Support for Business Mr Virendra Sharma (Ealing, Southall) (Lab) 1.
What fiscal steps he is taking to support businesses. James
Sunderland (Bracknell) (Con) 5. What fiscal steps his Department is
taking to encourage business investment. The Chancellor of the
Exchequer (Rishi Sunak) Last week’s Budget set out an ambitious
package to support business, enterprise and innovation: the
super-deduction, new relief to incentivise investment, a reduction
in business...Request free trial
Support for Business
(Ealing, Southall)
(Lab)
1. What fiscal steps he is taking to support businesses.
(Bracknell) (Con)
5. What fiscal steps his Department is taking to encourage
business investment.
The Chancellor of the Exchequer ()
Last week’s Budget set out an ambitious package to support
business, enterprise and innovation: the super-deduction, new
relief to incentivise investment, a reduction in business rates
and investment in infrastructure, innovation and skills to drive
future growth. This was a Budget that backed businesses across
the United Kingdom.
Mr Sharma
Business rates are broken. Business owners on Boston Road and The
Broadway in Southall in my constituency do not want hypocritical
answers. They want the system fixed to support smaller businesses
and help them to thrive. What will the Chancellor do to help
them?
Last week’s Budget set out a £1.7 billion tax cut for many small
and medium-sized businesses across the UK. It will mean that
retail, hospitality and leisure businesses will see a 50%
discount in their business rates next year, up to the value of
£110,000 each. That will, of course, benefit many of the shops in
Southall that the hon. Gentleman mentioned, and hopefully I can
do my bit by visiting to buy my Diwali mithai later this
week.
The Chancellor will know that Bracknell has successfully
reinvigorated its town centre and continues to be a great place
to do business. Noting that Bracknell and neighbouring Wokingham
have one of the lowest centrally funded budgets in the country
from central Government, will he please reassure me that east
Berkshire will not be passed by when it comes to levelling-up
funding?
I can assure my hon. Friend that, whether through the levelling
up fund, the community ownership fund or the community renewal
fund, this Government have ambitions to level up across the
entire United Kingdom. With regard to the local government
funding he asks about, last week’s spending review set out £1.6
billion over the year of additional cash grant, the precise
allocation of which will be set out in due course by my right
hon. Friend the Secretary of State for Levelling Up, Housing and
Communities in the local government finance settlement.
Mr (Wolverhampton South East) (Lab)
I wish the Chancellor and my hon. Friend the Member for Ealing,
Southall (Mr Sharma) a very happy Diwali. As well as all the tax
rises on income and business that the Chancellor has announced in
the past six months, buried in the Budget Red Book is a plan for
a stealth tax on the self-employed of £1.7 billion over the next
few years. After the past 18 months, in which many self-employed
people have had no help at all, and when they are already being
hit with the other tax rises he has announced, why are the
self-employed now being hit with this extra tax rise, which he
did not even mention in his Budget speech last week?
There were no extra taxes for the self-employed in last week’s
Budget; the right hon. Gentleman may be referring to a timing
difference that was reflected in the Budget scorecard of
previously announced policies. With regard to the self-employed,
he should take a moment to reflect on the fact that this
Government provided almost £30 billion of support to millions of
self-employed people throughout the crisis, and I am very glad
that we did so.
(Forest of Dean) (Con)
May I first thank the Chancellor for the steps in the Budget to
help retail, hospitality and leisure businesses? They have gone
down very well in my constituency, where those businesses are
important, were hit hard during in the pandemic and were grateful
for the support they got. People have commented to me that the
most useful thing he can do is to focus on getting the public
finances in order, as he spoke about in the latter part of his
speech, so that we get taxes on a downward path as we go through
this Parliament. That is the best fiscal way to help businesses
to prosper in the future.
As always, my right hon. Friend makes an excellent point, and I
thank him for the eloquent speech he made on this topic last
week. I wholeheartedly agree with him. My intention and goal over
the rest of this Parliament is to reduce taxes, and we both know
that the best way to create growth and prosperity in this country
is to unleash the entrepreneurial innovation of our private
businesses.
(Glasgow Central)
(SNP)
A happy Diwali to the Chancellor and all who are celebrating.
Hospitality and tourism businesses face a tough winter, with
rising fuel, staffing and supply costs. While the Scottish
Government, to their credit, have brought in 100% rates relief,
the Chancellor’s proposals of a few pence off a pint are small
comfort in comparison. A greater help would be maintaining the
12.5% value added tax rate right through next year, not putting
it back up to 20% in the spring. Will he bring forward proposals
to do that and to support our tourism and hospitality businesses
in the Finance Bill?
The reduced rate of VAT was put in place to support the
hospitality industry during coronavirus. It extends all the way
to next spring; it does not step up until next March, as the hon.
Lady pointed out. As she also pointed out, the Government are
putting in place business rates support to help businesses in
that industry—as I said previously, up to £110,000 for each
business next year through a 50% discount on their business
rates, with Barnett consequentials flowing to Scotland as a
result.
(Stoke-on-Trent North)
(Con)
Brewers have gone through a really challenging time throughout
the pandemic, so the Chancellor’s announcement of a reduction in
the draft beer duty rate was extremely welcome. Keith and Dave
Bott, owners of Titanic Brewery, want to pass on their thanks to
the Chancellor directly and hope that he can come and enjoy the
Bulls Head in Burslem to celebrate this fantastic
achievement.
I thank my hon. Friend for the kind invitation, which he also
sent me by phone. I look forward to accepting it soon and to
celebrating Stoke’s success in not one, not two but three
levelling-up fund bids.
Supply Chain Issues
(Blaenau Gwent) (Lab)
2. What recent fiscal steps he has taken to help resolve supply
chain issues.
The Exchequer Secretary to the Treasury ()
Current stresses on supply chains are a consequence of global
factors; as economies around the world recover, demand is
outstripping supply. Where it makes sense, we are taking action
to support UK supply chains, such as increasing the supply of
lorry drivers to help the haulage sector meet demand for
deliveries.
Last week’s National Audit Office report on supply chain finance
highlighted that huge contracts involving Greensill Capital,
signed off by the Treasury, provided no benefits to the NHS. Does
the Minister accept the NAO report, and will she ensure that in
the future, contracts are properly awarded to avoid this kind of
insidious lobbying?
