Surplus Target and Corporation Tax

Debate between Baroness Ritchie of Downpatrick and George Osborne

Monday 4th July 2016 Commons Chamber

[Mr Osborne]

The Prime Minister’s position—which I share, and which I think is sensible for the country—is that we should trigger article 50 when we are clear, collectively, about the new model of the relationship that we want with our European allies, so that we are well prepared for the negotiations on which we would then embark.

[Ms Margaret Ritchie (South Down) (SDLP)]

The Government have already approved a power for the Northern Ireland Executive to reduce corporation tax. In that context, does the Chancellor accept that the decision to cut corporation tax in Britain to 15% raises issues of attractiveness and competitiveness for the Northern Ireland rate when it comes to foreign direct investment?

[Mr Osborne]

As the hon. Lady knows, we still have to work out the fiscal underpinning of these arrangements, but they allow the Northern Ireland Executive to set any rate that they want. The good news about the reduction in the UK rate is that it applies to businesses throughout Northern Ireland as well, and, to put it, bluntly, makes it cheaper for the Northern Ireland Executive to reduce their corporation tax rate.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 1st March 2016 Commons Chamber

[Mr Osborne]

We will of course monitor the impact of all our policies on the economy and on particular sectors. That is one of the reasons why, alongside introducing the national living wage, we have introduced the new council tax supplement for the social care sector. The Office for Budget Responsibility analysis when we announced the national living wage was that, while in theory 60,000 jobs could be lost in the future that might otherwise have been created, the other policies we were pursuing would see over 1 million new jobs created, so the overall effect is an increase in employment of over 1 million.

[Ms Margaret Ritchie (South Down) (SDLP)]

How can the Treasury ensure that employers do not reduce the hours of work of their employees, many of whom are in receipt of low incomes?

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 19th January 2016 Commons Chamber

[Mr Osborne]

We have a deal, because that is exactly what we are doing with the west midlands. We have worked with different political parties: I have met both Labour and Conservative authority leaders and Members of Parliament in the region, and we have collectively agreed to have an elected Mayor and to hand significant powers from this place and the Government to the people of the west midlands. I think that that is one of the most exciting steps that have been taken in the devolution of power in this country.

[Ms Margaret Ritchie (South Down) (SDLP)]

What further discussions have taken place with the devolved Administrations about the introduction of fiscal incentives to pump-prime apprenticeships and economic growth?

[Mr Osborne]

We are in discussions with the Northern Ireland Executive about what we can do to support the economy, and it is great news that we are now moving forward with the additional resources for capital investment there. Of course, one of the things that we would really like to see is the devolution of corporation tax rates, for which we have legislated, and provided that we can reach agreement on the budget implications of that measure, it would provide a massive boost for Northern Irish businesses.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 1st December 2015 Commons Chamber

[Mr Osborne]

The OBR has made its assessment, but what it shows is that productivity growth picks up through this Parliament. The hon. Gentleman and I have had many discussions about this, and I think we are actually in agreement that productivity is a long-term challenge for the UK and has been a challenge for many decades. We are trying to solve that by measures like the apprenticeship levy which will be one of those so-called taxes he describes. It is not a tax in that people get their money back if they have enough apprentices, so it is a levy, and it is the kind of thing we need to try to deal with the productivity challenges in the UK.

[Ms Margaret Ritchie (South Down) (SDLP)]

As part of his look at fiscal steps to support businesses, will the Chancellor give favourable consideration to the extension of the rural fuel rebate scheme to regions that have not already been considered?

[Mr Osborne]

I am very happy to give consideration to that. We are operating within the maximum flexibility that we believe the European Union rules allows us on this. Any postcode that possibly qualified we put forward for the scheme we introduced in the last Parliament, but I am happy to look at specific cases in Northern Ireland to see if they qualify, too.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 27th January 2015 Commons Chamber

[Mr Osborne]

Small business start-ups have been central to job creation. We have helped them with the employment allowance and the enterprise investment scheme, and we have given the new enterprise allowance to young unemployed people to help them to start businesses—and that has been a great success. We have in place many initiatives to back our brilliant small businesses in Norfolk and across the country.

[Ms Margaret Ritchie (South Down) (SDLP)]

Considering the economic modelling carried out by one of the Treasury’s own economists, Professor Blake, what further progress has been made on reducing VAT on tourism, which would benefit all regions and particularly coastal regions in the UK?

Autumn Statement

Debate between Baroness Ritchie of Downpatrick and George Osborne

Wednesday 3rd December 2014 Commons Chamber

[Mr Osborne]

The shadow Chancellor and the Labour party want to increase corporation tax. That is their stated policy on the legislation this House has passed. They make it pretty clear that they would increase national insurance if they ever came to office. That would be devastating for the small businesses of Enfield, and indeed of the whole country. We know what happens when there is a Labour Government. We know the impact on businesses: the high unemployment and the business closures they would create, because that is exactly what happened five years ago.

