Spring Statement

Debate between Lord Hammond of Runnymede and Chris Leslie

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

Yes. My right hon. Friend—perhaps unsurprisingly, given his constituency—is very interested in these issues, and I would be happy to meet him to go through the numbers. There are a number of moving parts underneath the headline number. Stamp duty in Wales has been devolved, which takes a significant chunk out of the total number. There is an overall slowdown in the market, which has an effect. We have also exempted first-time buyer purchases from stamp duty, which is a considerable chunk of the reduction he refers to, but I would be happy to talk him through the details.

[Mr Chris Leslie (Nottingham East) (Ind)]

It is a fundamental mistake for the Chancellor to underestimate the impact of Brexit on his future forecasts. To dismiss the 3.2% collapse in the forecast for business investment is a strategic error that he is making for the future. We hear the Chancellor talk about a “deal dividend” and the shadow Chancellor talk about a “jobs-first Brexit”, but that is a mythology. Brexit in all forms will hit our business investment and our tax revenues and create austerity for a decade. Can the Chancellor and the shadow Chancellor stop treating this as business as usual?

[Mr Hammond]

While the hon. Gentleman is entitled to his point of view and often makes a valuable contribution to the debate, he has to be careful that he does not accidentally veer off-piste into “talking Britain down” syndrome. He talks about a collapse in business investment, but I hope he would agree that this is likely to be a cyclical reduction in business investment. If he talks to businesses, they will tell him that they are postponing investment decisions until they have greater clarity about the future. I agree; we cannot keep them hanging there forever. We need to give them clarity and certainty as quickly as possible. I believe we will do that in this House over the next few weeks, and when we do, I believe that the great majority of that investment—postponed, not cancelled—will flow back into our economy later this year.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Chris Leslie

Tuesday 5th March 2019 Commons Chamber

[Mr Hammond]

I think the hon. Lady is talking about radar interference problems with wind turbines, something I remember from my Ministry of Defence days. The Treasury and the Department for Business, Energy and Industrial Strategy will always argue robustly for protecting the economic potential of these technologies, but of course we have to look at our national security interests as well and get the balance right.

[Mr Chris Leslie (Nottingham East) (Ind)]

How on earth do people think that we are going to be improving the UK’s new technology position when we are on the brink in this House of committing to a disastrous Brexit that will undermine our research funding, stifle our skilled migration, hobble in some ways some of the developments in our pharmaceuticals and biotech sector, and wave goodbye to the European Medicines Agency? Is not the truth that actually our task is going to be to prevent a deterioration in our prospects as a country if we go down that route?

Spring Statement

Debate between Lord Hammond of Runnymede and Chris Leslie

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

I am grateful to my right hon. Friend. We have already relaxed the borrowing cap for local authorities in areas with high demand and low affordability. We will monitor the consequences carefully and keep how it delivers under continuous review.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

The light that the Chancellor can see at the end of the tunnel is the Brexit locomotive barrelling headlong towards him, and towards our schools and hospitals. What will he do to prevent that free trade agreement-style scenario, which his own Treasury officials say will leave a £55 billion train wreck in our public services?

[Mr Hammond]

As the hon. Gentleman knows, I am committed to delivering a Brexit that protects British jobs, British businesses and British prosperity, and I spend a significant amount of my working time ensuring that that is the route we follow. I expect that we will make further progress at the March European Council. I understand the concerns that he expresses on behalf of British businesses, but I talk to businesses all day, every day, because that is my job—[Interruption.] The shadow Chancellor says so does he, so he will know this already. Business is concerned about what the consequences of a bad Brexit deal could be, but business is much more concerned about the consequences of the policies advanced by his right hon. Friends on the Opposition Front Bench.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Chris Leslie

Tuesday 24th October 2017 Commons Chamber

[Mr Hammond]

My hon. Friend is absolutely right to say that we have the lowest unemployment rate for four decades, and that is a remarkable achievement. The British economy has performed with remarkable resilience since June 2016. Last year, we had the second highest growth rate in the G7. The British economy is fundamentally strong and resilient. Yes, we have some short-term uncertainty, but underneath that is a strong and resilient economy ready to go forward and reap the benefits that are available in the future.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

A fortnight ago, at the International Monetary Fund, the Chancellor was talking about the fiscal and unemployment consequences if a transition deal on Brexit is not achieved by the first quarter of next year. He was right then, so what is he doing to help secure a specific transition agreement in that first quarter of next year?

