Levelling Up Across the UK
(Kensington) (Con)
1. What steps his Department is taking to encourage levelling up
across the UK.
(Mansfield) (Con)
2. What steps his Department is taking to encourage levelling up
across the UK.
(North West Leicestershire)
(Con)
18. What fiscal steps his Department is taking to encourage
regional growth across the UK.
(Hertford and Stortford)
(Con)
24. What steps his Department is taking to encourage levelling up
across the UK.
The Chief Secretary to the Treasury ( )
The levelling-up White Paper sets out a clear plan to level up
every corner of the United Kingdom, including a mission to
increase productivity and improve living standards in every part
of the UK by 2030. We will do this through the record funding
allocated in the 2021 spending review, including £1.6 billion for
the next generation of the British Business Bank’s regional
investment funds. That sits alongside significant investment in
communities through the £4.8 billion levelling-up fund, and
giving local areas a greater say in investment, working in
partnership with the Government through the £2.6 billion UK
shared prosperity fund.
Parts of our inner cities suffer deprivation, including in my
constituency in north Kensington. Does my right hon. Friend agree
that levelling up is about bringing forward all our left-behind
communities, whether inner cities, coastal communities or the
north, and, I add rather cheekily, will he support my
levelling-up fund bid for step-free access to Ladbroke Grove tube
station?
Mr Clarke
I thank my hon. Friend for her question; she is an outstanding
champion for Kensington and, as she rightly says, it is not the
case, as is sometimes portrayed, that the levelling-up fund does
not have real importance for London and the south-east because,
as we know, there are pockets of deprivation across this country
and it is vital that we address them. Over £200 million was
allocated in the first round of the levelling-up fund for London
and the south-east, and clearly my hon. Friend’s council may wish
to consider making a bid for the fund’s next iteration when that
opens.
The east midlands has consistently been at the bottom of the
charts for public and private sector investment. The Prime
Minister has made it clear that he sees devolution as a key
mechanism to level up, so the east midlands must surely be at the
heart of that agenda. We are negotiating with the Government now
in Derbyshire and Nottinghamshire, but will my right hon. Friend
give me an assurance that these will not be second-class deals
and the east midlands deals will have the same finance and clout
as previous deals have had?
Mr Clarke
I really enjoyed my recent visit to Nottinghamshire to meet my
hon. Friend and his colleagues. We are clear that devolution sits
at the heart of our levelling-up mission and we have said that
every part of England that wants a devolution deal can have one
by 2030. We want those deals to have a sensible geography, and
the strongest and most accountable leadership possible, and I am
really encouraged that leaders in Derby, Derbyshire, Nottingham
and Nottinghamshire—including, of course, my hon. Friend—have
brought together a really exciting package of proposals. We look
forward to coming to them in due course.
In recent years, the west midlands has economically outperformed
the east midlands—apart from, of course, my constituency of North
West Leicestershire. To what extent does my right hon. Friend
believe that is due to the west midlands benefiting from its
mayoralty structure? What help can the Treasury give to the east
midlands to ensure that we level up with our neighbour?
Mr Clarke
I pay great tribute to the work that has done as Mayor of the West
Midlands to drive economic outperformance. I am a convinced
believer in the merits of mayoral devolution, which is the best
way of ensuring that levelling up is delivered at the fastest
possible pace on the ground. I look forward to looking at
proposals from the east midlands to ensure that we can unlock as
much opportunity there as possible.
Hertford and Stortford lies at the heart of the
London-Stansted-Cambridge innovation corridor, which is key to
helping my constituency and our region address its pockets of
deprivation. Will my right hon. Friend outline how his Department
is working to attract more innovation-based businesses,
particularly in life sciences, to the area?
Mr Clarke
I share my hon. Friend’s passion for the UK’s world-leading life
sciences sector. That is why we have invested £5 billion in
health research and development, including for delivery of our
life sciences vision, as well as £60 million for the life
sciences innovative manufacturing fund and £200 million in the
life sciences investment programme, all of which institutions in
Hertfordshire can benefit from.
(Harrow West) (Lab/Co-op)
I am sure that the Chief Secretary will agree that, for levelling
up to work well, there is a need for more jobs linked to exports
to be created across the UK. With export growth in the UK lagging
behind that of every other rich nation, why did he and his
colleagues sign off cuts in funding to the North East England
chamber of commerce to promote exports from that region?
Mr Clarke
I agree that a flourishing export sector is vital. That is, of
course, why we are so pleased to be delivering innovative
policies in the north-east such as a freeport on Teesside, which
is a great example of how we will bolster the export strengths
that exist for our current and future employers. We clearly want
to work closely with all partners, including the chambers of
commerce, who do an excellent job, but it is absolutely not just
about measures in grants to any individual institution. Our
ambition is to create a high-growth, high-wage economy, and
exports sit at the centre of that. Our actions speak loudly about
our total commitment to that.
(Newcastle upon Tyne
North) (Lab)
The Government said they would prioritise closing the gap in pay,
employment and productivity, yet since the Prime Minister took
office average monthly earnings in every single north-east
constituency have fallen even further behind those in London. Can
the Government see that telling families to learn how to cook and
to work more hours while forcing cash-strapped local authorities
to bid competitively for small pots of money will not rebalance
our economy? We need a much greater focus on creating and
boosting jobs in those areas that really need them.
Mr Clarke
I know and obviously share the hon. Lady’s passion for the
north-east. The enormous success of our plan for jobs is
something that we ought to be celebrating today. We have had the
fantastic news that unemployment is at its lowest level since
1975, which is an enormous achievement and one that we should all
be collectively delighted by. We face global inflationary
pressures, which are a serious challenge not just for this
country but the eurozone, America and, indeed, the entire
developed world as we both recover from covid and handle the
consequences of Russia’s illegal invasion of Ukraine, and we are
absolutely focused on rectifying that through a concerted
programme of action. Obviously, we have put together a £22
billion package of support for households, and we will take
future steps as the situation warrants.
(Bradford East) (Lab)
According to an independent analysis of the Government’s own 12
metrics for measuring progress in levelling up, Bradford East is
behind on almost every single one, with lower pay, productivity,
Government spending, transport investment, school grades and life
expectancy. I am perplexed by how the Minister can stand there
and tell us that he is serious about levelling up when the
Government refuse to do anything to level up places such as
Bradford East.
Mr Clarke
The whole point is that that is precisely what we are not doing.
We have created a West Midlands mayoralty which is channelling
huge amounts of public money into supporting—[Interruption.]
