Fiscal Responsibility and Fairness

Debate between Baroness McIntosh of Pickering and Danny Alexander

Thursday 19th March 2015 Commons Chamber

[Danny Alexander]

The 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.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

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?

[Danny Alexander]

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.

Oral Answers to Questions

Debate between Baroness McIntosh of Pickering and Danny Alexander

Tuesday 9th December 2014 Commons Chamber

[Danny Alexander]

The 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.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

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?

[Danny Alexander]

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.

Oral Answers to Questions

Debate between Baroness McIntosh of Pickering and Danny Alexander

Tuesday 29th April 2014 Commons Chamber

[Danny Alexander]

Household 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.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

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?

[Danny Alexander]

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.

Investing in Britain’s Future

Debate between Baroness McIntosh of Pickering and Danny Alexander

Thursday 27th June 2013 Commons Chamber

[Danny Alexander]

Thank 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.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

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.

[Danny Alexander]

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.

Finance (No. 4) Bill

Debate between Baroness McIntosh of Pickering and Danny Alexander

Monday 16th April 2012 Commons Chamber

[Danny Alexander]

I am grateful to my hon. Friend for his support for our measures on corporation tax. The fact that they have been welcomed not just by hon. Members, but by the CBI and a range of business organisations—and, indeed, that they have been shown to increase business investment—will help this country retain its international competitiveness, which declined markedly when the Labour party was in government.

My hon. Friend is right that we must deal with tax avoidance by companies, and there are a number of measures in the Bill that are precisely aimed at ensuring that businesses pay their fair share of tax, which I am sure he would wish to support. Furthermore, through clause 180, we are introducing vital reforms to the controlled foreign companies rules, and, through clause 19, a patent box to allow UK businesses to operate in an ever-more globalised world. Hopefully, we will encourage some of the businesses to which he refers to return to the UK. The latter measure has already secured a major investment in this country by a major chemicals company.

As well as creating the competitive conditions for enterprise to thrive, we must ensure that businesses have the support they need to seize the opportunities in the recovery. That is why we are taking action in the Bill to support the small businesses, the start-ups and the entrepreneurs that are critical to creating new jobs in the recovery. Clauses 39 and 40 increase the annual investment limit for enterprise investment scheme and venture capital trusts to £5 million. In that spirit, through clause 28, we are introducing a new scheme—the seed enterprise investment scheme—to encourage further investment in small, start-up companies, which are the kind of companies this country needs more of as the recovery continues. Those are significant steps to encouraging new growth, galvanising new sectors, and broadening access to finance for UK business, helping to rebalance our economy away from its over-reliance on one sector and one region.

We are committed to supporting a private sector recovery right across the UK. Clause 44 introduces a new, enhanced capital allowance regime for businesses in seven enterprise zones in England, three in Scotland and one in Wales.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

My right hon. Friend might have noticed that most of the enterprise zones are in urban areas. We have heard about static caravans and churches, but there is growing concern about rural businesses, which are losing out by not being in areas that will benefit from the schemes that he is announcing.

[Danny Alexander]

I recognise my hon. Friend’s concern. On churches, she will be aware that, as we said in the Budget, we will increase the listed places of worship scheme by £5 million a year, precisely to enable churches that have alterations to benefit from the scheme and not to be adversely affected. However, our investment in transport infrastructure and a number of local transport schemes, and the massive investment in broadband in rural areas—we are investing £520 million to ensure that every part of the country has the latest superfast broadband—will make a major difference to rural economies. Along with the increases to the income tax personal allowance, to which I shall turn in due course and which will particularly benefit rural areas, where incomes tend to be lower than in urban areas, there are many reasons why the rural economy will benefit significantly from the measures taken by this Government. Enterprise zones will help to promote growth in every part of the UK.

The Budget included an announcement of a package of measures to ensure that we fulfil our potential to extract the greatest possible amount of oil and gas from our reserves in the North sea through a major package of tax changes. We will end the uncertainty on decommissioning tax relief that hangs over the industry by entering into contracts with companies. We will also introduce new field allowances, including a £3 billion new field allowance for large and deep fields, to open up west of Shetland, the last area of the basin left to be developed. Clause 184 gives the power to introduce new brownfield allowances as and when the industry can demonstrate the need for them in specific areas through the information it shares with the Government through the new processes that we have established. Those measures together are a huge boost for investment in the North sea.

We continue to support economic development in the devolved Administrations. Clause 189 devolves the power to the Northern Irish Assembly to set rates of air passenger duty for direct long-haul flights from Northern Ireland, which will help to protect the vital direct air service to the US, supporting tourism and businesses in Northern Ireland.

The Government will not relent as we seek to restore prosperity across the country. We are committed to promoting business enterprise, investment and exports across all parts of the UK. Securing sustainable growth and creating sustainable private sector jobs are the best ways to support families and raise living standards in the long run. Of course, I understand that these remain tough times for many families across the country. That is why the Bill reinforces our commitment to helping the lowest-paid in the country while ensuring that those with the broadest shoulders continue to carry the heaviest burden.

Tax Avoidance (Public Servants)

Debate between Baroness McIntosh of Pickering and Danny Alexander

Thursday 2nd February 2012 Commons Chamber

[Danny Alexander]

I am not quite sure how that relates to the question on the Order Paper today. I do not accept that description of what the coalition is doing. We are cleaning up the terrible economic mess that we inherited from Labour, and we are doing so in a way that is fair and that asks those with broader shoulders to bear the greater share of the burden. Frankly, if the hon. Gentleman’s party had not made such a mess, the country would not be in this position.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Will the Chief Secretary to the Treasury extend his review to cover the culture of bonus payments that has built up? Is he aware, for example, that the chief executive officer of the Rural Payments Agency is being paid a bonus for the work that he did while presiding over the Child Support Agency? Will my right hon. Friend root out this culture of bonus payments for poor performance, when they are simply not warranted?

[Danny Alexander]

My hon. Friend has raised an important point, although it will not necessarily fall within the scope of the review, which will look at the specific arrangements that we are discussing. However, we have substantially reduced the bonus payments to many individuals and the total amounts available in Departments’ bonus pools. That is the right approach. Of course, we also need to ensure that good performance is properly recognised at all levels in the public sector, and that is what the arrangements that we have in place do.

Oral Answers to Questions

Debate between Baroness McIntosh of Pickering and Danny Alexander

Tuesday 21st December 2010 Commons Chamber

[Danny Alexander]

I do not accept that analysis. For the sake of completeness, the hon. Lady should recognise that the Government are cleaning up a mess left by the previous Government. If she is interested in the impact on women, she should consider the pay freeze that we have imposed in the public sector, which will protect jobs, and women’s jobs in particular. It is also of benefit to women that we are allowing pay rises for people earning less than £21,000, a disproportionate number of whom are female. For the sake of completeness, she should consider those facts.

[Miss Anne McIntosh (Thirsk and Malton) (Con)]

Will the Chief Secretary join me in explaining to the hon. Member for Slough (Fiona Mactaggart) that the Government’s policies will reduce inequalities between men and women, particularly given our more flexible approach for part-time workers? Will he reduce other inequalities, such as in spending in rural and urban areas, and ensure that the balance is restored in favour of rural constituencies, such as his and mine?

[Danny Alexander]

The hon. Lady has made some important points. Throughout this process we will have regard to the impact that spending decisions have on different groups, including people who live in rural areas, and in particular the most disadvantaged. Our investment in early years education and the pupil premium are important to ensure that the most disadvantaged have the better life chances that we all want them to have.