Levelling-Up Fund
(Blaenau Gwent)
(Lab)
How his Department determined the criteria for assessing bids to
the levelling-up fund; and if he will make a statement.
The Chief Secretary to the Treasury ()
The £4.8 billion levelling-up fund will invest in local
infrastructure that has a visible impact on communities across
the United Kingdom. It has been jointly designed by the Treasury,
the Ministry of Housing, Communities and Local Government and the
Department for Transport.
Having waited so long, I really hope that the levelling-up fund
will boost infrastructure in south Wales. I have already written
to the Chancellor about the improvements that are needed for the
Ebbw Vale to Cardiff line, to help young people especially to get
to work, so can the Minister assure me that this investment will
finally be seen through?
I share the hon. Gentleman’s desire to boost infrastructure in
south Wales, and he is quite right to focus on young people
getting to work, given how impacted they have been by the
pandemic. He knows that his area in particular has received
additional funding for capacity, and this will enable it to bid
for the levelling-up fund to address the issues that he
highlights.
Fiscal Framework Agreement
(Kilmarnock and Loudoun) (SNP)
What recent assessment he has made of the adequacy of the 2016
fiscal framework agreement between the Government and the
Scottish Government.
The Chief Secretary to the Treasury ()
The existing fiscal framework sets out the arrangements for a
review following the Scottish elections. This will allow a
settlement in the light of a Parliament’s-worth of experience,
which is consistent with the Smith commission’s expectations that
there will be effective operation of the fiscal framework and
that it should not require frequent ongoing negotiation.
The reality is that the powers of the Scottish Government are not
adequate to deal with the pandemic. There are too many
constraints on borrowing powers for the Scottish Government; the
reality is that councils can borrow more easily under the
prudential borrowing code. Does the Minister not agree that it is
time the Scottish Government had more flexible borrowing powers?
The Smith commission set out the conditions, and they already
give substantial borrowing powers. That is why there is up to
£450 million of annual capital borrowing, £700 million in the
Scotland reserve and up to £600 million for resource borrowing in
relation to forecast error, and of course that comes on top of
the share of UK Government borrowing provided through the Barnett
formula.
Living Standards
(Inverness, Nairn, Badenoch and Strathspey) (SNP)
What recent assessment he has made of the effect of his policies
on living standards.
(Ochil and South Perthshire) (SNP)
What recent assessment he has made of the effect of his policies
on living standards.
The Chancellor of the Exchequer ()
The Government are committed to supporting household living
standards during this difficult time for our country. That is why
we announced an unprecedented package of support to protect
people’s jobs and incomes and to help those most in need.
[V]
It is approaching two years since this Government said that they
would review the way in which dying people were treated through
social security. Meanwhile, Marie Curie and many other
campaigners for change estimate that as many as 6,000 people have
died while waiting for a decision on their claims. This
Government have repeatedly promised to end the six-month rule,
which is currently forcing terminally ill people to prove how
long they have left to live before they can access fast-track
support, so can the Chancellor confirm that this long overdue
reform will be in the Queen’s Speech?
It would be wrong for me to pre-empt the Queen’s Speech—I know
that colleagues will understand that—but I can assure the hon.
Gentleman that my right hon. Friend the Work and Pensions
Secretary keeps all these matters under review, and of course we
want to ensure that our welfare system is compassionate and
effectively supports those who need our help.
[V]
My goodness, what a disastrous week for the UK Government. While
they have been mired in scandal and slithering through sleaze,
the SNP has committed to doubling the Scottish child payment and
carers allowance and to introducing a new winter heating payment.
Does the Chancellor accept that these are more noble social
objectives than enriching well-placed cronies?
What I believe to be a more noble objective is to focus on the
day-to-day concerns of the Scottish people at this difficult
time, which involves making sure that the economy recovers, that
the vaccines are rolled out and, of course, that our children
receive the education they deserve. These are the issues that I
know the Scottish people will care most about in the coming
weeks.
(Central Devon) (Con) [V]
Due to the increasing concentration of wealth in older
generations, the value of the average inheritance received by
younger generations is becoming significantly greater through
time. Does my right hon. Friend recognise this trend and the fact
that it means that living standards will increasingly be
determined not by skill, entrepreneurship and hard work but by
chance, which will have a detrimental impact on social mobility?
While it is absolutely right that families can pass on wealth to
their loved ones, does my right hon. Friend none the less
recognise the strong trend here, and if so, what steps might he
consider taking to address this?
I would say two things to my right hon. Friend. First, he will
know that in the Budget we recently froze the inheritance tax
thresholds for four years, which will provide some alleviation on
the concern that he mentioned. Secondly, I believe that the best
way to drive social mobility in our society is to provide
everyone with the skills and education they need to make a better
life for themselves, which is what this Government are committed
to delivering.
(Glasgow Central) (SNP) [V]
The Tories’ two-child limit, and the rape clause, which stands
part of it, are having a devastating impact on living standards,
with the Child Poverty Action Group and the Church of England
estimating that 350,000 families and 1.25 million children have
been affected so far. Scrapping the two-child limit would be the
easiest and most cost-effective way of reducing child poverty in
the UK, so will the Chancellor scrap it or will he push more
families into poverty?
Since 2010, over 1 million fewer people are now living in
poverty, thanks to the actions of this Government and the
coalition, and 300,000 fewer children are living in poverty. That
is something to be celebrated, but of course there is work to do
and we remain committed to making those improvements.
It is interesting that the Chancellor ignores the findings of the
Church of England and the CPAG, which tell a very different story
from that which he is willing to tell. In Scotland, the Scottish
National party is committed to doubling the Scottish child
payment, a new benefit described as a “game changer”, to £20 a
week; providing free school meals to all primary children; and
extending wraparound childcare. All of those are a huge help to
the families that this Tory Government choose to ignore. Does
this not demonstrate the choice of two futures: more austerity
and more child poverty under the Tories, or a Scotland working
hard to be the best place for a child to grow up?
