(1 year, 1 month ago)
Commons ChamberIt is always a pleasure to follow the right hon. Member for East Ham (Sir Stephen Timms). I had the pleasure of serving on the Select Committee he chairs and I listened very carefully to the points he made. Like him, I intend to focus on the elements supporting people to work and back into work. Before I do so, let me say how much I welcome today’s statement. The measures will have a huge impact on people across the nation and, of course, in my constituency. To draw out one thing which for me is a huge headline, making full expensing permanent is a real game changer for businesses, giving them certainty in investment.
What I see as the social contract is our striving for equality of opportunity, knocking down the barriers to people’s getting on in life and in employment, while also providing support so that if things do not work out for people—they become ill—there is a safety net to catch them and help them through. That is really important. One common reason people drop out of employment is illness and disability.
Following becoming unwell, one of the most important outcomes in someone’s treatment pathway is getting them back into work. Why is that? Because work gives agency. Work provides opportunity. Work is hope. All of us need stable employment—a statement that colleagues will perhaps be mindful of, a year from a general election. Work gives people a reason to get up in the morning. It provides a structure to the day. It provides opportunity and the aspiration to invest in one’s self and to invest in society, and to continue as a citizen in our communities. Work is a core good. It is absolutely right that we do everything we can to support people back into work, to support people into work for the first time, and to help people who are struggling in work to ensure that they stay in employment. Several measures we have heard today are absolutely critical in that offering to people from the state.
The first measure, mentioned a moment ago by the right hon. Member for East Ham, is individual placement support. This is an incredibly good package. There is now a huge evidence base behind it supporting people into work, but, critically, retaining employment, which often is the real challenge. It is about not just getting a job but being able to sustain employment and ensuring it works out. I have been calling for it for years. Years ago, before I was an MP, I learned about the benefits of IPS and what an important package it is to support people in employment. In my constituency, we have a branch of Richmond Fellowship. The team, based in Chertsey, do fantastic work. They have spoken to me about the importance of IPS and what it will deliver to help people back into work and to continue in work.
The second measure is the expansion of broad support packages. I am particularly interested in the reform of the fit note system to try to get better pathways between health and social care, integrated care systems and the Department for Work and Pensions. We still have very siloed institutions and anything that will help them all work together, because it is a full package that works holistically, will lead to improvement.
The social contract I referred to is also about fairness. It remains the case that there are people—a small minority—who can work but decide not to. All things being equal, they can get into work and sustain a job but choose not to. It is not fair to ask our taxpayers to pay taxes, which they cannot refuse to pay, to subsidise someone’s decision to exit the employment market. What is fair is for us to say, “Hey—we will do everything we can to support you into work. We will provide packages to help you when illness happens, either because you cannot work because the illness is so severe, or”—and this is the primary focus—“to make sure that you can get back into work and you can get better, and that is part of your recovery plan for the future. But if you do not want to be part of that and you can be, it is not fair to ask other people to subsidise your lifestyle choice.”
I support, 100%, reforms that are fair not only to people who are receiving benefits and who are living with complex illness, but to our society as a whole.
(1 year, 7 months ago)
Commons ChamberYet again, in the face of the serious challenges that we and many other nations face, Labour chooses to play politics. The pressure on households is real, but does the Labour party really believe that economic issues are defined by national borders? For example, UK food inflation in March was 19.1%. The EU average at the time was slightly higher, at 19.2%. Several EU countries face much higher inflation, including food price inflation of up to 44.8%. The International Monetary Fund shows that the UK inflation rate is the same as Sweden’s, and only slightly higher than Germany’s.
Do the Opposition really believe that this is solely a national issue? They seem to forget that we have had a pandemic, war in Europe and a resulting energy crisis. Our Conservative Government did not cause any of those, but they did respond, not by playing politics or by pointing fingers, but by delivering for people and protecting households. When people needed help, we provided covid support to households and businesses, the largest increase in benefits and the state pension for 32 years, direct support with energy bills for every household, and direct cash payments of at least £900 to the most vulnerable households. We lowered the universal credit taper rate, increased the minimum wage and froze fuel duty, and we are now investing in more affordable childcare so that parents can return to work knowing that their children are getting a great start in life, too. But unlike Labour, we do not simply spend with no plan for tomorrow: we work to rebalance our economy after each shock. That is why we have a plan to halve inflation, grow the economy and reduce debt. We are supporting research and development and promoting the UK as the future for life science and STEM industries. We are leading on green energy and carbon capture, and delivering new jobs and investment through freeports and investment zones.
Not only are we helping nationally, but well-run local authorities such as Runnymede Borough Council are delivering excellent services and administering direct financial support while maintaining low council tax. I am pleased by the timing of this debate, as it highlights what is at stake in the upcoming elections. If people want good governance and support locally, tackling the challenge of inflation, they need to vote Conservative on 4 May. The Conservatives have a clear economic plan; Labour only has a soundbite.
