December, 2011

CBI’s “Vision for rebalancing” report – response from Chuka Umunna

Friday, December 30th, 2011

Commenting on the CBI’s “Vision for rebalancing” report published today, Labour’s Shadow Business Secretary Chuka Umunna MP said:

“The CBI is correct to say that we must rebalance our economy which has become too concentrated in too few sectors, and in too few regions of the economy over the last 40 years under different governments.

“Government must use all the levers at its disposal to build a new economy and encourage businesses to invest for the long term so we can exploit the new high growth economies the CBI refers. But instead of providing the leadership and certainty needed to give companies the confidence to invest – the Tory led government has deterred investment by, for example, cutting investment allowances on capital expenditure over £25,000 and wrecking future success in our green industries with their disastrous changes to feed in tariffs.

“The CBI higlights the importance of infrastructure investment which is why we had been saying for months that the government should implement Labour’s five point plan for growth and jobs to kick start the recovery which includes bringing forward long-term investment projects.

“A new economy requires an active government working in partnership with British business to meet the aspirations of the British people – actions speak louder than words and by failing to provide leadership and to promote the certainty businesses need to invest, this out of touch government is failing to meet the challenges facing businesses and the UK economy.”

Pressure mounts on Thai authorities over Lambeth bus crash victims

Thursday, December 29th, 2011

Streatham MP Chuka Umunna paid tribute to the families of three South London boys who died in a bus crash in Thailand in June following their six month campaign to win Government support for efforts to improve road safety in the South Asian country. 

On 27th June this year, Bruno Melling-Firth, Max Boomgaarden-Cook and Conrad Quashie died in a bus crash while on holiday in Kam Phaeng Phet Province, Thailand. The three young men, who were due to start University this year, had each worked hard to save up for the trip to Thailand. They died within four days of their arrival.

Their families have since endured a six-month campaign to find out the facts of their sons’ deaths, improve awareness of the dangers of Thai bus travel, and to influence reform to improve the safety of Thai buses and road networks. Polly Cook, Max Boomgaardan-Cook’s mother, is a constituent of Mr Umunna’s and the MP has been working with the families since the crash.

After a letter to William Hague received an inadequate response, Mr Umunna organized a meeting between the families and Jeremy Browne, the Foreign Office minister responsible for Consular activities. The meeting, which took place on the 21st December, was attended by Chuka Umunna and the mothers of the three boys; Amanda Bean, Polly Cook and Gillian Melling.

During the meeting the MP and families finally had a chance to the Minister to promise to make representations to the Thai Government on their behalf and raise their specific fears over the safety of bus companies in Thailand. The Minister also promised that foreign office officials would meet with Proffessor Pichai, a road safety expert who has been helping the campaign.

Mr Umunna said he would be working to ensure the Foreign Office properly examines the case for updateing travel advice for people going to Thailand. The MP wishes the Government to consider changing their advice on Thailand to specifically warn against bus travel. The families today urged any British citizen travelling to Thailand to use rail or air travel, and not to use the dangerous and barely regulated bus companies that operate in the country.

Commenting, Mr Umunna, MP for Streatham, said:

“I’d like to pay tribute to the families involved. I am full of admiration for the way that they have pursued this cause since the boys’ tragic deaths in June.”

“There is nothing that can bring back the gaping loss left by the boys’ deaths but if action can be taken to prevent such tragedy occurring in future it will at least be a lasting legacy to such promising young lives.”

“I will be working over the next few months to ensure the Foreign Office properly examines the case for updating travel advice for people going to Thailand and to see that awareness of the problem is raised in my constituency and elsewhere.”

“I would urge any of my constituents who are considering travelling abroad to take stay as safe as possible and would like to highlight the dangers on behalf of the families because many of my constituents will not know the dangers of bus travel in Thailand and it may be vital they find out.” 

Commenting, Polly Cook, Mother of Max Boomgaardan Cook, said:

“If I could see my boys again I would tell them not to travel on the buses and to fly or take the train even though it’s slower. I want other families to know that.”

“I’m very pleased that the Foreign Office has said they will contact Professor Pichai in order to liaise about the appalling state of Thailand’s roads.”

Christmas message from Chuka Umunna MP

Sunday, December 25th, 2011

It has now been 18 months since I was elected as the MP for the Streatham constituency and I am immensely proud and honoured to continue to represent our area.

In every corner of the constituency, from Streatham to Clapham, Balham, Brixton and Tulse Hill, I have always believed that our communities are some of the strongest to be found anywhere, and that our future together is one of the brightest.