[Mr Hammond]

We are preparing for all outcomes in our negotiations with the European Union, but the Government’s objective is to reach a deal. As the Prime Minister made clear in her Florence speech, as part of that deal we want to agree an implementation period, during which businesses and Governments can prepare for the new relationship, and we want to agree the principles of that period as soon as possible. Last week, at the European Council, the 27 agreed to start internal preparatory discussions on guidelines in relation to an implementation period. Together with the broad support for the idea in Parliament, this should give British businesses confidence that we are going to provide them with the certainty they require.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Chris Leslie

Tuesday 18th July 2017 Commons Chamber

[Mr Hammond]

My hon. Friend is right to express concern about the vulnerability created by the high level of debt. As the OBR made clear last week, that debt means that if the economy were to face an external shock, we would not be in a position to respond in the way that we would ideally like. That is why we have to get debt down, and the only way to get debt down is to get the deficit down. That means responsible fiscal policy, not the kind of rubbish we hear from Labour Front Benchers.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

Was it not clear from the OBR report last week that it is a hard Brexit that presents the biggest threat to our national finances? Just a 0.1% decrease in productivity could lead, over 50 years, to a 50% increase in the ratio of debt to GDP. If the reports are true that the Chancellor is prepared to champion a longer transition from the single market for the UK, such welcome news might secure a lot of support on both sides of the House.

[Mr Hammond]

I welcome the hon. Gentleman’s contribution. On an issue as important to our nation’s future as our exit from the European Union, I welcome any opportunity to build consensus across the House and the nation. He is right to draw attention to what the OBR said. Even a very small decline in our productivity performance would add huge amounts to the debt and would reduce, by significant amounts, our projected growth in GDP. That is why it is so important that we now act responsibly in maintaining fiscal discipline and ensuring that we reduce our debt over time.

Class 4 National Insurance Contributions

Debate between Lord Hammond of Runnymede and Chris Leslie

Wednesday 15th March 2017 Commons Chamber

[Chris Leslie (Nottingham East) (Lab/Co-op)]

This is obviously an acutely embarrassing episode for the Chancellor, but will he not acknowledge that it is also quite embarrassing for those of his colleagues, including the Prime Minister, whom he sent out there to defend this breaking of the manifesto commitment? Has he already apologised to the Prime Minister and to his colleagues, or will he take this opportunity to say sorry to them from the Dispatch Box?

[Mr Hammond]

I find it a bit extraordinary that that should be the hon. Gentleman’s intervention. He, after all, is the one who said that Labour would fund its £500 billion plans by doubling income tax, doubling national insurance, doubling council tax and doubling VAT. He is the one who sounded the alarm on the Opposition side.

Look, I have had extensive conversations with colleagues since the Budget, over the weekend, and in the Lobby last night and on Monday. I have had lots of discussions with the Prime Minister over the last few days, as the hon. Gentleman would expect. As he would also expect, I am not about to give the House the full detail of those private conversations.

Autumn Statement

Debate between Lord Hammond of Runnymede and Chris Leslie

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I am grateful to the Chairman of the Treasury Committee for his remarks and for the Committee’s work on a single fiscal event—it is much appreciated and the right way for us to go. On his specific question, students are included, as he knows, in the 100,000 or tens of thousands target, and my right hon. Friend the Home Secretary is looking at how best to manage student flows in the interests of what, as he says, is an important industry in this country.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

A few months ago, the Foreign Secretary promised the general public that we would by now have an extra £350 million a week for the national health service. Strangely, however, the Chancellor has just announced that growth is falling and business investment is collapsing and that there will be an extra £110 billion of borrowing over the forecast period when compared with March. I do not see any of his leave-campaigner colleagues on the Front Bench, but has he received an apology yet from the Foreign Secretary or any of them?

