(8 years ago)
Commons ChamberI will certainly look at the point the hon. Gentleman raises. I do hope he welcomes the move to an autumn Budget. Certainly, one of the considerations when we were looking at this was the way it will interact with the Scottish Government’s Budget, and I hope it will be helpful.
I warmly welcome the investment in rail and road links from Oxford to Cambridge through Milton Keynes, delivering on the infrastructure commission’s recommendations. I have been campaigning for east-west rail for many years. Will my right hon. Friend confirm that that investment will accelerate delivery of the project?
Yes, it will accelerate delivery of the project. As I said in my statement, and I cannot emphasise enough, I think this has the potential to be so much more than just a transport link. We have many world-famous universities, but we have two there that, more than any others, are world-famous, recognised research names. Linking them together over a 60-mile stretch of road and rail unleashes enormous possibilities for creating a new tech corridor, building on the huge success of the Cambridge science park.
(8 years, 8 months ago)
Commons ChamberBefore addressing the main Budget issue that I want to discuss, I want to mention two announcements in the Budget which, although small, are of great significance to two institutions in my constituency: Bletchley Park and the Open University.
The award of £1 million will allow Bletchley Park to establish a major new exhibition of the Turing-Welchman bombe, which helped to break the Enigma cipher during the second world war. Let me take this opportunity to congratulate Iain Standen and his team at Bletchley on all that they have done to transform it into a world-class heritage site, and to secure its legacy for generations to come. I warmly invite any Members on either side of the House who are seeking a distraction from political storms during the Easter recess to visit Bletchley Park, and to see for themselves how this vital part of our nation’s heritage has been transformed.
I also thank the Chancellor for announcing a measure that will help another world-class institution in Milton Keynes, the Open University. The extension of the eligibility for Masters loans to include three-year part-time courses with no full-time equivalent is very welcome. The Open University had been worried that the absence of such a provision would have a detrimental effect on numbers for the 2016-17 academic year, but the Chancellor’s announcement will help to secure its future.
The main issue on which I want to focus today is not only the long-term future of Milton Keynes and the surrounding area, but the wider national benefit. Announcements are sometimes hidden in a Budget’s small print and can make unwelcome surprises, but I was delighted to discover on page 82 of the Red Book the decision to ask the National Infrastructure Commission to
“develop proposals for unlocking growth, housing and jobs in the Cambridge – Milton Keynes – Oxford corridor.”
I have long argued that we should be looking at the huge economic potential of that arc and I am delighted that the commission will now be focusing on it. I welcome the acknowledgement in the terms of reference issued by the Chancellor that the commission should work not on its own, but in collaboration with local stakeholders, including Network Rail, the local enterprise partnership, and further and higher education. A number of exciting projects to develop the arc are already under way. I am chair of the east-west rail all-party parliamentary group and the new rail line will unlock huge economic growth, tax revenues, new jobs, and connectivity within the region. The Department for Transport is also exploring options for the Oxford to Cambridge expressway.
In addition to traditional transport infrastructure, we are innovating the intelligent mobility solutions of tomorrow. We have the Transport Systems Catapult in Milton Keynes, and the Open University and others are developing the MK Smart project. Such schemes will unlock the digital and hard-infrastructure improvements of the future, and it is important that the National Infrastructure Commission takes that work into consideration.
This is about more than just transport. The MK Futures 2050 Commission, ably chaired by Sir Peter Gregson of Cranfield University, is looking at housing, education and training, energy, water supplies and the many other factors that are needed to support economic growth and to preserve the local environment and designs that have made Milton Keynes a success. We celebrate our 50th anniversary as a new town next year, and the MK Futures 2050 Commission is looking at the 50 years beyond that. I also draw the National Infrastructure Commission’s attention to the Centre for Cities report on fast-growing cities, which was published just a couple of weeks ago and contains important findings that the commission should consider.
I echo the vision set out in the terms of reference. It notes that we already have
“global centres of research expertise in Oxford and Cambridge and advanced manufacturing and logistics in Milton Keynes”
and that we should
“maximise the potential of the area as a single, knowledge-intensive cluster that competes on a global stage”.
