Oral Answers to Questions

Debate between Angela Eagle and George Osborne

Wednesday 25th May 2016 Commons Chamber

[Mr Osborne]

My hon. Friend is absolutely right. The first duty of the Government is to defend the country. For almost 70 years our independent nuclear deterrent has provided the ultimate insurance for our freedom. We will review our Trident deterrent, and bring forward votes in this House; we ask MPs from all sides of the House to support this vital commitment to our national security. When she stands up, the hon. Member for Wallasey (Ms Eagle), representing the Labour party, should indicate that support today.

[Ms Angela Eagle (Wallasey) (Lab)]

We look forward to the vote on Trident—he should get on with it.

Given the overnight news of the French authorities’ dawn raid on Google, investigating allegations of aggravated financial fraud and money laundering, does the Chancellor now regret calling his cosy little tax deal with the same company “good news” for the British taxpayer?

[Mr Osborne]

It is good news that we are collecting money in tax from companies that paid no tax when the Labour party was in office. The hon. Lady seems to forget that she was the Exchequer Secretary in the last Labour Government; perhaps she can tell us whether she ever raised the tax affairs of Google with the Inland Revenue at the time.

[Ms Eagle]

Obviously, the Chancellor has done a bit more research this time. I regard that as a compliment.

From that answer, I think the Chancellor is far too easily satisfied with his cosy little tax deal. I note that even the hon. Member for Uxbridge and South Ruislip (Boris Johnson) labelled that deal “derisory”. The British public think it is even worse. Despite all the rhetoric, on the Chancellor’s watch the tax gap has gone up, and his tax deal with the Swiss raised a fraction of the revenue that he boasted it would. The Office for Budget Responsibility has blamed the lack of resources in Her Majesty’s Revenue and Customs, so why has he sacked 11,000 tax staff since 2010, and when is he going to give HMRC the resources it needs to do a proper job?

[Mr Osborne]

We increased resources for HMRC to tackle tax evasion and avoidance. We have introduced a diverted profits tax so that companies such as Google cannot shift their profits offshore anymore, and have made sure that banks pay a higher tax charge than they ever did under the last Labour Government. I come back to this question. The hon. Lady was a Treasury Minister. She stood at this Dispatch Box. She is asking me what we have done to tackle tax evasion and avoidance. When she was Exchequer Secretary, did she ever raise the tax affairs of Google? We should know that before she asks questions of this Government. [Interruption.]

[Mr Speaker]

Order. Members must calm themselves, and remain calm. Members on both sides should take their lead from the right hon. and learned Member for Rushcliffe (Mr Clarke), who always sits calmly and in a statesmanlike manner. That is the way to behave.

[Ms Eagle]

We all have a great deal of respect for the right hon. and learned Member for Rushcliffe (Mr Clarke). The Chancellor of the Exchequer will know that the Exchequer Secretary deals with taxes on vices, not on Google. I did my job in taxing vices when I was in the Treasury. The Chancellor will be judged on results. He has been in office for six years. Given that France is demanding 10 times more from Google than he is, the public will make their own judgment.

Labour is campaigning to ensure that the UK remains in the European Union because that is the best way to defend rights at work as well as jobs and prosperity, but the Conservative party is split right down the middle and is descending into vicious acrimony. Last week the Minister of State for Employment called for Brexit, so that there could be a bonfire of workers’ rights. Does the Chancellor agree with her, or does he agree with Len McCluskey that a vote to stay in the European Union is the best deal for Britain’s workers?

[Mr Osborne]

First, the hon. Lady has confirmed that when she was in the Treasury she asked absolutely no questions about the tax affairs of Google. As she knows—we agree on this—I think it is better that Britain remains in the European Union, so why not now have some consensus on other issues, such as an independent nuclear deterrent? Let us have a consensus on that, and on supporting, rather than disparaging, businesses. Let us have a consensus on not piling debts on the next generation, but on dealing with our deficit, and a consensus that the parties in this House should have a credible economic policy.

[Ms Eagle]

I think the Chancellor has just agreed with Len McCluskey.

The former Work and Pensions Secretary said this week that the Chancellor’s Brexit report should not be believed by anyone, and he branded the Chancellor “Pinocchio”, with his nose just getting longer and longer with every fib. Meanwhile, the general secretary of the TUC said that the Treasury report gives us

“half a million good reasons to stay in the European Union”.

Who does the Chancellor think that the public should listen to? His former Cabinet colleague, or the leader of Britain’s millions of trade unionists?

[Mr Osborne]

It is no great revelation that different Conservative MPs have different views on the European Union. That is why we are having a referendum, because this issue divides parties, families and friends, and we made a commitment in our manifesto that the British people would decide this question. If the hon. Lady wants to talk about divisions in parties, I observe that while she is sitting here, the leader of the Labour party is sitting at home, wondering whether to impeach the former leader of the Labour party for war crimes.

[Ms Eagle]

I am glad that the Chancellor agrees with Frances O’Grady, but it is a pity that he cannot get half his Back Benchers, and most of his own party, to agree with him. Given that the former Work and Pensions Secretary has just called the Prime Minister “disingenuous”, and that the former Tory Mayor of London has called him “demented”, I would not talk about Labour splits. The Chancellor should get his own House in order before he talks about us.