I am glad that the Scottish Government are able to use the over
£3.5 billion of Barnett consequentials that have been provided by
the UK Government over the next year. Child poverty is of course
an important issue and one that we remain committed to, which is
why initiatives such as the troubled families programme are
making an enormous difference to those families. Crucially, we
also know that children growing up in a workless household are
five times more likely to be in poverty, which is why this
Government are committed to helping people find work and find
well-paid work. That is something we have an excellent record of
doing.
(Houghton and Sunderland South) (Lab)
said that Greensill had
“the mandate for the UK Government”.
Greensill said that it was the
“sole provider of…supply chain finance”
across Government and that it had a model that brings several
benefits to the UK public sector. Does the Chancellor still
believe that he was right to bring in real-terms pay cuts for
public sector workers, while allowing and Lex Greensill to target their pay packets and
giving them the run of Whitehall?
With regard to public sector pay, I do believe it is right, at a
time of extraordinary strain on our public finances—when those in
the private sector have seen more than 1 million jobs lost, hours
cut, wages cut and many millions furloughed, with the impact that
that has on them—to take a fair and proportionate approach to
public sector pay. That is why this Government have said that
those on the lowest pay will see a pay rise this year, as will
those in the NHS. Combined with all the other pay progression,
this means that a majority of people in the public sector will
see their pay increase this year, despite the difficult
circumstances. Of course, the national living wage is also being
increased ahead of inflation, making sure that those on the
lowest incomes see an uplift in their take-home pay.
Beer Duty
(Clacton) (Con)
What steps his Department is taking to differentiate the rate of
beer duty for on-trade and off-trade sales.
The Exchequer Secretary to the Treasury ()
The Treasury is considering the merits of differentiating
products based on their place of retail as part of its alcohol
duty review. We are currently analysing responses provided by
stakeholders to our recent call for evidence and will provide
further updates in due course.
[V]
I thank my hon. Friend for her answer. It is all very well
conducting calls for evidence and creating reports, welcome
though they may be, but we live in extraordinary times that
require extraordinary measures taken quickly. I implore the
Minister to press her Department to act on this matter now.
Hospitality in general, and pubs in particular, are facing
closure every day. Will she act?
I know that my hon. Friend is a fierce advocate of pubs and
brewers, and he has been proposing a duty differential for
several years. I should stress that I am personally very
interested in this proposal, but there are a number of complex
issues associated with it, including how producers and
wholesalers would account for and manage their stock of beer; how
to ensure that any reduced rate is not exploited fraudulently;
and how any differential would interact with the existing small
brewers relief scheme. However, I would like to reassure him that
we are looking closely at the proposals he has put forward.
Freeports
(Eastleigh) (Con)
What progress his Department has made on the establishment of
freeports.
The Chancellor of the Exchequer ()
At the Budget, I announced the location of eight freeports in
eight regions of England following a highly competitive process.
The Ministry of Housing, Communities and Local Government is now
leading a cross-Government effort to support the winning bidders
to establish their freeport, and we expect the first freeports to
open later this year.
[V]
My right hon. Friend authored a report in 2017, which found that
freeports could easily create up to 90,000 jobs if they were as
successful as the US foreign trade zone programme. Does he agree
that, by voting against our Finance Bill and the setting up of
freeports earlier this month, such as the Solent freeport near my
constituency, the Labour party has shown that it has no interest
in creating jobs and levelling up opportunity across the country,
as this Government are committed to doing?
My hon. Friend is absolutely right and I congratulate everyone
involved in the Solent freeport bid. This Government are using
freeports to boost jobs, investment, trade and growth. Local
communities, from Merseyside to Teesside, Humber and indeed the
Solent, all agree with us and it is a shame that the Labour party
does not support their aspirations.
UK Steel: Government Infrastructure Projects
(Aberavon) (Lab)
What steps his Department is taking to increase the amount of UK
steel used in Government infrastructure projects.
The Exchequer Secretary to the Treasury ()
There are global challenges in the steel industry, with vast
overcapacity and supply outstripping demand. However, the
Government have supported the steel sector extensively, including
providing more than £500 million in recent years to help with the
cost of energy. Our unprecedented package of covid support is
still available to the sector to protect jobs and ensure that
producers have the right support during this challenging time.
Steel is central in terms of good jobs, national security and
combating climate change. There can be no post-pandemic economic
recovery without a strong and healthy steel industry. Will the
Chancellor therefore commit today to recognising the pivotal
strategic importance of the steel industry by using the power of
the Treasury to reduce the exorbitant electricity prices faced by
our steelmakers—currently 82% higher than in Germany—so that our
steel industry can compete on a level playing field?
I reassure the hon. Gentleman that that is something that we are
doing. As I mentioned in my earlier answer, we have already spent
£500 million across the sector specifically to deal with that
point. Further, we are taking a number of steps to support the
decarbonisation of the UK steel industry. For example, we
announced the £250 million clean steel fund to support the
decarbonisation of the steel sector, including its transition to
new low-carbon technologies and processes.
(Erith and Thamesmead) (Lab)
Jobs in the steel industry are crucial to the people of
Hartlepool. In June, the first instalment of the EU research fund
for coal and steel will be returned to the UK. Are the Government
planning to ring fence that money to support the decarbonising
and modernising of the industry, given the vital importance of
protecting steel jobs for the future?
I thank the hon. Lady for her question. I mentioned in my answer
to the hon. Member for Aberavon () the
steps that we are taking to decarbonise the UK steel industry. As
I said, there are global challenges in the industry and we have
been supporting various companies. For example, last year, we
provided a £30 million loan to Celsa, safeguarding a key supplier
to the UK construction industry and securing more than 1,000
jobs, including more than 800 positions at the company’s main
sites in south Wales. The Government will continue working with
businesses to understand the issues that they are facing,
including continuing to engage business sectors that are affected
by covid and our changing relationship with the EU.
Retraining and Upskilling
(Birmingham, Northfield) (Con)
What fiscal steps his Department is taking to support the (a)
retraining and (b) upskilling of workers.
