Landfill Tax Relief: Local Authorities Cat Smith (Lancaster and
Fleetwood) (Lab) 1. If he will make an assessment of the potential
merits of introducing landfill tax relief for local authorities who
are responsible for hazardous waste after companies go into
liquidation. (900732) The Exchequer Secretary to the Treasury
(Gareth Davies) A very merry Christmas to you and your staff, Mr
Speaker. Landfill tax provides an economic incentive to manage
waste more...Request free trial
Landfill Tax Relief: Local Authorities
(Lancaster and Fleetwood) (Lab)
1. If he will make an assessment of the potential merits of
introducing landfill tax relief for local authorities who are
responsible for hazardous waste after companies go into
liquidation. (900732)
The Exchequer Secretary to the Treasury ()
A very merry Christmas to you and your staff, Mr Speaker.
Landfill tax provides an economic incentive to manage waste more
sustainably, which has contributed to a 90% reduction in local
authority waste sent to landfill in England since 2000. However,
it was not intended to act as a barrier to the remediation and
redevelopment of contaminated land. In the autumn statement the
Government announced the land remediation pathfinder fund, which
will provide £78 million of targeted support to local and mayoral
authorities.
Happy Christmas, Mr Speaker. For two weeks now the old Supa Skips
site in Lancaster has been burning, and it looks as if Lancaster
City Council will be left to pick up the tab for the clean-up.
Some of that money has to be spent on landfill tax. Will the
Minister meet me and Lancaster City Council to discuss what
options are open to my local council to ensure that local
ratepayers are not left footing the bill for rogue companies that
walk away from sites, such as Supa Skips?
As I mentioned in my previous answer, the landfill tax has been
hugely successful but it was never intended to act as a barrier
to remediation. The fund that was announced in the autumn
statement will be open for bids in early 2024, and I encourage
the hon. Lady’s local authority to apply through the normal way.
Secondly, there is an ongoing review into the landfill tax, and
reform of current exemptions are within scope of that review. Our
belief is that the fund may offer more targeted support in the
way that she desires.
Anglesey Freeport: North Wales Economy
(Ynys Môn) (Con)
2. What recent assessment his Department has made of the
potential impact of Anglesey freeport on the economy in North
Wales. (900733)
The Chancellor of the Exchequer ()
Merry Christmas, Mr Speaker. Today is the funeral of former
Chancellor Lord Darling, and if I may, I will make some comments
about that in my topicals statement. Anglesey freeport will be a
national and international hub for trade, innovation and
commerce, regenerating communities by attracting new business,
and spreading jobs, investment and opportunity.
Nadolig llawen pawb. I was delighted that the Chancellor extended
freeport tax reliefs in England in his autumn statement. Does he
agree that if those extensions are realised in Wales, it will
give companies the confidence to invest and help deliver the £1
billion investment, and thousands of jobs forecast for our
Anglesey freeport? Will he join me in thanking all those at the
Isle of Anglesey County Council and Stena Line who worked so hard
recently to submit the outline business case?
I am happy to join my hon. Friend in thanking all those involved
in promoting the Anglesey freeport, which we think may create
5,500 jobs. We are working closely with the Welsh Government to
agree on how the 10-year window to claim reliefs can be extended
across freeports in Wales. I pay tribute to my hon. Friend, who
has done more than anyone to put Ynys Môn on the map.
Mr Speaker
I call Jim Shannon—oh, sorry, .
(North West Leicestershire)
(Reclaim)
Thank you very much for doing the funnies, Mr Speaker.
Freeports can certainly be a catalyst of economic growth and
prosperity in north Wales and the east midlands, but they must be
in the right place. Putting a freeport in North West
Leicestershire, which already enjoys some of the highest economic
growth in the country, has low unemployment, and is capable of
filling its industrial sites without incentives, makes little
sense. Will the Chancellor agree to meet me to discuss better
alternatives for the east midlands than the Diseworth freeport
site?
I would be happy to ask one of my colleagues to meet the hon.
Gentleman to discuss why freeports are not appropriate in his
part of Leicestershire.
Farm Budgets 2024-25: Scotland
(Orkney and Shetland)
(LD)
3. What recent discussions he has had with his Scottish
counterpart on farm budgets for the financial year 2024-25.
(900734)
The Chief Secretary to the Treasury ()
A very merry Christmas, Mr Speaker. The Government guarantee to
maintain the £2.4 billion annual budget for farmers across the UK
for every year of this Parliament. As agriculture is devolved, it
is ultimately for the Scottish Government to decide how to
allocate that money to farming in Scotland.
Mr Carmichael
The Minister will be aware of the frustration that is felt by
many farmers and crofters in Scotland that the £33 million that
was given to the Scottish Government for a specific purpose as
part of the Bew review has been deferred hitherto. What will she
do in future to ensure that where money is given for the express
purpose of supporting Scottish agriculture, it is in fact used
for that purpose?
The right hon. Member raises an excellent question. The SNP
Government are yet to clarify when this ringfenced money will be
returned. I hope they will do so this afternoon at the
Budget.
Mr Speaker
I call the SNP spokesperson.
(Inverness, Nairn, Badenoch
and Strathspey) (SNP)
May I echo your comments, Mr Speaker, with Christmas wishes for
all the House staff, your staff and Members? The UK Government’s
attempt to overhaul the EU subsidy scheme has left English
farmers 50% worse off in cash terms than in 2020. While the
Scottish Government have sought to protect our farmers’ payments,
can the Minister guarantee that the UK Government will not try to
undermine their payments and devolution by back-door use of the
United Kingdom Internal Market Act 2020?
I note that the hon. Member did not answer my question, nor that
of the right hon. Member for Orkney and Shetland (Mr Carmichael)
about when the ringfenced money will be returned.
Mr Speaker
Order. Questions are normally to the Minister, not the other way
around.
Very good point, but I still maintain that the hon. Member needs
to clarify that matter. It is up to the Scottish Government if
they would like at any point to top up the amount that goes to
Scottish farming. I encourage them to do so this afternoon at the
Budget.