Following the Chancellor’s second omnishambles Budget earlier this year, I see that his approval ratings have collapsed by 80 points among his own party. Given that he seems to be following a similar career path, is it time that he turned to Michael Portillo for advice? [Interruption.]

[Ms Eagle]

Thank you, Mr Speaker. Last week, the former would-be leader, Michael Portillo, said of the Queen’s Speech:

“After 23 years of careful thought about what they would like to do in power, and the answer is nothing…There is nothing they want to do with office or power…The government has nothing to do, nothing to say and thinks nothing.”

Even this “nothing” Queen’s Speech has caused a revolt on the Chancellor’s Back Benches, and forced yet another U-turn to avoid the first defeat of a Government on their legislative programme for 92 years. Does that tell us all we need to know about this Prime Minister and Chancellor? It seems that they cannot even get their Back Benchers to vote for nothing without a fight.

[Mr Osborne]

I will tell the hon. Lady what we have done in recent weeks: we have taken another million people out of tax; we have frozen fuel duty; we have cut business rates for small businesses; we have seen the deficit fall by another £16 billion; we have delivered a record number of jobs; and we have introduced a national living wage. That is what we have been up to. What has Labour been up to? She talks about U-turns. They have turned the Labour party from a party that gave Britain its nuclear deterrent to a party that wants to scrap it; from a party that created the academies programme but now wants to abolish all academies; and from a party that once courted business but now disparages it—the prawn cocktail offensive is just plain offensive these days. As a result, it has gone from a Labour party that won elections to a Labour party that is going to go on losing elections.

[Ms Eagle]

With 29 days to go until the most important decision this country has faced in a generation, we have before us a Government in utter chaos—split down the middle and at war with themselves. The stakes could not be higher, yet the Government are adrift at the mercy of their own rebel Back Benchers, unable to get their agenda through Parliament. Instead of providing the leadership the country needs, they are fighting a bitter proxy war over the leadership of their own party. I notice there is no “outer” here: all the Brexiteers have been banished from the Government Front Bench. [Interruption.] It is nice to see the Justice Secretary here. I think the Chancellor has put the rest of his Brexit colleagues in detention. Instead of providing the leadership the country needs, they are fighting a bitter proxy war over the leadership of their own party. Instead of focusing on the national interest, they are focusing on narrow self-interest. What we need is a Government who will do the best for Britain. What we have got is a Conservative party focused only on itself.

[Mr Osborne]

The hon. Lady talks about our parliamentary party. Let us look at her parliamentary party. They are like rats deserting a sinking ship. A shadow Health Minister wants to be the Mayor of Liverpool, the hon. Member for Bury South (Mr Lewis) wants to the Mayor of Manchester, and the shadow Home Secretary wants to be the Mayor of both cities. When we said we were creating job opportunities we did not mean job opportunities for the whole shadow Cabinet. They are like a parliamentary party on day release when the hon. Lady is here, but they know the right hon. Member for Islington North (Jeremy Corbyn) will be back and it is four more years of hard labour.

Today, we are voting on a Queen’s Speech that delivers economic security, protects our national security and enhances life chances for the most disadvantaged. It does not matter who stands at the Dispatch Box for Labour these days. They are dismantling our defences, they are wrecking our economy and they want to burden people with debt. In their own report published this week, “Labour’s Future”—surprisingly long—they say they are becoming increasingly irrelevant to the working people of Britain.

Oral Answers to Questions

Debate between Angela Eagle and George Osborne

Wednesday 9th December 2015 Commons Chamber

[Ms Angela Eagle (Wallasey) (Lab)]

Thank you, Mr Speaker. It is nice to be given such a warm welcome.

Our hearts go out to all those who are suffering the consequences of the severe flooding in the north-west this week. Given that thousands of families are affected, the priority must be for the Government to give immediate help to all of them. Yet one year on from the 2013-14 floods, it emerged that only 15% of those affected had received payments from the Government’s repair and renew scheme. Does the Chancellor agree that that cannot possibly be allowed to happen again? These people need urgent help now, so will he today give the House a guarantee that people will receive the help they need, and quickly?

[Mr Osborne]

First, let me welcome the hon. Lady to her place and the warm support she has on the other side. I join her in expressing the sympathy of the whole House to those who have been affected by these terrible floods. A record rainfall has hit Cumbria and Lancashire. The update is that we have just one severe flood warning still in place, power has been restored to 168,000 homes and the west coast main line is open, but we have to be there for the long term for these families.

We continue to support the immediate rescue efforts, and the military have deployed. On recovery and the question the hon. Lady asks, I can today announce a £50 million fund for families and businesses affected in the area. That will be administered by the local authorities to avoid some of the administrative problems to which she alluded in her question. When it comes to rebuilding the infrastructure of Cumbria, Lancashire and other areas affected, we are assessing now the damage to the flood defences and to the roads. Funds will be made available. One of the benefits of having a strong and resilient economy is that we can help people in need.

