(4 years, 5 months ago)
Commons ChamberBecause they are not discriminatory. The hon. Lady sees evils where they do not exist. Everyone on the Government side of the House, and I hope everyone in the House, agrees that black lives matter. She is wrong and has been wrong every time she has tried to run that argument about voter identification. It is a reasonable thing that many other countries do, and it will improve the security of our voting. The evidence shows there is no impact on any particular demographic group.
We recognise the range of emotions that people are feeling about the lifting of restrictions. Tremendous sacrifices have been made to get the virus under control, and incredible patience shown. We published our recovery strategy on 11 May and each day our measures follow the approach it sets out. Protecting public health is, and must always be, our No. 1 priority.
To avoid a damaging second spike to our economy, is not a yard more than sufficient?
We are determined to get the UK economy—including the hospitality sector—up and running again and our schools reopened. Research published in The Lancet last week showed that a physical distance of at least 1 metre—or, if my right hon. Friend insists, 1.09 yards—
I thought he might. That was strongly associated with a lowered risk of transmission, but a distance of 2 metres was likely to be more effective. The advice therefore remains that wherever possible the public should keep two metres from one another, but the Scientific Advisory Group for Emergencies keeps that under review.
(4 years, 6 months ago)
Commons ChamberWe do value every life. Every life is precious, and the deaths of those in care homes, in our hospitals and in the community are a source of grief, sadness and loss to us all. The figures that we produce are the figures that the Office for National Statistics validates. It is vital that Government figures are supported by the ONS, so that they are robust and detailed, but we will work with everyone constructively to ensure that we have the appropriate data and our response is tailored in accordance with those facts and with the science.
I thank my right hon. Friend for the “Pick for Britain” initiative, but why are the employers being so picky, with many people being told that their services are not required? What assessment has been made of the potential impact of mandatory quarantine on air travellers, which will certainly devastate business travel?
I would hope that all employers will make use of the willing hands available. I am not the most dextrous of Members of this House, but even I was able to help with the tattie howking when I was younger, so all willing hands can help in our fields at this time. On the question of quarantine and how we deal with international travel, it is important that we ensure that we depress the infection curve here, but of course we are keeping under review our approach towards international travellers.
(4 years, 8 months ago)
Commons ChamberQuite the reverse. I began by pointing out that the fundamentals of the economy are strong. They certainly were not strong in 2010. We inherited something of a mess from the Labour party.
Will my right hon. Friend reflect on the significant temptation that the Government can now borrow for 10 years at 0%?
My right hon. Friend intervenes exactly as I am about to move on to just that point. I assume that the Chancellor is adhering to the rules set out in the manifesto. In other words, we will borrow up to 3% of GDP, subject to a cap in the event that the interest on that borrowing meets or exceeds 6% of the Government’s revenues. It seems to me, from what I have quickly scribbled on the back of a piece of paper, that the kind of figures for public sector net investment he envisages rolling out—I think he gave a figure of £110 billion by 2024-25—probably pushes us right up against that 3% level. I am looking at the Chancellor and he is kind of nodding, slightly at least, so I am assuming that that is broadly correct. The Select Committee will want to probe how sustainable that is, particularly in light of possible recasting of forecasts going forward.
The Chancellor also raised a very interesting point about how to categorise human capital as between day-to-day spending and investment. I know he will be looking at that very closely. I can assure him that the Treasury Committee will be also be looking at that very carefully to make sure it is a rational and sensible thing to do, and not in any way shuffling the figures around to spend more and break existing arrangements. The announcements on greater spending on housing, green investment, flooding arrangements, roads, rail and the A303—thank you for what you are doing for the south-west, Chancellor—are all important, particularly given our historically low levels of productivity.
My right hon. Friend is, characteristically, absolutely right to make that observation. I think he will also agree that while this is welcome, and will, absolutely, cut the cost of interest, it also reminds us that interest rates are incredibly volatile, and no Government should rely on interest rates remaining low for an incredibly long time.
I have often said that small and medium-sized businesses are the beating heart of the economy, and rightly where our focus should be. If SMEs are the heart, then cash flow is their lifeblood, and that is where we must focus our help most, so I very much welcome the emergency support package for SMEs that my right hon. Friend the Chancellor set out today. If I may, I will make three quick observations about what more can be done. First, on time to pay, I strongly welcome the announcement today to extend the existing HMRC scheme. While it is absolutely right that we carry out the fundamental business rates review that we set out in our manifesto, this will not happen overnight, as the Chancellor recognised, so we need to act now. I do welcome the announcements on business rates that he made today, but may I also suggest that the time-to-pay arrangement is extended to business rates too? Although they are collected by local authorities, not HMRC, it is possible to delay collection while making sure that no local authority loses out in terms of cash flow.
Secondly, on support for workers, firms should not have to shed workers because of temporary cash-flow problems. That is why I would like to keep open the option of a temporary cut in employers’ national insurance —perhaps over a three-month period—thereby relieving the cost of labour.
Thirdly, since the financial crisis, it is true that monetary policy has lost some of its potency. A decade ago, central banks were the star turn; now they are more like the supporting act, but they can help. That is why I strongly welcome the action by the Bank of England that was announced this morning, and I am pleased to see the co-ordination that has taken place with the Treasury. I am particularly encouraged by the restart of the term funding scheme, especially how the incentives have been set out to encourage an increase in lending to SMEs.
