The Economy
Chris Green Excerpts(5 years, 1 month ago)
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Chris Green (Bolton West) (Con)
It is always a pleasure to follow my neighbour, the hon. Member for Makerfield (Yvonne Fovargue). What she says about debt and the issues around debt needs to be addressed.
On this final day of debate on the Queen’s Speech, it is right that we focus on the economy, which underlies and funds all the vital public services on which we depend. Without a strong economy, we would not be able to invest in law and order to recruit 20,000 extra police officers. I agree with the Prime Minister’s focus on reforming sentencing, and we also need the 10,000 additional prison places. That is a key part of what we can do with a stronger, more robust economy.
There is more money for education, with £14 billion to level up standards and to level up investment in education right across the country.
A stronger economy delivers for our local communities, too. The Mayor of Greater Manchester created the town centre challenge fund a couple of years ago, and I wanted Atherton in my constituency to receive money to improve our town centre. Unfortunately, Wigan Council, which has been running the show so badly for such a long time, said that Atherton town centre needs so much more work than the fund can afford that it had decided not even to put Atherton forward for the funding. The contrast between the leadership of Wigan Council and the leadership of Bolton Council is profound.
I am pleased the Government are championing the cause of our towns. For so many years, we have heard about the north-south divide, and we are increasingly hearing about the divide between our cities and our towns. I am pleased the Government are supporting Bolton with £25 million from the stronger towns fund, which is incredibly important. The future high streets fund is also investing up to £150,000 in the town centres of Bolton and Farnworth. Such rebalancing between our cities and towns is important.
The leadership of Bolton Council is looking after the smaller towns and villages in the Borough of Bolton, as well as looking to secure £1.2 billion of investment in Bolton. As the centre of our borough, it is important that we get investment in Bolton. The council is also investing £4 million each in four of our smaller towns and local centres to make sure our local towns get the investment they need. It is about rebalancing the north and south and rebalancing our cities and towns, but it also about rebalancing between the larger towns and smaller towns in boroughs such as Bolton.
I am pleased the Government have a strong focus on health, which is incredibly important. I am particularly pleased to see the investment to create a medical training college in Bolton. Bolton College, Bolton University, the local clinical commissioning group and Bolton Council have a vision for investment in health, which is so important to the country.
Oral Answers to Questions
Chris Green Excerpts(5 years, 9 months ago)
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Mr Hammond
No, we are committing additional funding to innovation and to research and development—the Faraday battery challenge is a good example—and lots of that money is going into the technologies that will underpin the decarbonisation of our economy. However, we have to get the balance right. Consumers of energy in this country do not want to see their bills rising because we have made imprudent decisions. We have to do this in a way that takes public opinion with us as we decarbonise our energy sector, our homes and our industry in a sustainable way.
Chris Green (Bolton West) (Con)
Oral Answers to Questions
Chris Green Excerpts(5 years, 10 months ago)
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Mr Speaker
If the hon. Member for Bolton West (Chris Green) wishes to shoehorn his inquiry into the question of which we are treating now, it is a very neat fit.
Chris Green (Bolton West) (Con)
Taxation of Low-income Families
Chris Green Excerpts(5 years, 11 months ago)
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Chris Green (Bolton West) (Con)
It is a pleasure to serve under your chairmanship, Sir David. It is a pleasure to follow my hon. Friend the Member for St Austell and Newquay (Steve Double), who highlighted something of immense importance: the ability of a family member to be able to care, not only for children, but for elderly relatives and other members of the family who need that support. It is so important that the state and society recognise the importance of carers. We have to enable them to care without being under too much pressure, financial or otherwise.
I welcome this debate, introduced by my hon. Friend the Member for Stafford (Jeremy Lefroy), on the taxation of low-income families. I am delighted that the strengthening families manifesto has been published today. I believe that the family is the building block of society—the foundation on which society rests. Family is the source of our health, wealth and happiness. That may be contrary to what many people believe about Conservatives. People often see Conservatives as hyper-individualistic—it is all about the individual. However, I believe that the foundations of much Conservative philosophy and Conservative values rest on the importance of the family.