Sorry, the West Yorkshire mayoralty. The point stands. We have
created a West Yorkshire mayoralty which is designed to drive
forward growth and opportunity in that region. We have a whole
programme of action, from the levelling-up fund and our wider
commitments around jobs and growth, which the hon. Gentleman
knows, as well as I do, will make a massive difference to the
future of Bradford and the rest of West Yorkshire in the years
ahead.
(Aberdeen South) (SNP)
The UK Government’s own website states that levelling up is a
moral, social and economic programme right across Government, so
can I ask the Minister where is the moral argument in people not
being able to feed their kids? Where is the social argument in
people not being able to heat their homes? And where on earth is
the economic argument in people having no money in their pockets?
Mr Clarke
Levelling up is a social and moral mission. I believe very
strongly that it is vital that we close the gap between the more
successful parts of the UK and the rest. I represent a
constituency that sits at the heart of that process. On the hon.
Gentleman’s point on the cost of living, we have put together a
£22 billion package of support, including a £9 billion commitment
specifically on energy bills, but we are absolutely clear that we
do not solve an inflationary crisis by throwing money at the
problem, as that could worsen the issue we are seeking to
address. The Chancellor will keep all these issues under close
review. [Interruption.] I can assure the hon. Gentleman that he
most certainly does. We will bring forward a programme of
measures at such time that they will make the right difference in
a targeted way, which, as I say, does not make worse the very
problem that we all need to solve.
Mr (Wolverhampton South East) (Lab)
Last week, Bloomberg published a report that showed that, on the
Government’s own chosen 12 measures of levelling up since the
Prime Minister took office, most parts of the country are either
falling even further behind London and the south-east or have
made no progress, including every single constituency in the west
midlands. That includes salaries, home affordability, inward
investment, transport spending and levels of crime all going
backwards. Why is levelling up so far failing to deliver?
Mr Clarke
The right hon. Gentleman raises the Bloomberg report. We have to
recognise, when we look at this issue, that levelling up is a
decades-long project for reversing things that are
institutionally extremely challenging in terms of the striking
geographical inequalities that have arisen under successive
Governments and which this Government are determined to address.
The levelling-up White Paper, published this spring, puts in
place a framework for the Government to work directly with people
and places to help address those disparities. We will be held to
account with an annual report to monitor our progress. What I
would say is that the people of the west midlands made their
views very clear last year when they re-elected as their Mayor, just as they
made their views very clear on Teesside when they re-elected
. They can see progress. They
are realistic—none of this is easy and none of this is going to
be an instant turnaround—but they are clear that we have a plan
to deliver it and they are behind that.
Mr McFadden
The Conservatives have been in office for 12 years; they were not
elected last week. This is the self-declared central mission of
the Government. Tackling regional inequality is a good aim.
Communities like the one I represent in the Black Country made
the last industrial revolution and they can make the next one too
if they are given a platform on which to stand, but now, with the
Bank of England Governor warning of apocalyptic rises in food
prices and a further likely steep rise in energy bills in the
autumn, what will the Government do to reverse the failures
outlined in the damning report last week, and bridge the grand
canyon between the Prime Minister’s rhetoric on these things and
the reality on the ground?
Mr Clarke
The levelling-up White Paper is a comprehensive package of
measures designed to ensure we can deliver on our ambitious aims
in this place. The Queen’s Speech, which we are debating this
week, further demonstrates our commitment to making that a
reality, including, notably, through the establishment in law of
the UK infrastructure bank. It is clearly the case, as I say,
that none of these problems are simple to address. We have to be
honest on both sides of the House that both Labour and
Conservative-led Governments have failed to narrow those
disparities. We have a plan which I am confident will deliver
meaningful change in short order and over the medium to long term
make a transformative difference to communities.
Cryptocurrency Companies in the UK
(Clacton) (Con)
3. What steps he is taking to encourage cryptocurrency companies
to operate in the UK.
The Economic Secretary to the Treasury ()
At Fintech Week on 4 April, I set out our firm ambition to make
Britain a global hub for cryptoasset technology, and I announced
a number of actions that will support that. That includes
committing to consult on a future regulatory regime for
cryptoassets later this year; legislating to bring stablecoins
into payments regulation; and exploring ways of enhancing the
competitiveness of the UK tax system to encourage further
development in this sphere.
I thank my hon. Friend for his answer. Will he commit to working
with the cryptocurrency sector and the UK Cryptoasset Business
Council to make sure that the UK’s future regulatory parameter
can instil a global advantage, ensuring that our economy remains
ahead of the curve?
Yes, absolutely, and my officials are meeting the Cryptoasset
Business Council later this week. We want to take a dynamic
approach to industry engagement. Lots of similar organisations
have spawned over the last few months, and I and my officials
will work very closely with them as we lead this global
leadership aspiration.
Mr (East Londonderry)
(DUP)
The cryptocurrency market is expanding rapidly, but what are the
Government doing to ensure that the wider public are aware of the
wild swings that exist in the market? Yes, profits can be made,
but so can significant losses, as the past few months have
demonstrated.
We watch these things very carefully. That is why, in January
this year, we announced that certain cryptoassets will be brought
within the scope of financial promotions regulation. I am very
aware of the Financial Conduct Authority’s advice, which shows
that only one in 10 cryptoholders are aware that they can lose
all their money. We need to get that number up.
Tackling Economic Crime
(Thirsk and Malton)
(Con)
4. What steps his Department is taking to tackle economic crime.
The Economic Secretary to the Treasury ()
Money obtained through corruption or criminality is not welcome
in the UK. The Government are taking concerted action to combat
that threat by investing £400 million over this spending review
period, with the kleptocracy cell in the National Crime Agency
targeting sanctions evasion and corrupt Russian assets hidden in
the UK. The Government have taken far-reaching steps to improve
corporate transparency, including through recent and forthcoming
primary legislation announced in the Queen’s Speech last week.
I thank the Minister for that answer. NatWest and HSBC have been
hit with big fines for facilitating money laundering, and Danske
Bank will probably see a fine of £2 billion for £200 billion of
money laundering. This is seen not as a deterrent, but as a cost
of doing business for these big banks. Does he agree that the
only way that we will tackle this is through criminal
prosecutions both at a corporate level and of senior managers?
Does he support the calls to that effect in the economic crime
manifesto by the all-party groups on fair business banking and on
anti-corruption and responsible tax, and will he support such
measures in the economic crime Bill?