The terms of reference also acknowledge that
“Institutions to strengthen governance across the corridor”
are necessary. I strongly echo that point and my one ask today is for a meeting with the Secretary of State for Communities and Local Government to discuss the matter. We need local devolution across the corridor. We must be able to compete with the northern powerhouse and the west midlands engine, and there are important debates to be had about that.
(8 years, 9 months ago)
Commons ChamberI am grateful for the opportunity to contribute to this debate. I congratulate the right hon. Member for Belfast North (Mr Dodds) and his colleagues on introducing this important topic and exploring some of the genuine issues of concern in a very moderate and civilised way.
Whatever date is eventually chosen for the referendum and the campaign period, there will always be perfectly good arguments that can be made against it. In this country, by democratic tradition, we narrow down a lot of the time for holding elections to when it is sensible to do so. Traditionally, unless there is a period of emergency, we have them in the spring, early summer or autumn. There are perfectly good reasons for that. It is not pleasant to be out knocking on doors and delivering leaflets in the wilds of winter. It is important to respect the times when different parts of the United Kingdom have their summer holidays. For example, I would not suggest that we hold a referendum in July because that would clash with the Scottish holiday period, or August in the case of England.
The Scottish referendum was held very successfully in September when we had longer evenings, warmer days, and the full summer period in which to campaign. That would give us more of the time and opportunity that the hon. Gentleman is talking about than a June date.
If the hon. Gentleman is suggesting that he would like a roadshow visit from my hon. Friend the Member for Stone (Sir William Cash) or my right hon. Friend the Member for Wokingham (John Redwood) to entertain his electors over the summer, he is very welcome to it.
The point I am making is that there are a relatively small number of periods when we can sensibly have an election.
I understand the hon. Gentleman’s point perfectly, but, as a matter of interest, what are the arguments against an autumn date, as specified by the right hon. Member for Belfast North (Mr Dodds) in opening the debate and as mentioned by my hon. Friend the Member for Glasgow North (Patrick Grady)?
I will happily answer that. First, I am not in charge of selecting the date, and I have no objections to June or September. I am merely saying that there are a number of considerations that we have to bear in mind.
Another consideration, more generally, is that there is a delicate balance to be struck between allowing a sufficient period of time for all the arguments made by both sides of the campaign to be properly explored and challenged, and not having so elongated a campaign that we bore the electorate to death or create such a long period of uncertainty that it is unhelpful to our economy. I am not arguing that it should be 23 June, or 18 September or whatever it would be at that time of year, because that is not my job; I am saying that it is about a balance of different considerations.
Where do the views of the First Ministers of all the devolved Governments fit into the balance of considerations that the hon. Gentleman mentions?
That neatly leads me on to the point I was about to make.
In relation to purdah, we have heard about the potential overlap between the Scottish Parliament campaign and the referendum campaign, if the date were to be 23 June; that is hypothetical. I will make two observations on that. First, whenever purdah is, it will be disruptive to the usual governance of the UK Government, the Scottish Government, and the Governments of Wales and Northern Ireland. If it were to be in September, it would cause disruption to the legislative programme of whoever forms the Scottish Government after May. There is a case to be made that it would be less disruptive for one period to immediately follow the other. The Scottish and other Governments could then get on with their full programmes without interruption, rather than being blocked in the autumn. I would also point out that, to avoid future election clashes, the length of the next Scottish Parliament has been extended by a year, so the Scottish Government have more time than was originally envisaged.
If the right hon. Gentleman will forgive me, I have taken a few interventions and have a limited amount of time left.
I am not an expert on what Governments can and cannot do during purdah, but I hope we can have a sensible debate so that if a purely domestic Scottish matter that would have no impact on the EU referendum needs to be introduced during purdah, a way could be found for that administrative work to continue.
There is a precedent on this matter, namely the alternative vote referendum, which was held on the same day as the Scottish, Welsh and Northern Ireland elections in 2011.