It is vital that the Government recognise in their policies that work pays. I will not go into the details, which my hon. Friend the Member for Congleton (Fiona Bruce) went through so effectively, about the impact that the tax system can have on a low-income family, especially someone earning 75% of the average wage—it can be such a disincentive to work. We ought to be looking at the advantages that having a good job and place of work can give to someone as a role model in the family. If we hinder their ability to take those additional hours and to be at work more, we are effectively denying people the opportunity to gain experience at work. They do not feel there is an incentive to work, so they do not get that experience.
That also sends a message to the employer. Employers want to invest in their workforce, to give more skills to the people in their company or organisation. However, if someone is working relatively few hours, there is less return on that investment. If someone can work more hours, they are more likely to secure training provided by that company. If someone has more experience and training, that individual may be able to get a promotion or a better position at work, or may have the opportunity to change companies and find a different position. That is a huge incentive. It has been mentioned that the current tax system crushes that aspiration. It is so important that we change that for this really important sector of society, to give those people an opportunity to aspire and improve themselves. That attitude and those values will then permeate through the family and the wider community.
The manifesto published today provides a huge opportunity for the Government to change their policy. With their ideas of making work pay and supporting families, the Government are sympathetic to that. I recognise the current economic challenge, with many demands on Government time and money, but given the return on this investment—the improvement in society—it is worth changing the taper and improving it for those low-income families.
Jeremy Lefroy
My hon. Friend makes an important point about the money. These things do not come without a certain loss of revenue. Does he agree that one area to look at—it is interesting that the Centre for Policy Studies suggests that we look at this—is the higher-rate tax relief on pensions. As Members of Parliament we all declare an interest, because we are all taxed at the higher rate and all have pension contributions. That is given to people who already benefit from the 20% allowance and then there is another 20% on top of that. Although some restrictions have been introduced in recent years, that is an enormous cost to the Exchequer, to the benefit of people earning double or triple the national average wage.
Chris Green
My hon. Friend makes a superb point. It is a significant problem that apparent inconsistencies in the tax system give people who are already doing pretty well a further advantage, yet poorer people not do not receive that advantage. Looking more broadly at society, a few years ago there were riots in London and other cities around the country, and we are currently concerned about rising crime and the people causing those problems. We also have to look at how we can strengthen families, because I think that a certain societal cohesion comes from a strong family. That has so many other impacts across society. We may not immediately see income return, but in a stronger, healthier society the returns will be immense, not only for society, but for the Exchequer.
Fiona Bruce
Before my hon. Friend closes, I want to put on the record my appreciation for what he has done. He was one of the hon. Members who took part in the inquiry, which produced this report. Very modestly, he has not made reference to that, but I thank him for his work.
Chris Green
I thank my hon. Friend for raising that. Behind the scenes in Parliament there is so much good work going on, much of which is cross-party, with different colleagues bringing different perspectives. During these difficult times in Parliament, it would be positive for people to reflect on the important work that goes on behind the scenes, influencing decision makers, much of which is on a cross-party basis.
Andrew Selous (South West Bedfordshire) (Con)
It is a pleasure to speak in this debate under your chairmanship, Sir David. I pay tribute to my hon. Friend the Member for Stafford (Jeremy Lefroy) for opening it so well, to my hon. Friend the Member for Congleton (Fiona Bruce), who did so much to launch the report that we are considering today, and to my hon. Friend the Member for Bolton West (Chris Green), who was also part of that important work.
I will start by giving credit where credit is due, because it is always important to do that; it is both the polite and the correct thing to do. I therefore say to the Minister, who is a friend in these matters, that we need to put on the record our huge gratitude and appreciation for the 3.4 million jobs created under the Conservative-led Government since 2010. That is 3.4 million people who have the security of a monthly pay packet, who can look after their family, put food on the table and clothe their children. It is hugely important that that is recognised.