I thank my hon. Friend for his question. I think he is the
House’s foremost observer of banks’ behaviour, but he also knows
that this is an extremely complex area of law. The Government
have asked the Law Commission to undertake an in-depth review of
laws around corporate criminal liability for economic crime and
to make recommendations. My understanding is that the Law
Commission will make an announcement on this subject imminently,
and we will look at that very carefully.
(Ogmore) (Lab)
One of the key complaints from any of my constituents who are
victims of economic crime is about the inability to reach out to
Action Fraud, and if they do, they get no response. I urge the
Minister—plead with him, in fact—to reform the work of Action
Fraud and perhaps even bring about a new body in any new
legislation to ensure that constituents get some sort of answer
and, importantly, some form of support from the authorities of
the UK state.
This is a criticism that I hear. I am very happy to meet the hon.
Gentleman to discuss it further, examine the experience of his
constituents and look at what we can do constructively to move
things further in the right direction.
(Rochester and Strood)
(Con)
Following clarity from my hon. Friend to UK Finance on how banks
should interpret the money laundering regulations, a number of
banks continue to close existing pooled client accounts of
long-established, reputable boat-broking businesses. That is now
stopping those businesses trading. What further assurance can he
give to banks regarding these low-risk businesses?
I thank my hon. Friend for her question. As she will know from
the letter that I sent her this morning and from our conversation
with industry representatives together a few months ago, this is
quite a challenging issue to resolve. I cannot direct the banks
to open, and keep open, these accounts, but I will continue to
engage with her and with UK Finance to see whether more progress
can be made in the coming weeks.
(Hampstead and Kilburn)
(Lab)
The Government have lost £4.3 billion of taxpayers’ money through
fraudulent covid schemes. Now we learn that a large chunk of that
money is going into the hands of terrorists, organised crime
gangs and drug dealers. Will the Minister reassure me that he is
taking the reports seriously and update the House on the total
number of investigations the Government are undertaking that
relate to covid fraud?
I can absolutely reassure the hon. Lady that the Government take
the issue very seriously. That is why at previous fiscal events
the Chancellor has invested £100 million in a taskforce to deal
with it. When we designed a number of the interventions,
protecting taxpayers was a real consideration. It is also the
case that we needed to act swiftly to assist those businesses and
if we had not made some of those interventions at the time, many
businesses would have gone under. We continue to engage carefully
on the matter.
(Glasgow Central)
(SNP)
We on the SNP Benches welcome the economic crime and corporate
transparency Bill, and given the scale of the problem that the
Tories have presided over, it is long overdue. What discussions
has the Minister had with colleagues in the Department for
Business, Energy and Industrial Strategy about making Companies
House an anti-money-laundering supervisor in its own right
finally to lock out the fraudsters, the kleptocrats and their
dirty money from Companies House once and for all?
The hon. Lady is absolutely right to highlight Companies House
reform as a major area that we are working on. The Government
forwarded more than £60 million to start that work, which has now
been accelerated. Alongside the register of overseas entities and
beneficial ownership, the increased transparency of those assets
will be very welcome.
Effects of High Marginal Deduction Rates
(Weston-super-Mare) (Con)
5. What assessment he has made of the effects of high marginal
deduction rates on work incentives for people who are (a) key
workers, (b) on below average incomes and (c) on above average
incomes.
The Financial Secretary to the Treasury ()
The Government are committed to helping people keep more of what
they own and I give credit to my hon. Friend for his work, which
was instrumental in our lowering of the universal credit taper
rate from 63% to 55%. That is a tax cut for low-paid workers on
universal credit. He will know that from July we will raise the
national insurance contributions threshold so that the amount
that working people will be able to earn tax-free will increase
by £2,690, helping to ensure that work pays.
I thank my right hon. and learned Friend for her kind comments.
The changes that she has just re-announced are extremely welcome.
With energy and food prices continuing to spiral, does the
Treasury team accept that they will soon have to go even further?
Do they agree that compared with increasing benefits, further
cuts in these combined tax and benefits withdrawal rates will be
a better way to put money in the pockets of many lower-paid
families and that in future, the combined rates paid by less
well-off families should never be higher than the top rates paid
by the rich?
My hon. Friend has a keen interest in this area and I read his
report, “Poverty Trapped”, with some interest. He makes a
valuable point and will know that the Government have made
progress in this area. The old system applied an effective tax
rate of more than 90% to lower earners in some cases and, as a
result of the changes we have recently made, an adult working 35
hours at the national living wage with two children over five
will, for example, benefit from an additional £1,610 a year.
(Huddersfield)
(Lab/Co-op)
May I invite the Minister to come to Wakefield with me? I was
there on Saturday morning. The people there have not read the
Bloomberg report, but they can feel the impact of rising taxes
and the cost of living. They know that they will be in desperate
trouble in the coming months. Will she get real and bring the
Chancellor to an area of good hard-working people who face the
future with great fear?
I thank the hon. Gentleman and am sure that I will soon make a
visit to Wakefield. The Government understand the issue with the
rise in the cost of living but over this year we have committed
£22 billion to support people in their time of need. The people
in Wakefield that the hon. Gentleman talks about will also
benefit from the cuts we have made to taxes, such as the
universal taper rate, a tax cut for 1.2 million people and an
extra £1,000 in their pockets. We have increased the threshold to
the NICs rate, a £6 billion tax cut for £30 million working
people. As I said—[Interruption.]
Mr Speaker
I call .
Energy Bills Support Scheme: Council Tax Rebate
(Kettering) (Con)
6. What discussions he has had with Cabinet colleagues on the
efficiency of local authorities in delivering the £150 council
tax rebate under the energy bills support scheme.
The Exchequer Secretary to the Treasury ()
High global energy prices have pushed up bills. That is why we
are already helping households through the energy bills rebate
package, which is worth more than £9 billion in total and £350 to
the majority of households. Our British energy security strategy
sets out how we will deliver a more secure energy supply that
brings down bills in the longer term.
Mr Hollobone
North Northamptonshire Council last week started paying the £150
rebate to residents who pay by direct debit, and rebates will
follow for those who do not pay by direct debit. Will the
Minister ensure that the Government disseminate best practice to
local authorities regarding how to pay the rebates quickly,
because getting this money into people’s pockets fast is key to
helping residents to deal with the global cost of living squeeze?
My hon. Friend is absolutely right about the importance of
getting the money into people’s pockets fast, which is why the
first support payment is through the council tax system. I know
that councils are working hard to get payments to people, whether
they do or do not have direct debits. The Treasury is working
closely with the Department for Levelling Up, Housing and
Communities to support local authorities with delivery.