I am sure that the Government will be responding to the NAO
report in due course, but I can assure the hon. Member that the
Treasury works very hard with the Department of Health and Social
Care to make sure that funding for the NHS, which we are
increasing substantially, goes to good use and improves care for
patients.
(Houghton and Sunderland
South) (Lab)
Mr Speaker,
“energy price rises…increased evidence of supply bottlenecks
…shortages in key occupations”.
Those are not my words but those of the Office for Budget
Responsibility, which has issued a clear warning that the
Government’s supply chain chaos will weigh on the recovery beyond
its current forecast. Can the Minister help businesses and
families prepare by explaining how much this chaos will cost the
country this year?
I thank the hon. Member for her question. I do not agree with the
picture that she paints. As I said earlier, there are global
factors affecting challenges to the supply chain. We are
providing support where it is appropriate. Specifically on energy
costs, customers are already supported by the energy price cap,
and we are providing £500 million extra help to households that
need it during this winter.
The run-up to the festive period is a busy and crucial time for
many businesses. They simply cannot afford delays in getting
goods to warehouses from our ports, yet that is exactly what the
logistics industry is warning that the shortage of heavy goods
vehicle drivers is causing. Can the Minister guarantee that no
presents will be missing from under the tree this Christmas
because of her Government’s complete failure to plan ahead?
We are indeed taking steps to support the haulage sector, where
there is a long-running situation with vacancies for HGV drivers.
The action we have taken includes making available 5,000
temporary visas for the short term, increasing the number of
tests available so that there is greater capacity for new drivers
to take tests, changing cabotage restrictions, and funding
improved facilities for drivers. In the longer term, we need to
see both better pay and better conditions for lorry drivers.
Economic Inequality
(Blaydon) (Lab)
3. What recent steps he has taken to help reduce economic
inequality.
The Economic Secretary to the Treasury ()
Distributional analysis published at the Budget and spending
review last week shows that in 2024-25, tax, welfare and spending
decisions made since the spending round two years ago will have
benefited the poorest house- holds most as a percentage of
income. This Government believe that work is the best route out
of poverty. That is why the Government are investing £6 billion
in labour market support over the next three years.
Analysis of the Chancellor’s Budget and tax and spending plans
for the next six years shows that they will cost women an
additional £48 billion over that period. That is a staggering
amount of money to be taken from women, and it is in contrast to
the planned tax cuts for banks. Is that why the Government have
failed to produce an equality impact assessment for this Budget,
as they are required to—because the Chancellor knows that his tax
choices are totally unfair?
The hon. Lady must have missed a number of measures announced by
the Chancellor in the Budget last week in which significant
investment was made to support families through the household
recovery fund and support for women in particular to get back
into the labour market, alongside a whole range of other
interventions.
(Meriden) (Con)
One issue concerning me at the moment is the lack of access to
cash in the north of my constituency, which suffers from
significant degrees of inequality. I was pleased to be at the
opening of Kingshurst post office, which will restore some cash
services, but the issue remains a problem as retail banks reduce
their estate. Does my hon. Friend agree that shared banking hubs
are a good way forward? Will he highlight to the House what work
is being done to increase access to cash?
Banking hubs will absolutely be a part of the solution, alongside
a whole range of other interventions. The Government have
committed to legislate on this matter, but in the meantime, I am
very hopeful that industry will come forward with meaningful
proposals for a range of options to deal with the declining use
of cash and ensure access is available everywhere.
(Westmorland and Lonsdale) (LD)
The colossal economic inequality facing rural communities is
something that I hope the Government take seriously. Is the
Minister aware of the collapse of local housing in communities
such as mine—and indeed in the Chancellor’s next-door
constituency—into the second-home and holiday-let markets?
Following the Welsh Assembly Government’s example, will the
Minister look at doubling council tax on second-home properties,
so that communities such as mine do not lose their local
populations and become riddled with ghost towns?
The Government are looking at tightening up the rules around
second homes and council tax. We would be very happy to engage
with the hon. Gentleman on the matter.
NHS Trusts: Capital Spending
(North West Norfolk) (Con)
4. What steps he is taking to increase funding for capital
investment in the NHS.
(Telford) (Con)
14. What steps his Department is taking with the Department of
Health and Social Care to help ensure scrutiny of NHS trusts’
capital spending.
The Chief Secretary to the Treasury ( )
It has just been announced, through the spending review, that the
NHS will receive: over £12 billion of capital funding for
investment in and maintenance of the NHS estate; £5.9 billion for
diagnostics, technology and elective recovery; £4.2 billion for
at least 70 hospital upgrades and 40 new hospitals; and funding
to eradicate mental health dormitories. That is on top of £500
million of additional capital funding given for the second half
of this year to help tackle the elective backlog. It means that
NHS capital budgets will have increased by over 8% year-on-year
above inflation since the start of the Parliament.
I welcome the funding for the new hospitals programme, and
highlight to the Minister that the Queen Elizabeth Hospital in
King’s Lynn, with 200 props holding up its structurally deficient
roof, has a compelling case to be one of the new schemes. Given
the inevitable need to rebuild the Queen Elizabeth Hospital, does
my right hon. Friend agree that it is far better to have a
properly funded new hospital using modern methods of
construction, rather than its being an unplanned cost, with
emergency funding constantly being needed to prop up its failing
building?
Mr Clarke
I welcome my hon. Friend’s clear and obvious passion for
improving the lives of his constituents. As well as committing
£3.7 billion to make progress on the 40 hospitals named last
year, the Government have committed to fund a further eight new
hospitals by 2030. The process for selecting those eight is being
led by the Department of Health and Social Care and will be based
on a range of criteria, including clinical need and
deliverability. I encourage my hon. Friend to engage in that
process, but I am happy to have any further discussions that
would be useful.
I thank the excellent Front Bench team for a brilliant Budget
which benefited every member of my constituency. I know the
Treasury team cares passionately about delivering value for
taxpayers. When it comes to significant capital spend for NHS
projects, such as the Shropshire plan to build a state of the art
critical care unit on the Welsh border, where costs have
escalated from £312 million to £560 million, will my right hon.