(2 years, 2 months ago)
Commons ChamberWe have listened to her concerns and we have changed our policies as a result. Also, in fairness, the rise in interest rates is not just because of actions taken by the UK Government in the past few weeks but because of global factors, and we will do everything we can going forward to shield people like the hon. Lady’s constituent from those global factors, but we cannot do everything.
I thank my right hon. Friend for his statement today. It is absolutely right that the Government should prioritise economic stability above all else and accordingly make some necessary but difficult decisions given the challenging circumstances. Can he confirm that pursuing a high-growth economy remains central to the vision and will he continue to pursue policies of reducing the tax burden as circumstances and the economy allow?
I am happy to confirm both those points to my hon. Friend.
(2 years, 2 months ago)
Commons ChamberWe are absolutely committed to fairness and to helping the most vulnerable in our society—we are always committed to that—and I will not prejudge or anticipate measures in the medium-term fiscal plan this afternoon.
Will my right hon. Friend confirm that the cuts to national insurance will help not only working households, but businesses and the public sector, such as schools?
My hon. Friend and constituency neighbour is absolutely right. The reversal of the planned increase in national insurance will help businesses, individuals and the institutions to which he refers.
(2 years, 3 months ago)
Commons ChamberWe are always looking at ways in which we can encourage people who are helping the most vulnerable in society to do what is a critically important job. We are always looking at how we can improve that.
What has been announced today is more than just a fiscal event; it is a vote of confidence in Britain—a statement to the country that we can grow, we can aspire and we can achieve. Rather than wilt in the face of our challenges, we can and we will flourish. Does my right hon. Friend agree?
My hon. Friend is absolutely right. We have a dynamic population of highly skilled people. Our job in Government is to empower people to grow, to achieve and to thrive in the ways he suggests.
(3 years, 7 months ago)
Commons ChamberThere are so many aspects of the legislative agenda set out in the Gracious Speech that I would like to speak to, but underpinning all of them is the need for a strong economy and investment in the jobs and skills that are its foundation. In the past year, I have seen businesses close and people lose their jobs as a result of the pandemic, and our priority is rightly to get people back into work. We have supported people with furlough and a range of other schemes including universal credit, but furlough must come to an end, and in-work benefits such as universal credit rely on a buoyant job market where everyone has the opportunity to get a job.
Even before the pandemic, automation and technological advances showed that it was difficult to predict the future of work, so our workforce needs to be nimble. I welcome the Government’s commitment to prioritise education and access to skills and training. Enshrining the lifetime skills guarantee in law will ensure that education does not stop at school, so that everyone has the opportunity to achieve their potential, not only improving lives but creating a skilled and flexible workforce that attracts business and drives continued growth and prosperity.
I shall digress for a moment and turn to health, which, as Members know, is an area close to my heart. I remind the House of my previous employment as a doctor and of my wife’s current employment as a doctor. Our proposals rightly drive forward the reforms we need in the NHS and in mental health care, but I say again that there are few interventions better than getting someone into work to improve their physical and mental wellbeing. It is through jobs and a thriving economy that we create the funds to invest in our public services, to fund the ongoing improvements in St Peter’s Hospital, to rebuild the Weybridge health centre, to train up more nurses and doctors and to invest in the science and research that drive medical advances.
Turning to science and research, next week I will get my covid vaccine. Surely we need no better example of the critical and central role science plays in our society than the covid vaccination programme. Science and innovation drive progress, and it is through our commitment to supporting and investing in research and development that we provide jobs and opportunities for the future. This allows us to tackle the great challenges of our day such as climate change, where our commitment to innovation is driving efforts to develop new biofuels supporting jet zero. This is not only directly attracting investment in jobs in R&D itself but supporting sustainable aviation, which many jobs and businesses in Runnymede and Weybridge rely on.
In fact, my constituency of Runnymede and Weybridge is a great example of the opportunities available when we combine great people, great business and great infrastructure, but the vision set out by the Government improves even on this. Our investment in infrastructure, both digital and physical, will create better connectivity and the conditions for growth, and I look forward to the roll-out of ultrafast broadband, as well as to improvements to our road and rail networks. That will support our SMEs, providing local employment that will in turn increase footfall to local high streets, creating even more jobs and strengthening our vibrant and close-knit communities.
(4 years, 2 months ago)
Commons ChamberThe hon. Lady is right to highlight the particular importance of good-quality childcare, which, as she said, enables mums to be able to protect their employment. I am happy to look at the specific suggestion that she mentioned, but I think that we have recently made—in the previous Budget and before—some changes to the operation of tax-free childcare, so that it is more available to more people. She is right that the take-up has not been what was forecast, which is why we put the changes in place to broaden the approach and broaden the eligibility for it, but I am happy to look at her specific suggestion.
I thank my right hon. Friend for the provisions announced today, which I very much welcome. My constituency is partly in tier 1 and partly in tier 2, and I especially welcome the support for tier 2 areas, but also across the board into tier 1. Many constituents who work in the wedding and events sector, or across its supply chains, have contacted me with difficulties due to restrictions, uncertainty and a drop in trade. Can my right hon. Friend confirm that today’s announcement will also support the events sector and, crucially, those working across its supply chain?