(Rother
Valley) (Con)
What fiscal steps his Department is taking to support the (a)
retraining and (b) upskilling of workers.
(Bridgend) (Con)
What fiscal steps his Department is taking to support the (a)
retraining and (b) upskilling of workers.
(Dudley North) (Con)
What fiscal steps his Department is taking to support the (a)
retraining and (b) upskilling of workers.
The Chancellor of the Exchequer ()
Our plan for jobs supports retraining and upskilling by tripling
the number of traineeships, expanding sector-based work
academies, incentivising apprenticeship hiring and providing
funding for new, free, advanced technical courses and digital
skills bootcamps under the lifetime skills guarantee.
People across Birmingham, Northfield remember only too well the
impact that an economic shock can have on livelihoods and jobs in
the community following the collapse of MG Rover many years ago.
Does my right hon. Friend the Chancellor agree that things such
as the lifetime skills guarantee will allow many adults to to
train and retrain to get back into work so that they have the
security of a pay packet as we ease out of lockdown and build
back better following the coronavirus pandemic?
My hon. Friend is absolutely right. Across our nation, over 10
million adults do not have a level 3 qualification. Thanks to
this Government’s lifetime skills guarantee, they will now be
able to get one, and we know what that will do: it will boost
both their employability and their earnings, providing them with
the opportunity of a better future.
No matter where in the country people are from, everyone should
be able to get the experience and knowledge they need to get the
job they want. Does my right hon. Friend the Chancellor agree
that the new flexi-job apprenticeships that he announced last
month will boost opportunities in sectors key to Rother Valley,
especially in high-end manufacturing, creating more chances for
people to experience the life-changing opportunity that an
apprenticeship can bring?
My hon. Friend makes a really important point. We were delighted
to announce at the Budget a £7 million fund to create and expand
flexi-job apprenticeship schemes, which enable people who need to
work across multiple projects with different employers still to
benefit from the high-quality, long-term training that an
apprenticeship provides. That is particularly important in the
industries of high-end manufacturing that he mentioned. I know
that this will make a difference in his constituency.
Dr Wallis [V]
Young people have been particularly affected by the pandemic,
including in my Bridgend constituency. Can my right hon. Friend
outline to the House what support he is putting in place to help
young people get back into work and to boost opportunities?
My hon. Friend is right to highlight the importance of our focus
on young people. More than half the jobs that have been lost
since the start of the pandemic have been of those under the age
of 25 and their rates of furlough are much higher than others.
That is why, acting very early last year, we created the
kickstart programme, which is creating hundreds of thousands of
jobs across the country, including in my hon. Friend’s
constituency. I urge all Members to talk to their local
businesses to get them excited and joined up to the kickstart
scheme, and to provide young people with the chance of a brighter
future.
Small and medium-sized enterprises are often referenced as the
beating heart of the UK economy, employing the largest number of
people. That is certainly the case in my Dudley North
constituency and across the west midlands, so will my right hon.
Friend commit to working with colleagues in the Department for
Education, the Department for Work and Pensions and with business
to ensure that we improve engagement with small businesses, in
particular in the design and funding of apprenticeship schemes,
as they need providers to deliver much more at foundation level
2, which the current funding framework is less able to deliver?
This would help to bring about the retraining revolution that our
brilliant Mayor talks about.
The brilliant Mayor is right to talk about the retraining revolution that
we need and that he is implementing in the west midlands. My hon.
Friend makes an important point about the flexibility of the
system to support SMEs. I am pleased to tell him that starting
this August we are implementing a new scheme to allow SMEs to
link with larger, levy-paying businesses through a new matching
and levy transfer service that will help SMEs to access that
funding and to provide the level 2 or 3 apprenticeships that he
rightly identified as being important. He should also know that
that scheme was based on, I think, a pilot programme that was
launched in the west midlands.
Covid-19: Support for Businesses
(South East Cornwall) (Con)
What steps his Department is taking to support businesses
affected by the covid-19 outbreak.
(Ruislip, Northwood and Pinner) (Con)
What steps his Department is taking to support businesses during
the covid-19 outbreak.
(Thirsk and Malton) (Con)
What steps his Department is taking to support businesses
affected by the covid-19 outbreak.
The Economic Secretary to the Treasury ()
Throughout the pandemic, the Government have sought to support
businesses across the UK. To do this, we have put in place a
package of economic support for businesses and individuals worth
£352 billion since the start of the pandemic. The Office for
Budget Responsibility and the Bank of England have highlighted
that without this intervention the UK economy would be
significantly worse than it is today.
Mrs Murray [V]
What additional financial assistance can my hon. Friend give the
all-important tourism sector in Cornwall to ensure that it is
fully ready to greet the G7 in June?
Cornwall hosting the G7 is a fantastic opportunity. I know that
my hon. Friend has welcomed this chance to showcase all that
Cornwall has to offer. Many organisations in the broader tourism
sector have benefited from business grants of over £34 million
provided to her constituency of South East Cornwall, as well as
business rates holidays and a temporary reduction in the rate of
VAT. The Ministry of Housing, Communities and Local Government
has recently announced the £56 million welcome back fund to
support safe local trade and tourism as economies reopen.
[V]
I thank my hon. Friend for that answer and particularly welcome
the support being offered in the form of extended business rates
relief. Looking to the future and with reform of business rates
in the pipeline, what discussions have taken place with
Department for Business, Energy and Industrial Strategy
colleagues about the potential to balance the need to secure the
correct revenue to support vital local government services and
boosting high streets like mine in Ruislip, Northwood and Pinner
through the reform of business rates?
My hon. Friend brings a great deal of expertise and experience to
this matter. The Government have committed to over £16 billion in
business rates support for eligible retail, hospitality and
leisure property since April last year. When combined with small
business rates relief, this means that three quarters of a
million retail, hospitality and leisure properties in England
will pay no business rates for the 15 months from 1 April last
year. The Government are, however, undertaking a fundamental
review of the business rates system and have invited stakeholders
to contribute their views and ideas for reform. I know that my
hon. Friend will also be very pleased to see the £16.9 million of
business grants that his constituents have received.