I know this year may well have been a difficult year for many of you. The economic situation the country faces is a difficult one, and as your MP it is my duty to see that the Government does all it can to resolve this situation.

I know too that many of you have faced particular challenges and rest assured my team and I will continue to do all we can to help as many of my constituents as possible through my work in the constituency.

I look forward to continuing working for the constituency in the New Year. I hope that today at least we can put the difficulties to one side and enjoy those things that are truly important in life; our families, friends, neighbours and communities.

I wish you the happiest of Christmases with your loved ones. I know this will be a special time for many of you, both Christians and non-Christians alike. So I’d like to thank you, at this special time of year, for everything that you do to make our area such a special place to live.

I wish you and all of those closest to you, a very happy Christmas and a wonderful New Year.

Chuka

Chuka calls for urgent action on unemployment

Friday, December 16th, 2011

Chuka Umunna MP has called for urgent action to tackle unemployment and boost economic growth following the publication this week of updated unemployment figures by the Office of National Statistics.

Commenting on the impact complacent Government policy has had on local residents, Mr Umunna said:

“The deteriorating unemployment situation needs to be dealt with urgently. In my constituency alone there are now nearly 500 more people without a job than this time last year.
 
The Government needs to do far more to get demand back into the economy to boost growth and create jobs in South London. Government politicians in the 1980s used to justify inaction by saying unemployment was a price worth paying – that attitude was unacceptable then and it is unacceptable in 2011.
 
Labour has a five point plan for the economy to boost jobs and growth including a temporary cut in VAT and a bankers bonus tax to create thousands of youth jobs. My constituents cannot wait any longer for the Government to act particularly given the likely negative impact of the Eurozone crisis – we need immediate action now.”

High Street Walkabout in Streatham Vale

Thursday, December 15th, 2011

Chuka Umunna, MP for the Streatham constituency, made another of his regular visits to local High Streets today.

Chuka visited Streatham Vale businesses including, amongst others, Superchoice newsagents, Covenant Hair & Beauty, Watts Pharmacy, The Village Card Shop, and Gow Gow, a new pet grooming business.

As MP for the area, Mr Umunna considers it vital to keep in touch with how local business owners are doing and what issues they are facing so that he can be of assistance. Among the issues discussed was what action needs to be taken to tackle anti-social behaviour and provide security to business, as well as how important it is to get banks lending.

Mr Umunna makes regular visits to local High Streets and earlier this month visited shops in Greyhound Lane. As Shadow Business Secretary, Mr Umunna is responsible for holding the Government to account for their Business policies, as well as for making sure that the Government do more to secure economic and business growth. High Street Walkabouts in his constituency are a good way for Mr Umunna to make sure local concerns are communicated in Parliament.

London MP speaks out as homeless numbers rise by more than 28%

Tuesday, December 13th, 2011

London MP Chuka Umunna has spoken out as eighteen months into a Conservative-led Government new figures show homelessness has risen by more than 28%. The number of homeless households fell dramatically during the last Labour Government, from 26,310 in 1998 to a low of 2,230 in the first quarter of 2010.

The Statistics, which were released last week by the Department for Communities and Local Government, show the changes to the number of households that Local Authorities accepted were owed a main homeless duty, which means that Local Government considers those people homeless.

The figures showed that homelessness rose more than 28% in the last 18 months under the Tory led Coalition Government. Since the number of people homeless was so high before the last Labour Government came to power, there are inevitable fears that high levels of homelessness could return.

There were strong fears, even before the election, that the pace of deficit reduction would lead to a worsening situation for the most vulnerable. Homelessness charities have reacted with alarm to the latest figures.  Commenting on the figures, Chuka Umunna, Labour MP for Streatham, said: 

“These latest figures are deeply worrying”

 “So much has been done by so many people in my constituency and all over London to help end the scourge of homelessness yet now we appear to be going backwards not forwards.” 

 “As we enter the Christmas period it is important that we remember the people who have nowhere to live and need our help. It is vital that we do all we can to support the most vulnerable.”

“Figures like this show that the Government needs to be doing far more to tackle this problem.”

Commenting on the national situation Shelter’s Chief Executive, Campbell Robb said:

‘With someone facing losing their home every two minutes, the reality is this is a fate that could happen to any one of us. All it takes is one small thing, such as an illness or financial trouble, and things can soon spiral out of control.”

 

Letter to Vince Cable on this week’s European Council

Sunday, December 11th, 2011

The Rt. Hon. Dr Vince Cable MP
Secretary of State for Business, Innovation & Skills
1 Victoria Street
London SW1H 0ET

11 December 2011

Dear Vince

European Council of 8 & 9 December 2011: adverse impact on British Business

I am writing to you with regard to the European Council that took place on 8 and 9 December 2011 (the “December 2011 European Council”).