I do not think any Scottish farmer will be reassured by what the
Minister has just said. I just said that the Scottish Government
are protecting those farmers’ payments, while English farmers are
losing out, as we know. What we do not have from the UK
Government is detail on what they will be doing after 2025. If we
had remained in the European Union, we would know that figure for
farming subsidies so that the Scottish Government could make
plans to help farmers plan ahead. Can the Minister apologise for
that situation and guarantee that in the early months of next
year we will have clarity on farming payments?
The UK Government have laid out plans for the agriculture
transition in England that go beyond the current spending review,
giving farmers increased certainty over policy and spending
intent for years to come. The Scottish Government could decide to
provide farmers in Scotland with similar certainty if they chose
to do so.
Small Businesses: Fiscal Support
(Eastleigh) (Con)
4. What fiscal steps his Department is taking to support small
businesses.(900736)
The Financial Secretary to the Treasury ()
A very jolly Christmas to you and all, Mr Speaker.
Small and medium-sized enterprises are the backbone of the
economy, and we support them to thrive using levers across
government. Our small business rate relief means that one third
of business properties in England already pay no business rates.
We provide tax reliefs benefiting SMEs, such as annual investment
allowance and employment allowance, we support investments in
SMEs through the British Business Bank programmes and we fund the
schemes offering SMEs training and advice.
Merry Christmas to you and yours, Mr Speaker. The autumn
statement was a huge success for small businesses across the
country, with the Federation of Small Businesses describing it as
“a game changer”. Will my hon. Friend outline to the House how
the autumn statement package will benefit those small businesses
in my constituency on which my towns and villages rely?
I thank my hon. Friend for his continuing support for small
businesses in his constituency. Measures in the autumn statement
to help them include extending the retail, hospitality and
leisure relief for another year, which will support around
230,000 properties in England. That tax cut is worth nearly £2.4
billion. Meanwhile, by freezing the small business multiplier for
a fourth consecutive year, we will be protecting more than a
million properties from a multiplier increase. Other
announcements that could benefit his constituents include the
Help to Grow, management and Made Smarter programmes and moves to
tackle late payments.
(South Shields) (Lab)
The new 55-day payment rule will apply to only a few hundred
companies contracted by the Government, yet microbusinesses,
which do not typically have Government contracts, wait on average
68 days for payments. Those businesses make up the majority of
small businesses across our country. Why will the Government not
back the Micro Business Alliance’s “Pay in 30 days” campaign?
As I mentioned, we are well aware of the issue of late payments,
and we are in constant dialogue with the key stakeholders in this
area, as well as colleagues at the Department for Business and
Trade. We will always keep an eye on the measures, but the moves
we have already made to tackle late payments, as announced
recently, will make a big difference.
Reducing Taxes
Mr (Old Bexley and Sidcup)
(Con)
5. What steps his Department is taking to reduce taxes.
(900737)
(Eastbourne) (Con)
6. What steps his Department is taking to reduce taxes.
(900738)
(Aldridge-Brownhills)
(Con)
19. What steps his Department is taking to reduce taxes.
(900751)
The Chancellor of the Exchequer ()
Thanks to the difficult decisions the Government have taken on
inflation and debt, the autumn statement this year was able to
deliver the biggest package of tax cuts to be scored since
1988.
Mr French
I very much welcome the tax cuts recently announced by the
Chancellor and hope to see more announced soon, especially a rise
in the higher rate threshold. As the Conservatives look to reduce
the tax burden on working people, does the Chancellor share my
concern that £28 billion-a-year unfunded spending commitments
would likely see taxes rise and lead to higher interest rates if
Labour were ever in government?
It is not just me but Paul Johnson of the Institute for Fiscal
Studies who, when talking about Labour’s plan, has said that
“additional borrowing…drives up interest rates”,
which is, of course, a back-door tax rise on families with
mortgages. But as it is Christmas, perhaps I could explain it
this way: if Santa borrowed £28 billion, he might have more toys
to give out this year, but he would also have debt interest to
pay and fewer toys to give out next year.
Record funding is going in to support the cost of childcare, to
allow more parents to stay in the workforce. This is very
welcome, but the tax burden on single-earner households puts the
choice to be a stay-at-home parent beyond the reach of too many.
Raising the youngest generation must count as a top investment,
so may I ask my right hon. Friend the Chancellor what recent
analysis has been undertaken on the transferable allowance? At up
to £252 per annum, it is currently not designed to facilitate
that choice.
I thank my hon. Friend for her question. As she knows, the
marriage allowance is currently £1,260 per year, and it has been
fixed at 10% of the personal allowance since it was introduced in
2015. On this side of the House, we believe it should be a
woman’s choice, and we want to make that choice as real as
possible for every family. For that reason, we think the best
thing we can do is to bring down the taxes paid by working people
to put more money into the family budget, and we were happy to
make a start on that in the autumn statement.
Like many of us in this place, I am a big supporter of Small
Business Saturday, and it is important to remember that small
businesses are the backbone of local communities all year round.
Many are unlikely to be able to take advantage of the
Chancellor’s very generous and welcome expensing package, so what
additional measures will he continue to consider to support all
businesses great and small, including perhaps even corporation
tax reductions?
I thank my right hon. Friend for her question. She will know that
70% of trading businesses only pay the lower corporation tax rate
of 19%. That covers the vast majority of small businesses. I used
to run my own business; I ran it for 14 years before I came into
Parliament. I could not agree with her more: small businesses are
the backbone of the British economy, which is why we are tackling
the scourge of low payments and we rolled over the 75% discount
on retail, hospitality and leisure business rates in the autumn
statement.
(Walsall South) (Lab)
Will the Chancellor confirm how much higher the tax burden is
forecast to be at the end, compared with at the start, of this
Parliament?
What I can confirm is that, as a result of the measures I took in
the autumn statement, it will be lower at the end of the
scorecard period than it would otherwise have been, and a lot
lower than it would be under any Labour Government.
(Halton) (Lab)
May I ask the Chancellor how many middle-income taxpayers have
been paying the higher rate of tax since 2019?