Tax System: Fairness
(Liverpool, Walton) (Lab)
7. What recent steps he has taken to ensure fairness in the
application of the tax system.
The Financial Secretary to the Treasury ()
The Government are committed to ensuring a tax system that is
fair and simple. I will give three examples: first, we have
equalised the national insurance and income tax starting
thresholds; secondly, our work towards OECD pillars 1 and 2 will
help to ensure that multinational businesses pay their fair
share; and thirdly, we are tackling avoidance and evasion to
ensure that everyone pays the right amount of tax at the right
time.
I am grateful to the Minister for that answer. Liverpool, Walton
ranks as the most deprived community in the whole of England. I
am used to constituents contacting my office unable to afford
their bills and to survive on their own incomes. What is new is
that local independent businesses are now telling me that they
are going under. At the heart of the Liverpool economy is
hospitality and the visitor economy. Locally run and owned
restaurants and cafés are now facing apocalyptic price rises. The
VAT on soft drinks and food consumed on premises, and hot
beverages and food taken away, has risen back to 20%—it was 5%
and then 12.5% during the pandemic. What will Ministers do to
save local independent businesses through the tax system?
It is important that we support local businesses, and that is
exactly what the Government have done. The hon. Member will know
about the business rates support—amounting to £7 billion of
support to businesses—that we provided at the last Budget,
including £1.7 billion for the hospitality industry through a 50%
rebate on business rates. For small businesses, we also increased
the employment allowance by £1,000. That is a package of support
for local businesses in his area and others across the country.
Access to Cash Strategy
(Rutherglen and Hamilton
West) (Ind)
8. What recent steps he has taken to progress the Government’s
access to cash strategy.
The Economic Secretary to the Treasury ()
The Government recognise the importance of access to cash in the
daily lives of millions of people across the UK. In the Queen’s
Speech, the Government announced that we will legislate to
protect access to cash in the financial services and markets
Bill, which will be brought forward soon, when parliamentary time
allows. We consulted on legislative approaches last year and will
publish a summary of responses to the consultation this week.
If we look at the demographic of people who are most likely to be
reliant on access to cash, we see that in large part it is those
who are vulnerable or on low incomes. If someone is down to their
last £10, they cannot afford a withdrawal fee at an ATM. Will the
Government look to make all ATMs free to use for the customer by
working with banks and ATM providers to reform the interchange
fee, so that the system accounts for varying demographics,
geography and demand in a way that it currently does not?
As I said, the Government’s response will be revealed in the
legislation. When I visited the hon. Member’s constituency not so
long ago, I saw that the use of hubs—banks working together to
provide access to cash—is key. There are 72,000 cash access
points and 430,000 cashback locations across the UK. A coherent
response that addresses the hon. Member’s points will be made in
the legislation.
Investment in UK Infrastructure
(Southend West) (Con)
9. What fiscal steps he has taken to support investment in UK
infrastructure.
The Exchequer Secretary to the Treasury ()
The Government are committed to investing in infrastructure to
boost economic growth across the country, and I was delighted to
see this at first hand when visiting my hon. Friend’s
constituency of Southend West last week, where the local
authority has secured £19.9 million from the levelling up fund.
It was a real pleasure to welcome the Minister to the new city of
Southend last week. Every station on the C2C line in Southend
West is access friendly except for Chalkwell station, where there
are 30 steep steps to clamber up and down. What further support
or funding can the Minister provide to level up that final
station and ensure that it is accessible to all?
My hon. Friend is absolutely right to campaign for better access
to stations for disabled people. I am pleased to confirm that
Chalkwell is included in the Department for Transport’s £350
million Access for All programme, and that construction will
begin to install a new footbridge and lift this autumn.
(Sefton Central) (Lab)
The Government have cut the infrastructure that they promised at
the last election, not least in Northern Powerhouse Rail. The
economy needs greater rail capacity for passengers and freight,
so does not this great rail betrayal show that the Government are
not interested in the infrastructure needed for the economy in
the north and the midlands to thrive?
I simply do not recognise the picture that the hon. Member is
painting. This Government are absolutely committed to investing
in infrastructure because that is at the heart of our ambitions
for economic growth and levelling up across the country,
including £96 billion for the integrated infrastructure rail plan
for the north of the country.
(Hitchin and Harpenden)
(Con)
I welcome the Government’s increased investment in
infrastructure, but as the Minister knows, for the investment to
be most useful we need to improve the deliverability of that
infrastructure practically on the ground. Could she set out
further what the Government are doing to improve the efficacy of
all of that money going into infrastructure so that it actually
gets delivered?
That is an excellent question from my hon. Friend. We are not
only investing in infrastructure but making sure that taxpayers’
money gets put to good use. One way we are doing that is by
working with the Infrastructure and Products Authority and with
Project SPEED, which specifically scrutinises the most important
infrastructure projects in this country to ensure that we are
doing a better job of making taxpayers’ money go further and
doing it cleaner and greener as we go.
(Westmorland and Lonsdale) (LD)
After London, the Lake district is the most popular visitor
destination in the United Kingdom, with 19 million visitors a
year, yet its only direct rail link has a single track from the
main line at Oxenholme to Windermere, known as the Lakes line.
There is a proposal on the table to effectively dual that line by
means of a passing loop at Burneside. Will the Minister agree to
meet me and folks from the local authority to ensure that—no pun
intended—we can fast-track the dualling of the Lakes line?
Mr Speaker
Tell him yes!
Thank you, Mr Speaker. The growth of tourism is really important
as part of the wider economic growth of the country, and I would
be delighted to meet the hon. Gentleman to talk about his
proposal.
(Cleethorpes) (Con)
The designation of Immingham and Grimsby as part of the Humber
ports freeport project highlights the need for increased
infrastructure on the road network leading to those ports. Will
the Minister agree to meet me and neighbouring MPs to discuss
this, and particularly an upgrade for the A180?
I would be delighted to meet my hon. Friend to discuss the
upgrade to that road. As I have said, we know that infrastructure
is really important in supporting economic growth and levelling
up all around the UK.
Reducing Economic Inequality
(Manchester, Withington)
(Lab)
10. What recent steps he has taken to help reduce economic
inequality.
(Sheffield, Brightside and
Hillsborough) (Lab)
16. What fiscal steps he is taking to reduce poverty in the most
deprived areas.
(Newport West) (Lab)
17. What recent steps he has taken to help reduce economic
inequality in Newport West constituency.