Friend say who is responsible for ensuring value for money and
how they are held to account? Can he also assure me that no more
cash will be allocated to that project until a ringfenced sum is
allocated for accident and emergency care in Telford?
Mr Clarke
I thank my hon. Friend for her kind words about the Budget. I
agree: it was a major fiscal event, one which puts the country on
a strong path for continued growth. She is absolutely right to
highlight the importance of delivering value for money. That is
certainly something I take very seriously. It is, obviously, a
shared responsibility across Government. In terms of the specific
concerns she raises about that case, I urge her to speak to
colleagues at the Department of Health and Social Care about the
right hospital configuration for Shropshire. Again, I am always
happy to have any conversations that are useful.
(Denton and Reddish)
(Lab)
I am pleased that the Minister mentioned the opportunity to
provide eight additional rebuilds of hospitals, because Stepping
Hill Hospital has served the people of Stockport and surrounding
areas well since it was built in 1905. However, all hospital
buildings reach the end of their useful lives and, with a £40
million maintenance bill, that one certainly has. The council and
the foundation trust have submitted ambitious plans to rebuild
the hospital on a new site in the town centre, moving it to a
more accessible location with state-of-the-art facilities and
helping to regenerate the centre of Stockport. This is a win-win,
so will the Minister look favourably on these plans?
Mr Clarke
The hon. Gentleman makes a passionate case for Stockport and the
health facilities there. Obviously, we will always look at these
proposals seriously, as will Departments including the Department
of Health and Social Care. Although I cannot comment on this
proposal specifically, not having had sight of it in detail, I am
always happy to have conversations with him.
Levelling Up
(Berwickshire, Roxburgh and
Selkirk) (Con)
6. What progress his Department has made in levelling up all
regions of the UK.
(Crawley) (Con)
13. What progress his Department has made in levelling up all
regions of the UK.
(Bury South) (Con)
20. What progress his Department has made in levelling up all
regions of the UK.
The Exchequer Secretary to the Treasury ()
Levelling up is this Government’s defining mission; it is a
golden thread running through this Budget and spending review. We
are creating the right conditions for businesses to grow and
giving people the right skills to succeed. We believe that the
place where someone grows up should never limit their
prospects.
This Government are rightly committed to levelling up all parts
of the United Kingdom, including Scotland. Improving transport
links by extending the Borders railway in my constituency from
Tweedbank to Hawick, Newcastleton and on to Carlisle would be a
very good way of improving the economic opportunities for people
living in those communities. Will the Minister confirm that the
UK Government support the extension of the Borders railway as
part of the levelling-up agenda?
I commend my hon. Friend for his forthright campaign for the
extension of the Borders railway. I reassure him that the
Department for Transport and Transport Scotland are discussing
the options to extend the railway, and, as I think he knows, the
£350 million Borderlands inclusive growth deal includes up to £5
million to assess feasibility.
My constituency contains Gatwick airport and, by many measures,
has been one of the most negatively affected by the covid-19
pandemic. Will my hon. Friend say how levelling up will support
my constituents to recover from the pandemic?
I know my hon. Friend’s Crawley constituency well and I recognise
the importance of aviation to livelihoods there. I am sure that
he will welcome the extension of the airport and ground
operations support scheme that the Chancellor announced to help
airports such as Gatwick to recover from covid. We have also
provided £180 million in covid loan schemes to support businesses
in Crawley and, as he knows, Crawley has already received £21
million through the towns fund.
First, may I put on record my thanks to the Chancellor for
announcing that Radcliffe will receive £20 million from the
levelling-up fund to regenerate the town centre, with new leisure
facilities and a space for adult learning and new business?
Following that extra funding and the previously announced new
high school for Radcliffe, does the Minister agree that the
Government are committed to creating new opportunities for young
people so that they have the best chance to get on in life and
fulfil their potential?
I congratulate my hon. Friend, because his constituency is indeed
receiving £20 million from the levelling-up fund to deliver a new
civic hub in Radcliffe, which will improve access to adult
education while freeing up vital space for a new secondary
school. As I am sure he saw in the Budget and spending review
last week, we are fully committed to providing people with the
skills that they need to succeed in life.
(Leeds East) (Lab)
My constituency is officially one of the most economically
deprived constituencies in the country. If the rhetoric of
levelling up is going to be a reality, the bid from Leeds City
Council to upgrade and redevelop Fearnville sports centre to turn
it into Fearnville wellbeing centre is exactly the kind of bid
that should be agreed. Local people were therefore shocked when,
the day after the Budget, the leader of Leeds City Council
received a letter from the Government turning down the bid. The
Chancellor is sitting on the Front Bench; will he step forward
now and agree to meet me, the leader of Leeds City Council,
, and a delegation of local
residents with a view to approving the council’s bid for the
upgrade of Fearnville sports centre?
I thank the hon. Member for his question, which gives me the
opportunity to remind him that his area is receiving hundreds of
millions of pounds of investment in transport infrastructure. We
look forward to receiving further bids for future rounds of the
levelling-up fund, for instance. We are delighted to invest in
constituencies such as his.
(Wirral South) (Lab)
The Exchequer Secretary says that levelling up is the defining
mission of this Government, yet if we look at the spending review
priority outcomes and metrics, we can see that across the
Department for Business, Energy and Industrial Strategy, the
Department for Levelling Up, Housing and Communities and the
Treasury, there is just one metric on which to judge the
Government:
“Economic performance of all functional economic areas relative
to their trend growth rates”.
That is all that they are being measured on, so will she be
specific? By how much does she expect to close the economic gap
by the end of this Parliament?
I thank the hon. Member for her interest in our objective to
level up across the whole United Kingdom. As she repeated, it is
the defining mission of this Government; as she can see, it is
the golden thread running through the spending review and the
Budget, with steps taken and investment made across Government to
support levelling up across all our constituencies.
(Barnsley Central) (Lab)
The English metro Mayors submitted levelling-up fund bids—I
declare an interest—but only one was successful. The South
Yorkshire bid was well crafted and focused on improvements to our
bus services that would have supported the levelling up and net
zero agendas. Will the bids be looked at again as part of a
second round?
South Yorkshire will receive a share of the £5.7 billion for
transport for the region. Overall, as the hon. Member will know
and as he will have heard when he attended our debate yesterday
afternoon, support for levelling up and investment have been
received by constituencies all around the country and represented
by hon. Members across the House. There will be further rounds
for levelling-up funds to put in for.