[Ms Margaret Ritchie (South Down) (SDLP)]

I welcome the commitment to the devolution of corporation tax to Northern Ireland, but there remains uncertainty on the cost to the block grant. Will the Chancellor outline the possible cost to the block grant over an estimated period, and will he outline the timeline for devolution, predicated on the outcome of cross-party talks?

[Mr Osborne]

The costs of Northern Ireland reducing, for example, corporation tax rates to the level seen in the Irish Republic have been set out and are the subject of discussions that we have had over the past year with the Northern Ireland Executive. We need to be sure—this is about the taxpayers across the whole of the UK—that if we go ahead with this step, which we are very well disposed towards, the Northern Ireland Executive will be able to manage the pressure on their resources. That will be one of the topics for discussion in the cross-party talks. If the cross-party talks are successful we could, as I said in the statement, introduce legislation in this Parliament.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 24th June 2014 Commons Chamber

[Mr Osborne]

We had a fantastic meeting with McDonald’s employees, at which my hon. Friend was present, and it was heartening to hear about their confidence in their economic future. It is remarkable that we have had an hour of Treasury questions, during which we have discussed youth unemployment, and there were Department for Work and Pensions questions yesterday, but not a single Labour MP has mentioned the welfare plan that their leader published last week. That shows why the Labour economic policy lacks credibility even with Labour MPs and why the Labour leadership is in crisis.

[Ms Margaret Ritchie (South Down) (SDLP)]

Unemployment is bringing despair to a generation of young people in Northern Ireland, where nearly one in four young people are unemployed and have to seek their prospects elsewhere. Has the Chancellor had any discussions with the Secretary of State for Northern Ireland? If so, what plans are in place to address this particular issue, as youth unemployment poses a risk to peace and the political process?

[Mr Osborne]

I certainly have regular discussions with the Secretary of State for Northern Ireland, who is very focused on Northern Ireland’s economic development. Of course, I also meet the Northern Ireland Executive. We have plans to increase investment through the enterprise zone, and I commend the work of people across Northern Ireland to bring new businesses to Northern Ireland. We have more work to do on fixing the banking system in Northern Ireland, which remains impaired by what happened a couple of years ago, but I assure the hon. Lady that we will work together to deliver an economic recovery of real strength in Northern Ireland.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 28th January 2014 Commons Chamber

[Mr Osborne]

I will make sure that the specific issue is looked at and that the right hon. Gentleman can meet my hon. Friend the Exchequer Secretary, who handles such tax and VAT issues.

[Ms Margaret Ritchie (South Down) (SDLP)]

There is evidence that Ulster bank deliberately bankrupted some viable businesses to make more profit, according to one of the Government’s key advisers, Lawrence Tomlinson. What is the Chancellor going to do about this to protect the small businesses affected by Ulster bank and by RBS?

[Mr Osborne]

The revelations by Tomlinson shocked everyone, and the business practices of RBS, including Ulster bank, are now under the microscope. Of course, these revelations would not have come to light if we had not asked Tomlinson to do his work and had not published the Tomlinson report.

We are particularly aware of the challenge in Northern Ireland, with the weakness of the Northern Ireland banking system—affected by what has happened in the Republic and the fact that RBS is such an important player through Ulster bank—and we are in constant discussion with the Northern Ireland authorities. I know that my hon. Friend the Financial Secretary is talking to the Northern Ireland Executive about precisely what we can do to help to protect the Northern Ireland economy, as RBS implements its bad bank plan.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 5th November 2013 Commons Chamber

[Mr George Osborne]

My hon. Friend is right that there were a lot of predictions from the Opposition Dispatch Box. They said that there would be a decade of lost growth, but the economy is now growing and we have had the fastest growth in the G7 this year. They predicted that 1 million jobs would be lost, but 1.4 million jobs have been created in the private sector and unemployment is down. Above all, they advocated—indeed, they continue to advocate, because it was in the speech that the shadow Chancellor made yesterday—increased borrowing, which would lead to higher taxes and higher interest rates. The biggest threat to the British recovery is sitting right opposite me.

[Ms Margaret Ritchie (South Down) (SDLP)]

What progress has been made on the extension to the fuel duty rebate scheme, which is due for further implementation via a submission to the European Commission?

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 10th September 2013 Commons Chamber

[Mr Osborne]

We have had rate relief for small businesses—I have announced that in previous fiscal statements, and my hon. Friend must wait for further announcements—but we are also helping businesses with the employment allowance. That major change in the tax system means we are taking a third of small businesses out of employer NICs. Four hundred and fifty thousand small businesses will benefit, which I hope is welcomed on both sides of the House.