Consider youth unemployment rates around the world. I understand that in Greece youth unemployment is at 57%, and it is far higher in France and many other parts of the world. Our youth unemployment rate is a fantastic achievement. There has been a British jobs miracle since 2010 and we need to be hugely appreciative of it and not take it for granted. It has taken a lot of hard work and focus to create the environment in which businesses can flourish.
Universal credit has also been good, in getting rid of the pernicious effect of the old 16-hour rule. My hon. Friend the Member for St Austell and Newquay (Steve Double) talked about when he was an employer and he gave us the example of employees who did not want to work more than 16 hours a week, as it was not worth their while because they would be so penalised by the 16-hour rule. Universal credit has swept that away. Now, for every extra hour that people work, at least they get something more. Lastly, the increase in the personal allowance has been enormously welcome to the group of people we are talking about.
Many of us—certainly among Government Members, but I think across Parliament—understand the damage that high marginal rates of tax do in discouraging enterprise. Entrepreneurs do not have to set up businesses. It has to be worth their while to do so and if the odds are stacked against them, with regard to the returns they will make, they will not start up businesses. This Government understand that well, and because they do we have created this fantastic environment for businesses, which has created those 3.4 million jobs that I just mentioned. All credit is due to the Government for understanding that.
However, I say to the Minister that businesses do not just exist for their own right and for their own benefit; they exist to benefit society and to benefit their employees. Humans are not resources; they are the point of it all. Businesses are there to benefit their employees, and if we are trapping people in low-paid work, so that they cannot progress in the way that many of us here in Westminster Hall have been able to progress throughout our careers, that should be of acute concern to our friends in the Treasury. I am sure that point is not lost on the Minister.
I reiterate the point that, sadly, the United Kingdom is an outlier in this respect, because the marginal tax rate for a one-earner couple with two children on 75% of the average wage is 73%, which is more than twice the EU average of 22%. No other OECD country treats low-income working families as badly as the United Kingdom does, with regard to effective marginal tax rates and work incentives.
It is really important to put on the record that, notwithstanding all the good work that has been done since 2010, this area is unfinished business. I want the Minister to go back to the Treasury and impress on the Chancellor and his fellow Ministers, who I think have an appetite for this work and do get it, the need to say to officials that more work has to be done in this area, so that everyone can benefit from the fruits of their hard work throughout their working life.
The problem of high effective marginal tax rates does not just affect single earners. It affects a million of them, but we know that there are also 600,000 dual earners who are similarly affected and—really importantly— 900,000 single parents as well. So this is a problem for all types of family structure.
We are not calling for the abolition of independent taxation; I do not think that would be the right thing to do. However, I think it would be right to introduce an element of choice, because Government Members certainly believe that choice is a good thing. It gives flexibility, because families have different priorities and different needs at different stages of their lives. As has also been said before, we are in fact extremely judgmental, because the tax system is very prejudicial when only one member of a couple chooses to work and the other member chooses to care for children or frail elderly relatives.
Chris Green
I agree that this sense or understanding of the system being judgmental is a problem. Would it not be far better if the system, rather than judging one way or another way, had a far more neutral position, because that would enable individuals and families to make their own decisions?
Andrew Selous
Yes, I completely agree. I think that it comes back to choice and recognising that families face different challenges at different times of their lives, particularly regarding the needs of children, the frailties of elderly parents and so on. I hope that our social care reforms, which are forthcoming, will go some way towards addressing that situation, but the tax system absolutely has a huge role to play in addressing these important issues, which my hon. Friend quite rightly raises.
Effectively, what we are saying through the tax system is that, despite praising with warm words family members who choose to stay at home if they can make the financial choice to do so—not every family has members who can make that choice, but there are families in which one person makes the sacrifice to stay at home, to be with their children or to look after elderly relatives—we think they are making the wrong choice, because we penalise them for doing so; there is no recognition of what they do.