I am not arguing that the elections should be held on the same day—we have accepted that they should be held on a separate day and that there should be a minimum of six weeks between them and the referendum—but there are lessons that we can extrapolate from that campaign. The Electoral Commission report on the 2011 AV referendum specifically addresses the issue of media coverage, which a number of Members have raised, and it concludes that it was not an issue. Paragraph 3.60 states that there was
“no inherent disinclination on the part of the media from Scotland, Wales and Northern Ireland…to cover the referendum; rather, the elections were considered to be a greater priority than the referendum.”
The right hon. Gentleman and his colleagues should not be worried about the capacity of the Scottish media to cover both the Holyrood elections and the referendum over the same period.
Forgive me, but I am down to my last minute and I want to conclude.
As my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) said, this debate is not starting from a zero base. The arguments about Europe are not new. People are already exploring them and have been doing so over many years and many election campaigns. They are perfectly capable of computing the arguments for the devolved elections and for the referendum at the same time. To be fair to the right hon. Member for Belfast North, he is not saying that they are incapable of doing that.
Ultimately, this comes down to a judgment of whether we as a country have the bandwidth in Government, the media and among our voters to make up our minds on the referendum and the devolved elections at the same time. My judgment is that we can perfectly well do that. America combines many elections—presidential, Congress, state and referendums—at the same time. If it can do it, so can we.
(8 years, 12 months ago)
Commons ChamberIn the welcome context of increased capital investment in transport, may I ask my right hon. Friend to say more about the progress of the Hendy review, particularly the east-west rail project that is vital to unlocking economic and housing growth in Milton Keynes and Aylesbury Vale?
Peter Hendy is doing an excellent job in sorting out the finances of Network Rail. We funded the projects in control period 5 and funded additional spill-overs into control period 6. East-west rail is an important project and it will go ahead.
(9 years, 2 months ago)
Commons ChamberIt is a pleasure to make a short contribution on this important Bill, which I very much welcome. The Bill has been criticised as being a gimmick, and it has been suggested that it is not necessary. Let me take Opposition Members back a few years to the 2001 general election, when the victorious Labour party pledged—on pledge cards and billboards all over the country—that there would be no increases in income tax. The country voted the Labour party in by a very large margin. Within a matter of months, however, the then Chancellor, Mr Brown, decided to increase spending on the NHS, funded by an increase in national insurance contributions. Technically he was correct—he did not put up income tax rates—but most people regard national insurance as a tax on income, so if the letter of the pledge was not broken, the spirit certainly was.
This Bill is important because, as many colleagues have said, it gives certainty to employers to plan ahead. If my hon. Friend the Member for Bexhill and Battle (Huw Merriman) wants to make a return visit to Milton Keynes, he will be very welcome to come to the job show that is taking place there this weekend; I have the great pleasure of opening it on Friday. Milton Keynes has seen an enormous increase in the number of new jobs and business start-ups in recent years, and we very much want that to continue. Giving employers this certainty on their national insurance contributions will be a key part of instilling the confidence they need to start up businesses and expand existing ones.
Another important measure in sustaining long-term jobs growth and investment is addressing the skills gap we have in this country. That requires more apprentices to be taken on by companies. We must bear in mind that this Bill is part of a package from the Chancellor, who announced an apprenticeships levy to help to fund the growth in the number of high-quality, long-term apprenticeships. That policy is in place in many countries, although it is not without controversy. Alongside that is the pledge to cut corporation tax for large and small companies and to give them benefits in not increasing their national insurance contributions. I very much support the Bill as part of this broader package, which is essential for the long-term health of job creation in this country.
(9 years, 5 months ago)
Commons Chamber8. What steps his Department is taking to (a) support savers and (b) promote home ownership.
13. What steps his Department is taking to (a) support savers and (b) promote home ownership.
The Government stand firmly on the side of people who want to work hard, save up, buy their own homes, and retire with dignity. We have increased allowances for individual savings accounts, introduced the Help to Buy scheme, pensioner bonds and pension freedoms, and taken 95% of people out of tax on their savings.