Young People: High-skilled Jobs
(Stoke-on-Trent South)
(Con)
7. What progress his Department has made on supporting young
people into high-skilled jobs.
(Bexleyheath and Crayford)
(Con)
9. What progress his Department has made on supporting young
people into high-skilled jobs.
The Chief Secretary to the Treasury ( )
Through our plan for jobs, nearly 95,000 young people so far have
started a kickstart job; we have extended that scheme to March
2022. More than 100,000 apprentices, of whom 75% were under 25
years old, have been hired under our new incentive payments. More
than 17,000 young people have started a traineeship, and we have
provided funding for 24,000 traineeships a year at the spending
review.
Many of the manufacturers that I have visited recently in my
constituency, including Don-Bur and IAE, have told me about the
challenges that they face when recruiting for engineering roles.
Will my right hon. Friend update the House on the Government’s
work to encourage more young people into those highly skilled
roles and attract more apprenticeships to Stoke-on-Trent?
Mr Clarke
My hon. Friend is always a fantastic champion for Stoke and the
wider community. There are 145 employer-designed apprenticeship
standards that relate to engineering and manufacturing roles. At
the spending review, we announced that funding for
apprenticeships will increase to £2.7 billion by 2024-25. We are
also continuing to improve the system for employers. That
includes an enhanced recruitment service for small and
medium-sized enterprises, supporting the use of flexible training
models, and a new return-on-investment tool so that employers can
see the benefits that apprentices create in their business.
We all welcome the fact that nearly 100,000 young people across
the country have already started a job through the kickstart
scheme, including 20,000 in London. Does my right hon. Friend
agree that by extending the scheme until March next year, we are
giving more young people the opportunity to develop the skills,
confidence and experience that they need to get into
high-skilled, high-wage and long-term sustainable jobs?
Mr Clarke
My right hon. Friend is absolutely right. Kickstart is providing
valuable jobs and work experience to thousands of young people.
As of last week, nearly 95,000 young people had started a
kickstart job, compared with 56,000 young people at the
equivalent point for the last Labour Government’s future jobs
fund. That shows that it is a very successful programme. With the
current pace of starts, we are confident that earlier this month,
100,000 young people will have started a kickstart job.
(Cambridge) (Lab)
Education is central to highly skilled jobs. This week, a report
by the all-party parliamentary university group, which I chair,
showed that young people from the most disadvantaged backgrounds
most understand the value of a university education. Will the
Chief Secretary celebrate the work of universities across the
country and perhaps suggest to some of his colleagues that they
stop devaluing courses by describing them as of low value?
Mr Clarke
The hon. Gentleman is right to champion the university sector. We
in this country are fortunate in having such a fantastic set of
universities, and it is important for young people to have the
opportunity to enrol on courses that will meaningfully improve
their life chances and career prospects. However, it is also
important to balance a strong offer for the university sector
with an equally strong vocational offer, and we are keen to
strike that balance through the new T-levels and our investment
in skills—which was a defining theme of this Budget and spending
review—so that whatever young people decide to do, they have a
strong and credible route to employment and success.
(Kilmarnock and Loudoun)
(SNP)
Scotland leads the world in the development of wave and tidal
technologies. The expansion of that sector could create fantastic
chances for more young people to secure more highly skilled jobs,
and could set them up for possible worldwide opportunities.
However, if the sector is to expand, it will need a ring-fenced
pot of money in the forthcoming contracts for difference auction.
It is believed that the Treasury blocked that concept. Will the
Chief Secretary meet me to discuss how changes could be made that
would allow the sector to bid and be successful in scaling itself
up?
Mr Clarke
The hon. Gentleman has referred to the contracts for difference
mechanism, which has been hugely successful in helping to drive
the improved economics of technologies including offshore wind. I
think that we as a country should be very proud of that,
especially in the week of COP.
There is no doubt that there are exciting opportunities for young
people. I think that the Department with which the hon. Gentleman
would do best to engage on that is the Department for Business,
Energy and Industrial Strategy, but I am always happy to have any
conversations that would be useful in this regard.
Net Zero Emissions
(Greenwich and Woolwich)
(Lab)
8. What fiscal steps he is taking to contribute towards achieving
the Government’s net zero emissions target.
(Bedford) (Lab)
10. What fiscal steps he is taking to contribute towards
achieving the Government’s net zero emissions target.
The Financial Secretary to the Treasury ()
As 120 world leaders gather in Glasgow today, the hon. Member for
Greenwich and Woolwich () asks a very pertinent
question. Our net zero strategy outlines measures to enable us to
make the transition to a green and sustainable future. As for
fiscal measures, the Budget and spending review commit us to £30
billion of public investment towards net zero.
There is an obvious and pressing need for all fiscal
announcements to be fully aligned with our country’s net zero
target. To that end, will the Minister commit herself to at least
the publication of the estimated emissions impact of decisions in
future Budgets and spending reviews?
The hon. Member will know that in our Budget we set out a number
of measures to enable us to make the transition to a net zero
world. We have made announcements relating to transport and
warmer, greener buildings as well as energy and industry, and of
course the Treasury always considers the impact in relation to
net zero targets.
The Chancellor claims to want to tackle climate change and
improve air quality through measures including the decarbonising
of transport. If he is serious, this week of COP26 presents him
with a great opportunity to commit himself to the electrification
of the East West Rail line from day one to avoid the need for
diesel locomotives and the future costs of retrofitting. Will he
make that commitment today?
The hon. Gentleman has raised the important issues of
electrification and the importance of making our transport green.
As he will have seen, the Budget provided research and
development funding to commercialise low and zero emissions
technologies. I would be happy to talk to him about the local
issue he raised.
(Brecon and Radnorshire)
(Con)
I thank the Chancellor and the Treasury team for the significant
levelling-up funds awarded to my constituency in the Budget last
week. Hydrogen will be key to net zero, and one project that will
be able to benefit from that investment is Riversimple, a
hydrogen fuel cell car manufacturer in Llandrindod Wells. So that
we can reach our net zero targets as early as possible, may I
urge the Minister to visit Llandod, meet representatives of
Riversimple, learn about what they do, and above all give us the
chance to say thank you in person?
