National Minimum Wage

Lord Hanson of Flint Excerpts

Wednesday 15th January 2014 Commons Chamber

[Rachel Reeves]

I thank my hon. Friend for drawing the attention of the House to the voting record of other Members of Parliament on that night.

Thanks to Labour Members of Parliament and a Labour Government, for the first time in history, in England, Scotland, Wales and Northern Ireland, British workers had a legal floor below which their hourly pay could not fall. Slowly but surely during the following years the rate rose. It was attacked every step of the way by many Government Members and, in 2003, when the Labour Government announced a 16% increase in the minimum wage over two years, the right hon. Member for Twickenham attacked the policy directly, saying that it would set a dangerous precedent.

The result of the minimum wage was to boost the wages of nearly 2 million low- paid workers, two thirds of whom were women. It helped to lift 1 million children out of poverty and every authoritative economic study concluded that it brought no negative employment effects, despite the warnings of Government Members. No wonder that a survey of academic policy experts conducted by the Institute for Government judged the national minimum wage to be the greatest policy success of the past 30 years. It is now a policy supported by the CBI and the TUC, whose nominees work together on the Low Pay Commission. It is seen by the British people as a vital British institution, underpinning basic rights and decency in the way our economy works.

[Mr David Hanson (Delyn) (Lab)]

rose—

[Susan Elan Jones (Clwyd South) (Lab)]

rose—

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[Mr Hanson]

I confess that I was here when we voted for the minimum wage. I did vote for it, having stayed up most of the night, because I was kept up by the Conservative and Liberal Democrat Members who ensured that we did have to support that with our votes.

Does my hon. Friend accept that the additional spending power given to many millions of people, including in my constituency, which was spent locally, helped to boost jobs in retail, on the high street and in locally produced goods?

[Rachel Reeves]

I congratulate my right hon. Friend on his work in helping to put the national minimum wage on to the statute book. He is absolutely right to suggest that one of the contributions to the cost of living crisis that we see today is that the national minimum wage has not kept pace with the increase in prices during the last few years. The introduction of the minimum wage did indeed help to boost the spending power of workers.

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[Vince Cable]

Those countries have had a variety of Governments, both left-wing and right-wing. I was simply making the point that it is possible to have a perfectly viable system without a national minimum wage. I agree with the hon. Gentleman that in practice what is needed is either a strong system of trade union rights or a national minimum wage. We have now all accepted that the national minimum wage is the best system. I think all the minority parties accept that, too.

[Mr Hanson]

I am grateful to the Secretary of State for giving way. Does he accept that enforcement, as well as the fine, is important? Currently, the national minimum wage is enforced only by Her Majesty’s Revenue and Customs. Will he give serious consideration to supporting giving local councils the power, as they now have on trading standards, to enforce the minimum wage locally?

[Vince Cable]

As the right hon. Gentleman says, the primary authority is HMRC, but it works with other agencies to enforce the national minimum wage. There are some important cases where HMRC has worked with local authorities—I think with Blackpool council and others—to enforce it in areas where we have sensed there is a systematic weakness.

Transport Infrastructure (North Wales)

Lord Hanson of Flint Excerpts

Tuesday 26th November 2013 Westminster Hall

[Mr David Hanson (Delyn) (Lab)]

I thank my hon. Friend the Member for Alyn and Deeside (Mark Tami) for introducing this important debate.

My central contention to the Minister is perhaps contrary to what the hon. Member for Arfon (Hywel Williams) said. What happens to transport in England matters to my constituents and to north-east Wales. What happens in England with these projects—for example, the Halton curve, linking north-east Wales to Liverpool, electrification from Crewe to the north Wales coastal railway line, and the potential HS2 project and its Crewe link—matters a lot, and so does the speed with which people can get to north-east Wales. Transport is devolved to the Assembly in many respects, but the Assembly budget is set by the House of Commons, and important issues for improving transport links to my constituency rest partly with Department for Transport Ministers.

My hon. Friend the Member for Alyn and Deeside began his speech by stating the importance of the north Wales economy, which is linked to that of north-west England. As he said, north Wales business is now worth more than £10.4 billion to the economy, with 22% of the Welsh economy and 30% of its manufacturing residing in north Wales. He spoke about Airbus, paper, steel, wind farms and tourism. Only today, a report shows that the north Wales coast path has brought 416,000 visitors to the county of Flintshire, which he and I represent, since it opened. All those businesses and potential economic growth areas rely on an efficient and effective public transport system.