What a pleasure it is to welcome my hon. Friend to the Chamber. He is absolutely right: more people are employed than ever before, and mortgage rates are extremely low. As a result of our long-term economic plan, my hon. Friend’s constituents in Havant, and constituents elsewhere, can now aspire to own their own homes one day.
Policies such as Help to Buy have proved very popular in my constituency, but may I urge my hon. Friend to be more ambitious in the longer term? Will she consider expanding the shared-ownership model, which enables people to take an initially small equity share in a property at the start of their careers, and then save up in order to expand it as their careers progress?
I congratulate my hon. Friend on the strong endorsement he received from the voters of Milton Keynes to return here and express their interests. I am very pleased to hear Help to Buy is so popular in Milton Keynes. The town tops the charts for the attractiveness of buying versus renting. Shared ownership is indeed an excellent way to help people take their first steps on the property ladder, and the Government remain committed to it.
(9 years, 5 months ago)
Commons ChamberWill the right hon. Gentleman give way?
I am very tempted to do so, but I can see that the Chairman is encouraging me to move on to our other amendments in this group, new clauses 3 and 4, on the whole question of how the Government should behave in a referendum campaign.
The members of this group of 56 speak from the standpoint of being totally united in our support for the European Union—we are pro-European to our fingertips —but that does not mean we would be willing to accept a referendum that was in any way biased or rigged by the Government. Just because they are pro-European, and the suspicion is that the Government may wish to bias the referendum in the pro-European direction, does not mean that that would be right and proper. It does seem to SNP Members that if the rules of purdah about the behaviour of a Government during an election campaign are correct, as recommended in the Political Parties, Elections and Referendums Act 2000 all those years ago, that must pertain during a referendum campaign as well. In new clauses 3 and 4, we have set out in some detail what a referendum code of conduct for the Government should be.
It is astonishing that the Government should think that the exclusion of any such restrictions from the Bill would be meekly accepted by a majority of Members in Committee. It is entirely wrong for the Government to do so. We have a very recent example of why it would be very foolish for the Committee to take the Government at their word in saying that they would not engage in behaviour that breached the normal standards of purdah in the upcoming referendum campaign.
Let us take the scenario or possibility that, at some point in the course of the referendum campaign next year or the year after, the no side moves to the front. In that scenario, let us just assume that, to try to get the yes result that the Prime Minister wishes, he needed a last-minute initiative. With no rules or restrictions saying that new political initiatives should not be made at governmental level during the last 28 days of the campaign, what would stop the Prime Minister doing a tour of the capitals of each of the Governments across Europe—suspending Question Time in the national Parliament—and stop their flying as one to London to announce a new commitment, a new undertaking, a new pledge, a new vow? A new vow might be made to the people of the United Kingdom saying, “Only if you vote yes will we secure these new terms, which we did not mention before the campaign started, but which we now, as good Europeans, undertake to offer to the people.” Let us just say that, under those circumstances, that vow was influential in persuading enough people, perhaps one in 20, to switch their vote and to vote in favour, and let us just say that, after the dust had settled, all those European leaders did not really want to go forward with the full extent of the vow they had made. How would people in the United Kingdom view that situation? Would it not be rather better for the Bill to state explicitly that during the last 28 days—and only during the last 28 days—of a campaign period, the people must be able to make a judgment on the arguments that are property presented, without the use of the governmental machine to bias the result one way or the other?
When the Government explain why they want to wipe away these rules, I hear them say, “Of course, Government cannot really function in a purdah period. We won’t be able to make representations to the European Council. It will be impossible to do so over a 28-day period.” But that is what happens in each and every general election that we fight. In April and May, I did not notice that the Administration of this country ground to a halt. In fact, a lot of people thought it was better not having a fully activated Government during the campaign period. If it can be done in each and every general election, it can certainly be done in this referendum campaign.