The Chancellor of the Exchequer ()
I am very proud of the record of this Government and previous
Conservative-led Governments over the past decade of
significantly reducing the number of people living in poverty and
reducing income inequality. In February we published the
levelling up White Paper, which seeks to address the very
striking regional disparities our country.
The New Economics Foundation says that recent measures such as
the fuel duty cut and the national insurance threshold increase
will benefit the richest 5% of families twice as much as the
poorest half of households. At the same time, does the Chancellor
not accept that his decision to raise taxes on working people
while shielding those with incomes from other sources such as a
large portfolio of properties is only going to increase income
inequality further?
The hon. Gentleman is simply wrong. By raising the primary
threshold to £12,500, we have ensured that the first £12,500 that
anyone earns is completely free of national insurance and income
tax. The independent Institute for Fiscal Studies has called it
“the best way to help low and middle earners through the tax
system”.
That is what this Government are about.
The cost of living crisis is causing immense hardship for my
constituents in Sheffield, Brightside and Hillsborough, many of
whom have been struggling for the past 12 years of this
Government’s austerity policies. Can the Chancellor look me in
the eye and tell me that he is doing everything he can to prevent
my constituents from falling into a never-ending cycle of
poverty, particularly given that the Prime Minister admitted last
week that he believes the Government have not done enough?
The hon. Lady talks about the record of previous Governments over
the past decade but, as I have mentioned to her previously, the
number of people living in absolute poverty has fallen by more
than 1 million since the Conservative-led Government were elected
in 2010. That is a record of which we are very proud. She talks
of austerity and, to bring her up to date, public spending over
the course of this Parliament is growing at a record rate, both
on investment and on day-to-day spending, so we can support
strong investment in all the public services on which her
constituents rely.
Women across the UK are the “shock absorbers of poverty,” as the
Women’s Budget Group puts it. Women are cutting essentials for
themselves so that their kids do not go without, and this is
happening in Newport West, too. My inbox is full of emails from
anxious families who are unable to pay their bills. What does the
Chancellor think this says about the past 12 years of
Conservative Government?
Of course we want to be able to support those women, mothers and
families who rely on us in these hard times, and that is exactly
what this Government are doing. Over the past 10 years, as I
said, we have reduced the number of people in poverty. We know
that the best way to do that in the long term is to support
people into work, which is why I am delighted to see this morning
that unemployment is at its lowest level in almost half a
century. The single best way to fight poverty is to have a plan
for jobs, and our plan is working.
(Redcar) (Con)
One of the best ways to reduce economic inequality is through our
plan for jobs and our freeport programme. To that end, will the
Chancellor join me in welcoming the latest investment announced
in Teesside’s freeport, a £150 million renewable gas facility for
Circular Fuels that will create 200 jobs in construction and
further jobs in the supply chain?
My hon. Friend is absolutely right. He has been a fantastic
champion for his constituents and Teesside in getting the
freeport. We are now seeing the proof of that policy, with yet
another announcement of more investment and more job
opportunities for his constituents, which he rightly says is the
best way to support them through these challenging times.
Mr Speaker
We now come to the shadow Minister, .
(Erith and Thamesmead)
(Lab)
Under this Conservative Government, people’s savings have
declined by record levels. Data from the Office for Budget
Responsibility shows that the amount of income households are
able to save is set to fall by more than £1,000. This Tory cost
of living crisis is pushing people into debt, yet one Government
Minister said yesterday that, if people are struggling, they
should simply work more hours and get another job. Will the
Chancellor confirm that “Get on your bike” is official
Conservative economic policy once again?
There is an enormous amount to correct in the hon. Lady’s
question. In aggregate, across the economy, savings increased
over the past two years by more than £250 billion. Of course,
that will not be distributed equally, but there is resilience.
Consumer credit, on which those on lower incomes particularly
rely, has also fallen by about £30 billion over the past two
years. Households approach this period of difficulty in a more
resilient shape than at any point in the past decade.
The comments by the Under-Secretary of State for the Home
Department, my hon. Friend the Member for Redditch (), are absolutely right. It
is wrong to take them out of context. This party and this
Government are proud to be on the side of hard-working people. We
want to support them into work, and we want to make sure that
work pays. She was absolutely right to say what she said.
Strength of UK Economy
(Warwick and Leamington)
(Lab)
11. What recent assessment he has made of the strength of the UK
economy.
The Chief Secretary to the Treasury ( )
Last year, the UK was the fastest growing economy in the G7, and
unemployment has fallen back to 3.7%, which is well below
pre-pandemic levels. Growth in the first quarter here was
stronger than that in the United States, Germany and Italy, and
it is now 0.7% above pre-pandemic levels. The International
Monetary Fund forecasts that the UK will be the second fastest
growing economy this year and that by 2025 we will once again
outpace the rest of the G7, with the fastest growing economy both
that year and in 2026.
Across the 38 countries of the OECD only Spain had a bigger fall
in its GDP from pre-pandemic levels than the UK. The UK is now
uniquely placed in the cost of living crisis, owing to a decade
of low growth under Conservative Governments. Can the Minister
name any G20 country other than the UK that is forecast to have
negative growth in 2023?
Mr Clarke
The UK has bounced back so strongly from the pandemic that we had
the fastest growth last year, we have the second fastest growth
this year and we are going to be leading the pack once again. So,
we will have the second fastest growth in the G7 in 2024, and we
will have the fastest growth in 2025 and 2026. We should be proud
of that achievement. There is no doubt that, if we come out of a
crisis earlier, there will be an element of other economies
catching up in the near term, but the IMF is clear that over the
course of the immediate outlook we are world leaders.
Plan for Jobs: Effectiveness
(Ashfield) (Con)
12. What recent assessment he has made of the effectiveness of
the plan for jobs in supporting people into work.
The Chief Secretary to the Treasury ( )
The success of our plan for jobs is playing a key role in growing
the economy and spreading opportunity across the country. The
Government protected 11.7 million jobs in the pandemic through
schemes such as furlough, and of course we moved millions of
jobseekers into work and supported young people through
programmes such as kickstart and our apprenticeships offer.
Businesses in Ashfield are telling me that they are struggling to
recruit young apprentices, even though they are offering top
wages and education up to degree level. I am doing my bit by
hosting an apprenticeships fair, but what more can the Government
do to ensure that the young people in my area know that there are
great, well-paid apprenticeship schemes available, so that they
can have a fantastic career on their doorstep—and maybe a career
in catering?
