(7 years, 8 months ago)
Lords ChamberMy Lords, I have some sympathy with the point the noble Lord makes. The Government believe that alcohol duties should be related to the alcoholic strength of drinks but, as he says, EU law currently restricts changes to the rates and structure of alcohol duties. We have already said that we would like any future changes to allow duty on wine to rise in line with alcoholic strength. We are constrained until we leave the EU but we will certainly consider this issue carefully in the light of EU exit.
My Lords, my noble friend will be aware that the Health Minister gave evidence to the ad hoc scrutiny committee on the Licensing Act 2003 to the effect that customs and excise duty would be reviewed precisely in this regard. Given the hard work that the noble Lord, Lord Brooke, has been doing over many years on this issue, what plans do the Government have to look at pricing, taxation and, potentially, minimum unit pricing as a steer for controlling alcohol, particularly the harmful effects on all age groups of alcohol and excessive alcohol abuse?
Obviously, the Government look forward to the work that is being done by the committee on the Licensing Act, learning from what has worked well and what has worked less well. It is fair to say that the Government have done a whole range of things to try to tackle the problem of cheap alcohol. The lower-strength drinks have lower rates, and there are higher duties on higher-strength beers and ciders. We took action to ban sales in England and Wales below duty and VAT. We amended the definition of “cider” so that only products with a minimum 35% apple or pear juice can be defined as cider for tax purposes. Working with the Home Office and the police, industry has taken a whole load of measures which I think are very important. Noble Lords will know that I used to be in the retail industry, and this was an issue that exercised me a lot. Indeed, we supported the minimum unit pricing that came in in Scotland, which is now the subject of court action.
(9 years, 8 months ago)
Commons ChamberThe hon. Lady is a member of a party whose last Chief Secretary left a note boasting that there was no money left—I think “Cashless” might best describe the Labour party. The point of my statement is exactly what I set out. I do not intend to repeat the entire statement in response to the hon. Lady’s question, but it is clear that behind the neutral fiscal assumption on which the OBR constructs its forecast, many different paths are open to this country. The alternative scenario published by the Treasury today illustrates one such path, which I would endorse.
I commend the Budget and congratulate the Government on focusing on reducing national debt, which seems to have taken the wind out of Opposition sails. I thank the Chief Secretary for agreeing to a rural fuel duty discount for Hawes. Regrettably that is not in Thirsk, Malton and Filey, but I am sure my right hon. Friend the Member for Richmond (Yorks) (Mr Hague) will be very pleased. Will the Chief Secretary take heart that the £10 less duty paid on tanking up a car will bring great comfort to families in north Yorkshire?
I thank my hon. Friend for her consistent support for the rural fuel discount scheme. She was one of the Conservative Members who spoke up for this in the last Parliament, as well as in this one, and she makes the right argument. I am delighted that we are the first country in the EU to put in place a rural fuel discount scheme for remote mainland communities, and I hope in due course it will be possible to extend it—so I do not wish her constituents to think that the hope of its being extended to them is extinguished.
(9 years, 10 months ago)
Commons Chamber12. What recent representations he has received on creating a northern powerhouse.
We are making good progress in building a northern powerhouse. Over the past year, private sector employment in the north has increased by more than 200,000, a faster increase than the national average and faster than in the south. We want to sustain that by investing in new transport, new skills and new science, by devolving power and by bringing our northern areas closer together into that powerhouse.
May I applaud the Chancellor and the Government for their work on creating a northern powerhouse? Will he ensure that rural communities participate in that wealth growth, and that rural broadband reaches farms and rural businesses that want to drive the rural economy and economic growth?
My hon. Friend is absolutely right that we want our rural communities in the north to be part of the powerhouse. It is not just about connecting the cities; it is about ensuring that the rural economy is a vibrant part of the northern economy. Superfast broadband is a key part of that, and, as she well knows, we have made special efforts to develop it in North Yorkshire. Rural transport is also incredibly important, as is supporting agriculture. The investment that we are making in agricultural science will benefit agriculture all over the country, including in her constituency.
(9 years, 11 months ago)
Commons ChamberThe best protection for the UK is to stick to the economic plan that is creating jobs and growth up and down this country. That is what the coalition has done and will continue to do. The OBR’s forecast, published last week, showed that it expects the UK, despite the difficulties to which the hon. Gentleman refers, to continue to have economic momentum over the next few years.
Rural communities are clearly not part of the city regions and possibly will not form part of the northern powerhouse. What assurances can the Chief Secretary give us that rural communities will benefit from the increased prosperity from the long-term economic plan?
My hon. Friend makes an important point, although I would say to her that rural communities are part of local enterprise partnership areas that benefit from the growth deals announced last year. The city deals and the devolution process we are engaged in benefit all parts of the UK. I highlight to her the investment this Government are making in transport and in broadband as particularly important in driving growth in rural communities.
(10 years, 4 months ago)
Commons ChamberI was not aware of that particular issue in my hon. Friend’s constituency, but now he has raised it I will certainly look into it and see whether we can help. The electronic communications code is a very important issue and I am looking into it right now, because I agree that it was set up for a different age and there need to be significant changes.
6. What comparative assessment he has made of the extent of broadband coverage in the UK and other EU member states.
As the House has already heard from my right hon. Friend the Secretary of State, the UK’s broadband coverage is among the best in Europe: 73% of premises can access superfast broadband compared with just 45% in 2010. Government investment will drive superfast coverage up to 95% by 2017.