Even more insidious than the role of the Government in making political announcements is the role of the civil service. In normal times, the civil service quite rightly views impartiality as following the policies of the elected Government. That is what the civil service is there to do; it is not meant to be neutral on issues, but to follow Government policy. When it comes to the purdah or quarantine period in an election or in a referendum, however, it is the job of the civil service to be impartial over that 28-day period.
(9 years, 5 months ago)
Commons ChamberI would be slightly more gracious than that. I think that the right hon. Gentleman will make a contribution to his party’s policy development. Let us hope that it moves to somewhere progressive rather than sticking to the kind of austerity-lite position that it had before the election.
We need to squeeze inequality out of the system. The December 2014 OECD report told us that rising inequality in the UK had cost it 9 percentage points in growth between 1990 and 2010. It is an obvious fact: it is not possible to squeeze inequality out of the system at the same time as the squeeze is being put on the poorest in society, and once again this Government are swimming against the tide of informed public opinion.
The alternative to the Government plan is clear; it is the alternative economic plan that we pursued, rather successfully, in Scotland at the election. It is a plan aimed at balancing deficit reduction with increased investment in public services. We argued rightly that with a modest 0.5% real-terms spending increase between 2016-17 and the end of this Parliament we could release £140 billion for essential spending and investment over and above the Government’s plans. The alternative for Scotland is £11 billion of spending compared with £12 billion of cuts. Our plan makes sense. It is a fiscally responsible plan that protects public services, protects investment, really ends austerity and lifts the squeeze off ordinary people, but still sees the debt and deficit fall.
May I repeat the question put by my right hon. Friend the Chancellor? The Scottish Parliament already has significant tax powers and it will gain more in this Parliament. The leader of the Scottish Conservatives, Ruth Davidson, has pledged not to have tax rates in Scotland that are higher than in the rest of the UK. Will the hon. Gentleman meet that pledge, or does he want to pursue his expansionary agenda and raise taxes?
I do not think that Scottish people should pay tax twice for services that we would have if we simply had full fiscal autonomy.
The UK Government have advocated an approach that will result in further spending cuts in the coming years to achieve the fiscal targets set out in the budget charter, but those cuts have not been spelt out in full. The Tories have not said where the axe will fall. The Chancellor said some things today, particularly about in-year cuts and asset sales in certain Departments, but nowhere near enough to explain what he plans to do. Perhaps he or one of his Ministers might decide to come clean with this House later today and tell us where the axe will fall.
Will they really restrict carer’s allowance to those eligible for universal credit, so that 40% of claimants lose out? Will they really increase means-testing for the contributory element of employment and support allowance, or of jobseeker’s allowance, which would see 30% of claimants—300,000 families—lose £80 a week? Will they remove the tax-free status of disability benefits to save £1.5 billion? Will this Chancellor and the Secretary of State for Work and Pensions really take the axe to those most in need to deliver £8 billion of tax cuts, which right now, and I have heard nothing today to change my mind on this, are completely unfunded?
I said that the UK Government plan is designed to achieve the fiscal targets set out in the charter for budget responsibility, but we know that the scale of the spending cuts plan, as set out in the March Budget, significantly exceeds what is required for the UK Government to meet their targets. There is therefore flexibility for the UK Government to meet those objectives without implementing in full the spending cuts that are currently planned for the coming years.
Based on plans set out in the March Budget, public sector net debt is projected to begin falling in 2015-16, and a cyclically adjusted current budget surplus of £35 billion is projected for 2018-19, rather than simply returning the adjusted current account to balance. Therefore, the UK Government have the flexibility to cut spending by less than currently planned while meeting their fiscal targets. I hope the Chancellor uses that flexibility wisely.
I want to move on to the real economy. As our First Minster, Nicola Sturgeon, said, there are three areas where we seek to achieve outcomes at a UK level that will benefit the economy in Scotland. First, we will continue to oppose spending reductions of the scale and speed that the Government have suggested. We believe that those would slow economic recovery and make deficit reduction more difficult.