Mr Clarke
My hon. Friend is absolutely right to say that it is an important
message, which this whole House should send out, that
apprenticeships really matter, that going to university is not
the only way to succeed, and that people can earn and learn at
the same time on our great apprenticeship courses. I believe my
right hon. Friend the Chancellor visited Caunton Engineering in
my hon. Friend’s constituency to promote apprenticeships, and of
course I wish his apprenticeships fair every success.
(Edinburgh West) (LD)
The Chancellor mentioned that this plan for jobs is the long-term
plan for restarting the economy. Do the Government accept that
perhaps they need to do more immediately than simply having a
long-term plan for jobs, in order to help people with the cost of
living crisis?
Mr Clarke
We absolutely do accept that, which is why we brought forward a
£22 billion package of support this year, with help ranging from
reducing the burden of tax to providing support on things such as
energy bills. That is absolutely in recognition of a very
challenging economic landscape for people to be operating in,
owing to the impact of the global pressures we are facing on
inflation. We are clear that we have a plan for jobs and a plan
for growth, and that we will get through the current crisis and
deliver a much better future for the people of this country on
the other side of what have been a remarkable couple of years and
a very difficult one for the whole developed world.
Support for SMEs
(Ludlow) (Con)
13. What fiscal steps his Department is taking to support small
and medium-size enterprises.
The Exchequer Secretary to the Treasury ()
Small and medium-sized businesses are at the heart of our
economy, creating jobs and prosperity across the UK. Last week,
we wrote to more than 2 million businesses setting out our
support to them, including a £1,000 cut to employment taxes,
extending the annual investment allowance limit, reducing
business rates and cutting fuel duty by 5p.
In considering responses to the Treasury’s consultation on
simplifying alcohol duty, will my hon. Friend consider a model
that broadly relates duty to alcohol strength but without
creating massive complexity and cost for the UK’s thousands of
off licences and wine shops, including important small and
medium-sized enterprises in Shropshire, which create jobs,
supporting both the wine import and brewing sectors?
As my right hon. Friend knows, we have set out our plans to make
alcohol duty simpler and fairer—a change that is long overdue.
That includes a new relief for draught beer, small producer
relief for craft cider makers and the end of the higher rate for
sparkling wine. I am listening to the sector and I have visited
businesses to hear for myself, to make sure that the reforms work
in practice.
Topical Questions
(York Central)
(Lab/Co-op)
T1. If he will make a statement on his departmental
responsibilities.
The Chancellor of the Exchequer ()
First, I wish the Financial Secretary to the Treasury, my right
hon. and learned Friend the Member for South East Cambridgeshire
(), a very special and very happy
birthday.
The Government of course appreciate that global inflationary
forces are currently making life difficult for families, which is
why we have brought forward, as we have heard, £22 billion-worth
of support this year to help those in work and the most
vulnerable in our society. We stand ready to do more as the
situation evolves. That support is part of a broad plan that will
grow our economy, encourage investment and create more skilled
and high-wage jobs. That is this Government’s priority.
With so much affluence in our country, poverty is a political
choice—the choice of the Chancellor and his Government. In York
this week, energy companies are cutting off people’s energy
supply, landlords are evicting people, budgets do not balance,
poor mental health is spiralling and fear is gripping people on
low wages, ill and disabled people and the elderly. That is the
Chancellor’s choice. Why will he not increase social security
payments? Such payments should pay, not punish, and keep people
safe and secure.
The track record of this Government and previous Conservative
Governments is very strong on reducing the number of people in
poverty, because that is of course something that we want to
achieve. On what is without question the No. 1 challenge that
families currently face—energy bills—we have brought forward £9
billion-worth of support; many people in the hon. Lady’s
constituency will have already benefited from £150 of that, and
there is £200 more to come. Some of the actions of energy
companies that the hon. Lady mentioned do not sound appropriate
and I would be happy to look into the specific cases.
(Rugby) (Con)
T3. On new year’s eve, my constituent Jamie Rees suffered a
cardiac arrest and died, quite simply because the nearest
defibrillator was not available—it was locked up in a school
building at the time. In his memory, Jamie’s mum, Naomi
Rees-Issitt, has set up a JustGiving page called “OurJay” to
provide externally mounted defibrillators in and around Rugby,
but she points out, quite reasonably, that it should not be left
to grieving families to provide them and there should not be a
postcode lottery in their availability. What funding can the
Government provide to make more defibrillators available?
The Financial Secretary to the Treasury ()
I thank my hon. Friend for his question and extend my heartfelt
condolences to Naomi for the loss of her son. My hon. Friend may
be interested to know that NHS England and NHS Improvement, along
with the British Heart Foundation, Resuscitation Council UK and
the Association of Ambulance Chief Executives, have developed the
Circuit, which is a national defibrillator network that will
register defibrillators in the UK and provide an overview of
where they can be found. I know that the Chancellor and the Prime
Minister are interested in this issue, as I met the Prime
Minister with my hon. Friend the Member for Rushcliffe (). It is indeed an important
issue.
Mr Speaker
We now come to the shadow Chancellor, .
(Leeds West) (Lab)
At the spring statement, the Chancellor confirmed that the
Conservative Government’s rise in national insurance—a tax
increase on working people and the businesses that employ
them—will go ahead. Since then, retail sales are falling,
consumer confidence is tanking and GDP is falling. We are the
only G7 country that is increasing taxes on working people in the
middle of a cost of living crisis. National insurance is the
wrong tax increase at the wrong time. Does the Chancellor still
think that his tax rises on working people are the right
approach?
The hon. Lady fails to mention what is about to happen, which is
the biggest tax cut for working people that we have seen in
decades: the rise in the national insurance threshold to £12,500.
That means that 30 million people in work will receive, on
average, a £330 tax cut and, contrary to what she has just said,
it ensures that 70% of people in work will pay less tax this year
than they paid last year.
The Chancellor expects people to thank him for increasing their
taxes only then to decrease them a couple of months later. The
truth is that the Chancellor should be asking those with the
broadest shoulders to pay a bit more in tax—such as the North sea
oil and gas companies that are making record profits—yet he
chooses not to tax them. Will the Chancellor explain today why he
will not close the outdated, unfair and unjustifiable tax
loophole that sees 70,000 people benefit from non-dom tax status?
The hon. Lady says that we should be asking those with the
broadest shoulders to pay, but that is exactly what we are doing.
The NHS and social care levy means that those with the broadest
shoulders, the top 15% of earners, will pay more than half the
money raised from that levy. I think that she believes that that
levy should be scrapped. It is an entirely progressive way to
raise money to fund the tackling of NHS backlogs, for which there
is, I know, huge support in this House. The Government are keen
to get on and fix the pressing challenges of this country. We
will fund those things in a responsible and progressive way, and
that is exactly the plan that we have put in place.
