Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 2nd July 2019 Commons Chamber

[Mr Hammond]

I fear that the right hon. Gentleman is manifestly asking the wrong person that question. I literally cannot answer it. The purpose of a spending review is that such matters can be looked at in the round, and the responsible way to do a spending review is first to set the envelope of what is affordable, and then to look at the different bids, which will—I can confidently predict—greatly exceed the available spending power, and prioritise. That is the difficult business of government, and that is why I am not in favour of ad hoc spending commitments or tax cut commitments being made.

[Mr Speaker]

The Chancellor is a clever chap, but his capacities do not include the capacity to penetrate the minds of colleagues, especially those in competitive vote-seeking mode.

[Sarah Newton (Truro and Falmouth) (Con)]

Homes England indicates a current pipeline of some 15,000 community- led homes in England. That shows the significant positive impact of the community housing fund. Will my right hon. Friend confirm the continuance of the fund so that those much-needed homes can be built?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 21st May 2019 Commons Chamber

[Mr Hammond]

I am a little mystified by this story about Boots, which I too read in the newspapers. When I announced the policy, I said that it was designed to help small independent retailers, and Boots, with 22,000 providers, does not fall within my definition of a small independent retailer. We always understood that this policy initiative was designed to support small independent retailers as they transition to the high street of the future.

[Mr Speaker]

I call Anneliese Dodds. [Interruption.] No? I had the distinct impression that the hon. Lady wished to come in on this question, but it is not obligatory.

--- Later in debate ---

[Mr Hammond]

The answer is lots. Had I known my hon. Friend was going to ask me that, I would have been able to give him a precise answer. I will write to him.

[Mr Speaker]

Put a copy of the answer in the Library of the House—we will all find it most informative.

[Mr Gregory Campbell (East Londonderry) (DUP)]

My party has advocated the raising of the personal allowance, and I am glad that the Chancellor has done that over the past few years, but does he agree that part of the problem now is that part-time and full-time employees on low pay, just below the threshold of £12,500, pay national insurance contributions? Will he consider eliminating that to the same level as the allowance?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 9th April 2019 Commons Chamber

[Mr Hammond]

We have a marketplace in fuel in this country, but I understand my hon. Friend’s point. I am sure the Exchequer Secretary would be very happy to meet her to discuss it.

[Mr Speaker]

When she is not busy vice-chairing the all-party group.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

I chair Labour’s Back-Bench environment, food and rural affairs committee.

The Chancellor always impresses me. He is thoughtful, and I like him a lot. He is thoughtful on Europe and on the environment, but can I take him back to what my hon. Friend the Member for Cambridge (Daniel Zeichner) said? Is it not about time we had a modern taxation system that encourages sustainable transport? We are killing kids and poisoning pregnant women. We know that air pollution is of the utmost importance. I appeal to the Chancellor’s radical instinct: let us have a new form of sustainable taxation.

Spring Statement

Debate between Lord Hammond of Runnymede and John Bercow

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

My right hon. Friend is right, of course, about the OBR’s Brexit assumption—I said so earlier and the OBR has said so clearly. It has to make an assumption, and until there is a new policy, that is unfortunately the way it is mandated to work. On the forecast, I have addressed this in this House many times before. The forecast is based on those assumptions. We are either going to have a no-deal exit, in which case I would expect a significantly worse outturn, or we are going to lift this cloud from above our economy, in which case I would expect a significantly better outcome. A number of important commentators, including the Governor of the Bank of England, have suggested over the past couple of weeks that there is more juice in the economy if we can just lift this cloud.

I have noted my right hon. Friend’s early bid for further education in the spending review. There will be lots to discuss as we go into the spending review, and we will ensure that there are proper, structured arrangements for Members of this House to make their views known. My right hon. Friend the Chief Secretary will be happy to engage across the House.

My right hon. Friend asked about the target for the mid-2020s. I simply do not accept that the figures published today show that it is impossible to reach a balanced budget in the mid-2020s. In 2023-24, the deficit will be 0.5% of GDP, but whether we choose to get the deficit down to zero or choose to do other things is a choice, and we are lucky to have it.

[Mr Speaker]

The hon. Member for Manchester Central (Lucy Powell), who is ordinarily known for her buoyant and enthusiastic smile, was gesticulating at the Chancellor to speed up. I think she was auditioning for the role of Speaker, and presumably seeking to give the right hon. Gentleman a masterclass in brevity, notwithstanding her desire often to make her own point with enormous eloquence but at not inconsiderable length—but we will see.

--- Later in debate ---

[Mr Speaker]

Splendid.