Warren Buffett once said:
“What we learn from history is that people don’t learn from
history.”
With a 50% rise in the number of companies in significant
financial distress, to prevent repeating the historical mistakes
of post the last financial crisis, inflicting all that scandalous
treatment on SMEs, will my hon. Friend consider working with the
banks to extend the very fair and sensible provisions of the pay
as you grow scheme and bounce bank loans, and also transfer that
into CBILS—coronavirus business interruption loan scheme—loans?
The Treasury has, as my hon. Friend will know, amended the CBILS
rules to allow lenders to extend loan terms from six to a maximum
of 10 years, and that would assist borrowers in that repayment.
CBILS term extension will be offered at the discretion of
lenders, unlike pay as you grow options for bounce back loans,
because they are different in terms of the guarantees that the
Government have offered. Extensions are limited to those
borrowers that lenders assess are in difficulty and will benefit
from that extension, and only for the duration required. That
customised approach, as I am sure he would understand given his
vast business experience, is appropriate given the nature and
scale of that different intervention.
Mr (Wolverhampton South East) (Lab)
When Lex Greensill was given his No. 10 business card, he had no
contract and no job description, and there have now been reports
that during the pandemic, the financial empire that he built may
have lent Government-backed money based on invoices to companies
that had never done business with his client, GFG, some of which
say they had no intention of doing so. Will the Minister look
into the issue of how this financing was structured and ensure
that hard-working British steelworkers do not pay the price for
Greensill’s collapse?
I thank the right hon. Gentleman for his question. I can assure
him that this Government are fully committed to examining all
those matters through the review process and complying with all
requests for information in order to get to the bottom of this
matter.
Covid-19: Support for Self-employed People
(Ealing
Central and Acton) (Lab)
What fiscal steps he is taking to support self-employed people as
covid-19 restrictions are lifted.
(Enfield, Southgate) (Lab)
What fiscal steps he is taking to support self-employed people as
covid-19 restrictions are lifted.
The Financial Secretary to the Treasury ()
The Government announced at Budget 2021 that the self-employment
income support scheme, or SEISS, will continue until September,
with the fourth and then the final fifth grant. This provides
certainty to business as the economy reopens, and it means that
the SEISS will continue to be one of the most generous schemes
for the self-employed in the world, and one of the few where
support is committed until September.
Dr Huq
Is it not the case that under this Chancellor the Tories have
gone from being seen as freelancer-friendly to the party of
sleaze with their selective texts and promises of favours for
their pals? If not, can they fix—their expression—the situation
for up to 3 million people who have been excluded from all the
grants the Minister mentioned, and from universal credit, and
have been forced into bankruptcy, debt and worse, with 19
self-employed suicides in the past year? What are they doing
about it?
The hon. Lady will know that the SEISS is one of the most
generous schemes of its kind. The range of overall measures that
the Government have taken is one of the most comprehensive of its
kind in the world. I think she also knows that I personally and
my officials have leant in as hard as we can to understand and to
work with those groups to see whether we could extend the
schemes. It has not been possible, because of features of the
design of the tax system, but we have absolutely spent every
effort possible to try to make it so.
More than 900,000 people who were self-employed at the start of
the crisis, including many in the creative industries sector, now
say that they are having to leave the sector as the crisis comes
to an end. Does the Minister agree that the lack of support for
the self-employed, who are not covered by the existing schemes,
risks damaging the recovery we so desperately need?
A very large majority of the self-employed are, of course,
covered by the schemes, and therefore I think that the hon.
Gentleman’s concern is misplaced. Of course there will always be
change in employments of different kinds, and in a dynamic
economy such as ours, that is to be expected. If we can get
through this desperate crisis—the worst for 300 years—with
anything like any of the projected outcomes, that is something we
can all, self-employed or not, be profoundly grateful for.
(Ealing North) (Lab/Co-op)
In a recent letter to me, the Financial Secretary admitted that
710,000 freelancers who receive a portion of their income from
dividends have missed out on covid support schemes. He recognised
that most people are honest in their dealings with HMRC, but said
that concerns over fraud meant
“it has not been possible to support everyone in the way they
might want”.
The Government have had a year to put in place a process with
adequate safeguards. Why have they given up?
I thank the hon. Gentleman for his question. Of course, there was
no admission of any kind. He asked me a question, and I responded
comprehensively and fully to the question he put. The fact of the
matter is that many of the people we are talking about have other
forms of income. They may have pension income. They may have
dividend income. They may have property income. What we have
tried to do is use all the sources of information that we have
that are properly assessed and certified in order to get schemes
up and running—as fast as anywhere in the world, and that is an
astonishing achievement. We continue to use those schemes, and we
continue to work with groups to see whether others can be
included.
VAT Reduction: Tourism and Hospitality
(St Austell and Newquay) (Con)
What assessment his Department has made of the effect of the
temporary reduction in VAT for businesses on the recovery of the
(a) tourism and (b) hospitality sectors from the covid-19
outbreak.
The Financial Secretary to the Treasury ()
The temporary reduced rate of VAT aims to support the cash flow
and viability of around 150,000 businesses and to protect more
than 2.4 million jobs. As was announced at the Budget, the
Government extended the temporary reduced rate of VAT to 31 March
2022, with a phased return to the standard rate. This relief
alone is estimated to be worth more than £7 billion to the
tourism and hospitality sectors. Applying it permanently would
come at a very significant cost to the Exchequer, and that would
have to be balanced by increased taxes elsewhere or reductions in
Government spending.
The past year has clearly illustrated just how important the
hospitality and tourism sectors are not only to our economy, with
the jobs and businesses they support in the supply chain, but to
our overall wellbeing and the contribution they make to social
mobility. As the chair of the all-party parliamentary group for
hospitality and tourism, I know just how important this cut in
VAT has been in supporting those businesses, but will the
Treasury take another look at the merits of making this reduction
permanent to further support the sector and the growth in jobs
that it can create?