[Ms Eagle]

I thank the Chancellor for that answer but, from listening to him, you would not think that he has cut flood defence spending by £115 million this year. After visiting the floods in the Somerset levels in 2014, the Prime Minister told this House that

“money is no object in this relief effort”——[Official Report, 12 February 2014; Vol. 575, c. 840.]

and that whatever money was needed would be spent. I welcome the announcement that the Chancellor has just made, but will he confirm that the same will apply this time?

[Mr Osborne]

Absolutely. The money will be made available to those affected and to the communities who have seen their infrastructure damaged. Up to £5,000 will be made available to individual families to repair their homes and protect them against future flooding, and we will provide money to businesses that have seen their businesses ruined. There have been heartbreaking stories—we have all seen them on television—about businesses that have been affected. That money is available.

Because we have a strong and resilient economy, we are increasing the money we spend on our flood defences. It is just not the case that that has been reduced. The last Labour Government spent £1.5 billion on flood defences, and we will be spending £2 billion on flood defences and increasing maintenance spending. It is something we can do and we can help these communities precisely because we took the difficult decisions to fix our economy and public finances.

[Ms Eagle]

I thank the Chancellor for that, and we will hold him to account on the promises he has made today. However, I note that the Government’s own figures show that their planned capital investment in flood defence will only protect one in eight of those households at risk.

I see that the Prime Minister cannot be with us to answer questions today because he is visiting Poland and Romania on the latest leg of his seemingly endless European “renegotiation tour.” He has been jetting all over the place. No wonder we had to buy him his own aeroplane. So can the Chancellor tell us: how is it all going?

[Mr Osborne]

The good news is we have a party leader who is respected abroad. The Prime Minister is in central and eastern Europe because we are fighting for a better deal for Britain, something that never would have happened if there had been a Labour Government.

[Ms Eagle]

I have to tell the Chancellor that many of his own Back Benchers are pretty unimpressed with how it is going so far. The hon. Member for North East Somerset (Mr Rees-Mogg) has described the Prime Minister’s renegotiation efforts as “pretty thin gruel”, the hon. Member for Harwich and North Essex (Mr Jenkin) has called them “lame” and “trivial”, and yesterday the hon. Member for Richmond Park (Zac Goldsmith) told the Press Gallery they were “not all that impressive”. The Chancellor is well known for cultivating his Back Benchers, and there is absolutely nothing wrong with that, so may I ask him the question his own side want answering: given that the Prime Minister has pre-resigned, does he really aspire to be Britain’s first post-EU Prime Minister?

[Mr Osborne]

I am not sure I would be quoting the views of Back Benchers if I was speaking for the Labour party at the moment. Most opposition parties are trying to get momentum; they are trying to get rid of it. We are fighting for a good deal for Britain in Europe, we are fighting to make the European economy more competitive for everyone and we are fighting to make sure that Britain, as a country that is not in the euro, gets a fair deal from the eurozone. That is what we are fighting for, but in the end this is something that we will put to the people of Britain in a referendum. The only reason that referendum is happening at all is that the Conservative party won the general election.

[Ms Eagle]

Instead of obsessing about issues in the Labour party, the Chancellor should be condemning the appalling activities in Conservative Future and attacking the Tory bullying scandal. I notice he did not answer the question about his own prime ministerial activities; I am not sure, but he might be worried about somebody a few places down from him on the Treasury Bench. [Interruption.] She knows who she is. If the Chancellor will not listen to the doubts of his own Back Benchers, perhaps he will listen to someone who has written in. I have got here a letter. It is from Donald of Brussels. He writes:

“Uncertainty about the future of the UK in the European Union is a destabilising factor.”

He’s right, isn’t he?

[Mr Osborne]

Since the Conservative party announced its policy on a referendum, we in this country have received the lion’s share of investment into Europe. That is because we have built a strong economy, we stand up for Britain’s interests abroad and we have made this a competitive place to grow and build a business. While we are quoting missives, let me tell the House that someone called Tony has been writing today. He happens to be the most successful Labour leader in history, and he describes the current Labour party as a complete tragedy. May I suggest that the hon. Lady asks some serious questions, about the health service, the economy, social care? She can ask any of these questions. She has got one more question; let’s hear it.

[Ms Eagle]

I prefer this quote from Tony:

“Just mouth the words ‘five more Tory years’ and you feel your senses and reason repulsed by what they have done to our country.”

We all know that the Chancellor is so preoccupied with his own leadership ambitions that he forgot about the day job, and that is why he ended up trying to slash working families tax credits in the Budget. Is it not about time that he focused on the national interest rather than his own interest? Three million UK jobs are linked to trade with the EU. Half our exports go there. That is what they are putting at risk by flirting with Brexit, and that is why we on this side of the House know that Britain is better off in.

[Mr Osborne]

I thought that the Labour party voted for the referendum when it came before the House of Commons. We are fighting for a better deal for Britain in Europe. The truth is that this week we have shown that we have an economic plan that is delivering for Britain. Whether it is well-funded flood defences, putting money into our national health service, backing teachers in our schools or introducing a national living wage, we are delivering security for the working people of Britain. Their economic and national security would be put at risk if the Labour party ever got back into office.