We are inexorably linked to Manchester, Liverpool, Chester and Crewe through the Mersey Dee Alliance. As my hon. Friend said, there is the potential to create 45,000 jobs in the next 20 years, including at the Wirral Waters enterprise zone, so it is the responsibility not only of the Assembly but of the United Kingdom Government and Parliament to help to develop the region’s transport system. We have great potential for business and tourism growth. Only last week I hosted a meeting at Flint town hall of Arriva Trains Wales, Virgin Trains, Flintshire county council and Taith, the local council-sponsored transport network for north Wales, to consider how businesses in the area, and in particular tourism, could grow.

My hon. Friend mentioned the north-east Wales integrated transport taskforce, which produced a report in the summer. I want to focus on the points it made, which the Minister should reflect on, from his perspective as the link between the UK Government and the Assembly. My hon. Friend the Member for Alyn and Deeside highlighted difficulties with public transport times versus car journey times and mentioned Flint, in my constituency. It takes 16 minutes to get from Flint to the industrial areas of Deeside by car, but 43 minutes by bus, with one change. The fact that people’s morning journeys would take so much longer by public transport is a disincentive for them to use it.

However, the taskforce focused on other key areas and made severe criticisms for Government to attend to, saying:

“The rail network does not link places where people live to employment sites effectively and does not offer sufficient service frequencies to allow seamless commuting where it does. Bus networks serve town and city centres reasonably well, but outside of the core network service frequencies are often poor… Marketing of alternatives to the car is poor and ticket arrangements across public transport networks are complex, not joined-up and are often not understood by consumers.”

Crucially—the Minister should reflect on this point—the report said:

“There is evidence that transport networks either side of the border are developed partially in isolation from each other, leading to gaps in service provision and difficulties in seamless cross border journeys.”

The report also made some strong recommendations, in particular on rail:

“The rail modernisation business case should consider how frequencies of service and journey times within North Wales and to/from key destinations in the North West can be improved. We would encourage the provision of new stations”,

which my hon. Friend the Member for Alyn and Deeside mentioned. Another recommendation, which I want to emphasise, states:

“There is also strong support for the delivery of the Halton Curve to enable direct services to…Liverpool from the study area”,

which comprises our constituencies.

We have a unique opportunity in the next few months and years to look at those recommendations. What discussions is the Minister having with colleagues in the Department for Transport about progress on the Halton curve to link north Wales to Liverpool—to Liverpool John Lennon airport in particular? What progress is he making with the business case, about which I know he is concerned, for electrification and how that will link between England and Wales for business and tourism purposes? Following yesterday’s publication of the High Speed Rail (London - West Midlands) Bill, will the Minister explain how he sees north Wales benefiting from that investment and the link to Crewe?

Although rail journey times from London to Crewe will be shortened after the project’s second stage—if we reach it following the long parliamentary process—I am interested in what discussions the Minister has had with Assembly colleagues about the long-term vision for north Wales following HS2. It has my vote and support, but, because it could outlive all of us in this room in terms of parliamentary procedures, what is the Minister looking at now to maximise the benefits?

With companies such as Airbus securing £30 billion of new-aircraft orders, which will be on its order books for 20 to 25 years, only last week, we need to examine business and commuter movement, the growing tourism market and the effects that HS2, electrification and improvements to the Halton curve and other rail infrastructure can have on north Wales. Those are challenges for the Minister now, and I hope that they will be challenges for my right hon. and hon. Friends in the near future.

Finance (No. 2) Bill

Lord Hanson of Flint Excerpts

Wednesday 17th April 2013 Commons Chamber

[Chris Leslie]

It is absolutely true. We have to face facts. We have to put direct support into housing supply. These rather opaque and indirect attempts to manipulate the public accounts with complicated and convoluted guarantees and underwriting arrangements do not communicate to the wider public who might be consumers of housing—looking to buy their first home or to rent differently. The Government must be far more direct about this approach.

It is clear that the Government’s ideological aversion to supporting the construction of affordable housing still inhibits recovery of the broader housing market. That is why housing starts fell 11% over the last year to 98,000 and why the number of private and local authority home starts was down, and the number of housing association home starts, at just over 19,000, was the lowest for eight years. There are 136,000 fewer home owners than when the Government came to power, and of course the youngest are hardest hit. Apparently, the average age of a first-time buyer is now 37.