My hon. Friend is absolutely right that this has been an
incredibly challenging period for the tourism and hospitality
sectors, and it is also right to recognise that many
organisations within these sectors have benefited from the
measures that I have described, including the extensions to the
employment schemes, business rates holidays and the VAT
reduction, as well as the very important wider restart grants and
the additional restrictions grant. As these restrictions are
lifted and demand for goods and services in these sectors
resumes, temporary reliefs are being phased out and in time will
be removed. Bridging that transition to a standard rate by
applying a temporary 12.5% rate will help businesses to manage
the change. We should want them to get back to normal trading and
the support that they offer through that to their communities and
the economy.
Aviation Sector: Financial Support
(Brentford and Isleworth) (Lab)
What recent discussions he has had with the Secretary of State
for Transport on providing sector-specific financial support to
the aviation sector.
The Exchequer Secretary to the Treasury ()
We speak to our colleagues on a regular basis about a range of
matters. The Department for Transport is in regular contact with
the Treasury regarding the challenging circumstances facing the
aviation sector as a result of covid-19.
[V]
Furlough ends in September, which is of no help to the aviation
sector and airport communities, which will take months to recover
even partially as we wait for the world to unlock. Many aviation
businesses are on the edge financially, and they employ staff in
safety-critical roles where there is a risk of skill fade if they
cannot be supported. They are seeking longer-term support, as are
communities such as ours in Hounslow, where tens of thousands of
people depend on the airport for their livelihoods. Will the
Treasury address the specific challenge of the aviation sector
and airport communities well before the furlough scheme ends in
September?
The Government recognise the challenging circumstances facing the
aviation industry, which the hon. Member described. The industry
can draw on the package of measures announced by the Chancellor,
including not just the furlough scheme but schemes to raise
capital, flexibilities with tax bills and employment support. The
aerospace sector and aviation customers are being supported with
over £11 billion made available through loan guarantees, support
for exporters, the Bank of England’s covid corporate financing
facility and grants for research and development. In addition,
the renewed airport and ground operations support scheme, which
the Chancellor announced in his Budget, will provide support for
eligible businesses in England with their fixed costs for a
further six months up to the equivalent of their business rate
liabilities for the first half of 2021-22.
Business Investment
(Yeovil) (Con)
What steps his Department is taking to encourage business
investment.
The Chancellor of the Exchequer ()
Stimulating private sector investment will be key to our economic
recovery. The recent Budget announced multiple policies to help
achieve that, including freeports, the Help to Grow programme,
the future fund breakthrough, the life sciences investment
partnership, consultations on reforming R&D tax credits and,
of course, our radical new super deduction to support business
investment as we recover from the coronavirus.
Mr Fysh [V]
I thank my right hon. Friend and the whole Treasury team for the
extensive package of support and investment incentives over the
past year; I know that businesses and employees in Yeovil are
incredibly grateful for that. There is a very welcome focus in
the defence review on local prosperity in procurement decisions.
Will he work with me to ensure that Leonardo and our wonderful
local supply chain for the helicopter industry can take full
advantage of that into the future?
I thank my hon. Friend for all the advice and support he has
provided for me and the team over the past year as we have sought
to develop policies that will help businesses, including Leonardo
in his constituency, which I know he champions. He is right to
highlight the opportunities of better procurement, particularly
for our defence supply chain, and I look forward to working with
him and colleagues to ensure that we can support his local
businesses and many others across the United Kingdom.
Small Businesses: Customs Paperwork
(Bedford)
(Lab)
What assessment he has made of the effect on small businesses of
the requirement to complete customs paperwork for export to the
EU.
The Financial Secretary to the Treasury ()
The Government have put in place a number of measures to
facilitate trade with the EU, including publishing comprehensive
guidance on the new arrangements. HMRC has produced step-by-step
guides, videos and webinars for small businesses that may be new
to customs processes. The Government have also provided a £20
million Brexit support fund to assist small and medium-sized
businesses in adjusting to new customs procedures, questions of
rules of origin and VAT rules when trading with the EU.
[V]
Just over a month ago, the Paymaster General told me that she
would follow up on my invite to Bedfordshire chamber of commerce
to hear the widespread concerns of businesses that are really
struggling to overcome the new and complex operational challenges
around her Government’s Brexit deal. I have heard nothing. Will
the Minister attend a meeting with the chamber of commerce to
hear about how customs paperwork is impacting viability, or would
the Treasury also prefer to ignore the problem?
The Paymaster General is always happy to take inquiries from
businesses, as am I, so if the hon. Member wishes to write to me,
I am perfectly happy to respond to his questions.
Steel Industry and Green Manufacturing Jobs
(Coventry South) (Lab)
What steps he is taking to (a) maintain jobs in the steel
industry and (b) create new green manufacturing jobs.
The Exchequer Secretary to the Treasury ()
The Government have supported the steel sector extensively,
including providing over £500 million in recent years to help
with the costs of energy. At the summer economic update, the
Government announced an ambitious £3.05 billion package for
housing decarbonisation designed to cut carbon, save people money
and create jobs. Alongside that, our covid support package is
still available to the sector to protect jobs and ensure that
producers have the right support during this challenging time.
[V]
My constituency is home to Liberty Pressing Solutions, part of
the Liberty Steel Group. The threat of the company’s collapse
risks losing good, skilled, unionised jobs in Coventry and across
the country. This would be a disaster for the city and for
British manufacturing, so rather than waiting for the company to
go bust before taking action, risking workers’ jobs, terms and
conditions, will the Government step in now, with all options on
the table, including bringing the business into public ownership,
guaranteeing its future and retaining the skills we need to
rebuild and to tackle the climate emergency?
It would not be appropriate for me to comment on the details of
individual companies, due to commercial sensitivities. We are
monitoring developments around Liberty and continue to engage
closely with the company, the broader UK steel industry and trade
unions. I recognise that reports around Liberty cause worry and
uncertainty to the affected workers and their families. What I
would say to the hon. Lady is that there is a lot of stuff that
the Government are doing that will help her constituency. For
instance, we are helping to create new green manufacturing jobs
by providing support to drive the electrification of the UK
automotive sector, supporting thousands of high-quality jobs in
the west midlands.