While the coronavirus has captured the attention of the front pages, my right hon. Friend the Chancellor is right not to lose sight of the long-term failures of UK economic policy under successive Governments—failures that have caused profound regional inequalities and a sense of anger and betrayal in many of our communities. We need to put people and place back at the heart of a more human capitalism. I therefore welcome the investment in skills and education, especially the £1.5 billion for FE capital. We should think about not only the flow of students but the stock of skills that we have in our country. There are talented individuals who have left full-time education and would benefit from retraining. That is why I am unapologetically keen on a long-term plan for skills, including the right to retrain for all working adults.
It is clear from today’s Budget that my right hon. Friend shares my enthusiasm for the infrastructure revolution and my conviction that, with the right scale and the right mix of investment in roads, rail, digital, decarbonisation and flood defences, we can tackle our most significant economic challenges: low productivity and regional inequality. As I have long said, we should take advantage of record low interest rates to invest properly in our economic future.
I welcome the Chancellor’s indication that he will continue the work that was begun to rewrite the Green Book, so that we can better allocate investment across the nations. I hope that he will look carefully at what else we can do to help the infrastructure revolution, including looking at planning, especially reform of the compulsory purchase order regime; the infrastructure delivery model, so that we do not have a repeat of the overspending on HS2; and labour market requirements at a time of record employment.
I urge the Chancellor to consider in his next fiscal statement 100% capital allowances—in other words, full expensing for businesses, to encourage them to invest more in capital. I want to end by underlining the importance of fiscal responsibility.
As someone who longs for lower taxes and smaller government, what assessment has my right hon. Friend made of the Chancellor’s ability to remain within the existing fiscal rules?
I was pleased to hear the Chancellor say that this Budget is within the fiscal rules, but as my right hon. Friend the Member for Maidenhead (Mrs May) said, we do not yet know the impact of these emergency measures. We also do not know the impact of the term funding scheme announced today by the Bank of England. A lot of the fall in debt over the next few years is because of the term funding scheme coming to an end, but that might now change, so it is worth keeping that in mind.
The British economy is in a strong position to weather the current storm, but we must not forget that my right hon. Friend the Chancellor is only able to deploy the firepower that he has today because of the choices that consecutive Conservative Chancellors have made—choices to control spending, to control borrowing and to control debt. That is why the fiscal rules that we set out in our manifesto are important. Sticking to those rules in normal times is what separates us from Opposition parties. They help us to keep our economy strong and to keep taxes low, and they preserve our flexibility for when we need it most. It is not always possible to forecast when the next threat will emerge, nor what form it will take, but it is possible to prepare, and I know that the Chancellor and I are grateful that our predecessors had the foresight to do so.
(4 years, 8 months ago)
Commons ChamberI have great respect for the hon. Gentleman, but I am afraid that his question is wholly misconceived. We have absolutely no intention of doing anything other than honouring the withdrawal agreement, honouring the protocol that we have signed, and making sure that we achieve the political declaration’s aim of ensuring that we have a comprehensive free trade agreement with no tariffs, no quotas and no quantitative restrictions.
Does my right hon. Friend think the EU has spotted that we have actually left and no longer need to negotiate our terms of release?
My right hon. Friend has made a very good point. There are a range of views—a spectrum of opinions—in European capitals, but I think that the pennies, the pfennigs and the centimes are dropping as a result of the Prime Minister’s speeches and the lecture given recently by the Prime Minister’s sherpa David Frost.
Why does my right hon. Friend not prevent enterprises from bidding for Government contracts unless they can demonstrate a record of having paid their suppliers on time?
Companies do have to demonstrate that, and if existing suppliers do not comply with the targets we have set, they will be booted off the supplier list.
(4 years, 9 months ago)
Commons ChamberWell, I am not the organ grinder, as she has pointed out, so I must be the monkey. We have a broad team, and given that a lot of the claims made by the hon. Member for Denton and Reddish relate directly to the north of England, I think that as the Minister for the Northern Powerhouse I am the most appropriate Minister to respond to this debate.
My right hon. Friend’s mandate extends to God’s own county of Hampshire, where we are very much looking forward to the fair funding review on the grounds that we get to spend £1,650 per person, but we look north to the local authorities that have been enumerated today that have an additional £500 per person. We spend—
Order. Sir Desmond, you are usually very good and ask the shortest of questions and make the briefest of interventions. I do not know what has gone wrong but I am sure the Minister will have a grasp of what you were saying.
(4 years, 10 months ago)
Commons ChamberI congratulate the hon. Lady on what she has done personally to support that campaign. She is absolutely right to stress its vital importance for the whole country. Dementia is one of the biggest challenges that we face, which is why we are doubling funding. As my right hon. Friend the Health Secretary has said, we want to make a moon-shot effort to isolate the causes of dementia, and to cure it if we possibly can.
A constitution, democracy and rights commission will be established to examine the broader aspects of the constitution and to develop proposals to restore trust in our institutions and in how our democracy operates. Careful consideration is needed on the composition and focus of the commission, and further announcements will be made in due course.
I can tell my right hon. Friend that our independent courts and legal system are admired around the world. We will continue to ensure that judicial review is available to protect the rights of individuals against an overbearing state while ensuring that it is not abused to conduct politics by another means or to create needless delays.