(Gainsborough) (Con)
T8. I am not sure whether there is much point in indulging
in a blame game against the Bank of England or the Treasury,
given that we are facing the unprecedented attack of a global
pandemic and war in Europe. The fact remains that conservative
Governments who have increased taxation during recession—such as
those led by the first George Bush or John Major—go down to
defeat. More importantly, millions of families are now
desperately worried about how they will pay their bills. Will the
Chancellor now say that his absolute priority, coming up to the
Budget, is to reduce the overall tax burden on working families?
I can give my right hon. Friend that assurance. That is our
priority. We started last autumn by cutting the tax rate for
those on the lowest incomes and universal credit. We carried that
on in the spring statement by delivering a tax cut for those on
lower-middle incomes by raising the primary threshold, and our
priority is to keep cutting taxes for those in work, including by
cutting income tax, as soon as the public finances allow.
Mr Speaker
I call the SNP spokesperson.
(Glasgow Central)
(SNP)
Inflation is running out of control, growth is flatlining, and
food and energy costs are spiralling. The Governor of the Bank of
England yesterday was warning of “apocalyptic” food prices. James
Withers of Scotland Food & Drink says that Brexit has made
nothing better and a number of things worse. People and
businesses have heard absolutely nothing from this Chancellor
today on how he will tackle this urgent cost of living
crisis—nothing at all. Will he bring forward an emergency Budget
without further delay, as the British Chambers of Commerce are
asking?
The hon. Lady talks about Brexit. We have already heard about the
difference that Brexit is making, with a freeport in Teesside,
which, because of Brexit, we have been able to create—and not
just there, but in Leith, Immingham, Southampton and other places
too. As we have heard today, those innovations are bringing jobs
and investment to parts of our country that need to see it. That
is what this Government promised to do, and that is what this
Government are delivering.
(Wealden) (Con)
T9. I have 14 vineyards in my constituency of Wealden. This
is a growing industry in rural areas. I am grateful to the
Exchequer Secretary to the Treasury for meeting me recently, but
may I urge her and the Chancellor to meet my vineyard owners,
face to face, to hear their anxieties over the Treasury’s plans
to hike tax on wine, which will create more red tape by
increasing the number of rates of duty from three to 27? This
industry creates thousands of jobs and it needs nurturing, so may
I please propose a visit to one of my vineyards in Wealden?
Mr Speaker
It has to be a yes to that.
My hon. Friend tempts me with a visit to a vineyard in her
constituency. She has already made the argument very
strongly—when I recently met the wine and spirits all-party
group. Representing a wine-producing constituency, she will
appreciate, I am sure, our announcement of the reduction in the
duty rate for sparkling wine. As I said to my right hon. Friend
the Member for Ludlow () earlier, I am speaking to
businesses in the sector to make sure that we get right the
practicalities of introducing these reforms.
(Livingston) (SNP)
T2. Speaking of broad shoulders, I am interested to know
what makes the Chancellor, one of the richest men in the Commons
and, indeed, in the UK, in any way qualified to make policy or to
help the poorest people in my constituency who, as a result of
the Tory cost of living crisis, have to choose between heating
and eating, which he and others like him will never have to face?
I urge the British people to judge me by my actions. Over the
past two years, the record of this Conservative Government stands
for itself. We were there to help this country through the crisis
and we are there to help them today.
Mr Speaker
I call the Chair of the Treasury Committee.
(Central Devon) (Con)
Naturally, there has been criticism of the Bank of England, given
the level of inflation and its inflation target, but among that
criticism there have been reports that some in government,
including perhaps one member of the Cabinet, have been suggesting
that the independence of the Bank of England should be removed.
Does my right hon. Friend agree that it is essential that our
central bank is independent in order to maintain the credibility
and integrity of our monetary policy? Will he give a categorical
assurance to the House that there are no plans of any kind to
restrain the independence of our central bank?
I thank my right hon. Friend the Chair of the Select Committee
for his important intervention. I agree with him wholeheartedly.
While we face challenges at the moment, the record of 25 years of
central bank independence speaks for itself, with an average
inflation rate of exactly 2%. I know all colleagues will want to
make sure that we return to that as swiftly as possible, and I
can assure him that that is both my and the Governor’s ambition.
(Ealing, Southall)
(Lab)
T4. Labour has uncovered £3.5 billion-worth of covid
contracts that were awarded to Tory-linked firms. Last week,
said that bungs were paid,
with no civil service oversight, to newspapers. Why on earth does
the Chancellor think the British public should trust him with the
public finances when he manages the economy with the Prime
Minister’s mantra, “One rule for us, one rule for everyone else”?
The Chief Secretary to the Treasury ( )
Obviously we are all clear that all fraud against the Exchequer
is an outrage and totally wrong. That is why we have established
a £100 million taxpayer protection taskforce, which is precisely
determined to focus on that. We also have a new fraud function
within Government, which is heavily focused on making sure that
we address those issues. We are determined to make sure that,
where there has been wrongdoing, we crack down on it and recover
the money to the maximum extent that we can. Obviously, when
introducing these schemes, we had to balance the imperative of
speed of delivery against the risks, and I think we struck the
appropriate balance at that time.
(Wimbledon) (Con)
There was widespread welcome for last week’s announcement that
the Government will introduce a financial services and markets
Bill. Can my right hon. Friend confirm that the intention of that
Bill will be to ensure that future regulation is proportionate,
that the regulator is publicly accountable and that we intend to
maintain the international competitiveness of this great
industry?
The Economic Secretary to the Treasury ()
Absolutely I can. I note the observations of some economists
yesterday; we will have an obligation on regulators to take
account of competitiveness and of where we are in the global
context.
(Kilmarnock and Loudoun)
(SNP)
T5. Compared with April 2020, our energy bills are now 75%
more expensive and petrol is 50% more expensive. If the
Chancellor thought an extra £20 a week was needed for universal
credit two years ago, surely he agrees it must be reinstated as a
matter of urgency?
Of course the Government recognise that energy bills are the
single biggest challenge households face. That is why we have
provided £9 billion-worth of support, including £150 for English
households in the most recent month, with £200 more in support to
come later this year.
(Meriden) (Con)
I believe the Conservatives are and ought to be the party of
hard-working families. According to a report released yesterday
by the Centre for Policy Studies, reducing the cost of childcare
can increase GDP by 10% and increase access to opportunities for
women in the workforce. Does my right hon. Friend the Chancellor
agree that helping hard-working families with childcare costs is
good for the economy and that it is the Conservative thing to do?