I am very pleased that my hon. Friend’s constituency has
benefited and is taking part in the progress towards net zero. I
should be happy to visit her there.
(Erith and Thamesmead)
(Lab)
In his Budget statement last week, the Chancellor did not use the
word “climate'” once. On the biggest issue of our time, he had
nothing to say.
As well as deciding to cut domestic air passenger duty, which
will lead to 400,000 more domestic flights a year, the Chancellor
failed to invest in public transport. He is subsidising those who
can already afford to take domestic flights, while putting up
taxes on ordinary people. How on earth does he think that this
sends the right message as the COP26 summit begins? Is not the
reality that he is flying in completely the wrong direction when
it comes to tackling climate change?
I am sure the hon. Lady will have seen the net zero strategy,
which was published the week before the Budget. I am sure she
will also know about the significant progress that the Chancellor
has made on bringing other countries together to increase the
international effort on climate finance. Yesterday, we set out
our commitment to increase our international climate finance by
£1 billion by 2025, on top of the £11 billion that we have
already announced. The Chancellor, together with other Finance
Ministers, is making sure that we help to reduce to net zero
emissions through a number of measures. I am very happy to—
Mr Speaker
Order. I call .
(Glasgow Central)
(SNP)
COP26 is under way in my constituency, and the Scottish
Government have set an ambitious target to reach net zero by
2045. In contrast, the Minister has completely failed to justify
the cut to air passenger duty on internal flights while allowing
the already eye-watering price of train tickets to rise again at
the turn of the year. This is no pro-Union policy, as the
Government like to pretend, because 62% of Scots think that
cutting APD is entirely the wrong priority. So, in this week of
COP, will the Minister do her bit for the planet and scrap this
climate-damaging policy once and for all?
I am grateful to have this opportunity to address the issue of
air passenger duty. The hon. Member will know that, as well as
cutting the duty on domestic flights, we have increased taxation
on long-haul flights. She will also know that domestic flights
are contributing less than 1% of the UK’s carbon emissions.
Public Finances
Mr (South West Hertfordshire)
(Con)
11. What steps his Department is taking to manage the public
finances effectively.
The Chancellor of the Exchequer ()
The fiscal rules announced at Budget will ensure that the public
finances remain on a sustainable path and support a strong
economic recovery. The Government will borrow only to invest in
future growth, so that future generations are not unfairly
burdened, and I am pleased to say that the Office for Budget
Responsibility’s analysis shows that the Government’s fiscal plan
is working.
I welcome the new fiscal rules set out by my right hon. Friend in
his Budget last week, which will mean that the Government borrow
only to invest and that they get the debt falling again by 2024.
Does he agree that, unlike the Labour party, which has no plan to
deliver responsible public finances, these rules show how it is
only the Conservatives who can be trusted to manage our public
finances responsibly, avoiding higher interest rates and even
higher taxes in the future?
My hon. Friend is absolutely right. The best foundation for our
success as a country is a strong economy and responsible public
finances. In contrast to the Labour party, which comes out with
unfunded, reckless promises that would lead to our debt rising
uncontrollably, it is this Government, and only this Government,
who can be trusted to manage the nation’s economy
responsibly.
(East Antrim) (DUP)
Given the commitments that the Prime Minister is making at the
climate circus in Glasgow this week, how can the Chancellor
possibly say that the public finances will be managed effectively
when the huge costs of net zero are not even published by the
Treasury, let alone known by the public? We are already seeing
taxes increasing to pay for the huge infrastructure changes that
reaching net zero is going to entail.
I very much appreciate the right hon. Gentleman’s concern about
the cost of transitioning to net zero. The Government are also
mindful of those costs, and the net zero strategy, which my right
hon. Friend the Chief Secretary to the Treasury mentioned
earlier, sets out a comprehensive approach to transitioning,
backed up by £30 billion of investment. Indeed, as a result of
the spending review and the Budget, the Northern Ireland
Executive will receive on average about £1.5 billion a year in
Barnett consequentials to help to fund priorities as
required.
Plan for Jobs
(Newbury) (Con)
12. What assessment he has made of the efficacy of the Plan For
Jobs in supporting people into work.
(Preseli Pembrokeshire)
(Con)
15. What recent assessment he has made of the effectiveness of
the Plan For Jobs in supporting people into work.
The Economic Secretary to the Treasury ()
Some 1.6 million people have moved into work having received
support from work coaches, and hundreds of thousands of
jobseekers have been supported by our other Plan for Jobs
programmes, such as kickstart. It is clear that this plan is
working; unemployment is now expected to peak at less than half
of what was initially predicted.
Unemployment in West Berkshire has fallen in every month since
April, in no small part thanks to the apprenticeship levy and the
kickstart scheme. However, among the over-55s who lost their job
in the pandemic the picture is more mixed. Can my hon. Friend set
out what the next stage of the Plan for Jobs will do to target
that group, particularly given their risk of long-term
unemployment?
Yes, I can. My hon. Friend is right; unemployment is at 3.5% in
her constituency, as against the 5% average. On people aged 50 to
64 who unfortunately lose their job and find a return to work
less likely, this spending review announced an enhanced 50-plus
offer worth more than £20 million to ensure that that cohort of
the workforce receive that support to remain in work and benefit
from living those fuller working lives. That is in addition to
the other interventions across the whole of the working age
group.
Right now, in this country, about 1 million children are growing
up in long-term workless households. Does my hon. Friend agree
that the measures the Chancellor took in the Budget last week to
boost the national minimum wage and the work allowance, and to
lower the universal credit withdrawal rate when people move into
work, mean that we have the best opportunity in more than a
generation to really bear down on long-term unemployment and
improve the life chances of children growing up in homes where
there is no role model of someone going out to work every
day?
I agree entirely with my right hon. Friend, who has been a
champion in this area, throughout his experience in government
and in his work now as Chair of the Select Committee on Welsh
Affairs. In addition to what he has set out, we responded to the
call to raise the national living wage. It may interest him to
know that the April 2022 increase will mean that a full-time
worker’s annual salary will have increased by more than £5,000
since the national living wage was introduced, when he was in
government, in April 2016.