We have doubts and questions about whether this Help to Buy scheme will work. Have the Government thought it through sufficiently? There are plenty of organisations focusing on housing policy. The first-time buyers pressure group PricedOut said that the Government should assist construction of more houses where there are chronic shortages. That is absolutely true. However, there is a point about whether help should no longer be targeted at lower and middle-income families, with the cap of £60,000, and used to support first-time buyers. We need from Ministers a thorough analysis of what is happening, particularly how many higher rate, or additional rate taxpayers will be taking advantage of the new scheme. What analysis have they made of that?

[Mr David Hanson (Delyn) (Lab)]

May I add a further inconsistency to those that my hon. Friend has mentioned? Under the current scheme, a single person could buy a three-bedroom house with a taxpayer subsidy for the mortgage, yet at the same time a social tenant who is single and wants a three-bedroom house is being penalised.

[Chris Leslie]

Never let it be said that this Government have any consistency whatsoever, but perhaps that is where we should turn to the Liberal Democrats—or the Liberal Democrat as I will henceforth call the hon. Member for Bristol West (Stephen Williams).

There is another part of the Help to Buy scheme. We have talked about the equity loan aspect. The second part is the mortgage guarantee, supposedly designed to help individuals without a large deposit; they may have only 5% and are looking for a 95% mortgage from participating lenders. The Government say they will guarantee up to 15% of the mortgage in an attempt to encourage banks and building societies to offer loans to borrowers with small deposits.

Interestingly, the scheme is not starting in April; it will not start until January 2014. I hope Ministers can explain why they picked that date, because there is a potential risk of forestalling. We may have constituents who are wondering whether they should get on the housing ladder to help their family, or who are in the construction sector wanting to supply new homes. Is there not an incentive for many potential home purchasers to wait—to hold off and not enter the housing market until January next year? Paradoxically, further problems might emerge as a result of the scheme.

--- Later in debate ---

[Chris Leslie]

I live in hope that if not Ministers, the Minister’s officials will try to apply sticking plasters to bodge the thing together, but it is a real mess. Ministers need to go back to the drawing board and think more directly about the support that can be provided for affordable housing.

[Mr Hanson]

As I understand it, the scheme in question is administered by the Department for Communities and Local Government, so it might even be possible for a resident of, say, Chester to buy a second home in Wales under the scheme; for a resident of Berwick to buy a second home in Edinburgh; or for a resident of Liverpool to buy one in Belfast. Has that been thought through by the Government?

[Chris Leslie]

I doubt that very much. I know that will shock my hon. Friends, but I suspect the Government have not thought about that.

--- Later in debate ---

[Sajid Javid]

In the interests of time, I must press on and answer some of the questions that were raised, including by the hon. Gentleman.

The hon. Member for Edinburgh North and Leith (Mark Lazarowicz) and others asked about the devolved authorities, in particular Scotland. The mortgage guarantee scheme is a UK-wide scheme and will be available to all UK residents, including of course those in Scotland and other devolved areas. The mortgage equity scheme is an England-only scheme as housing is a reserved issue among the devolved authorities.

[Mr Hanson]

For clarity, under that second scheme, could a resident of England purchase a property in Wales, Scotland or Northern Ireland?

[Sajid Javid]

The right hon. Gentleman asks a good question. Those are some of the details that we will flesh out. If he will allow me, I will look into the question further. I hope it is clear to him that the intention is that the mortgage guarantee scheme is a UK-wide scheme.

In the time that I have left, I shall turn to new clause 5. We have always been clear that the proposed mansion tax is an issue on which the two parties of the coalition have differing views. Our Liberal Democrat colleagues have supported the principle for some time, as we heard today so eloquently from my hon. Friend the Member for Bristol West (Stephen Williams). In contrast, Conservative Ministers have very real concerns about such a proposal.

We have concerns that a third of properties in London worth more than £2 million have been in the same ownership for 10 years, and that a mansion tax could hit asset-rich but potentially income-poor households. We have concerns that a family could live in a £2 million house, but have a very large mortgage. That would mean that their net wealth was a lot lower than the actual value of the home. We have concerns that any mansion tax would be administratively burdensome for HMRC to operate, not to mention intrusive for the person having their home inspected. But Opposition Members should be aware that we are taxing anyone purchasing a new home at this high value through the stamp duty land tax of 7% on residential properties costing £2 million or more. That is a policy that is easy to administer and it will not impact on existing home owners.