Helping Young People into Work
(Sittingbourne and Sheppey) (Con)
What fiscal steps his Department is taking to help young people
into work.
(Fylde)
(Con)
What fiscal steps his Department is taking to help young people
into work.
The Chief Secretary to the Treasury ()
Our plan for jobs will help young people find employment
opportunities, including through our youth offer and the £2
billion kickstart scheme, where 180,000 kickstart vacancies have
already been created.
[V]
I appreciate that the Government are helping to create those
jobs, but it is important that young people have the confidence
to learn and master a skill after leaving formal education, so
how will my right hon. Friend ensure there are funds for people
to do that in my constituency, including in Sittingbourne, which
is the largest town in Kent that does not have its own further
education facilities?
I agree with my hon. Friend that young people should have access
to the skills and training opportunities they need to access
great jobs. That is why my right hon. Friend the Chancellor has
provided £126 million for traineeships in England to enable an
additional 40,000 places over the next academic year, and why he
has incentivised apprenticeships, with up to £3,000 for employers
who hire new apprentices of any age.
[V]
Measures such as the kickstart scheme are a fantastic way to help
young people into work and reduce the risk of long-term
unemployment. Many young people will have taken part-time or
casual work to support themselves through the pandemic, such as
in Fylde’s hospitality and leisure sector, and may not be
claiming universal credit. What steps will my right hon. Friend
be taking to help young people get the skills and industry
experience to help them move from casual employment and launch
full-time careers?
My hon. Friend raises an important point, and that is why, as
well as the fantastic kickstart scheme, which he points out, the
plan for jobs also expands existing programmes with proven
employment outcomes, including traineeships, sector-based work
academies and incentivised apprenticeship hiring. At the spending
review, my right hon. Friend the Chancellor announced £138
million for the lifetime skills guarantee to fund free advanced
technical courses for adults without A-levels or equivalent and
to expand employer-led skills bootcamps.
Coronavirus Business Support Schemes
(South Shields) (Lab)
What steps he is taking with the Secretary of State for Business,
Energy and Industrial Strategy to ensure the equitable
distribution of coronavirus business support schemes.
The Economic Secretary to the Treasury ()
The Government have provided £25 billion in cash grants for
businesses, and that includes the £5 billion of funding allocated
at the March Budget for restart grants and the discretionary
additional restrictions grant fund. My right hon. Friend the
Business Secretary has been working closely with local
authorities to ensure that these grants are delivered as swiftly
as possible and directed towards the businesses that have been
most impacted by the pandemic.
Mrs Lewell-Buck [V]
It is clear that equitable distribution of covid business schemes
is not a priority. Only those on this Treasury Bench would have
the gall to claim fairness when the Chancellor and his Ministers
were consumed with pulling out all the stops to support their
friend the former Prime Minister on behalf of Greensill, while 3
million people were excluded from support schemes, some so
distraught that they took their own lives. So to clear this up
once and for all, can the Minister explain what news did Treasury
officials report at a meeting on 24 April that made Greensill
representatives “very pleased”?
As I have said previously, the Government are committed to
co-operating fully with all reviews on these matters. I do not
accept what the hon. Lady has said with respect to the schemes
that the Government have put forward over the past 14 months. Her
constituency has had £16.7 million in business grants and 1,206
bounce-back loans totalling £30 million. In addition, 12,700 of
her constituents have benefited from the furlough scheme, and
2,000 have benefited from the self-employed income support
scheme. That is a significant contribution to help her
constituents.
Loan Charge: Prosecutions
(New Forest
East) (Con)
How many promoters and operators of schemes subject to the loan
charge have been prosecuted for promoting and operating those
schemes.
The Financial Secretary to the Treasury ()
Promotion or enablement of a tax avoidance scheme is not, in and
of itself, a criminal offence, as we have regularly debated in
this House. However, there have been numerous cases in which Her
Majesty’s Revenue and Customs has made arrests or prosecuted
people in relation to fraud, and particularly in relation to
disguised remuneration loan-busting schemes.
Dr Lewis
My understanding is that very few promoters of these schemes have
been prosecuted. Is it not rather shocking that so many people
who were mis-sold the schemes on the basis that they were
perfectly legitimate are being pursued so relentlessly, while the
promoters are in some cases being allowed to continue their work
unhindered?
The suggestion that promoters are being allowed to do just
anything is quite wrong. If my right hon. Friend had looked
closely at the current Finance Bill, he would have seen a range
of measures in that Bill alone aimed at preventing the promotion
of tax avoidance schemes and at the disclosure of tax avoidance
schemes, as well as other measures. HMRC takes such issues
extremely seriously, and that is why the avoidance tax gap fell
from £3.7 billion in 2005-06 to £1.7 billion in 2018-19—a fall of
more than 50%.
Topical Questions
(City of
Chester) (Lab)
If he will make a statement on his departmental responsibilities.
The Chancellor of the Exchequer ()
This Government have supported our economy through coronavirus
with more than £350 billion to protect jobs, families and
businesses. As we approach the next phase of our road map out of
lockdown, our support continues to ensure that we emerge from the
pandemic stronger and more united.
The Financial Conduct Authority has asked John Swift QC to
investigate the mis-selling of certain business loans to small
businesses, as well as their response to complaints about that
mis-selling. The review has refused to take into account any
loans that were settled with non-disclosure agreements between
the businesses and the banks, giving a skewed view and a skewed
outcome. Will the Chancellor speak to the FCA and ask John Swift
to ensure that all evidence is taken into account, so that we get
a proper review of the FCA’s dealings?