[Ms Margaret Ritchie (South Down) (SDLP)]

Given the need to underpin local economies, what progress has been made toward reviewing the current approval criteria for a simplified import VAT accounting scheme? That would enable new businesses, but particularly import businesses, to be underpinned.

[Mr Osborne]

I will write to the hon. Lady on her specific point, to which I do not currently have an answer. However, more broadly, the Government are open to ways in which to make the VAT system and the business tax system simpler. We have created the Office of Tax Simplification, which has specifically looked at the burden on small businesses. I will take what she says as a submission.

Oral Answers to Questions

Debate between Baroness Ritchie of Downpatrick and George Osborne

Tuesday 25th June 2013 Commons Chamber

[Mr Osborne]

About 20,000 firms have been helped—[Interruption.] Well, 20,000 firms have been helped, small business creation is at the highest level since the 1980s and there are over 1 million new jobs in the private sector. And we will bring before Parliament new legislation to make sure that the first few thousand pounds of their national insurance bill is completely wiped out—they will not have to pay it at all. That is a real success story, and if the Opposition want to vote against it, they can be my guest.

[Ms Margaret Ritchie (South Down) (SDLP)]

Finance and credit are the lifeblood of small businesses. The Government have been pumping money into the banking sector, so what is the Chancellor doing to ensure that that money goes to small businesses rather than to repair bank balance sheets?

[Mr Osborne]

Of course, as we discussed earlier, the capital position of the banks is important, but the funding for lending scheme is now focused on small business lending. I know that there is a particular issue with the very tough situation that the banking sector faces in Northern Ireland and the problems from the Irish Republic that have spilled over into Northern Ireland. One thing we are doing with the Royal Bank of Scotland is looking specifically at Ulster and the issues surrounding some of the bad loans made in the past, and at how we can help that bank to make good loans in the future to help the businesses of Northern Ireland. We are specifically supporting the Northern Irish economy and we are aware of its problems.

Banking

Debate between Baroness Ritchie of Downpatrick and George Osborne

Wednesday 9th February 2011 Commons Chamber

[Mr Osborne]

No, instead I learned from the example of all the things that went wrong when the shadow Chancellor was City Minister. As one does on these occasions, I came into the Chamber armed with many of his quotes about what a golden legacy he was leaving in the City, how bonuses were at the appropriate level, and how he was going to resist all calls in Parliament to toughen up regulation. It would take a couple of hours to read them all out, but no doubt over the next few years we will have plenty of opportunities to remind him that he is a man with a past.

[Ms Margaret Ritchie (South Down) (SDLP)]

I understand that the business growth fund will have a network of regional offices throughout the UK. Will there be such an office in Northern Ireland to work with the banking sector, the business community and the Northern Ireland Executive?

[Mr Osborne]

Yes, I will ensure that there will be a presence in Northern Ireland. We are seeking to ensure that there is co-ordination between the business growth fund and the Government’s regional fund. As I have said on many occasions to Members from Northern Ireland, we are acutely aware of the challenges in Northern Ireland. The Secretary of State for Northern Ireland has produced a paper on how we might revive the Northern Ireland economy, which is now with the devolved Government. I am taking a close personal interest in that and I hope shortly to come forward, with my right hon. Friend, with some concrete proposals.

Financial Assistance (Ireland)

Debate between Baroness Ritchie of Downpatrick and George Osborne

Monday 22nd November 2010 Commons Chamber

[Mr Osborne]

As I said in reply to earlier questions, we entered into certain commitments about the mechanism that I did not support at the time; I have made that clear. I was an opponent of the Lisbon treaty, as were many hon. Members. However, I have to deal with the world as I find it today, and that is a world in which Ireland’s economic situation is unsustainable. One of the reasons for choosing to offer a bilateral loan is precisely so that this Parliament, including my hon. Friend, can have a view and a vote on it, and we can account for that to our constituents.

[Ms Margaret Ritchie (South Down) (SDLP)]

I thank the Chancellor for his statement and the proposed assistance. Will the Treasury carry out an in-depth study of the economic impact of Ireland’s assistance settlement on the regions of the UK, particularly the devolved regions? Will the Treasury be prepared to intervene where any region may be affected negatively, such as Northern Ireland, where there is a connection in the banking sector and where two of the banks are Irish-owned?

[Mr Osborne]

We are taking this action precisely because, in part, we recognise the specific economic connections between Northern Ireland and southern Ireland. I would be very happy for the Treasury to work with the Northern Ireland Executive on looking at the potential economic impact of what is happening in Ireland. Obviously, the intention is to bring some stability to the Irish economy, and then some growth, which would be in the interests of not only the people of the Republic but the citizens of the United Kingdom.