In your speech to the European Parliament on 30 September 2011 you said: “the new British coalition Government believes that positive engagement with the European Union is an essential part of our economic and political relations.”

You ended the speech by saying: “we all recognize that our economic fate is inextricably linked with the rest of Europe. We want Europe to work; to put aside all quarrels; and make common cause to deal with the massive economic problems which we now face.”

Clearly the Government failed to make common cause with other EU member states at the December 2011 European Council. Consequently many British businesses are now asking how the government – having entered a negotiation with 27 other countries – finds itself in a minority of just one.

Business leaders I have spoken to question whether the approach adopted in the lead up to and during the December 2011 European Council was in the best interests of British business given that a substantial number of their orders come from EU member states. And even the Deputy Prime Minister himself has stated today that British business may be in a worse position as a result of the outcome of the December 2011 European Council.

On 9 December 2011 the Prime Minister said he would not agree to a revision of the Lisbon Treaty (“Treaty change”) to allow for the measures which were subsequently agreed to by 23 other member states of the EU in an intergovernmental agreement (the “Intergovernmental Agreement”). He said he would not agree to Treaty change because to do so would adversely impact on British business and the City of London in particular. I note that in the July 2010 list of Ministerial Responsibilities it states that you have a “particular focus on business and banking issues”. The Deputy Prime Minister has said that he was not consulted during the December 2011 European Council on this decision the Prime Minister took overnight on 8/9 December ; is it also the case that despite your Ministerial responsibilities, you were also not consulted on this decision?

There are many unanswered questions which British business needs answers to in order to plan for the long term – lack of certainty is a large obstacle for many companies. Full details of the European Council negotiations have not been released, so I would be grateful if you could answer the following questions to increase business certainty:

Continued Eurozone instability and the lack of growth

1. The principal concern of British business is that stability is brought to bear on the Eurozone, which has huge implications for business confidence and the receipt of orders from the continent. Please explain whether you believe:

a. the negotiating stance of the Government furthered this goal at the December 2011 European Council and, if so, how?

b. the December 2011 European Council furthered this goal and, if so, how?

2. The other principal concern of British business is that the EU adopt a credible plan for growth. Please explain whether you believe:

a. the negotiating stance of the Government furthered this goal at the December 2011 European Council and, if so, how?

b. the December 2011 European Council furthered this goal and, if so, how?

Financial Transaction Tax

3. By agreeing to Treaty change, it has been suggested that the UK was being asked to give up its veto in relation to the implementation of a Financial Transaction Tax. To clarify the position, please confirm the following:

a. before the December 2011 European Council, a Financial Transaction Tax could only be entered into by a unanimous vote by all member states of the EU;

b. after the December 2011 European Council, it is still the case that a Financial Transaction Tax can only be entered into by a unanimous vote by all member states of the EU; and,

c. as an EU member state falling outside the Eurozone, in the course of the December 2011 European Council negotiations the British Government was not asked to cede control over its powers of taxation to the European Union.

Financial Services Regulation

4. The Prime Minister reportedly refused to agree to Treaty change after other member states rejected the protocol document he tabled which purported to protect the City (the “Protocol”). To clarify the position, please confirm the following:

a. EU wide financial services regulation is settled by qualified majority voting (“QMV”) – that was the case before and after the December 2011 European Council;

b. the ability of the Government to protect the City from adverse EU wide financial services regulation depends on its ability to marshal a voting majority against proposed measures on the European Council – that was the case before and after the December 2011 European Council;

c. the Government has never lost a QMV vote on financial services regulation since the formation of the Single Market in 1986; and,

d. the now isolated position of the Government on the European Council makes it more not less likely that the Government will lose future votes on EU wide financial services regulation at European Council level.

The Government’s failed draft Protocol

5. The Protocol sought to provide that the following matters currently decided by QMV be subject to unanimity and the possible exercise of a veto by any member state: any transfer of power from a national regulator to an EU regulator on financial services; the ability of national authorities to set higher capital requirements on their banks; that the European Banking Authority remain in London; and that the European Central Bank be prevented from requiring euro-denominated transactions take place within the eurozone. Please confirm the following:

a. before the December 2011 European Council all of these matters were subject to QMV;

b. after the December 2011 European Council all of these matters are still subject to QMV; and,

c. any attempt by the Government to oppose future votes on these matters by marshalling a majority on the European Council is now compromised by its isolated position and lack of allies on the European Council.