The Centre for Policy Studies, which was referred to earlier, has made a proposal that we should consider, which is to look at the transfer of unused personal allowances. The Child Poverty Action Group—the report that we are considering today looked across the political spectrum; I have great respect for CPAG—made some suggestions about perhaps increasing child benefit for children under five in lower income families. One way that we might be able to fund that—it is a golden rule with me that if anyone calls for an increase in expenditure, my next question is, “Where is the money coming from?”
European Affairs
Chris Green Excerpts(6 years, 9 months ago)
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Chris Green (Bolton West) (Con)
It is a pleasure to follow the hon. Member for Ellesmere Port and Neston (Justin Madders), who made a really important speech on defending the car industry. I appreciate the ongoing concerns about Vauxhall in his constituency and the impact that that may have on jobs. I also understand that the Astra model is drawing to the end of its life, and the Vauxhall plant in Ellesmere Port needs to gear up for the next model that comes along. We must do all we can to ensure that the British car industry is ready for the next Astra model and for many other firms. The infrastructure that goes into the car industry is so important, and we have made progress in recent years. Just two or three years ago, we became a net exporter of cars for the first time since the ’70s, and that progress was founded on the other qualities of our United Kingdom. That is why Nissan and Toyota are investing in the United Kingdom.
There are many different arguments in the Brexit debate, and I understand why my right hon. Friend the Member for Broxtowe (Anna Soubry) said earlier that the tone of the debate is not what it could and, indeed, should be. A significant part of the reason for that is the interpretation that some people choose to make of other people’s arguments. It is better and healthier for people to make their own case and their own arguments and to enable others to compare those contrasting arguments and see which is best.
People continue to raise a point about the red bus touring the country and swaying the votes of so many people. In the run-up to the referendum, I held numerous events in and around my constituency to listen to people’s concerns, but I did not meet one person from the leave side of the argument who said, “I’ve been convinced to vote to leave the European Union because of the red bus.” People no more switched their view because of that bus than they did because of Labour’s pink bus in 2015. We must be cautious about ascribing motivations to other people.
By and large, I believe that people made their judgment and voted on whether to leave the European Union based on their experiences over the past 40-plus years, whether under a Conservative, Labour or coalition Government. People have seen that the European Union has been failing to reform over that time. We do not have in the European Union a sufficiently responsive organisation that can adapt quickly to the increasingly rapidly changing world we face.
The ability to adapt is key in any dynamic economy. Artificial intelligence, increasing automation and many different things are coming along the line, and if we are able, independently, to make laws and regulations to suit our needs in the United Kingdom, as opposed to having regulations and laws that suit the needs of the European Union, with its different competing interests, we will be in a far better place to face the ever-changing world.
A key part of that is immigration. The contribution by the hon. Member for Lewisham East (Heidi Alexander) was really important and she highlighted her relationship with Austria. Just as we want a close relationship with Austria, Germany, Italy and many other European Union countries, we ought to reflect on what Barbara Castle, the former MP for Blackburn, said many years ago. She suggested that we ought not to put Italians, Germans and the French above Malayans, Australians or Indians, and we ought to be seeking that equality.
There is a certain toxicity to the debate on immigration in the United Kingdom. I loathe that; it is repugnant. I believe that we can have an immigration system post Brexit that objectively looks at the qualities, values, experiences, abilities and talents of those people who we want in the United Kingdom and optimise an immigration policy that works for Britain. The British people will then increasingly see how positive our independence from the European Union can be.
In conclusion, I want to highlight an area that has in the past few months been absolutely fascinating. The Secretary of State for Environment, Food and Rural Affairs has made incredible strides in demonstrating the progress we can make and deliver on in relation to animal welfare post Brexit. I believe the British people did not have confidence in belonging to the European Union, but that with a good negotiation, deal and ongoing relationship, we may have confidence in our ongoing partnership with our European friends post Brexit.