I am happy to write to the hon. Gentleman with the exact numbers,
but for people on low incomes—people being paid the lowest
legally payable wage—their post-tax real income has gone up by
30% since 2010, because the Conservative party believes in making
work pay.
(Glasgow North) (SNP)
Why is the fiscal situation strong enough to cut national
insurance, but not strong enough to return the overseas aid
budget to 0.7% of GNI?
Because the way we return the overseas aid budget to 0.7% is to
grow the economy. By cutting national insurance, we put nearly
100,000 more people into the national workforce, filling nearly
one in 10 vacancies in companies up and down the country.
Banking Services: Access
(Manchester, Withington)
(Lab)
7. What recent steps he has taken to help ensure people have
access to banking services. (900739)
The Economic Secretary to the Treasury ()
The Government believe that all customers should have appropriate
access to banking services, which is why we have legislated to
protect access to cash. We also support the FCA’s bank branch
closure guidance as well as industry initiatives to provide
in-person access, including shared banking hubs at post offices,
and access via digital means.
More than 5,000 bank branches have closed since 2015. Sadly, the
Lloyds bank in Withington village will join the many more
branches closing in the coming months and leave Withington
without a bank branch, but by the end of the year the industry
will have delivered only 30 shared banking hubs. Does the
Minister think that the pace and scale of that roll-out is good
enough?
First, it is worth stating that, as the hon. Gentleman knows, the
decisions on whether to open or close branches are commercial
ones, and the Government do not interfere with that. However, we
have legislated to protect access for cash. The banks need to
abide by the Financial Conduct Authority’s guidance, with the
latest guidance published only last week. In relation to shared
banking hubs, we should indeed increase the pace at which they
are rolled out, and I am talking with the industry about how to
do that.
(Shipley) (Con)
It is pretty clear that most legacy banks do not give a stuff
about their customers and just want to screw as much money out of
people as possible. After the scandal of Coutts’s debanking of
Nigel Farage, the Government acted swiftly to try to make that
much more difficult for other customers, but many businesses face
the same problem. What will the Government do to stop businesses
being debanked in the same way as individuals?
I am not sure that I quite accept my hon. Friend’s
characterisation of the banking industry, but I am happy to meet
him and discuss the problems he outlined in relation to specific
businesses and access to bank accounts.
Mr Speaker
I call the shadow Minister.
(Hampstead and Kilburn)
(Lab)
Before I ask my question, I want to convey the apologies of the
shadow Chancellor, my right hon. Friend the Member for Leeds West
(). She is delivering the
eulogy at Alistair Darling’s funeral today.
I want to say a few words about Alistair Darling—I am sure you
will agree, Mr Speaker—a dedicated public servant, who was
respected across both Houses. He led the country’s economic
response to the global financial crisis with integrity, honesty
and sound judgment, and we will all miss him. [Hon. Members:
“Hear, hear!”]
As my hon. Friend the Member for Manchester, Withington () just said, nearly 6,000 bank
branches have closed since 2015, and only 30 banking hubs are up
and fully running. That has left countless people financially
excluded and affected lots of small businesses. I ask the
Minister once again: will he accelerate the roll-out of banking
hubs properly? Why are his Government not doing anything to
reverse the decline of the great British high street?
I agree with the hon. Lady’s words about Lord Darling and echo
the words of my right hon. Friend the Chancellor.
On bank branches, I will repeat my position: it is important that
the Government do not decide when a branch opens and when it
closes, but it is a concern when communities are left without
appropriate access to cash. That is why we were the first
Government to legislate for access to cash, as we did earlier
this year, and that is why I believe we should speed up the
roll-out of banking hubs. I am working with the industry on ways
in which we can do that.
If the Minister is serious about protecting the future of the
great British high street, will he back Labour’s pledge, which
has been welcomed by Cash Access UK and the wider sector, to
guarantee face-to-face banking in every community and give the
FCA the powers it needs to roll out hundreds of banking hubs
across the country?
As the hon. Lady knows, the industry leads the roll-out of
banking hubs. We are supporting it—I say this again—to speed that
up as much as possible. I have not seen the Labour pledge—I
suspect that I will not support it—but it is important that the
industry hears the views of constituents and Members from across
the House and that we speed up the roll-out of banking hubs in
communities that need them.
Pension Schemes: Incentivising UK Investment
(Meon Valley) (Con)
8. What steps his Department is taking to incentivise pension
schemes to invest in the UK. (900740)
The Economic Secretary to the Treasury ()
At the autumn statement, we set out a series of measures to
improve pension saver returns, increase opportunities for
investment and boost the UK’s capital markets and high-growth
companies.
Mrs Drummond
Merry Christmas, Mr Speaker, and to all those in the House. The
UK’s pension funds lag behind their counterparts in the USA,
Scandinavia and Australia for investing in technology firms. Can
my hon. Friend continue his work on reforms and ensure that more
pension fund investment stays in the UK, to boost our tech
sector?
Under the industry-led Mansion House compact, 11 of the UK’s
largest defined contribution pension schemes have signed up to
the objective of allocating at least 5% of their funds to
unlisted equities by 2030. We believe that could unlock £50
billion of investment in high-growth companies and should help
increase returns to savers.
(Strangford) (DUP)
The Minister will appreciate that the greatest investment that
anyone can make is in themselves and their own country—Northern
Ireland and all the United Kingdom. What steps can be taken to
ensure UK-wide investment by pensions schemes in cutting edge
businesses such as Wrightbus and Thales?
There are a couple of things that we need to do. We need to
ensure that the industry abides by its commitment to the 5%
target. Working with the Exchequer Secretary, my hon. Friend the
Member for Grantham and Stamford (), we must present the right
investment opportunities so that the capital goes into the UK in
the right way.
Taxation of Long and Short-term Lets
(North Devon) (Con)
9. Whether his Department is taking fiscal steps to reduce
differences in the levels of taxation between long and short-term
lets. (900741)
The Financial Secretary to the Treasury ()
The Government provide a different income tax regime for
short-term lets compared with long-term lets if they qualify as
furnished holiday lets, for which there are stringent conditions.
As with all aspects of the tax system, the Government keep the
tax treatment of property landlords under review. Any decisions
on future changes will be taken by the Chancellor in the context
of wider public finances.