Secondly, we do not think it is desirable for trade or business for there to be an in/out referendum on membership of the EU. However, since a referendum now seems inevitable, we will protect Scotland’s interests. We propose a “double-lock”, meaning that exit is only possible if all four nations in the UK agree to it, which would quite rightly prevent Scotland from being dragged out of the EU against the will of the Scottish people. [Interruption.] I think we have worked out what the Government mean by “one nation”, and they will need more than one nation to take the state out of Europe.
Thirdly and finally, we will seek greater powers for Scotland, to ensure, at the very least, that the recommendations of the Smith commission are met in full. However, we are seeking additional responsibilities, beyond those that the Smith commission identified, in particular greater power over business taxes, employment law, the minimum wage and welfare, to enable us to create jobs, grow the economy and lift people out of poverty. That was the manifesto on which we were elected.
Those powers will allow us to tackle one of the challenges that the First Minister, and indeed the shadow Chancellor in his speech today, have raised: that of productivity. Those comments are important, not least because they chime with what Mark Carney, the Governor of the central bank, said recently at the launch of the quarterly inflation report. He said that
“productivity growth…is the key determinant of income growth. Our shared prosperity depends on it.”
However, the Bank of England also highlighted the extent to which the UK as a whole has a productivity problem. Output per hour is below pre-recession levels; it is 13% below that of Sweden and 20% below that of Germany. In Scotland we know, and I suspect that the figures are the same for the UK, that if we can boost total factor productivity by 0.1% over a decade, we can see 1.3% additional GDP growth and additional tax yield of around half a billion pounds a year. With better productivity, living standards would be higher and the budget deficit lower.
In Scotland, we have set out how we intend to do that, based around the “four I’s” of innovation, internationalisation, investment in infrastructure and skills, and promoting inclusive growth, but we have also made it clear that promoting a more equal and inclusive society is an important part of building a stronger economy.
The Scottish Government are mitigating the consequences of this Government’s welfare reform, promoting gender equality, investing in early years education and care, and setting targets to ensure that everyone—irrespective of their background—has the chance to go to university. Essentially, that economic strategy sets out a vision of an economy based on innovation rather than insecurity; on high skills, not low wages; and on enhanced productivity rather than reduced job security. We want to climb the global competitiveness rankings on quality, rather than racing to the bottom on costs, and we want to deliver positive change in the real economy to drive changes in the big fiscal numbers. So we have to improve productivity, we need to encourage innovation and exports, and we must support business growth and job creation. There are a hundred things on which we must take specific action, not least delivering fairness in electricity connectivity charges across the grid and certainty in the tax code, and ensuring that businesses have access to bank lending.
I hope that there will be scope within the enterprise Bill to replicate many of the ideas contained within the Scottish business pledge, whereby in return for support from agencies businesses must commit to innovation, to seeking and taking export opportunities, and to paying the living wage. I also hope that there will be scope within the national insurance contributions Bill to continue to bear down on employer costs, to encourage more businesses to create jobs. There must be scope within the energy Bill to end the inequity of a £25.50 per kW charge to connect to the grid in the north of Scotland and a £5.20 per kW subsidy for any old chugger to connect in central London.
I hope that the Budget will support business investment. We have gone from an industrial buildings allowance, done away with in 2007, to an annual investment allowance of £50,000 in 2008, which increased to £100,000 in 2010; decreased to £25,000 in 2012; increased to £250,000 the following year; and increased to £500,000 the year after that. It was then temporarily maintained, but will come to a cliff edge and a grinding halt at the end of the year and revert to £25,000 on 1 January. That is not tax certainty; that is a shambles, and I hope that the Chancellor undertakes to fix it, even at a little cost, in the Budget in July.
We will be a constructive Opposition. We will support individual measures, where they merit it, and seek to mend and improve provisions where they do not. We will also be a principled Opposition, because we oppose the Tory programme of cuts. We wish to see growth and fairness in our economy and more power for Scotland, and we want to support aspiration and deliver help for those who need it most. As well as being a principled Opposition, unless or until our friends in other parties work out what their economic policy actually is, we will be the principal opposition to Tory cuts in this Parliament.