Protection of the Common Market and inward investment

6. There are grave concerns amongst British businesses that the UK’s absence from discussions relating to matters the subject of the Intergovernmental Agreement will compromise the UK’s ability to safeguard the Common Market in the interests of our economy and British businesses. What assurances can you give British business that this will not be the case?

7. Many global corporations choose to site their European headquarters and/or operations in the UK, creating thousands of jobs, because of our status as a leading member of the EU. Do you believe the UK’s now isolated stance makes it more or less likely that global corporations will continue to choose to site their European headquarters and/or operations in the UK in the future?

I look forward to receiving your response to each of my questions by return given their urgent and pressing importance to the future of our economy, to increase certainty for British business and enable our firms and companies to plan ahead.

Yours sincerely,

Chuka Umunna MP
Shadow Secretary of State for Business, Innovation & Skills

High Street Walkabout: Greyhound Lane

Friday, December 2nd, 2011

 

Chuka Umunna today visited Greyhound Lane to talk to local business owners and employees about their needs and concerns.

Visiting Greyhound Lane Mr Umunna talked to local business owners and employees, as well as representatives from the Police about problems with anti-social behaviour and street drinking, as well as about concerns raised that not enough has been done by the Government to ensure confidence in our economy, and that this is having a negative impact on local businesses.

As MP for the Streatham constituency, Mr Umunna regularly visits local High Streets to listen to their concerns and see what help he can give as the local MP. In Mr Umunna’s role as Shadow Business Secretary he is responsible for holding the Government to account for their business policies and ensuring the Government does more to enable businesses to grow. High Street Walkabouts are a good way to quickly transfer local concerns to action in Parliament.

Streatham MP’s fight for school places cash

Friday, December 2nd, 2011

In this week’s Autumn Statement the Chancellor George Osborne announced funding for extra school places after Lambeth MPs Chuka Umunna, Tessa Jowell and Kate Hoey met with Education Secretary Michael Gove to discuss the issue.  

Demand for school places is increasing substantially as the Lambeth population grows. Lambeth Council state that in five years applications have risen by 29 per cent and the birth rate has risen by 14 per cent. In Streatham and Norwood the birth rate has increased by 25 per cent.

As demand for places will soon outstrip supply Streatham MP Chuka Umunna, along with fellow Lambeth MPs Tessa Jowell and Kate Hoey, met Education Secretary Michael Gove to express how vital sufficient school funding for Lambeth is. Mr Umunna met with Michael Gove along with Immanuel and St Andrew’s Primary School Head Teacher James Robinson.

In today’s pre-budget statement the Government indicated that it had listened to the MPs’ concerns. George Osborne stated that the Government will provide funding for an extra 40,000 school places.

Chuka Umunna MP has today said that he will write to Michael Gove, seeking to ensure that this school places funding reaches areas like Lambeth where he has explained to the Minister that it is needed most.

Commenting, Mr Umunna said:

“The Government has this week recognised what is obviously the case – that they need to do more to ensure our children have the education they deserve. We have been pressing Michael Gove to ensure schools in Lambeth are sufficiently funded and will be writing to him again to ensure he follows through on the Chancellor’s statement”

“It is right that the Government has listened to our legitimate concerns that they have not been doing enough to provide for our children’s education. I know a great deal of my constituents have had huge concerns and have been campaigning for the Government to listen on this issue.”   

 

1,300 Streatham Families to lose £110 a year

Thursday, December 1st, 2011

Streatham MP Chuka Umunna has hit out at a £110 loss for 1,300 local families, saying Streatham families are now paying the price for the Government’s mismanagement of the economy.

The Autumn Statement, given by the Chancellor this Wednesday, is used by the Government to update Parliament about Government plans for the economy. The Chancellor was forced to admit that UK growth forecasts have been reduced to 0.9% this year and that growth will fall again to 0.7% next year.

The Chancellor, George Osborne, announced that he would be scrapping the previously announced £110 above inflation increase to the child element of the Child Tax Credit received by 1,300 families in Streatham.

Streatham MP Chuka Umunna, has blamed the scrapped payment on the need for the Government to save money to compensate for the lack of economic growth.

Commenting, Mr Umunna said:

“It is not for hard working Streatham families to pay for the Government’s failure to act and get growth back into an economy which was recovering when they took office.”

“Families hit by soaring prices and the worst jobs market since the 1980s do not need a Government that ignores their concerns and hurts their wallets.”

“This comes on top of the VAT tax hike imposed on my constituents earlier this year and is not the Christmas present that the people I represent either wanted or deserved”