Jim McMahon

Today we have heard from across the House where the divide in this debate really is. There is a train of thought on the Conservative Benches that if we continue to do what the Conservatives have done over the last 14 years, things will surely get better. Well, given the experience of the 14 years of the previous Government, that is madness. Things did not get better, and for working people in this country things got materially worse, so a different course is needed. Given the range of difficult and competing interests that the Chancellor has had to face, which have been well rehearsed, I believe that this Budget provides balance and respite for working people. When taken in the round, the two-child benefit cap will help 6,000 children in my constituency. For all the talk of, “Well, if people just worked a bit harder, things would be better,” the fact is that 60% of those households have at least one person in work. These are people who are rolling up their sleeves and doing everything that has been asked of them, but they still cannot get on in life because of the wage levels in the jobs they occupy—many of which, by the way, are important and foundational for our economy. The rail fare freeze, the bus fare cap and measures on energy bills, on prescription charges and on the minimum wage and national living wage will give people respite and ease things a bit. What I want to talk about, though, is the thing that really made my heart sing as a co-operator in this House: the Chancellor of the Exchequer talking about co-operation and co-operative businesses at the Dispatch Box in the main Budget. Why is that important? It is important because for so long, even when the economy has grown, many working people have not been the beneficiaries of that growth. Many communities have been hollowed out and become more and more removed from the economies that they work to serve. We believe that co-operatives and mutuals provide that bridge. They are more sustainable and productive, and they treat their workers better. They have better pay differentials, and they invest in apprenticeships at a higher rate and so on. All the arguments are there, but we have been waiting for quite a long time for a Government who understand co-operatives, see the value of them and are willing to put something behind them. The work being done to establish a co-operative development agency so that every region of the country can benefit is music to our ears. The work being done through the mutuals and co-operative business council—where those voices and interests around the country are being brought together with the support of the Department for Business and Trade and the Treasury—is essential for doubling the size of the co-operative economy in a way that can make a huge difference. Of course, community ownership of local assets through the English Devolution and Community Empowerment Bill will end those years of communities constantly fighting to at least keep what they have, and will mean that they can begin to look to the future and what they can build together. Co-operatives and mutuals, like every other business, rely on a thriving economy and a local community that has disposable income to spend in that local economy, so the business rates relief for retail, hospitality and leisure will be a big boon to our high streets, town centres and pubs and to many other parts of the economy. It is no surprise that today the Co-operative Group has announced £1 billion of investment in the UK because it believes in the direction of the Government and the country—more importantly, it believes in the people of this country and wants to get behind them. I pay tribute to Shirine Khoury-Haq, the CEO of the Co-operative Group, for the work she does in driving that agenda. If anyone wanted to meet a business leader in this country who runs a tight ship financially from a business point of view, but also leads with her heart when it comes to social investment, they could do worse than looking at Shirine and her team at the headquarters in Manchester. But we do need to go further. Our building society network and our credit unions have so much potential, but we can do much more with them. I say to every Member of this House that there are more members of building societies and credit unions than people who voted in the last general election, so they are quite an important constituency to look after and support. I know that the Minister is working hard on this issue. One very small change he could make would be to review the common bond, so that credit unions can grow, expand and offer a wider range of financial services to local communities. There is a lot in the Budget on councils and support for them. I perceive this Budget almost as one that gives communities the right to survive, to get through what has been a difficult period and to have respite. The next challenge will be: how do these communities begin to thrive? How do working families stop worrying about every single paycheque because they are just about making ends meet and begin to think about a better future where they can thrive, really enjoy life and get the most from it? For many people, local neighbourhood services are the foundation of public services in their local area but, let’s be honest, for most parts of England, they have been eroded by pressures in adult social care, children’s services and temporary accommodation. Whatever we think about our missions and ambitions as a Government—they are all important, of course—we also need to accept that if people open their front door and walk out on to the street and it does not feel and look better, we just will not get a hearing when we get to the ballot box the next time round. For many parts of our movement, the elections are coming pretty soon down the line, so I urge the Government to focus on that. Let us celebrate the move to further devolution. Mayors will finally get the power to impose a visitor levy, which they have been asking for. We see even more capital investment going into our regions, further empowering mayors—that should be celebrated. There is a lot in the Budget about investment in Britain plc, which is to be welcomed, but we need to be better at co-ordinating across Government. I have asked questions of a number of Departments, be it the Home Office about police vehicles purchased by local forces, the DWP about vehicles commissioned through the Motability scheme, or the Cabinet Office about the procurement of Government vehicles. There are no checks and balances to ensure that British vehicles are procured. Surely that is the simplest thing a Government can do—use the lever of procurement to ensure that we are supporting British jobs in our regions. On top of the good work that has been done, I urge the Chancellor to commission an urgent cross-Government review to ensure that we support British businesses across all procurement lines.