The changes to landlord tax relief, which fully came in during
the pandemic, exclude holiday lets. That has contributed to a
significant decline in residential landlords in tourist areas
like North Devon. The lack of affordable rental properties has
priced out workers, particularly in the hospitality sector,
resulting in businesses reducing their opening hours and
therefore their tax contribution to the Treasury. Can my hon.
Friend provide any hope of levelling the tax playing field to
encourage long-term landlords back to the market?
I thank my hon. Friend for her continued interest in this area on
behalf of her constituents. The Government want to ensure a
diverse and sustainable visitor accommodation offer while
protecting local communities, including ensuring the availability
of affordable housing to rent or to buy. That is why we are
introducing a registration scheme for short-term lets in England,
which will be a vital step towards achieving that aim. The
Government keep the tax treatment of property landlords under
review, but I would be happy to meet her to discuss these issues
further.
(Westmorland and Lonsdale) (LD)
Throughout Westmorland and Lonsdale we see people, particularly
in social care, hospitality and tourism, ejected from their
communities because of the collapse in the long-term rental
market into a short-term rental market, principally through
Airbnb. Will the Minister go further on fiscal controls to make
sure that we keep homes available for local people to live in?
Will he put pressure on ministerial colleagues to change planning
law to make short-term lets a separate category of planning use,
so that communities in the lakes and the dales can prevent the
collapse of their communities into places only for those who can
afford to visit?
I thank the hon. Gentleman for his comments. We have talked about
this topic in my previous roles over many years. He is aware that
the Department for Levelling Up, Housing and Communities has
published a consultation on the introduction of a planning use
class for short-term lets. He will also be aware that, through
the Levelling Up and Regeneration Act 2023, the Government have
introduced a new power to allow councils to apply a council tax
premium on second homes. There is progress in this area, but we
are always open to new ideas.
Creditors Contacting Customers in Debt: FCA
(Newport East) (Lab)
10. What recent discussions he has had with the Financial Conduct
Authority on how creditors contact customers in debt.
(900742)
The Economic Secretary to the Treasury ()
I was pleased to speak at the launch of the Money and Mental
Health Policy Institute’s report on this subject last week,
alongside the FCA. It is worth saying that I used to be on the
advisory board of that institute. The Government and the FCA will
continue to work closely to ensure that consumer protections are
fit for purpose, including through our upcoming reform of the
Consumer Credit Act 1974.
A constituent who was a victim of domestic abuse and whose
ex-husband fraudulently took out a loan in her name was
constantly harassed by creditors as she tried to clear the debt,
and, according to a recent report by the organisation that the
Minister mentioned, that is an experience shared by others. Will
Ministers discuss with the FCA imposing legal limits on arrears
communications in cases such as this, as other countries have
done?
Let me say two things. First, I pay tribute to the former
Financial Secretary, now the Health Secretary—my right hon.
Friend the Member for Louth and Horncastle ()—who did a great deal of
work in relation to economic abuse. I am committed to continuing
that work with the Treasury to ensure that we limit the
circumstances in which the incidents described by the hon. Lady
can occur. As for the broader question of what the regulator does
in such cases, we have put a record level of funding, to the tune
of some £93 million, into working with regulators on debt advice.
I shall be happy to discuss with the hon. Lady the details of how
we can help her constituents in the way that she suggested.
Household Income: Mortgage Interest Rates
(Luton South) (Lab)
11. What recent assessment he has made of the potential impact of
changes in mortgage interest rates over the course of this
Parliament on household income. (900743)
The Economic Secretary to the Treasury ()
As the hon. Lady knows, the path to lower interest rates is
through low inflation, and the independent Bank of England has
the Government’s full support as it takes action to return
inflation to target. The Government’s mortgage charter, brokered
by my right hon. Friend the Chancellor earlier in the year, is
available to 90% of borrowers. Real disposable income per person
is about £800 higher than the Office for Budget Responsibility
predicted in its March forecast.
The expiry of 1.5 million fixed-rate mortgage deals next year
will mean even more people paying sky high-costs. It comes at a
time when many are suffering increased financial hardship and
personal debt, which is having an impact on their mental and
physical health. Does the Minister think it fair that families
are paying hundreds of pounds more each month to cover the costs
of the Government’s mini-Budget disaster?
Mortgage costs and interest rates have gone up throughout the
world, and we are in more or less the middle of the pack—they are
higher in the United States, for example—but what will definitely
make things harder for the hon. Lady’s constituents, and indeed
all our constituents, is borrowing an extra £28 billion that will
only serve to increase inflation and keep rates higher for
longer.
Living Standards: OBR Growth Forecasts
(Bristol East) (Lab)
12. What recent assessment he has made of the potential impact of
the OBR’s growth forecasts on living standards. (900744)
(Brighton, Kemptown)
(Lab/Co-op)
13. What recent assessment he has made of the potential impact of
the OBR’s growth forecasts on living standards. (900745)
(Ellesmere Port and Neston)
(Lab)
14. What recent assessment he has made of the potential impact of
the OBR’s growth forecasts on living standards. (900746)
The Chief Secretary to the Treasury ()
The OBR revised up its growth figures after data revisions by the
Office for National Statistics indicated the economy had
recovered more fully from the pandemic than had been expected,
which means that the current level of real GDP is nearly 3%
higher than was predicted in March forecasts.
The Government put a positive spin on the provisional local
government finance settlement yesterday, but the Local Government
Association said that it did not provide enough funding to meet
the severe cost and demand pressures on councils, and assumed
that all councils would increase their tax bills by the maximum
allowed next year. What will that do for my constituents’ living
standards?
As the hon. Lady will know, we put billions of pounds into
councils this year, and the provisional settlement is above what
is expected to be the inflation rate next year. If she has
specific issues with her local council, I shall be happy to take
that up with her.
We have seen one of the greatest falls in living standards in a
generation, and the Chancellor has callously removed the
household support fund from councils. In Brighton the fund pays
for free school meal vouchers in the holidays, the warmth and
wellbeing scheme, career centres, family hubs, and food banks
such as the one in Whitehawk where my constituency office has its
surgeries. Will the Minister think again about scrapping the
household support fund, so that councils can support the very
worst off?