The Exchequer Secretary to the Treasury ()
I completely agree with my hon. Friend. In fact, we do support
families with the cost of childcare. One thing we do is to
provide families with access to tax-free childcare, which means
they can get a 20% reduction on the cost of childcare, up to a
cap of £2,000 a year.
(North Down) (Alliance)
T6. The Foreign Secretary is about to make a statement
regarding unilateral changes to the Northern Ireland protocol
that risk unpicking the trade and co-operation agreement and a
trade war with the European Union. I understand that the
Chancellor had been a voice for restraint and caution in Cabinet.
Why has his view not prevailed?
I do not want to foreshadow what the Foreign Secretary may or may
not say in her statement, but I assure the hon. Gentleman that
with regard to the protocol, the Government’s overriding priority
has been and continues to be preserving peace and stability in
Northern Ireland.
(North West Durham)
(Con)
Can my right hon. Friend the Chancellor confirm that a worker
working full time, or 40 hours a week, on the living wage is now
£1,700 a year better off in real terms than they were in 2010 and
that, after July, that will rise to almost £2,000, with everybody
earning less than £36,000 a year better off under this
Conservative Government this year?
My hon. Friend is absolutely right, and I thank him for his
support in championing policies that support his hard-working
constituents. This Government will always be on the side of
people on lower and middle incomes who are working hard to
provide a better life for their families, and we will keep
delivering for them.
(Birmingham, Selly Oak)
(Lab)
T7. The Chancellor called the reduction in fuel duty in the
spring statement “a tax cut…for hard-working families.”—[Official
Report, 23 March 2022; Vol. 711, c. 338.]Why are those families
paying more for a litre of petrol today than they were then?
Sadly, nothing we can do from this Dispatch Box can change global
oil prices, but we can reduce the taxes that we are responsible
for. That tax cut, together with the freeze, is worth, this year,
about £100 for a typical family driver, £200 or more for a van
driver, and almost £1,500 for an HGV driver.
(North Shropshire) (LD)
T10. It is not only households that are impacted by the
cost of living emergency; businesses in North Shropshire are
facing unimaginable and unmanageable increases in their fuel
bills and other input costs, and this has been compounded by the
national insurance tax rise imposed by this Government and paid
by employers. Does the Chancellor agree that the increase in
national insurance for employers should be scrapped to keep our
small businesses in business?
We are absolutely determined to reduce the burden of tax facing
both businesses and individuals. We have already heard during the
course of these exchanges about the action we have taken, for
example, on the employment allowance and on business rates, which
is precisely designed to help businesses succeed in what is
obviously a challenging environment.
(Manchester, Gorton) (Lab)
In my constituency, one food bank has provided 1,269 emergency
food parcels in four months, 40% of which have gone to children.
Food banks are now reporting shortages as people cut back to make
ends meet. This is no longer about living; it is about surviving.
So will the Government end their heartless policy and immediately
scrap the national insurance hike that they have introduced
during the cost of living crisis?
Whether it is expansion of the school breakfast club programme,
the holiday activities and food programme or healthy start
vouchers, this Government are supporting families in meeting the
costs of food, particularly at this difficult time. The hon.
Gentleman rightly talks about children growing up in poverty. The
best way to support those children is to ensure that they do not
grow up in a household where no one is working, and I am proud
that, thanks to the actions of Conservative Governments, half a
million fewer children are now growing up in a workless
household.
(Walthamstow) (Lab/Co-op)
One group of companies doing well out of the cost of living
crisis is the buy now, pay later lenders, with Klarna now valued
higher than Barclays or Lloyds. One in 12 of their customers are
using buy now, pay later credit to pay for toiletries and basic
food products. Will the Chancellor, who was boasting about our
consumer credit profile earlier, name the date when our
constituents can finally make good on the promise that was made
in this House over 18 months ago to give people protection from
these legal loan sharks and access to the Financial Ombudsman
Service?
I cannot give the date, but it will be very soon.
(Barnsley Central) (Lab)
My experience over the past four years or so has proved without
doubt that truly levelling up South Yorkshire and the wider north
will require transformative levels of investment. Does the Chief
Secretary agree, and if so, does he truly believe that the
investment is there to meet the huge challenge that we
undoubtedly face?
I pay tribute to the hon. Gentleman for his service as the Mayor
of South Yorkshire; he did an outstanding job. It is very
important that we recognise that we are going to need more great
Mayors from across this House and from outside Parliament to help
to deliver opportunity in the region. We are absolutely clear
that our programme of investment, through a record spending
review, is designed to make sure that levelling up moves from
blueprint to reality over the course of the years ahead.
(Llanelli) (Lab)
This Government have completely failed on growth in the economy,
with the IMF, taking into account all the current Government
proposals, currently forecasting that the UK will have the
slowest growth in the G7 this year. The Minister will know that
putting money into the pockets of the least well-off not only
relieves their hardship but puts it into the local economy as
they have to spend it, of necessity, back into the local economy,
thus stimulating growth. Instead of choking off growth through
the £20 universal credit cut, the national insurance hike and the
refusal to use a windfall to relieve the hardship of these
families, what new, additional measures do the Government propose
to help hard-pressed families and to improve that IMF forecast on
growth?
The hon. Lady cherry-picks the statistics. Last year we were the
fastest-growing economy in the G7 and this year the second
fastest. After the other countries have caught us up next
year, we will return to being the second-fastest and then the
fastest-growing economy. There is more come from this Government
to support growth. In the autumn we will cut taxes on business
investment and innovation, which we all know is the best way to
drive up productivity and growth.
(Denton and Reddish)
(Lab)
Ministers spoke earlier about using infrastructure to level up,
and they are absolutely right—we need to link local communities
to where the jobs are, so transport matters. Why, then, is there
a lack of joined-up government? The Treasury is paying billions
towards High Speed 2 coming to Manchester, yet the Bill before
Parliament will sever the Metrolink line through Audenshaw
in my constituency to Manchester, meaning that the tram will not
be able to run for two years. That is not levelling up, is it?
What is levelling up is making sure that we have a colossal
programme of transport investment designed to ensure that the
connections both between regions and within regions are as strong
as they can be, and I refer to the £96 billion integrated rail
plan, which sits at the heart of our ambition in this space.
Clearly the specifics of the proposal that the hon. Gentleman
mentions are for Transport Ministers and the Mayor of Greater
Manchester to discuss.