The Opposition have proposed that a mansion tax could pay for a tax cut for millions of people on low and middle incomes. The Government have already introduced tax cuts for those who need it most. We are increasing the personal allowance to £9,440 from April—the largest ever cash increase. That will be increased by a further £560 to reach £10,000 in 2014-15, meeting the Government’s commitment a whole year early. That is a tax cut for 24 million people and together takes 2.7 million people out of income taxation altogether.

Budget 2013 also announced that the fuel duty increase planned for September will be cancelled. The Finance Bill keeps fuel duty frozen at current levels, resulting in the longest freeze in fuel duty for 20 years, helping households and businesses with the cost of motoring.

Meanwhile, those with the highest incomes continue to contribute the most. This year the top 1% of taxpayers—those with an income of more than £150,000 a year—will pay approximately a quarter of all income tax. The top 5% of taxpayers—those on incomes of £68,000 or more—will pay nearly half of total income tax. As part of the Government’s commitment to create a fairer tax system, since 2010 the Government have raised taxes on the rich in every Budget. Budget 2010 introduced a higher rate of capital gains tax, Budget 2011 tackled avoidance through disguised remuneration, and Budget 2012 raised stamp duty land tax on high value homes and announced a cap on income tax reliefs. The autumn statement of 2012 took action to reduce the cost of pensions tax relief.

In Budget 2013 we announced further significant measures to tackle aggressive tax avoidance and offshore tax evasion by high earners. The richest now pay a higher percentage of income tax than they did under the previous Government. No doubt those on the Opposition Benches think a better approach would be to introduce a new starting rate of income tax, but let us not forget that the 10% rate is a policy that they introduced and then scrapped once before, to the cost of many further down the income scale—the people whom they claim they want to help. Fortunately, the Government have a more coherent income tax policy, as we heard from my hon. Friends the Members for Stevenage (Stephen McPartland) and for Bristol West. Our increases to the personal allowance have replaced the 10p rate, which Labour doubled; there have been successive increases to the tax free personal allowance. Effectively, we have introduced a 0% band.

amendment of the law

Lord Hanson of Flint Excerpts

Monday 25th March 2013 Commons Chamber

[Mr Pickles]

My hon. Friend makes a very reasonable point. My own Department in central Government has reduced its running costs by 41% in real terms, so we have led by example.

The Government have set about turning things around. This is a complex area, and the solution requires action on multiple fronts. We have taken three important steps. First, we are radically reforming the planning system to crank up the engine and get things moving. Secondly, we are giving builders certainty so that they can get Britain building. Thirdly, we are intervening dramatically to help people step on to the first rung of the housing ladder. It may be helpful if I set out our approach to each of those issues.

[Mr David Hanson (Delyn) (Lab)]

Will the Secretary of State tell me how under-occupancy relates to the mortgage relief schemes that the Treasury announced last week? If, for example, one individual buys a house with three bedrooms, will that person be subject to the under-occupancy tests that apply to those in social housing?

[Mr Pickles]

I think that only the Labour party would confuse taxation with entitlement to benefit. As the right hon. Gentleman knows, since coming to office we have made great play of the need to release a number of unoccupied houses, and thus far we have made quite a push towards that. Every household in the right hon. Gentleman’s constituency is now paying £900 to subsidise housing benefit. If his council wants to pay more, it can do so.

[Mr Hanson]

Will the Secretary of State give way?

[Mr Pickles]

No. The right hon. Gentleman has had his chance to intervene, and his intervention was not very good.

Let me deal first with our reforms of the planning system. Labour’s top-down, centralist approach built nothing but resentment. Its regional strategies added a layer of red tape that paralysed planning. By the time of the general election, six years after Labour’s Planning and Compulsory Purchase Act 2004, only one in six councils had adopted a core strategy and only one in four had a five-year land supply.

Nor did Labour’s approach lead to better co-ordination. The regional spatial strategies of the unelected regional assemblies contradicted the regional economic strategies of the unelected regional development agencies. Fortunately, the Localism Act 2011 is now scrapping Labour’s regional planning. The national planning policy framework has streamlined 1,000 pages of confusing Whitehall guidance and placed local plans in pole position—safeguarding the green belt, introducing a new protection for valuable green spaces, amending bureaucratic change-of-use rules to make it easier to get redundant and empty buildings back into productive use, and kick-starting brownfield regeneration.