I want to reassure the hon. Gentleman: no decision has been made
about the household support fund. More broadly, however, we have
pulled in an average of £3,700 per household this year to help
people with exactly what we are talking about. This Government
are on the side of people during what is a very difficult
time.
According to the Low Pay Commission, one in five people who
should be receiving the national minimum wage do not even get
that. This is a huge failure of enforcement. How can we have
increased living standards if people do not even receive the
legal minimum to which they are entitled?
If the hon. Gentleman can give individual examples, I ask him
please to let us know. It is, obviously, extremely important that
we enforce this, but I should point out that we will increase the
levels by 9.8% next year, which will make a significant
difference to households up and down the country.
(Buckingham) (Con)
Is not the more fundamental problem with the question posed by
Opposition Members the fact that the OBR’s forecasts are never
right?
All I can say is that they have definitely gone in the right
direction, because the economy next year will be billions of
pounds bigger than we thought it was going to be in March.
Public Spending: Value for Money
(City of Chester) (Lab)
15. What steps he is taking to ensure value for money in public
spending. (900747)
The Chief Secretary to the Treasury ()
Value for money is at the heart of Government spending and it is
one of the key considerations for any decision involving the use
of public funds across Government. As Chief Secretary, I am
committed to tackling waste and promoting productivity across the
public sector.
Last year, Government officials admitted that they were paying
companies to burn and destroy 15,000 pallets of unusable personal
protective equipment each month. Does the Treasury have any idea
how much wasted PPE has gone up in smoke this year?
During the pandemic our priority was absolutely clear: to get PPE
to the frontline as quickly as possible. There was an
unprecedented global increase in demand for PPE during the
emergency response to the pandemic and items were procured at
pace. The Department of Health and Social Care continues to seek
to recover fraud losses to ensure that public funds are
protected.
Mr Speaker
I call the shadow Minister.
(Ealing North) (Lab/Co-op)
Throughout the pandemic, people across the country made
extraordinary and heart-wrenching sacrifices, yet as they did so,
a small minority were instead making millions of pounds by
ripping off the taxpayer. With conflicts of interest, defective
goods and exorbitant profit margins, it has been greedy and
grubby and this Conservative Government have enabled it all. As
taxpayers, we want our money back, so Labour will create a covid
corruption commissioner to chase down every pound we can. Does
the Minister have any idea just how angry people are that our
country has been taken for a ride?
The hypocrisy is absolutely astonishing. During the pandemic the
shadow Chancellor wrote that the strategy of turning to big-name
UK manufacturers was not delivering the supply that was needed.
Yes, we procured things very fast—we needed to do that to get
things to the frontline—and we are trying to get back every
single penny that was lost to fraud, but we make no apology for
doing whatever we could to get PPE to the frontline as quickly as
possible.
The Minister’s response really does not reflect the seriousness
of the situation. This is not just one bad apple; this is a
rotten culture that goes to the very top, with £8.7 billion lost
on wasted PPE and £7.2 billion lost to covid fraud. That is £15.9
billion of public money gone at a time when people and public
services are struggling. Can the Minister remind the House who
was Chancellor at the time that all of this was signed off?
I do not know what more I can add to my last answer. This was
done very quickly, at pace, because we were desperate to get PPE
to the frontline as quickly as possible. We have set up
initiatives to recoup money from fraudulent activity including
the Public Sector Fraud Authority, which has already saved
taxpayers £311 million in the first year of operation.
Taskforce on Nature-related Financial Disclosures:
Recommendations
Dr Thérèse Coffey (Suffolk Coastal) (Con)
16. If he will make mandatory the recommendations on reporting of
the taskforce on nature-related financial disclosures.
(900748)
The Economic Secretary to the Treasury ()
This Government have been one of the largest donors to the global
market-led taskforce on nature-related financial
disclosures—TNFD—initiative. We will consider how best the TNFD’s
recommendations should be incorporated into policy and
legislative architecture in a manner that is coherent with global
sustainability reporting.
Dr Coffey
Merry Christmas to you, Mr Speaker, and to the officers, Clerks
and staff of the House. I am encouraged by my hon. Friend’s
answer. It was a year ago today that the global biodiversity
framework was agreed in Montreal, and it was absolutely necessary
to restore biodiversity loss. The TNFD initiative was launched by
the UK G7 presidency in 2021 and it featured in the green finance
strategy that my right hon. Friend the Chancellor and I did the
ministerial foreword to earlier this year. He will be aware of
the recommendations that were launched in September. I am
conscious that there was a lot of support from the Treasury
previously and that we should try to accelerate the International
Sustainability Standards Board standards so that we can bring in
this initiative just as successfully as we have done for the
TCFD—the taskforce on climate-related financial disclosures.
I thank my right hon. Friend for her question. She mentions the
Treasury’s green finance strategy, which contains plans to bring
forward the sustainability disclosure requirements, building on
the global commitments. We have already implemented the
climate-related financial disclosures, and we are looking very
carefully at the nature-related financial disclosures. We hope to
update the House in due course.
Business Investment
(Stoke-on-Trent South)
(Con)
17. What steps his Department is taking to help increase the
level of business investment. (900749)
The Exchequer Secretary to the Treasury ()
In the autumn statement, the Chancellor announced an ambitious
growth package that will boost business investment by making full
expensing permanent, by removing barriers to business investment,
by reforming our inefficient planning system, by speeding up
electricity grid connection times and by making £4.5 billion
available for strategic manufacturing sectors over the next five
years, among other measures.
I thank the Minister for that response. It is very welcome to see
full expensing, which will help businesses to invest in the plant
and machinery and the technology that are needed. It would also
help the ceramics sector, in particular, if it were exempted from
the emissions trading scheme. Will my hon. Friend speak to the
Chancellor about the possibility of exempting the ceramics sector
from the ETS, which would help to give the sector the breathing
space to invest in productivity and energy efficiency gains?
