Oral Answers to Questions
Debate between Lord Hammond of Runnymede and Alistair Carmichael(6 years, 1 month ago)
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Mr Hammond
What I can do is assure my right hon. Friend that we look actively at all taxes at every fiscal event. He will know that stamp duty land tax has been a subject of some interest and, indeed, controversy. We do look very carefully at the receipts data, but we also have to look at the distributional impact of different taxes. As my right hon. Friend will understand, doing anything about high rates of stamp duty land tax would have a very uneven distributional impact.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Spring Statement
Debate between Lord Hammond of Runnymede and Alistair Carmichael(6 years, 9 months ago)
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Mr Hammond
I am glad that my right hon. Friend has asked this question, because it gives me an opportunity to thank her for sparking this line of inquiry in a letter she wrote to me. I did challenge the Treasury with the idea that it is more focused on the returns to infrastructure investment than on skills investment. When we looked at it in detail, we discovered that the metrics for measuring the returns to investment in human capital are not as well developed as they should be. That is something the ONS has to take forward, but it is important, as we move increasingly into a knowledge-based economy, with a huge set of technological changes ahead of us, that we can compare appropriately and objectively investment in physical infrastructure with investment in human capital, and that is what we will be able to do if we get the new metrics right.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Chancellor of the Exchequer is doubtless aware that the OECD this morning published its own growth forecasts, putting us at the bottom of the OECD economies, with forecast growth this year of 1.3%. It is pretty clear that there is no Brexit dividend on the scene for the British economy. It is to be welcomed that the deficit is getting back to a manageable level, but he must know—even his own Back Benchers are telling him—that extra money is needed now for our hospitals, our schools and our police. That money is not there because of previous decisions to make premature cuts to capital gains tax and inheritance tax. He must have heard the Institute for Fiscal Studies calling for increased capital investment in housing, up to 3% of our economy. Why does he not listen to the IFS?
Mr Hammond
First, the right hon. Gentleman knows, as I do, that our economy still faces uncertainty as we go through the negotiation process with the European Union. I am convinced, from every conversation I have had with business leaders and investors, that as we deliver greater clarity about our future relationship with the European Union over the coming months, we will see business investment and consumer confidence increasing. We beat the forecast in 2017. Let us beat it again in 2018. I do believe that economic growth matters. The shadow Chancellor says that it does not matter what the level of GDP is, but I do not agree—[Interruption.] Well, I will send him the quote if he cannot immediately recall what he said. I do believe that GDP matters, because it is what drives living standards. We are putting extra money into public services—£11 billion since I have been Chancellor. I agree that we have a major challenge in the housing market. We have put a significant amount of money—£44 billion—into dealing with the challenge over the rest of this Parliament, but there are significant non-financial constraints on being able to do more, such as physical bottlenecks in relation to skilled labour and materials. But it is something we will keep under review.
Autumn Statement
Debate between Lord Hammond of Runnymede and Alistair Carmichael(8 years, 1 month ago)
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Mr Hammond
I completely agree. To be clear, by the end of the Parliament, an additional £2 billion a year will go into research and development. My hon. Friend is right that life sciences and synthetic biology are an area in which the UK has gained a really significant lead in a disruptive area of technology that will shape the future of our economy and the economy of the world. There are three or four such areas in which we really have to invest now to ensure that we get the critical footprint that will allow us to be leaders in this fourth industrial revolution, just as we were in the first industrial revolution.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
May I welcome those elements of this statement that are positive? I am talking about the spending for infrastructure, especially in broadband and mobile phone signals, the reduction in fuel duty and the changes to universal credit. They are all steps in the right direction, but we wanted extra cash to be given to the NHS and social care, where it is needed, because as winter comes on we risk the problems becoming acute. I understand the difficulties that face the Chancellor today. He has a £122 billion black hole as a result of Brexit. As the hon. Member for Totnes (Dr Wollaston) said, instead of using the NHS as a political football, will he work with people of all parties and none to identify where that money can be found because, frankly, the NHS is too important to be treated like this?
Mr Hammond
First, I urge the right hon. Gentleman to look at the figures in a little more detail. The £122 billion that he quotes runs over a fifth year. It includes the £23 billion of discretionary additional commitments that I have made today, as well as more than £20 billion of baseline adjustments due to previous policy changes around welfare benefits and classification changes made by the ONS. He therefore really needs to look at the figures.
On the NHS, as I have said already, there are trust deficits building up across the country. At the moment, they are manageable within the context of the NHS’s own internal cash management system, but we will of course keep a close eye on them. We take the view that the NHS has asked for financing of a specific and defined plan. We have provided that financing. We now need to challenge NHS managers who have asked for that money to deliver the outcomes that they promised. We will watch very closely and stick close by as they do.
Oral Answers to Questions
Debate between Lord Hammond of Runnymede and Alistair Carmichael(8 years, 7 months ago)
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Mr Hammond
He is definitely not a mole and I can “cat-egorically” assure my right hon. Friend that Palmerston has been regularly vetted. As for being a sleeper, he is definitely a sleeper—I am told very often in my office. But unlike Freya, who went missing for two years, his attendance record has been 100%. My experts tell me that that pretty much rules out the possibility of him being a Commission employee. I should also tell the House that while Palmerston has so far caught only three mice, his Twitter account, “Diplomog” has attracted 8,158 followers, with a rate of growth that implies he will overtake me by the summer recess.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
13. What discussions he has had with his Egyptian counterpart on the human rights situation in that country.
Oral Answers to Questions
Debate between Lord Hammond of Runnymede and Alistair Carmichael(9 years, 6 months ago)
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Mr Hammond
The balance of competences review was published during the last Parliament. It was always intended to be a factual assessment of the balance of competences that could be drawn on by all parties in the forthcoming debate. As a body of factual information, it is already proving its worth. In fact, a number of other countries in Europe have started to draw on information in our balance of competences review for use in debate in their own countries.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
I join the hon. Member for Plymouth, Sutton and Devonport (Oliver Colvile) in urging the Foreign Secretary to use the negotiations as an opportunity to achieve the fundamental reform that we need of the common fisheries policy—a policy that has been an unmitigated disaster for fishing stocks, the fishing industry and the fishing communities that depend on them. Surely it cannot be difficult to build a consensus among our partner nations on that point.
Mr Hammond
As the right hon. Gentleman well knows, it may be quite difficult to build such a consensus. I promise that I will take on board the comments that he and my hon. Friend have made, as we put together our agenda.