mattered in this Parliament—to constrain welfare. The moment they refused to do that, they put themselves in opposition to simple financial reality, and the rest of the path was set. I am afraid that is exactly where we find ourselves.
The King’s Speech—the King, if not the Government, did it well—set out another series of wish lists for a Government who are going to last another few weeks. They are an Administration who are simply not going to change the reality, because they are not willing to take the decisions that need to be taken. I am afraid that is the reality of the United Kingdom’s position.
We are not being serious. We are not dealing seriously with the fact that we have young people who want to work and have energy, drive and determination, but who are being sold down the river by parties that are all sticking to triple locks on pensions and promising benefits to people who are already in work—as the Employment Rights Act 2025 does—but not to those who seek employment.
We are seeking to go down a path of control, statism and nationalisation. In fact, we have replaced socialism not with communism, as the Chinese have, or with the kind of authoritarianism that we see in some parts of eastern Europe, but with command capitalism: the illusion of privatisation with the direct intervention of regulation. We are seeing the absolutely predictable results of Government instructing individuals how to behave. Well, guess what? Individuals are opting out. We saw them opting out of hiring when the national insurance rate went up; we will see them opt out of leasing when the Renters’ Rights Act 2025 closes down that market; and we will see people forced out of the choices that they need to build their own lives. That is a hell of a pattern for this Government to set for the country. Let us be honest: with the current way that they are going, there is no way out.
Whoever the Labour party picks as its leader, unless its Back Benchers change and decide that they are willing to take their responsibilities seriously, we know what the result will be: the International Monetary Fund, the debt markets, and many, many people losing their homes.