I can think of few greater champions for Stoke’s ceramics sector
than my hon. Friend. We recognise that carbon leakage is a
significant risk for the ceramics sector, so I can offer him two
pieces of information. First, we provide free allowances to the
ceramics sector under the ETS. Secondly, just yesterday we
announced that ceramics will be included in the UK’s carbon
border adjustment mechanism.
Fuel Duty: Carbon Border Adjustment Mechanism
(Weston-super-Mare) (Con)
18. If he will make an estimate of the potential impact of a
carbon border adjustment mechanism in the form recommended by the
Commission for Carbon Competitiveness on fuel duty. (900750)
The Exchequer Secretary to the Treasury ()
The Government have announced that they will implement a CBAM
from January 2027. The UK CBAM will place a carbon price on some
of the most emissions-intensive industrial goods imported to the
UK and will ensure that the UK’s decarbonisation efforts lead to
a true reduction in global emissions, rather than simply
displacing carbon emissions overseas. The delivery of a CBAM will
be the subject of further consultation in 2024.
I congratulate the Minister. A CBAM is the cheapest and most
future-proof way to save the planet and UK manufacturing jobs at
the same time, but some of the details look troubling. Why have
some manufacturing industries been left out entirely? Why are
others arriving late, so they will be vulnerable to dumping? And
how will he ensure that this is not just a tax and price rise for
already hard-pressed families and businesses?
I recognise and thank my hon. Friend for his work as chair of the
Commission for Carbon Competitiveness. I will directly address
his two main questions. On speed, implementation by 2027, at the
latest, will allow the Government to engage with businesses to
ensure that they are well prepared, but next year’s consultation
will provide more information on timings. We have identified
eight sectors that have the greatest exposure to carbon leakage,
from both a trade and an emissions perspective.
Investment Zones
(Amber Valley) (Con)
20. What progress he has made on the introduction of investment
zones. (900755)
The Exchequer Secretary to the Treasury ()
Since the spring Budget, the Government have announced seven of
the eight English investment zones and confirmed the location of
four places eligible to host investment zones in Scotland and
Wales. The Government are committed to ensuring that funding and
tax sites go live in the 2024-25 financial year.
I welcome the investment zone in Nottinghamshire and Derbyshire.
Will the Minister confirm that some of the benefits of these
zones are not only available in the small number of large sites
but are available to any business across the whole zone to apply
for?
My hon. Friend is right to recognise the east midlands investment
zone, which will bring significant benefits across the region in
the advanced manufacturing and green industry sectors. I am
pleased to tell him that it started with a £9.3 million anchor
investment and, over time, will leverage some £323 million in
private investment, supporting 4,000 jobs overall.
Inflation
(Chipping Barnet)
(Con)
21. What steps he is taking to reduce inflation. (900756)
The Chief Secretary to the Treasury ()
Inflation has now halved from 11.1% in October 2022 to 4.7% in
October 2023, delivering on the Prime Minister’s pledge. This has
happened not by accident but as a result of difficult decisions
made by the Government and the Bank of England—Government
decisions that were opposed every step of the way by the Labour
party.
Thank you for calling me to ask a question while I catch my
breath, Mr Speaker!
A major component of inflation over this past year has, of
course, been the energy price shock. What are the Government
doing to ensure the continued expansion of renewable energy so
that we have greater energy security, and so that we are more
resilient in the face of energy price shocks from overseas?
My right hon. Friend is right, and she nailed the delivery of her
question while out of breath.
At the autumn statement, the Chancellor announced measures that
demonstrate the Government’s ongoing commitment to renewable
energy as a priority growth sector essential to our energy
security and net zero ambitions. The announcements made include a
new investment exemption from the electricity generator levy and
a £960 million green industries growth accelerator.
Topical Questions
(East Kilbride, Strathaven
and Lesmahagow) (Con)
T1. If he will make a statement on his departmental
responsibilities.(900757)
The Chancellor of the Exchequer ()
Today is the funeral of Lord Darling, who will be greatly missed
by many in this House, as well as by Maggie and his family. Civil
servants are known for being good at concealing their private
feelings about more challenging Ministers, but that was never
necessary with . He was Chief Secretary to
the Treasury and then Chancellor during the global financial
crisis, and despite the many stresses and strains of that period,
he was uniformly admired and much loved for his kindness, decency
and dry sense of humour. He took decisions in that period that
have stood the test of time and put him on the small list of
Chancellors whom history will remember for wise decision making
in an unprecedented crisis. We will always remember him.
Finally, Mr Speaker, may I wish you and all the staff in the
House a merry and peaceful Christmas?
Dr Cameron
I, too, send my full sympathy. I also wish everyone across the
House a merry Christmas.
Industry has fully supported the Prime Minister’s vision of the
UK becoming a cryptocurrency hub, but many licensed companies are
still finding it difficult to open bank accounts here. So will
the Chancellor meet the all-party group on crypto and digital
assets to discuss what progress can be made on digital
Britain?
I am grateful to my hon. Friend for asking that question, because
the UK, and London in particular, has become the global crypto
hub. To make sure that the market can really take off in the way
that was intended—in a responsible way—we need to regulate it,
which is why we have introduced regulations on stablecoins and on
the promotion of crypto services. My hon. Friend the Economic
Secretary to the Treasury would be more than happy to meet
her.
Mr Speaker
I call the shadow Minister.
(Bristol North West) (Lab)
Merry Christmas to you and to the House, Mr Speaker. Let me start
by thanking the Chancellor for his kind words about the late Lord
Darling, which I think show the gratitude of Members from across
the House for his lifetime of public service.
The public have a right to know why so many billions of pounds of
their taxes have been wasted by this Government. has claimed today that
Conservative Ministers knew about her personal connections to the
company PPE Medpro from the very beginning. So why did the
Government not correct the record when a misleading picture was
being painted in the media about Baroness Mone’s personal
connection to PPE Medpro in the first place?
I am not going to comment on allegations by or, indeed, on the
individual case, but let me say this: we put together a taskforce
of more than 1,000 people that opened 46,000 investigations and
so far has made more 80 arrests, so we will stop at nothing to
tackle fraud and bring to justice anyone who was responsible for
wrongdoing. But what we did in a moment of extreme crisis was to
make sure that we got personal protective equipment to the
frontline as quickly as we could, and had we not done so many
more lives would have been lost.
