Spring Statement

Debate between Lord Hammond of Runnymede and Jeremy Quin

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

The hon. Lady will know, I think, that we also announced—again, this is due to come in in April—record increases in the youth rates of the minimum wage. We have had several exchanges in this Session about the importance of maintaining low levels of youth unemployment and about the devastating effects of youth unemployment—[Interruption.]. I am sorry if she does not like this. The Government take advice from the Low Pay Commission about the impacts of different pay rates on employment prospects, and we balance the need to give people a fair wage with the need to maintain high levels of youth employment, in the interests of those people themselves and of our economy.

[Jeremy Quin (Horsham) (Con)]

I welcome the projection that real wages will increase in the coming year, but that can continue in the longer term only if we improve our productivity. In that context, may I welcome not only what the Chancellor has said about human capital and long-term endeavour, but the improvements in productivity over the last six months?

[Mr Hammond]

Yes, and my hon. Friend is right to draw attention to two quarters of very good productivity data. I do not want to change policy or to pivot on the basis of two quarters’ data, because data can be revised, but we are starting to think that we might just be at the beginning of a turn in the trajectory of productivity performance in this economy.

Economy and Jobs

Debate between Lord Hammond of Runnymede and Jeremy Quin

Thursday 29th June 2017 Commons Chamber

[Mr Hammond]

I have just explained to the House—and I am sure that the hon. Gentleman heard—that it would not be legally possible for us to leave the EU and stay in the single market. It is simply not an option.

[Jeremy Quin]

rose—

[Charlie Elphicke]

rose—

[Mr Hammond]

I am happy to give way to my hon. Friend the Member for Horsham (Jeremy Quin).

[Jeremy Quin]

rose—

--- Later in debate ---

[Mr Hammond]

Thank you, Madam Deputy Speaker. I give way to my hon. Friend the Member for Horsham.

[Jeremy Quin]

I am most grateful that the Chancellor is now taking my intervention. May I take him back to the discussion on amendment (l)? About six interventions ago, he was patiently explaining to the shadow Chancellor the risks to cashflows of nationalising all these wonderful businesses and the huge cost to the taxpayer that would result. I hope that the shadow Chancellor has been suitably educated. Will my right hon. Friend also educate the shadow Chancellor on the point that the total amount of our debt will have an impact on our borrowing costs? They are high enough already, but they could get a lot worse. The shadow Chancellor’s friends who run the Greek and Portuguese economies know about high borrowing costs.

[Mr Hammond]

My hon. Friend makes an important point. The shadow Chancellor often talks about borrowing costs being low and about this being an ideal time to borrow more, but if he ever got his hands anywhere near the levers of power, with his programme of massively increased borrowing, we would soon see our debt interest costs soaring. That would mean yet more of our hard-earned taxpayers’ money being paid to the lenders.

Let me summarise where I have got to on Labour’s programme. The shadow Chancellor has a small problem with arithmetic. The Institute for Fiscal Studies found a £2.2 billion arithmetical error in his manifesto costings. We have identified a £90 billion black hole in Labour’s spending plans that would have to be funded by higher taxation on ordinary families, £250 billion of planned borrowing, and £120 billion—and some—for the nationalisation, which would all be added to our debt. So, just as our national debt is about to start falling as a share of GDP, the Labour party wants to add at least £370 billion to the pile.