(Bristol South) (Lab)
I recently visited the newly opened jobcentre in Knowle to
support people back to work, and I have previously been chair of
the all-party group on apprenticeships. I cannot fathom why the
Government are abolishing BTECs, which are a crucial bridge for
young people in Bristol South. Has the Treasury done an
assessment of abolishing BTECs, and will the Government
reconsider?
The hon. Lady will know of the Government’s investment in
T-levels and the additional investment last week in
apprenticeships, as well as a number of other interventions that
the Chancellor has worked tirelessly with employers’
organisations and trade unions on to develop the workforce and
opportunities over the past 18 months.
Wages: Lowest-income Households
(Wantage) (Con)
16. What steps his Department is taking to increase wages and
support the lowest-income households.
The Financial Secretary to the Treasury ()
We are increasing the national living wage to £9.50 an hour from
April 2022. We are also cutting the universal credit taper rate
from 63p to 55p. Those measures will increase the incomes of
millions of people and support the lowest-income households.
I thank my right hon. and learned Friend for that statement. I
strongly welcome the increase in the national living wage to
£9.50 and the cut to the UC taper rate. Those are strong work
incentives, which will help people to keep more of their money.
However, given that not everybody will read the Budget, may I ask
what her strategy is to make sure that those who can benefit from
these changes will know that they have taken place?
I thank my hon. Friend for his support. He will agree that the
best way to support people is by supporting them into work and
helping them to progress once they are in work. He makes an
important point about communications. The Government run an
annual public communications campaign to inform workers and
employers of the change to the minimum wage rates. Her Majesty’s
Revenue and Customs also has a dedicated team who actively
provide information to individuals and employers on minimum
wages, and the UC changes will also be reflected in the
claimants’ statements once they are in effect.
(Glenrothes) (SNP)
All those announcements are, of course, welcome for low-earning
households in which somebody has a job, but none of them will
deliver a single penny into the pockets of the very lowest-income
households in which nobody is able to get a job. They are being
hit by a £1,000 a year cut in universal credit. What is there in
the Budget that will reinstate that £1,000 cut for the very
lowest-income households on these islands?
We want to encourage as many people as possible into jobs. The
Chancellor has put forward a plan for jobs, with a number of work
programmes to ensure that we get both young people and the
over-50s into work. Crucially, through the restart scheme we will
get people off universal credit and into jobs. We also recognise
that some people cannot work, which is why six weeks ago the
Chancellor announced £500 million to help those who need our
support, to be distributed through local authorities.
Topical Questions
(North Norfolk) (Con)
T1. If he will make a statement on his departmental
responsibilities.
The Chancellor of the Exchequer ()
Last week’s Budget delivered a stronger economy for the British
people, with stronger public finances; support for business;
stronger public services; investment in infrastructure,
innovation and skills to drive future growth; and a significant
tax cut for the lowest-paid, because this will always be a
Government who support and reward work.
My constituent Peter Phillips fell victim to the loan charge in
2019 and settled before 30 September 2020. HMRC advised him, like
many others, that that was the right thing to do. In effect,
those who settled before the Morse review did not get the benefit
of the changes that were implemented: my constituent paid more
than someone who disclosed nothing to HMRC. Does my right hon.
Friend think that was in the spirit of the Morse review? Has HMRC
got it wrong?
It is obviously difficult for me to comment on the case of a
particular individual. The previous Chancellor, my right hon.
Friend the Member for Bromsgrove (), asked to conduct an independent
review and the Government accepted and implemented the vast
majority of its recommendations. People who settled early had the
benefit of certainty from their settlement, but my hon. Friend
should write to the Financial Secretary to the Treasury and we
will ensure that we look at that case, as he requests.
(Leeds West) (Lab)
According to the Office for Budget Responsibility, the
Government’s supply chain chaos, woefully inadequate post-Brexit
planning and a lack of HGV drivers have contributed to higher
inflation. The cost of the weekly shop is already going up and
up, as the Chancellor will have heard from shoppers in Bury last
week. Does he have any idea of how much the average weekly
supermarket shop is expected to increase in the next year for a
typical family?
We are cognisant of and aware that there is price inflation;
indeed, last week’s Budget addressed that and explained to the
British people some of the global factors that are behind the
rise in prices and are not unique to this country. As I said
then, where this Government can act, we will. Whether it is the
interventions for HGV drivers that my hon. Friend the Exchequer
Secretary to the Treasury set out, the £0.5 billion household
support fund or, indeed, the freezing of fuel duty, this
Government are doing what they can to help with the cost of
living.
Let me help the Chancellor with the answer to that question. The
typical family shop is likely to go up by £180 more next year. It
is not just food prices that are rising: gas and electricity
bills are already up by £139 and they are only going to go up
more. The Chancellor had the opportunity in the Budget to help
people with their gas and electricity bills by reducing VAT to 0%
through the winter months—something that Labour has called for
and that the Prime Minister backed when he was campaigning to
leave the European Union. Who should the public blame for VAT on
heating bills not being cut: the Prime Minister, for not keeping
his word, or the Chancellor, for choosing to cut taxes for
bankers instead?
With regard to a VAT cut for fuel, perhaps I should point out to
the hon. Lady some of the remarks from independent commentators
about what that would do. The Institute for Fiscal Studies said
that the benefit would accrue “to higher-income households.” The
Resolution Foundation said a VAT cut
“would not be targeted and would be quite expensive”.
Tax Research UK said:
“This cut will not help the poorest much…this plan is a subsidy
to the best-off, not the least well off.”
Instead, we have provided £0.5 billion, targeted at those who
need our help. The hon. Lady mentioned £108; the household
support fund will be able to provide £150 to between 2 million
and 3 million of the most vulnerable families in our country.
Indeed, the national living wage is going up next year, which
will ensure a £1,000 increase for someone who works full time on
the national living wage, and because of the cut to the universal
credit taper a single mother with two kids who works full time
and rents will be £1,200 better off.
(Fylde) (Con)
T2. I thank the Chancellor for his commitment of £75
million to preserve civil nuclear fuel manufacturing in the UK.
As my right hon. Friend will know, Springfields site in Fylde is
the only civil nuclear manufacturing site in the UK, and efforts
are ongoing to diversify projects undertaken on the site to
safeguard its future. Will he agree to look into proposals to
support manufacturing on the site and help beat off international
competition to bring those jobs and skills to Springfields?