We all know that Baroness Mone’s enrichment via PPE Medpro is
subject to an investigation, but that does not allow Ministers to
refuse to answer questions here in the House today. So let me ask
another: Baroness Mone’s husband, Doug Barrowman, alleged that in
November 2022 he was approached by a Government official asking
if they would
“pay more for the other matter to go away.”
Is that specific and incredibly serious claim now being
investigated and, if so, by whom?
If the hon. Gentleman has any evidence of people behaving
improperly or illegally, he should tell the police, and he will
get the full support of this Government and the whole House in
bringing the matter to justice. But let me just say to him that
any responsible Opposition should understand that in a crisis
there is a trade-off between speed and taking longer to prevent
fraud, and we took the right decision to save as many lives as
possible.
Greg Smith (Buckingham) (Con)
T3. I am hearing from a concerning number of small businesses
in my constituency that they are slowing down as they approach
the VAT threshold, rather than doing what the whole economy needs
them to do and going for growth. Ahead of the spring Budget, will
my right hon. Friend look at substantially shifting the VAT
threshold upwards?(900760)
The Financial Secretary to the Treasury ()
My hon. Friend is a great advocate for small businesses. The
Government recognise that accounting for VAT can be a burden on
businesses, but that is why, at £85,000, the UK has a higher VAT
registration threshold than any EU member state and the second
highest in the OECD, keeping the majority of UK businesses out of
VAT altogether. In the 2022 autumn statement, it was announced
that the VAT threshold would be maintained at its current level
until 31 March 2026. As always, the Government keep taxes under
review.
Sir (East Ham) (Lab)
T2. I echo the Chancellor’s generous and well-judged tribute to
. At the autumn statement,
the Chancellor said—mistakenly, as it turned out—that the
household support fund was being extended into the next financial
year; the Chief Secretary to the Treasury clarified the position
a few moments ago. Does the Chancellor recognise that there is a
compelling case for him to announce exactly that extension in the
Budget, so that councils can continue to provide the last-resort
safety net that has been such a valuable feature of the household
support fund over the last three years?(900758)
I recognise the important role the household support fund has
played. As my right hon. Friend the Chief Secretary to the
Treasury said earlier, no decisions have been made about what
will happen going forward. There were a lot of anti-poverty
measures in the autumn statement, including increasing benefits
next year by double the rate of inflation, increasing the
full-time national living wage by £1,800 a year and increasing
the local housing allowance, providing an average of an extra
£800 to 1.6 million households.
(West Worcestershire)
(Con)
T7. Merry Christmas, Mr Speaker, to you, your team and the
Treasury team. Between now and the next Treasury questions,
millions of our constituents will be required to file a
self-assessment tax return, yet this week we learned that His
Majesty’s Revenue and Customs has suddenly shut down its hotline
for the majority of people and their advisers. Our most
law-abiding citizens are trying to get their taxes right, so what
advice can my hon. Friend the Financial Secretary to the Treasury
give to them as to how they can contact HMRC?(900764)
I thank my hon. Friend the Chair of the Treasury Committee for
raising this issue with me. We want to ensure that people can be
served accurately and effectively through the most efficient
channels. Two thirds of calls to the self-assessment line could
be resolved online, through other channels—I highly recommend the
app, for example. Last year, HMRC received over 3 million calls
on three issues—resetting a password, getting a tax code and
getting a national insurance number—that could easily be resolved
digitally. People will still be able to call in, but we need to
redeploy resources away from very simple questions towards those
most in need, which will help those who are digitally
unaware.
Janet Daby (Lewisham East) (Lab)
T5. Mr Speaker, I wish you, your staff and everyone across the
House a very happy Christmas. It has been reported that the Prime
Minister instructed a £40 million VIP helicopter service that had
been earmarked for closure to continue to provide him with
flights. Will the Treasury publish a cost-benefit analysis of
that decision for taxpayers to see?(900762)
I do not know the details of the issue raised by the hon. Lady,
but I assure her that the Treasury is ferocious in its
determination to ensure that every penny of the public’s money is
spent wisely.
Mr Rob Roberts (Delyn) (Ind)
T8. The electrification of the north Wales main line has been a
vital issue to Delyn and the rest of north Wales for many years.
Back in 2015, when it was judged as costing about £850 million,
it was kiboshed by the Treasury as not being value for money. Now
that it is expected to cost over £1 billion, will the Chancellor
guarantee that the project will definitely go ahead and that the
Treasury will not put a stop on it again?(900765)
The Chief Secretary to the Treasury ()
I will write to the hon. Gentleman.
(Somerton and Frome) (LD)
T6. Mr Speaker, I wish you, those across the House and my
constituents a very merry Christmas. People in rural areas suffer
more than their urban counterparts because of the rural premium
they encounter in their daily lives. With food inflation at
around 10%, people in Somerton and Frome are once again facing a
choice between heating and eating. What recent assessment has the
Department made of the effect of inflation on food
prices?(900763)
I know that the hon. Lady will have welcomed the most important
change to cost of living pressures, which is inflation coming
down. In addition, we have had the cost of living payments this
year, and also benefits going up by 10.1% this year and by more
than the expected level of inflation next year. We as a
Government have done all we can to support people and will
continue to do so.
(East Worthing and Shoreham) (Con)
T9. Mr Speaker, as mine is the last name on the Order Paper, may
I wish you and Mrs Speaker, and the two Front-Bench teams, a very
happy Christmas? Notwithstanding his predilection for myrrh and
frankincense, may I ask the Chancellor to comment on the state of
our gold reserves and whether, in a world where peace to all men
seems to be in rather short supply at the moment, he anticipates
adding to them in 2024?(900766)
As I go to carol services over the festive period, I will make
sure that I am suitably inspired by what the three wise men
brought to the crib. I can tell my hon. Friend that I am actually
visiting our gold reserves this week, so I will see at first hand
just how important they are.
