Spring Statement

Debate between Lord Hammond of Runnymede and Jim McMahon

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

I have heard of the campaign. We settled the issue a number of years ago. [Hon. Members: “What?”] Yes, we have. We were dealing with a very difficult set of challenges but did what we had to do. I know the campaign continues, but I have no further announcements to make.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

The Government will know that, since they walked away from local councils, frontline services such as adult social care and children’s safeguarding have been massively underfunded, adding more and more pressure on low-income families and council tax. When will he eventually give proper funding for children’s services and adult social care?

[Mr Hammond]

At the risk of being repetitive: we will have a spending review later this year. The question of local government funding and how business rates retention interacts with other funding structures will be looked at, but in the meantime we have increased funding for local government by £1.3 billion, meaning that local government has a real-terms spending increase available this year. Labour Front Benchers voted against it.

European Union (Withdrawal) Act

Debate between Lord Hammond of Runnymede and Jim McMahon

Thursday 6th December 2018 Commons Chamber

[Mr Hammond]

This is not an economic forecast. It is a modelling of five different scenarios. Our economic growth rate in 2033 will depend on a raft of other issues, not only on the outcome of this debate.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

Is it not the truth that there has not been time to consult with the organised trade unions because the Government have been consulting with the hard-line Brexiteers in the European Research Group instead of putting the national interest first?

My question is this: why did the Chancellor not support his Prime Minister in her pledge to end austerity in the Budget, which would have addressed many of the reasons for the divide in the nation he refers to?

[Mr Hammond]

I am not quite sure what the hon. Gentleman is referring to. In the Budget, I set out a clear plan for Britain’s future. I set out an indicative envelope for the spending review next year, which will show public spending increasing in real terms throughout the next spending review period. In most people’s definition, that is turning a very important corner for this country.

The economic analysis published by the Government last week clearly shows that, of the spectrum of outcomes for the future UK-EU relationship, the modelled White Paper scenario would deliver significantly higher economic output than the no-deal scenario, the FTA scenario, and even the EEA scenario. The proposed future UK-EU relationship is estimated to result in economic output around 7 percentage points higher than in the modelled no-deal scenario in the long run, once the economy has reached its post-Brexit equilibrium.

This is a deal that secures the rights of more than 3 million EU citizens living in the UK and around 1 million UK nationals living in the EU; a deal that takes us out of the European Union and sets a framework for an economic partnership with our European friends and neighbours that is closer than any other they have today, while allowing us to strike free trade agreements around the world; a deal that ends freedom of movement and regains control of our borders, not so that we can shut down immigration, but so that we can manage it in our own best interests, ensuring that our businesses and health service still have access to the skills they need—skills that we will need as we build on our fundamental economic strengths to give Britain the brighter future our citizens imagined when they voted in June 2016; a deal that delivers on the referendum result, while securing the achievements of the British people in rebuilding our economy over the past eight years; and, above all, a deal that can bring our country together again.