I thank the hon. Gentleman for his question, which is on an
important matter. I welcome the conclusions of the Swift review,
and I hope he will appreciate that it would not be appropriate
for me to comment or intervene on the scope of that review, as it
was set up to be completely independent of Government. That said,
we have always been clear that the mis-selling of interest rate
hedging products is wrong, and nothing that the redress scheme
does means that businesses cannot still go to the FCA, the
Financial Ombudsman Service or the courts if they wish. If he
wishes to raise particular circumstances with either the FCA or
the Swift review, he can do that directly.
(Hastings and
Rye) (Con) [V]
Brexit is a great opportunity to turbocharge global Britain, but
unfortunately it has not worked so far for fishermen in my
beautiful constituency of Hastings and Rye. Had it not been for
Mr Keith Chapman setting up an export hub in Rye for local
fishermen, many might not have survived. He did that at his own
expense, and he has not been eligible for any of the Government
funding made available to the fishing industry. What further
support can be provided to assist entrepreneurs such as Mr
Chapman when exports are hit by the double whammy of covid and
Brexit?
Fishing is at the heart of many of our coastal communities, and I
pay tribute to Mr Chapman and my hon. Friend for their commitment
to the sector. I am happy that the Government are also
championing and committed to the sector, and we have announced a
£100 million fund to modernise our fleet and infrastructure. That
is on top of £32 million that will replace EU funding this year,
and £23 million that was made available earlier to support the
sector, while adjusting to new export requirements.
(Oxford
East) (Lab/Co-op)
A year ago, the Chancellor personally announced the coronavirus
large business interruption loan scheme, or “our loan scheme for
large companies”, as his Department put it. Allowing Greensill
Capital access to that scheme put hundreds of millions of pounds
of taxpayers’ money and thousands of jobs at risk. The Prime
Minister said he would publish every personal exchange related to
covid contracts. Has the Chancellor published his every
communication relating to Government business on Greensill,
including with David Cameron—yes or no?
We have actually responded to all the requests that I have been
asked and, indeed, gone above and beyond in providing disclosure.
I would say a couple of things to the hon. Lady. First of all, I
am very happy to co-operate fully and constructively with both
the independent Boardman review and the Treasury Committee
inquiry, and those processes have begun. Secondly, on the
substance, it is important to remember what was going on. We were
in the midst of a financial crisis and we were keen to explore
all avenues to support small and medium-sized businesses. We have
heard in the House today that there are still challenges, so it
was right to examine all avenues to do that. This was just one of
many strands of work that the Treasury and I conducted, rightly
and appropriately. It is important to notice that, in the end, we
rejected the taking forward of any proposals on supply chain
finance.
I will take that as a no. It appears that the Chancellor is less
committed than the Prime Minister himself to transparency. That
is not what I would call levelling with the British public. Let
us see if he can level on another significant Government failure:
the delay to imposing restrictions last autumn, which cost lives
and our economy dear. In late October, when I asked the
Chancellor if he was blocking a circuit breaker, he said,
“I agree with the Prime Minister”—[Official Report, 20 October
2020; Vol. 682, c. 889.]
Now it is being suggested that he sided with others against the
Prime Minister. We have grown used to the Chancellor chopping and
changing his mind, but can he explain whether this change of
heart is driven by science and the needs of our economy, or by
the internal politics of the Conservative party?
The hon. Lady is confusing multiple things. She has asked me
previously about circuit breakers. At the time there was a
debate, appropriately, about whether a national intervention was
right at a time when the epidemiology across this country was
incredibly varied. That is something that the deputy chief
medical officer himself spoke about at a press conference, and he
said it would be inappropriate at that time to take forward
national interventions. That is what I was referring to.
To go back to the shadow Chancellor’s previous comment about
transparency, in fact I voluntarily published extra messages to
aid the transparency of this process for people. I am fully
committed to working constructively with the inquiry, both the
Boardman review and the Treasury Committee inquiry. It is worth
reminding the shadow Chancellor of something she herself wrote
last April in The Daily Mirror:
“The ‘Coronavirus Business Interruption Loan Scheme’ seems to be
stuck in the banks, and not getting to small businesses in
particular, where cash flow is desperately needed.”
Well, the Government were also looking at how to get cash flow to
small businesses, and I am sad and disappointed about what a
conveniently short memory she has.
(Bridgwater and West Somerset) (Con) [V]
I wonder whether the Chancellor would order an investigation into
the management of contracts between Skanska and Somerset County
Council. There is evidence emerging of lazy council practices
which are costing millions and millions of pounds in overpayment.
We need to get to the bottom of this, and we cannot get the local
county council to do it. Will the Chancellor please not only
investigate, but suggest how we as MPs can force the issue before
we have a complete disaster on our hands?
In my previous job as Minister for local government, I enjoyed
many conversations with my hon. Friend about local government
matters. He will know it is not for the Chancellor or indeed
national Government to implement redress processes. There are
established redress processes, which I would be happy to write to
him about, so he can seek redress for his particular concerns.
(Rother
Valley) (Con)
As we emerge from the coronavirus crisis, our high streets need
more support to survive than ever before, especially in former
industrial areas in Rother Valley such as Dinnington, Maltby,
Swallownest, Kiveton and others. Does the Minister agree that the
levelling-up fund presents a once-in-a-lifetime opportunity to
inject much-needed investment into our beleaguered high streets
in Rother Valley and across all our nations, returning them to
their former glory? Does he agree that Rotherham Metropolitan
Borough Council should put in a good strong bid to get that money
for our high streets?
The Chief Secretary to the Treasury ()
I agree with my hon. Friend. The Government are committed to
levelling up opportunities across the UK, including in Rother
Valley. The £4.8 billion levelling-up fund will invest in
infrastructure that improves everyday life across the UK,
including by regenerating town centres and high streets,
upgrading local transport and investing in cultural and heritage
assets. I look forward to working with him for his local area.
(Stockton North) (Lab) [V]
Will the Minister guarantee the future of the steel industry in
Hartlepool? [Interruption.] Anybody will do.
The Exchequer Secretary to the Treasury ()
As I said in answer to earlier questions on this issue, the
Government are providing unprecedented support to the steel
industry. If the hon. Gentleman has something specific to bring
to my attention about the steel industry in Hartlepool, I am
happy for him to write to me and I will look at the issues, but I
have already answered the question and talked about the measures
of support that are in place.
