Autumn Statement

Debate between Lord Hammond of Runnymede and Caroline Flint

Wednesday 23rd November 2016 Commons Chamber

[Mr Philip Hammond]

I did say in the statement—my hon. Friend might have missed it—that we will relax the restrictions on tenure that are normally attached to affordable housing grant funding so that affordable housing providers can build with the mix of tenures that is right for the particular market in which they are operating. That will allow housing to be built more quickly, and housing need to be met more quickly.

[Caroline Flint (Don Valley) (Lab)]

The Prime Minister expressed outrage in her conference speech at the fact that two thirds of energy bill payers are paying over the odds on the standard variable tariff. That percentage has been confirmed by the Competition and Markets Authority. I first spoke about this five years ago, so it was disappointing that the problem was not mentioned in the Chancellor’s speech today. We should have a protective tariff and a cap for those on the standard variable rate. I understand that there are meetings across Whitehall to discuss that idea. Will he confirm or deny the rumours that a protective tariff, or a default tariff, is under discussion?

[Mr Hammond]

I will not confirm or deny what discussions are going on across Whitehall. I did say—I fully understand that the right hon. Lady might have missed it in the depths of the statement—that we are setting up a review of markets, including the retail energy market, to ensure that they are operating fairly for consumers. Where we find that they are not, we will make proposals and take action.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Caroline Flint

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

If the hon. Lady checks the video, she will find that I was not unsure. I was advising my civil service colleague that I understood that we were doing such regional analysis. We are carrying out regional analysis, which will help to inform the Prime Minister’s negotiating strategy.

[Caroline Flint (Don Valley) (Lab)]

Does the Chancellor agree that energy efficiency should be a priority for infrastructure development, both nationally and regionally? To that end, will he seriously consider earmarking the proceeds of the shale gas sovereign wealth fund for energy efficiency measures so that we can not only save on bills, but create jobs and encourage innovation?

[Mr Hammond]

I am not necessarily in favour of earmarking or hypothecation of funds for that specific purpose, but the right hon. Lady makes an important point. We have a serious challenge on this country’s energy capacity over the next 20 years, and we are going to have to invest eye-wateringly large sums of money—perhaps £100 billion—just to ensure that the lights stay on. Of course it makes sense to look at ways of reducing demand for energy through energy conservation measures alongside the demands for new energy generation plants.

EU Membership: Economic Benefits

Debate between Lord Hammond of Runnymede and Caroline Flint

Wednesday 15th June 2016 Commons Chamber

[Mr Hammond]

My hon. Friend knows very well that the answer to both those questions is zero, but it goes further than that: I have not found any foreign leaders at all urging Britain to leave the European Union and saying that Britain would be a more influential and valuable partner if it left the EU.

[Caroline Flint (Don Valley) (Lab)]

rose—

[Mr Hammond]

I will give way in just a moment, but I need to make some progress, because many Members wish to speak.

The hon. Member for Hayes and Harlington (John McDonnell) set out some of the economic benefits of our continued membership of the EU. By the way, I welcome his candid assessment of the achievements of the SWP over the past four decades—I never thought that I would hear that coming from his mouth. I agree with him that workers’ rights such as paid holidays and maternity and paternity leave are important. However, it is perhaps worth reminding him that it was a Tory-led Government who abolished Labour’s jobs tax and took 3 million of the lowest paid out of income tax altogether, and that it is this Conservative Government who are introducing the statutory national living wage, which addresses his point about the wages of the lowest paid.

It is also worth reminding the hon. Gentleman—the Labour party periodically appears to forget this—that the most fundamental right for any worker is the right to have a job and a pay packet at the end of the month. That is a right that 2.5 million more people enjoy today under a Conservative Government than in 2010 under a Labour Government, which is the result of Conservative fiscal management and Conservative economic reforms. A Tory-led Britain that is a member of the European Union has delivered record levels of employment.

--- Later in debate ---

[Mr Hammond]

My hon. Friend is absolutely right. I want to address that important point later in my speech.

Any deal that we achieve with the European Union will almost certainly exclude free access to the market for services, which is something of a problem when services account for almost 80% of our economy.

[Caroline Flint]

rose—

[Geraint Davies]

rose—

--- Later in debate ---

[Mr Hammond]

My hon. Friend is right. We can regard what has been happening in the markets this week as a fore-tremor—a taste of what could be to come if the people of Britain vote to take a leap into the dark on 23 June.

A fully fledged energy union in gas and electricity markets could save £50 billion a year across the EU by 2030, with huge benefits for consumers through their energy bills, as well as making Europe safer from threats of energy blackmail. But it is not just intra-EU trade benefits that our membership delivers. As a member of the world’s largest economic bloc, we benefit directly from being party to EU trade agreements with more than 50 other countries, with terms far more favourable than any that we could have negotiated alone, because of the combined negotiating muscle of an economic bloc with a quarter of the world’s GDP.

[Caroline Flint]

Trade is one of the areas where size does matter. Will the Foreign Secretary comment on the attempts to strike a deal between Switzerland and China? We hear much about what the world might be like if we leave the EU. My understanding is that as part of the deal the Chinese are negotiating for full access to the Swiss market, but have told the Swiss that they will have to wait 15 years to get into the Chinese market.

[Mr Hammond]

The right hon. Lady is right. The deal on the table between Switzerland and China is deeply asymmetric and deeply unfavourable to the Swiss, but reflects the mismatch in scale between those two marketplaces. Being part of the world’s largest economic bloc allows us to stare squarely into the eyes of Chinese and American interlocutors when negotiating trade deals.

It is a well rehearsed and well understood fact that 44% of the UK’s exports go to the EU, but it is an underestimate because it addresses only exports to the EU. If we take into account the countries with which the EU has a free trade agreement—destinations for another £56 billion of British exports—the figure goes up to 56%, which does not take into account any of the countries with which the EU is negotiating free trade agreements. If we included them, we would be talking about more than 80% of UK exports going either to the EU or to countries with which the EU had trade agreements. At the very least, more than half of Britain’s exports would therefore be at risk if we left the European Union, and it could take a decade or more to put in place new deals with the EU 27 and the 53 other countries with which we have free trade agreements. It is not about choosing between growing our trade with the EU or with the rest of the globe—as the figures show, our EU membership is key to both.