First, may I put on record my thanks to my hon. Friend, who
raised this issue with me some months ago in the run-up to the
spending review? I hope that he and his communities are pleased
with the funding that was allocated, thanks to his and other
interventions. I am of course prepared to work with him and the
Secretary of State for Business, Energy and Industrial Strategy
to consider all relevant proposals and assess the right options
for the taxpayer in this country.
(Liverpool, Riverside)
(Lab)
T4. Hospitality is one of the major sectors in Liverpool,
Riverside, representing up to 20% of the economy and accounting
for 50,000 jobs and 4,000 businesses this time last year, but,
sadly, many have been forced to close due to covid. While the
freeze on VAT on hospitality until April next year is welcome,
the 50% hike to bring it up to 20% in six months’ time is causing
a real panic to small businesses in my constituency. Will the
Chancellor acknowledge that the planned hike to VAT in
hospitality poses a significant risk to our economic recovery and
that what we need now are measures that shore up our recovery
rather than slow it down?
We did have a measure in last week’s Budget to support the
hospitality sector with its recovery, and that is the £1.7
billion cut to business rates next year. That represents the
largest single-year cut to business rates in more than 30 years
outside of the coronavirus. It provides a 50% discount to
hospitality businesses, which I know are important to our local
communities. I am sad that the hon. Member did not raise the not
one but two levelling-up fund bids that Liverpool enjoyed last
week, which I know will also help to regenerate parts of the city
and provide improved transport connections to benefit local
businesses.
(High Peak) (Con)
T3. Last week’s Budget included lots of positive news for
the High Peak, such as the tax cut for the lowest paid and the
50% business rate relief for the high street. However, plenty of
other towns across the north were celebrating additional millions
of pounds of investment through the levelling-up fund.
Unfortunately, High Peak was not one of those areas because High
Peak Labour council failed to submit a bid on time. It has now
agreed to submit a bid and I am keen to work on a cross-party
basis with it, but can the Chancellor assure my constituents that
there will be a second round and that High Peak will still be
treated as a top priority for levelling up?
I am happy to provide my hon. Friend with that reassurance and I
hope that his council engages constructively with him, as so many
others have and have seen the benefits of that in last week’s
announcements. We will open round 2 in due course and it will
most likely launch no later than the spring. I can tell him also
that we have no plans to change the current way that we assess
the priority categorisations, so High Peak should remain as it
was.
(Ilford South) (Lab)
Does the Chancellor agree with the Conservative party donor,
Mohamed Amersi, who once claimed that the Tories were operating
an access capitalism scheme for their major donors, and described
corruption as a “heinous crime”, but who was later seen to have
been part of a £162 million bribe to the daughter of Islam
Karimov, the awful former president of Uzbekistan? If so, can he
look at this and bring forward the response to the Pandora
papers, particularly the Registration of Overseas Entities
Bill?
The Economic Secretary to the Treasury ()
The Government are committed to making the UK a hostile place for
illicit finance and economic crime and ensuring that all
donations to political parties comply with the legislation that
the Labour party enacted in Government. We have taken tough
action through our No Safe Havens strategy to ensure that the
correct UK tax is paid. Our landmark 2019 economic crime plan
builds on that, and we will continue to work on these
matters.
(South Basildon and East
Thurrock) (Con)
T5. As my right hon. Friend may know, this week is Evidence
Week. Will he therefore let the House know whether, in his
opinion, the evidence still indicates that the proposed lower
Thames crossing represents value for money?
I know that my hon. Friend has paid close attention to this
issue, which obviously has a particular impact on his
constituency. He will know that the current Dartford crossing is
one of the most congested pinch points in the entire strategic
road network, which is why the Thames crossing development is
part of the Department for Transport’s plans. We also recognise
that it needs to be brought about in a way that maximises the
benefits and mitigates the cost to local communities and
businesses. The commitment does include an obligation to create
tens of thousands of new jobs. I understand that National
Highways has recently launched a consultation, in which I know my
hon. Friend and his communities will be engaged.
(Gordon) (SNP)
In reforming domestic air passenger duty, the Chancellor could
have done something really clever; he could have incentivised the
use of low-carbon forms of transport domestically, and in areas
where those do not exist, mitigated the impact with a best
alternative. Instead, he has done something that is making travel
relatively more expensive for those low-carbon alternatives. How
on earth, in the week of COP26, is this contributing to the
Government’s net zero efforts?
As has been pointed out about three times today, alongside the
cut in domestic air passenger duty, we introduced a new
ultra-long-haul band with a higher rate. The net effect on carbon
emissions of those two things is at least a wash, and one
independent forecaster said that it would actually reduce carbon
emissions. That comes alongside significant investment of £180
million to incentivise sustainable aviation fuel, and billions
more for electric transportation for consumers.
(South West Bedfordshire)
(Con)
T6. With many thousands of new homes going up to the west
of Leighton Buzzard and the north of Houghton Regis, will the
Government ensure that there is a direct link between thousands
of new homes and increased general practice capacity?
The Chief Secretary to the Treasury ( )
The Government are focused on delivering more homes where they
are most urgently needed, but we need the right infrastructure in
place to facilitate this. Many of the Government’s core housing
supply programmes, including an additional £1.5 billion announced
at the spending review, focus on precisely that point. Recent
reforms to the NHS capital regime, some of which have been
legislated for through the current Health and Care Bill, will
further improve the system, including through better integration
between the NHS, local government and care providers.
(Ogmore) (Lab)
In an earlier answer, the Chancellor confirmed that the
levelling-up fund round 2 bids would be some time in the spring.
Many Members across the House want to engage in the process, as
does Bridgend County Borough Council, which covers the majority
of my Ogmore seat. However, it is difficult to plan if the
Treasury will not confirm the date of the conclusion of the round
2 bidding process. May I press the Chancellor to tell us more
than just spring next year, because spring does tend to be an
awfully long time when the Treasury are making decisions?
I am glad that there is widespread support for the levelling-up
fund, and we are keen to work with all Members. I say spring
because we want to ensure that we quickly learn the lessons from
this round and incorporate them into future rounds. However, I
assure the hon. Gentleman that our desire is to get on with this,
because we want these projects to be delivered so that our
communities can start to see the benefits as soon as
possible.