Sadly, rural areas will be left behind. I understand from NYnet that Thirsk, Malton and Filey will have only 78% coverage by 2015-16. Given that farmers will have to apply digitally for farm payments from 2015, they will be grossly disadvantaged. Will the Government please make it a top priority to ensure that those who have the weakest coverage will be fast-tracked to superfast broadband?
We certainly will. NYnet is one of our most effective programmes and I praise the county council for its effective work. We have already passed 120,000 premises under this programme. We will have reached 170,000 by next spring and we have allocated further millions to take coverage even further.
(10 years, 7 months ago)
Commons ChamberHousehold debt income ratios have fallen during this Parliament, as the hon. Lady will know, but—this is a good lesson for the Labour party—there is no shortcut for increasing people’s living standards, which is the answer to the question she poses, and no short cut to increased productivity in our economy. That means increasing growth in the economy and sticking to the coalition’s plan, which is being delivered by Liberal Democrats and Conservatives in this Government. That is the important thing to do for the next few years to ensure that we have a stronger and more sustainable economy in this country.
Has my right hon. Friend had a chance to consider what the impact would be on annual rates of inflation and growth of a potential 1% increase in national insurance contributions, and particularly the impact of that on the NHS budget?
It would have a significant impact on almost every working person in this country. The Government’s direction of travel, led by the Liberal Democrats, has been to reduce the burden of taxation on working people. Some 26 million working people have seen their income tax bill reduced this month by £700 a year, thanks to the decisions that this coalition Government have taken to increase the personal allowance to £10,000.
(10 years, 10 months ago)
Commons ChamberI thank the hon. Lady for her questions. Yes, energy bills have gone up, but how come she voted for a decarbonisation target last autumn that would have added a further £125 to all average bills?
Will my hon. Friend look at the impact of domestic energy prices on off-grid customers and try to find common measures to enable them to access lower energy prices?
(11 years, 2 months ago)
Commons ChamberThe hon. Gentleman is wrong to say that the scheme has done nothing to encourage supply; 10,000 homes have been started under the current scheme. The Home Builders Federation itself has said that a lack of affordable mortgage availability remains the biggest constraint on housing supply. That is a problem; we are solving it.
7. What his policy is on the payment of corporation tax by foreign-based companies; and if he will make a statement.
The Government are committed to creating the most competitive corporation tax regime in the G20 to support investment that drives economic growth. We want a system that is stable and fair with all companies abiding by the rules and making their contribution. We are cutting the rate to 20% by 2015, clamping down on avoidance and aggressive tax planning and driving forward multilateral efforts to modernise the international tax framework.
Will my hon. Friend join me in celebrating the water industry, a flagship industry since its privatisation over 20 years ago? Will he explain to the House the benefit to consumers of deferring corporation tax against current foreign investment received?
(11 years, 5 months ago)
Commons ChamberThank you for that advice, Mr. Speaker. I was merely attempting to respond to the inaccurate account of our investment given by the hon. Member for Nottingham East (Chris Leslie). In fact, investment as a share of GDP will be higher during the current decade than it was during the 13 years for which Labour was in office. We are spending more and underspending less than Labour did. Ours is a record of delivery and a record of action, and today I have given the House our promise of more.
The hon. Gentleman asked about the private sector. We have been listening to the private sector, which is why we are setting out the long-term plans that it wants. He asked about the planning system. We have reformed the planning system, and he voted against that reform. He also asked about flooding. As I said in my statement, my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs will be announcing amendments to the Water Bill. The hon. Gentleman will know from the spending round document which was published yesterday that the forecast for local government self-financed expenditure is up, not down. I am sorry to hear that he opposes investment in shale gas. His Building Schools for the Future programme was expensive and inefficient, which is why we have introduced the Priority School Building programme.
I should very much have liked to hear from the hon. Gentleman that he supported our detailed and ambitious plans, and so would the country. I am sorry that we did not hear that from him, and I hope that he will reflect on it in the days to come.
I congratulate my right hon. Friend on his statement. I thank him for his announcement about flood defences, which will pave the way for a flood insurance agreement, but will he please give careful consideration to maintenance spending as well? The Environment, Food and Rural Affairs Committee took evidence from the Association of British Insurers about the subsidy issue. There is a fear that a subsidy will be paid by all households that take out insurance, which would have implications for their spending. We want insurance to be available, yet affordable.
I know that the hon. Lady has taken a great interest in this subject. Maintenance spending constitutes a major part of the DEFRA resource budget that was announced yesterday. DEFRA has made considerable efficiencies in flood resource spending, and will continue to have a significant budget. I have been assured by the Association of British Insurers that the proposed levy will not add to people’s bills overall.
(11 years, 8 months ago)
Commons ChamberIf the hon. Lady had a grasp of economics, she would understand the need to take people out of taxation, which is what we have done through the increase in the personal allowance. In fact, that increase affects the lowest paid most of all and is equivalent to a pay increase of 4.5% since the general election. A higher personal allowance is a better policy than the shadow Chancellor’s plan to introduce the 10p rate, which the Financial Times described as “a pretty basic howler”.
The shadow Chancellor is a very gracious chap and, I am sure, would wish to commend the Government for taking 25 million people out of tax by the simple measure of increasing the personal allowance. Can my right hon. Friend share with the House what that means for an individual’s annual budget?
Yes. By next month it will be worth £600 a year for every basic rate taxpayer, which is an enormous increase. For someone on median earnings, it is equivalent to a pay rise of 4.5%. I would have thought that the shadow Chancellor, who professes to be interested in helping the low-paid, would endorse the policy.