Oral Answers to Questions
Chris Green Excerpts(6 years, 9 months ago)
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Chris Green (Bolton West) (Con)
The Economic Secretary to the Treasury (John Glen)
By helping all places to access the benefits of technological progress and reach their full potential, we can drive growth at national level. Since autumn 2016, the Government have announced an additional £7 billion for science and innovation—an increase of about 20% to total Government R&D spending by 2021.
Chris Green
Does the Minister agree that digital technology enables further devolution away from London of high-tech industries? What are the Government doing to support that?
John Glen
The Government are expanding Tech City’s reach across the UK, creating Tech Nation by investing £21 million over four years to help people grow digital businesses. That includes a large-scale CityVerve smart city demonstrator in Manchester, which demonstrates how the internet of things, technologies and services can improve local services in transport, energy, health and culture.
Oral Answers to Questions
Chris Green Excerpts(6 years, 11 months ago)
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John Howell (Henley) (Con)
Chris Green (Bolton West) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
In 2010, we inherited the largest deficit since the second world war, standing at nearly 10% of GDP. We have successfully reduced it by three quarters, meaning that it stood at 2.3% at the end of last year, but our debt is still too high. High levels of debt leave us vulnerable to economic shocks and incur significant debt interest, which is why the Government have clear and detailed fiscal plans to reduce borrowing further and to ensure that debt falls.
Mr Hammond
Yes, I absolutely agree with my hon. Friend that a policy of increasing borrowing simply means passing the cost of today’s consumption to future generations and wasting more taxpayers’ money on debt interest. Even Labour’s shadow Education spokesperson has acknowledged that this is an ultra high-risk strategy that would be a gamble with our economic future.
Chris Green
Does my right hon. Friend agree that uncontrolled debt is bad for the economy and bad for the young people who have to pay the debt off, and that we should avoid following the model preferred by the Opposition, which has all the qualities of the parliamentary sewage system?
Mr Hammond
Yes, I can agree with my hon. Friend on that. Any party that aspires to government and is serious about properly managing the public finances should be able to explain how it would fund the expenditure it is committing to—and to do so without consulting an iPad.
Taxation: Beer and Pubs
Chris Green Excerpts(7 years, 1 month ago)
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Mike Wood (Dudley South) (Con)
I beg to move,
That this House has considered taxation of the beer and pubs sector.
It is a pleasure to serve under your chairmanship, Mr Owen, for what I think is the first time and particularly for this important debate on taxation of the beer and pubs sector. It takes place just three weeks before crucial decisions are made in next month’s Budget. It was pointed out to me this morning that seven years ago an Adjournment debate on this subject was initiated by my constituency neighbour, my right hon. Friend the Member for South Staffordshire (Gavin Williamson). I only hope that my hon. Friend the Exchequer Secretary to the Treasury is as keen to please the Government Chief Whip as I clearly am in repeating his initiative today.
This debate is taking place on Halloween, and pubs up and down the country are decorated with a wide range of ghouls, monsters, skeletons and witches. However, the scariest prospect for our pubs and brewers is surely that they could face a second duty rise this year after next month’s Budget and enormous rises in business rate bills over this revaluation period. I hope to set out, in the short time available to me, why the Minister should avoid that course of action.
In the UK, 30 million adults drink beer each year and 15 million of us visit the pub each week. Representing the Black country, the spiritual home of British brewing, and as chairman of the all-party parliamentary beer group, the largest Back-Bench group in the House, I know how important this issue is for so many of our constituents.
If the midlands is the engine of the British economy, beer is surely the fuel that helps to power that engine, and like all fuel, it needs to be well looked after. My Dudley South constituency is home to four brewers—Bathams, Black Country Ales, Ma Pardoes and the Pig Iron brewery—and no fewer than 75 pubs. The beer and pub sector is vital to our country. Nearly 1 million people across the UK rely on the industry for work. About 46% of them are young people under the age of 25, and just over half are women.
Chris Green (Bolton West) (Con)
Does my hon. Friend agree that having a healthy pub environment will do two things, namely promote healthy drinking and help to revitalise our high streets?