It is precisely because we took a generous and universal approach to eligibility for the job support scheme, with its new generosity, that supply chains of all affected industries will be able to benefit. There were some calls that it should only be targeted at those in tier 2 areas, or, for example, only those in hospitality. We have taken the decision to ensure that the new job support scheme, with its new generosity, is available to all employers and all employees wherever they are in the UK. I think that will be of benefit to the industries and businesses that my hon. Friend mentioned.
(4 years, 2 months ago)
Commons ChamberAs I said earlier, the Government really take seriously the outcomes for those with disabilities. There is a lot of work happening across Government, across very many Departments. We are not leaving anyone behind; we are making sure that support is available, not just at national level through support schemes, but through local authorities and through the Department for Work and Pensions locally. If the hon. Lady wants more information, I am sure that this is something I can write to her about. I do not have the full information to hand, but I know that there is a lot of work going on across Government.
I thank my hon. Friend and welcome this incredibly important ongoing work. Does she agree with me about the importance of using science to determine individual risk as a way to help people make informed decisions about their lives and their work?
Yes, absolutely; it has to be evidence-led. Everything that we are doing in the Equality Hub is evidence-led. We have a real focus on data, to ensure that we base our decisions on what is actually happening and do not take them for reasons of politics or other things that are not science-based. I completely agree with my hon. Friend; I do not think there was anything to disagree with in what he said.
(4 years, 5 months ago)
Commons ChamberIt is a pleasure to follow my hon. Friend the Member for Bracknell (James Sunderland).
I am delighted that the Government are bringing forward changes to cut stamp duty, to scrap it entirely on homes under £500,000 and to raise the threshold at which it applies. I have spoken to estate agents in Runnymede and Weybridge and they are concerned for the next 12 months. A cut in stamp duty will help people to buy their own home and support the housing sector.
But any intervention in the housing market is difficult. The housing market is already highly distorted and the broader measures we need to fix it are not easy, given the relatively inelastic supply of housing and the fact that the market is in fact several markets, formed of those who buy to live in their own home, those who buy as an investment and those who buy to let or as a business. And of course people often want to buy for several of those reasons and then need to change.
Chewing over how to fix the housing market more broadly is beyond the scope of this debate, but for any market to function effectively it must be free from substantial barriers to transactions. Given the costs involved in buying a house, any stamp duty that is calculated as a percentage of sale price will lead to large duties owed and transactional disincentives. The measures we are debating today will increase the turnover of house sales and improve mobility, supporting people who want to downsize and freeing up houses for young families, enabling more people to own their own home. This will support all the industries linked to housing and create and support jobs. I am perplexed to hear Opposition Members say that they believe that generating economic activity will not support and create jobs. I would love to hear the conversations they have with the lawyers and conveyancers when they say that more houses being bought and sold will not lead to more work and will not lead to more people wanting to refurbish their bathroom or whatever.
This Government have put in place a world-leading package of measures in response to coronavirus and while I welcome these bold changes I ask Ministers whether we can be just a little more bold, and not just cut stamp duty, but scrap it entirely. Stamp duty puts the brakes on the turnover of house ownership. It prevents mobility and, perversely, locks capital into housing as a result, with the arbitrary thresholds for different rates providing further market distortions. How can we aspire to home ownership while at the same time taxing those merely for buying? Taxes are often used to disincentivise behaviour—the tax on tobacco and the introduction of a sugar tax, for example—but the housing market is the only example I can think of where a tax is applied to behaviour, such as buying a house, that the Government want to support people to do. Indeed they have put in other incentives to enable people to buy a house, such as Help to Buy and shared ownership. Across Runnymede and Weybridge people have shown me that, while covid has posed challenges, it has also demonstrated opportunities for change and improvement. So I thank the Chancellor for these changes, but ask him to go even further and stamp out stamp duty entirely for home ownership.
(4 years, 6 months ago)
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We are of course looking closely at other countries to see if they are doing things from which we can learn and benefit. I would have some doubts about a scheme that went on as long as that precisely because we need to return businesses and people working in them to normality as swiftly and safely as we possibly can. This might have the effect of counteracting that, but the point is well made and we will continue to review these alternative arrangements.
Many of my constituents, such as those working in the creative industries, navigate between self-employment and PAYE—working, yet not qualifying for either scheme. Given that we are extending our support schemes, will the Minister look into how we can support those who, due to nimble working practices as part of a flexible workforce, miss out on both schemes?
I recognise that there are some people in that situation, and it is very unfortunate that they may not be able to qualify for either scheme. To be clear, that would mean that they could not have been on a PAYE scheme within the past three years, as described by the rules, or indeed qualify under the self-employment scheme for other reasons. However, we take the point that my hon. Friend makes. We have discussed this in detail and I have explained to the House, again in some detail, why it is hard to reach those people, but we continue to look at that very closely.