(Eastbourne) (Con)
T7. I thank my right hon. Friend the Chancellor for £19.8
million from the levelling-up fund that will put Eastbourne on
the map and really bill it as the gateway town to the South Downs
national park. I also thank him for the investment that sits
behind the kickstart scheme, which has so far delivered hundreds
of new opportunities in my town. I promote the scheme everywhere
I go, as I travel from north to south and east to west. Will the
Minister join me in encouraging local businesses to step up ahead
of the 17 December deadline to provide these golden opportunities
for young people in my home town?
The Financial Secretary to the Treasury ()
I know that my hon. Friend will have campaigned hard for the
funds that have come through. We will continue to support people
across the House and in her constituency to level up.
(Bristol East) (Lab)
Rather than talk about competitive bids for funding, could we
talk for a moment about mainstream council finances? We know that
this Budget will significantly shift the burden to local
authorities and require a significant rise in council tax, which
people can ill afford. We also know that councils’ finances have
not fully recovered and they have not been fully compensated.
What is the Chancellor doing to talk to local councils about the
pressures that they are facing?
I actually did engage with representatives from local authorities
in the run-up to the spending review. Last week’s spending review
outlined an additional £1.6 billion a year of cash grant for
local authorities, which will ensure that local government core
spending power will rise at about 3% a year in real terms over
the spending review period; that is historically high. It has
been warmly welcomed by local councils up and down the country,
and will ensure that council tax increases can be kept at more
moderate levels.
(Stoke-on-Trent Central) (Con)
T8. I, too, thank my right hon. Friend for the £56 million
for three innovative levelling-up bids in my home city of
Stoke-on-Trent. We warmly welcome this as the biggest investment
in Stoke-on-Trent for 50 years. However, investing in our social
fabric and growing our local social infrastructure must be
community-led to achieve the best results. Will he update this
House on whether the shared prosperity fund will target
grassroots community capacity-building investment in developing
our social infrastructure rather than capital funding?
The Exchequer Secretary to the Treasury ()
I congratulate my hon. Friend and fellow Members representing
Stoke-on-Trent on the £56 million their city was awarded in the
first round of the levelling-up fund, winning not one but three
bids to fund regeneration projects across the city, delivering
new homes, community facilities, and office and hospitality
space. She makes an important point about funding grassroots
community capacity. I assure her that the UK shared prosperity
fund, which is worth over £2.6 billion, will allocate funding
across the UK. Further details of the fund will be set out later
this year.
(Ealing Central and Acton)
(Lab)
The women-run Acton firm Fashionizer, which makes uniforms for
hotels, diversified into mask manufacturing during the pandemic.
The firm is now getting back on its feet, but the order book is
just a third of what it was, so those working there ask the
Chancellor if he could please extend the rate relief for the
hospitality industry to those who supply hospitality, including
food and laundry services, some of them exclusively. They have
given me a few of their masks for you, Mr Speaker, for the
Chancellor and for anyone who wants one. I think a few of the
hon. Members on the back row of the Conservative Benches could do
with them.
I commend those at the hon. Lady’s business for what they have
done through the pandemic and beyond with the manufacture of
masks. We have moved out of crisis phase now, so our
interventions to support the economy are broader in scale, but I
am confident that the measures we are taking to invest in
infrastructure, innovation and skills will lead to economic
growth and benefit her businesses, not just the one she
mentioned.
(Bury South) (Con)
T9. I commend the Chancellor for his announcement in the
Budget introducing a simplified system of duty that taxes
alcoholic drinks according to their strength. Although this
change will not come into force until 2023, it represents a
welcome improvement, geared toward promoting public health. Does
he agree that the proposed changes to our alcohol duty system
will encourage manufacturers to innovate and promote lower
strength drinks, which will help to reduce health harm associated
with alcohol? Will he meet me to discuss alcohol harm?
I sincerely agree with my hon. Friend and thank him for his
support. We are overhauling the UK’s outdated alcohol duty
rules—the biggest simplification for 140 years—and taking a
common-sense approach. Drinks will be taxed in accordance with
their strength, encouraging responsible drinking, tackling the
problems caused by cheap high-strength drinks, and supporting our
pubs and our hospitality sector.
(Paisley and Renfrewshire
North) (SNP)
The Chancellor promised the aviation sector a bespoke support
package before breaking his word. Instead these businesses will
have to make use of other support schemes, including time to pay.
What does he say to those businesses now hit by tens or hundreds
of thousands of pounds in interest charges by HMRC when the
sector is quite clearly still very badly affected by the
pandemic?
Obviously it would not be right for me to comment on the
individual circumstances of any business, but HMRC’s time to pay
service has supported tens of thousands of businesses through the
crisis with flexible repayment periods. Similarly, the bounce
back loan scheme introduced by my hon. Friend the Economic
Secretary comes with a pay-as-you-go option to ensure that
businesses can settle on a payment plan and stretch out repayment
in a way that suits their cash flow.
(Meon Valley) (Con)
My pubs and brewers are pleased with the reduction in beer duty,
but may we have clarification on keg size, as my small brewers
ship their beer in different sizes, including 20-litre pins? May
we also have an indication of when the changes to the small
brewers relief will be announced, ideally removing the
2,000-hectolitre limit and the cliff-edge at the 5,000-hectolitre
limit?
We are delighted that we are introducing the draft relief to
support the on trade for people purchasing drinks in pubs and
hospitality venues. We will consult on the details,
including keg size. We will also bring forward the technical
changes to small brewers relief, which my hon. Friend asks
about.
(York Central)
(Lab/Co-op)
The pretence has to stop. The Budget was climate-illiterate, with
just £7.8 billion of new money given to climate and nature
mitigation to reach the 2024 target, when £62.9 billion is
required. How will the Chancellor close that gap, or is the Prime
Minister’s performance at COP26 simply a façade?
Mr Clarke
The hon. Lady is not doing justice to what the Government have
committed to. We have the £30 billion net zero strategy just the
week before this fiscal event, and clearly we have had a number
of announcements during COP already, including today’s on
forests. That is clear evidence of how this Government are moving
to ensure we double down on our international commitments and
show the rest of the world the way to deliver on net zero.
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