Budget Resolutions and Economic Situation

Lord Hanson of Flint Excerpts

Thursday 21st March 2013 Commons Chamber

[Vince Cable]

I remain a champion of the mansion tax and will continue to champion it with my colleagues on the Liberal Democrat Benches. The Chancellor is going to consult on how this major reform to the housing market will be implemented. We recognise that there are many complex products in the mortgage market. For example, many parents support their children’s housing acquisitions. Those kinds of transactions have to be properly analysed before the scheme is launched.

[Mr David Hanson (Delyn) (Lab)]

I will be going back to my constituency tonight and would like to give the Budget a fair wind if I could. Will the Secretary of State therefore confirm that the scheme will not apply to second homes or to people who can afford to provide such a subsidy themselves?

[Vince Cable]

As I said a few moments ago, there are two schemes. The first, which is the development of a scheme that is already operating, most emphatically does not apply to second homes. The major mortgage guarantee scheme is complex and the Chancellor will consult on how to draw the boundaries around eligible mortgages.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Tuesday 12th March 2013 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

7. What assessment he has made of the effect on child poverty of his changes to the uprating of tax credits and other payments announced in the autumn statement.

[Mr David Hanson (Delyn) (Lab)]

10. What assessment he has made of the effect on child poverty of his changes to the uprating of tax credits and other payments announced in the autumn statement.

[The Economic Secretary to the Treasury (Sajid Javid)]

The Government have protected poor and vulnerable groups while undertaking the urgent task of tackling the fiscal deficit. Work remains the best and most immediate way out of poverty, and we have continued to prioritise providing the best possible work incentives for welfare reform and increasing the personal allowance.

[Sajid Javid]

The hon. Gentleman knows that the official measure for child poverty is flawed. It is based on changes in relative income, which has meant, for example, that under Labour child poverty fell by 300,000 during a recession—clearly a nonsense. This Government are focused on the causes of child poverty, such as unemployment. I would have thought that the hon. Gentleman would welcome the fact that more people are employed in Britain today than at any time in our history.

[Mr Hanson]

The Institute for Fiscal Studies estimates that the changes that the Government are bringing in will cost a one-earner family with children around £534 from April this year. Will the Minister confirm that figure, and in doing so, will he confirm also that a one-earner family with children where the earner happens to be a millionaire will receive a £40,000 cut in April this year?

[Sajid Javid]

What I can confirm to the right hon. Gentleman is that this Government are focused on the causes of poverty, which is what he should be concerned about. I am surprised that he raises this question, because he highlights to his constituents that during the last term of the previous Government youth unemployment in his constituency went up 149%. Under this Government it is down 18%.

The Economy

Lord Hanson of Flint Excerpts

Tuesday 11th December 2012 Commons Chamber

[The Chief Secretary to the Treasury (Danny Alexander)]

I beg to move,

That this House has considered the matter of the economy.

I am pleased that this House has the opportunity to discuss the economic challenges that our country faces. The statement delivered by the Chancellor last week was a statement for the world as it is, not a statement about the world as we had hoped it would be, but in it we took the tough but fair decisions needed to fix the mess that we inherited, by bringing the deficit down, maintaining our international credibility and creating a platform for jobs and growth.

We ensured that the burden was fairly shared, asking those who have the most to contribute the most, bringing the cost of our welfare system under control and further squeezing Whitehall bureaucracy. We also addressed issues to make life easier through these tough times by cutting income tax and fuel duty and putting more money back into the pockets of working families.

That is why the autumn statement has been welcomed widely by the CBI, the British Retail Consortium, the Institute of Directors, the British Chambers of Commerce, the Federation of Small Businesses, the Engineering Employers Federation and many others that have the best interests of the British economy at heart. We inherited a mess, but we are clearing it up and building a stronger economy and a fairer society so that every person in Britain is able to get on in life.

As the Chancellor made clear last week, the road to recovery is longer than we had hoped, but this Government are committed to finishing the job and strengthening the British economy. Despite the mess we inherited and despite the headwinds from the eurozone and the impact of the banking crisis, we are making progress. The deficit has been cut by a quarter and, as the shadow Chancellor himself rightly observed last week, the deficit is falling in each and every year of the forecast. More than 1 million private sector jobs have been created and nearly 1 million young people have started apprenticeships, and exports of goods to major emerging markets have doubled since 2009.