(Harrow East)
(Con) [V]
On 31 January, in answer to the debate on justice for Equitable
Life policyholders, this House was assured that all records were
being retained and would be available in the event of their being
needed. Equally, we were assured that there were no plans to
destroy those records. I was therefore shocked that the Public
Accounts Committee, in its hearing last week, was informed by
Treasury officials that the records had been destroyed and would
not be available. That makes getting justice for Equitable Life
policyholders more expensive, so will my right hon. Friend agree
to meet me and a small delegation of the all-party parliamentary
group for justice for Equitable Life policyholders, so that we
can get to the bottom of how we can move this long-running saga
forward?
The Economic Secretary to the Treasury ()
There has been no change in the Treasury’s position since I
updated the House in January 2019. The relevant records—the data
relating to all payments made under the scheme—are retained, and
will continue to be so for as long as that is legal. Contrary to
the press reports, there are no plans to destroy records. There
is a complaints process provided by the scheme, and those who are
not satisfied may take their case to the independent review panel
which resolved such cases before closure. Further to the oral
evidence session to which my hon. Friend referred, the permanent
secretary to the Treasury will be writing to the PAC to provide
similar reassurance and clarification. Since the scheme has now
closed, there will be no further funding on this matter.
(Richmond Park) (LD) [V]
The Association of Accounting Technicians has published its
response to the consultation opened by the Treasury on its plans
to reduce air passenger duty, in which it argues that a reduction
would be wrong, as it “contradicts and greatly weakens government
policy on seeking to reach ‘net zero’ by 2050”. Why does the
Government’s tax policy not support their net zero goals?
I am not sure exactly what reduction in air passenger duty the
hon. Lady is referring to. We are increasing air passenger duty
in this year’s Finance Bill.
(North
West Leicestershire) (Con) [V]
A band C home in Coalville in my constituency has a higher
council tax charge than a band H property in Westminster. The
Chancellor, in his former position as a Minister in the
Department for Housing, Communities and Local Government, told
the House that the Leicestershire fairer funding model had a lot
to commend it and would be used in consultation. Given that that
was three years ago, will he look at an updated report by
Leicestershire County Council entitled, “Putting right the years
of wrong”?
Of course I would be happy to look at the report to which my hon.
Friend refers. He knows that addressing future local authority
resourcing is a matter for future spending reviews and the local
government finance settlement. However, I would remind him that
at the spending review 2020 we provided an estimated 4.6% cash
increase in core spending to local authorities. That is on top of
the largest real-terms increase in their core spending at the
spending review 2019, and that is in addition to the about £11
billion of support that has been provided as part of the covid
response.
(Manchester, Gorton) (Lab) [V]
That the Prime Minister said that he would rather see the bodies
piled high than enter another lockdown is utterly despicable. My
mother and parents-in-law were not bodies; they were my family,
my loved ones. Grieving families like mine deserve better. We
deserve a place to remember those we have lost. That is why the
covid memorial wall is so important. Has the Chancellor estimated
how much it would cost to make this wall of hearts permanent? If
not, will he now do so?
I am very sorry for the hon. Gentleman’s loss, and I know the
whole House will join me in passing on those condolences. I am
not aware of the particular proposal that he mentions, but if he
writes to me, I will be happy to take a look at it.
(Grantham and Stamford) (Con)
The Government’s commitment to the Task Force on Climate-related
Financial Disclosures highlights the importance of transparency
in investment portfolios. Does my hon. Friend agree that more can
be done to improve transparency and prevent the exposure of
investments by financial services companies to modern slavery?
Yes, I agree with my hon. Friend. On modern slavery, the landmark
provision in section 54 of the Modern Slavery Act 2015 includes
institutional investors that fall within the scope of the
requirement and meet the criteria requiring them to publish an
annual statement.
(North
Ayrshire and Arran) (SNP) [V]
With the Prime Minister apparently determined to keep the VIP
tax-break hotline open, and as questions remain over the No. 10
refurbishment and concerns over Government procurement are still
not addressed, will the Chancellor explain whether he thinks it
is time for an independent inquiry into the misuse of public
funds?
The Prime Minister has appointed Nigel Boardman to conduct an
independent review of these various matters. With regard to covid
in general, the Prime Minister has also said that at the
appropriate time there will be all the necessary lessons to be
learned.
(Liverpool, West Derby) (Lab)
One of my constituents who is self-employed has received no
Government support in the past year. Unlike others, she did not
have the Chancellor’s number to raise issues with him, so I wrote
to him on her behalf. In the response I received this month, the
Department acknowledged that there are people who have missed out
on support because of what they call “practical reasons”. What
urgent steps is the Chancellor taking to fix a system that is
leaving many self-employed people facing destitution?
The Financial Secretary to the Treasury ()
I thank the hon. Gentleman for his question. As he will know, we
have covered this quite extensively in this debate so far. The
self-employed scheme is very wide ranging and comprehensive. We
have worked very closely with groups representing those who
believe they have been excluded from the schemes—I have
personally met many of them—and we have tried everything we can
to incorporate them. We continue to engage with them, and we take
the issue very seriously.
(Gedling) (Con)
The borough of Gedling has received more than £105,000 in welcome
back funding to help its high streets reopen safely and
successfully as restrictions lift, and I will be out visiting
businesses in Gedling on Friday to encourage them to apply for
restart grants. Would my right hon. Friend join me in not only
welcoming those lifelines for businesses but in encouraging
businesses to apply for all the help available so that they can
get back on their feet as we start to get back to normal?
My hon. Friend is absolutely right. I salute the people of
Carlton and I rejoice in the businesses of Mapperley. I encourage
businesses across the constituency of Gedling to take advantage
of the Government’s unprecedented package of support, including
the £5 billion-worth of grant support that the Chancellor
announced at Budget, which is providing a lifeline for businesses
as they relaunch their trading safely.