[Mr Hammond]

I am not responsible for remarks that may or may not have been made during political campaigns. The British people made a decision to leave the European Union, and we must respect that decision. If we are to make a success of this process and if we are going to ensure the success of the British economy in the future, we must move on and not repeat this sterile debate over and over again. We must focus our attention on building an economy that is match-fit for the future and that will enable us to deliver high living standards as we make our way in the world.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Chris Leslie

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

Nottinghamshire is, indeed, a part of the country that I know well and have a great deal of affection for. The Government are completely seized of the need for infrastructure investment to support the productivity performance of our economy. My right hon. Friend the Transport Secretary will look at the priority to be afforded to different specific projects and will make statements in due course.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Given that the east and west midlands together could generate significant growth for our economy if they got the right road, rail and skills infrastructure, and given that today is Nottingham in Parliament day, will the Chancellor acknowledge that the autumn statement should bring forward those ambitions for the midlands engine?

[Mr Hammond]

The Government are committed to the midlands engine. The hon. Gentleman is absolutely right to say that the midlands conurbation overall has a weight of population and economic activity that allows it to be a rival to the hub of London and the south-east. As I said to my right hon. Friend the Member for Broxtowe (Anna Soubry), announcements about specific projects will be made in due course by the relevant Minister.

Rail Investment

Debate between Lord Hammond of Runnymede and Chris Leslie

Thursday 25th November 2010 Commons Chamber

[Mr Hammond]

At this point I cannot give my hon. Friend an answer; it will depend on which option is selected. Of the two remaining options, one is for a novel technology—the Agility Trains proposal for a bi-modal train, which is an innovation—and the other is for a standard high-speed electric train set with a diesel coupling at the end of the wires. Clearly the latter option could be delivered more quickly, but our decision must be based on the best long-term interests of the UK’s railway.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

The Secretary of State will acknowledge that, in my constituency certainly, there will be huge disappointment that midland main line electrification did not merit even a mention in his statement. Some of my constituents could be forgiven for thinking that he has something of a grudge against the east midlands, although I am sure—and we all hope—that that is not the case. When will the decisions on control period 5 be taken, so that we might at least have the prospect of that much-needed investment?

[Mr Hammond]

No, I will not acknowledge that there will be huge disappointment. Only a few months ago people were telling me, and relevant publications were saying, that all this investment would have to be cancelled because of the squeeze on public spending. We should rejoice in the fact that we have managed to focus on and prioritise public capital infrastructure investment that will support economic growth in this country. I am a little disappointed that the hon. Gentleman does not sing the praises of the decision to support and invest in the Nottingham tramway, but I will say one thing for him: I cannot blame him for the actions of the previous Government, because he was not in it.

Transport (Investment)

Debate between Lord Hammond of Runnymede and Chris Leslie

Tuesday 26th October 2010 Commons Chamber

[Mr Hammond]

Dear, dear! I must be going deaf, because I did not hear the hon. Lady mention the Nottingham tramway or the ring-road improvement. Far from being a kick in the teeth for Nottingham, this very carefully made decision prioritises the projects with the highest value for money. Whether she likes it or not, the ring road showed a much higher return per pound of taxpayers’ money—

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Rubbish!

[Mr Hammond]

The hon. Gentleman says that, but it runs through his constituency; there is no pleasing some people. The ring road showed a much higher return per pound of taxpayers’ money spent than did the A453 scheme. However, the A453 scheme is in the development pool and we will continue to work on it. As the hon. Lady will know, the scheme has some powerful advocates who regularly make the case for it to me.

--- Later in debate ---

[Mr Hammond]

As I hope I have made clear, the process for the appraisal of projects is pretty rigorous, and will be based on the cost-benefit analysis and the external non-monetiseable effects of the scheme. If my hon. Friend looks on the Department for Transport’s website, she will find chapter and verse on how we do it. Of course I will always be happy to talk to hon. Members about their schemes, but I can assure her that the process for appraising schemes in the pre-qualification pool will be done rapidly and objectively, and the best schemes will move up into the development pool for consideration for funding next year.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Will the Secretary of State now publish the assessment to which he alluded earlier of the A453 in Nottinghamshire, which he suggested was on a lower value-for-money assessment? That is certainly not the feeling of Members on both sides of the Chamber. Although it might have the hallmarks of a country lane, it is a massive priority for businesses in the east midlands, and he is leaving them with the impression that he has no plans for jobs or growth.

[Mr Hammond]

I do not think that is the impression that businesses in Nottinghamshire will have been left with. I know the A453 very well, and I am well aware of the problems that occur in the area. The Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), who has responsibility for roads, has already made a commitment to the House that we will in due course publish the business cases for both successful and unsuccessful schemes, so that Members can understand exactly how we have arrived at our conclusions.