[Mr David Hanson (Delyn) (Lab)]

Two years ago I sat on the National Insurance Contributions Bill Committee, which considered the national insurance contributions holiday. The Government then promised that some 400,000 employers would take up that scheme, but we were told by the Exchequer Secretary in a parliamentary answer today that only 20,000 have done so. If the Chief Secretary is not even good enough at forecasting the development of his own schemes, how can we trust his forecasts for the economy?

[Danny Alexander]

The right hon. Gentleman is right that take-up of that scheme has been much lower than we had expected. I think, therefore, that he would welcome the additional measures that we have taken in the autumn statement to support small businesses by, for example, continuing the small business rates relief holiday for another 12 months. The additional increases in capital allowances, which are particularly directed towards small and medium-sized enterprises, are precisely designed to encourage small businesses to invest.

Oral Answers to Questions

Lord Hanson of Flint Excerpts

Tuesday 11th December 2012 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab)]

4. What recent assessment he has made of the effect of the Government’s fiscal policies on the level of child poverty.

[Mr David Hanson (Delyn) (Lab)]

13. What recent assessment he has made of the effect of the Government’s fiscal policies on the level of child poverty.

[The Economic Secretary to the Treasury (Sajid Javid)]

The Government have protected vulnerable groups as far as possible while undertaking the urgent task of tackling the record fiscal deficit that we inherited. Work remains the best and most immediate way out of poverty, and we have continued to prioritise work incentives through welfare reform and increasing the personal allowance.

[Sajid Javid]

I know that the hon. Lady cares deeply about the issue and she has done a lot of good work with vulnerable families in the past. She will be concerned, as I am, that under the last term of the previous Government child poverty, as defined by the Department for Work and Pensions, increased by 200,000 to 3.9 million. This Government believe that there should be a relentless focus on the causes of poverty, such as worklessness, so I hope that she will join me in welcoming the fact that the number of people employed today in Britain is at a record high.

[Mr Hanson]

He cannot get away with that, Mr Speaker; it is complete nonsense. Will he confirm—yes or no—that people on the minimum wage will be worse off at the end of this Parliament because of the tax and benefit changes than they would have been from the tax savings my hon. Friend the Member for Makerfield (Yvonne Fovargue)mentioned a moment ago? Cuts on child benefit and on working families tax credit will make people poorer: will he confirm that?

[Sajid Javid]

I am not going to take any lectures on child poverty from the right hon. Gentleman—[Interruption.]

Changes to the Budget

Lord Hanson of Flint Excerpts

Monday 11th June 2012 Commons Chamber

[Mr Gauke]

Again, I am grateful to my hon. Friend for his comments. We have listened to strong arguments and responded accordingly. That is what a sensible Government do—and I really must contrast that with the approach taken by the previous Government, in particular with regard to the 10p rate of income tax.

[Mr David Hanson (Delyn) (Lab)]

Does the Minister agree that business stability is important and that, for example, a caravan tax rate of 0%, 20% and 5% in six weeks is not good for business planning? Has he written to his hon. Friends who voted for those measures to apologise for hanging them out to dry?

[Mr Gauke]

Many Members on the Government Benches engaged with this issue in a constructive and thoughtful way, and helped us reach what I think was the right conclusion.

Jobs and Growth

Lord Hanson of Flint Excerpts

Thursday 17th May 2012 Commons Chamber

[Mr Osborne]

I certainly pay tribute to the Second Church Estates Commissioner. We were clear in the Budget that we wanted fully to compensate Churches for the impact of the change and I am glad that we have done so.

[Mr David Hanson (Delyn) (Lab)]

Now that the Chancellor has dug himself out of that hole, will he turn his attention to another one—the caravan tax? In my area of north Wales, the North Wales tourist board estimates that a 30% drop in sales, on the Chancellor’s figures, will lead to job losses and a reduction in the tourism industry. In the constituencies of my right hon. Friend the Member for Kingston upon Hull West and Hessle (Alan Johnson), and my hon. Friends the Members for Kingston upon Hull North (Diana Johnson) and for Kingston upon Hull East (Karl Turner), caravan manufacturing will go because of the tax. How will that help the growth economy the Chancellor seeks, and will he review the tax urgently?