(York Central)
(Lab/Co-op)
Right now, council leaders up and down the country are having to
make very difficult decisions on cutting vital services—not
because of profligacy, but because of Government cuts to their
funding. What steps is the Chancellor taking to ensure that local
authorities—such as that in York, which is the lowest-funded
area—are adequately funded?
The hon. Lady will have heard my answer to a previous question
where I stated that we have put billions of pounds of extra money
into local government this year to cover pressures. We recognise
that those pressures are real, which is why the provisional
settlement proposes an above-inflation rise for next year.
(Haltemprice and Howden)
(Con)
A fortnight ago, Kaye Adams, a TV presenter, won her case against
His Majesty’s Revenue and Customs on IR35 status. Despite the
fact that she won her first tax tribunal on the issue, HMRC took
her to either a tribunal or court four times over a nine-year
period, forcing her to spend £200,000 in legal fees. HMRC spent
many times that, using two King’s counsel at the last hearing
alone. This was over a net tax bill of £70,000. There is no
conceivable economic case for that. What HMRC is trying to do is
move the guidelines by coercing Ms Adams and using her as an
example to intimidate other self-employed workers to give in to
HMRC’s bullying. This is a disgrace. It has gone on for too long.
The 2021 revisions were inadequate and ministerial oversight is
too weak. When will the Government review IR35 and, ideally,
abolish it?
It is our duty to ensure that everyone pays the right tax under
the law regardless of wealth or status. We note the decision of
the tribunal and will carefully analyse the outcome before
considering the next steps, but the off-payroll rules ensure that
people who work like employees, but through their own limited
company, are taxed like employees, creating a level playing field
for other workers.
(Angus) (SNP)
UK capital requirement regulations mandate a 50% level of
capitalisation to be held by lenders for longer terms as opposed
to 20% for shorter terms. Car manufacturer banks, such as
Renault’s RCI Financial Services, underpin every franchise car
dealer across these islands and operate on a seven-day notice
period to terminate in order to minimise their capital
requirements at 20%. The problem arises when a bank such as RCI
maladministers a serious activity report, panics over its
obligations under the regulations and terminates an award-winning
Renault, Nissan and Dacia dealer such as Mackie Motors in my
constituency with seven days’ notice. Will the Chancellor or one
of his Ministers meet me to discuss this crisis?
The Economic Secretary to the Treasury ()
I thank the hon. Gentleman for his question. Indeed, I will meet
him to discuss the matter to make sure that this regulation does
not have the adverse effects that he has outlined.
(Ludlow) (Con)
Since the Prime Minister’s speech on net zero in September,
Nissan has announced a £2 billion investment in Sunderland, which
comes hot on the heels of Tata’s £4 billion investment in
batteries. EDF Masdar has announced an £11 billion investment in
offshore wind in Dogger Bank. In his autumn statement, the
Chancellor announced a tripling of tidal energy contracts for
difference. We had 11 hydrogen projects announced last week.
There are six companies bidding for small modular reactors.
[Interruption.] Is it not the case that, hot on the heels of
yesterday’s announcement of a £6 billion allocation of energy
efficiency funding and the carbon border adjustment
mechanism—
Mr Speaker
Order. We had this last time with you. I’m sorry, but I am trying
to be generous because it is Christmas. Do not take advantage of
other Members; I still have others to get in. It is just not
fair, and it is very selfish to carry on when I have asked you
not to. I do not find it acceptable. I look forward to the
apology shortly. Would someone like to answer that question,
briefly?
I thank my right hon. Friend for his question and for his
campaigning on these issues. I just note that on electric vehicle
manufacturing alone, the Society of Motor Manufacturers and
Traders says that in the past year we have had more investment
pledged for UK electric vehicles than in the previous seven years
combined.
(Strangford) (DUP)
The life sciences sector is worth £2.4 billion to the Northern
Ireland economy. What steps have been taken, with counterparts in
the Northern Ireland Assembly, to increase funding for employment
within this worthy sector?
The Exchequer Secretary to the Treasury ()
The hon. Gentleman is quite right that life sciences is one of
the key growth industries for this country. I would be happy to
meet him to discuss all the things we are doing for the sector,
particularly in Northern Ireland.
(Bournemouth East) (Con)
Our economy continues to be impacted by the war in Ukraine and
denial across the Black sea, and we now must brace ourselves for
further economic shocks as global shipping avoids the Red sea.
Does the Minister agree that we should be protecting these
shipping lanes? Our Navy is now too small by half to protect our
maritime interests, so will he now look at investing in our
surface fleet to protect our economy?
As my right hon. Friend knows, I have long believed in the
importance of investing in our armed forces, but that ultimately
depends on a strong economy that will pay for sustained
investment, and that is what is happening under this
Government.
(North East Bedfordshire)
(Con)
Will the Chancellor update the House on how he plans to move
forward with some of the key recommendations from Lord
Harrington’s review into foreign direct investment in the UK?
I am happy to do that. In fact, I hosted a reception for Lord
Harrington and the people responsible for that review last week.
We will start by increasing the budget of the Office for
Investment so that it can give a more bespoke service to
potential overseas investors.
(Darlington) (Con)
We are all mindful of the need to control public finances and
slim the civil service, but can my right hon. Friend reassure my
constituents that the Darlington Economic Campus will receive the
jobs that were promised, and will he give consideration to my
proposal to name their permanent home of DEC William McMullen
House, in recognition of the sacrifice William made for people of
Darlington?
My hon. Friend is a brilliant advocate for his constituency. I
hear what he has to say and I am happy to meet him to talk about
it.
(Cleethorpes) (Con)
My right hon. Friend is well aware of the threat to thousands of
jobs at Scunthorpe steelworks and many more in the supply chain
that supports it, all of which would have a devastating effect on
the economy of northern Lincolnshire. Can he and his colleagues
in the Department for Business and Trade bring a speedy
conclusion to the negotiations and lift the cloud over
Scunthorpe?
I thank my hon. Friend for his campaigning on that issue and
reassure him that we in the Treasury completely understand how
vital steel is to the future of his area and to his constituents.
We will continue to do everything we can to resolve the situation
as quickly as possible.
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