[Mr Hammond]

I am not sure I entirely understand the question, but clearly corporation tax receipts have gone up as a result of reducing corporation tax rates, making the UK one of the most attractive places for businesses to establish and invest. As I have acknowledged, business investment is depressed by Brexit uncertainty. The sooner we can end it, the sooner we can get back to business.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 5th March 2019 Commons Chamber

[Mr Hammond]

HMRC does take action against errant employers. It is always pleased to receive information on suspected non-compliance and will investigate any such cases. I am sorry that the hon. Gentleman had difficulty thinking of a question. Anticipating this situation, I have at least four or five potential questions that he could have asked me, and I am happy to show them to him afterwards.

[Mr Speaker]

Colleagues, on a discretionary basis I am changing the order, but, believe me, I know why I am changing the order and there is a compelling reason in this instance for doing so.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 29th January 2019 Commons Chamber

[Mr Hammond]

Some of the expenditure being undertaken by Departments will be required in any case for our post-EU future, whether we leave with a deal or no deal, but I have made no bones about the fact that some of the expenditure is of a precautionary nature. The expenditure will be nugatory if the deal is agreed and we leave with a smooth trajectory. Every responsible Government, across all areas of activity, undertake expenditure to deal with potential contingencies, to ensure that the country is prepared for eventualities that may arise. It is proper that we should do so.

[Mr Speaker]

We are running out of time, so we need one-sentence questions.

[Mr Speaker]

That was absolutely hopelessly long.

[Mr Hammond]

My hon. Friend demonstrates ingenuity and she is absolutely right: the nuclear sector deal is very important.

--- Later in debate ---

[Kevin Brennan (Cardiff West) (Lab)]

T6. It is Independent Venue Week. Such venues are the research and development to a £4.5 billion music industry, but a third of them have closed in the past decade. Why is the Chancellor, who has Runnymede Jazz Club in his constituency, giving a rates discount to pubs but not to music venues? Will he look at that again?

[Mr Speaker]

Let us hear about the jazz situation in Runnymede.

[Mr Hammond]

Jazz is alive and well in Runnymede. Perhaps the hon. Gentleman will give me the precise address of the Runnymede Jazz Club later. The measures we announced in the Budget to support high street and retail more generally apply to all retail outlets with a rateable value of less than £51,000. If he has a specific point to make about music venues, I or one of my colleagues would be happy to meet him to talk about it.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 11th December 2018 Commons Chamber

[Mr Hammond]

The right hon. Gentleman can practise his synthetic concern at the Dispatch Box, but the remedy lies in his hands. There is a deal on the table that will end the uncertainty and allow this country to move on, and our polling shows that that is exactly what the British people want. All he has to do is get behind it, vote for the Prime Minister’s deal and we can all move on.

[Mr Speaker]

I say very gently to the Chancellor, to whom I have been listening with great care, that it is quite difficult to vote for something if there is not a vote. I am only trying to help him; it is a point that is so blindingly obvious that I am surprised that I have to state it, but manifestly I do.

--- Later in debate ---

[Mr Hammond]

When I was in Brussels the other day, I was reliably informed that the kingdom of Belgium was originally intended to be a temporary construct, but it still seems to be with us. The world has moved on since the Napoleonic wars, as my hon. Friend may or may not celebrate, and I have to tell him that the Government have no plans to abolish income tax.

[Mr Speaker]

None the less, we are better informed as a result of what the Chancellor has just told us, on two points: Belgium and then the subsequent point. We are grateful to him for that.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

The lowest paid members of the armed forces stationed in Scotland pay less in tax than their counterparts elsewhere in the UK, so why will the Chancellor not stand up for the lowest paid members of the armed forces, either by giving them a tax cut to match their counterparts in Scotland or by giving them a proper pay rise?

--- Later in debate ---

[Mr Hammond]

A very large number. I will go back to the Treasury and write to my hon. Friend with a precise figure.

[Mr Speaker]

Can I politely suggest to the Chancellor that if he were to lodge a copy of his reply with the requisite statistical information in the Library, I do not say that he will be garlanded, but he might come close to it?

European Union (Withdrawal) Act

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 6th December 2018 Commons Chamber

[Joseph Johnson (Orpington) (Con)]

I am very grateful to my right hon. Friend for giving way. He mentioned financial services and the impact of any Norway-style arrangement on the sector. Does he not also acknowledge that the proposed deal that the Government are putting forward is not great for financial services by any means? The sector obviously employs many of my constituents in Orpington who come into London every day to work in the City in all manner of roles. I have read the Government’s economic analysis and it shows that, over the relevant forecasting period, the financial services sector will be hit by around 6% to the effect that our trade will be 6% smaller than it would otherwise be. That is a meaningful hit to one of our most competitive industries, and we do not have many globally competitive sectors, so it baffles me why we would willingly do that.

I wish to make one further point if I may and ask another question. The agreement that the Government are putting forward will mean that we will no longer have any direct influence on the EU’s rule making with respect to financial services. It is therefore all the more important that we maintain our ability to play a full part in representing the UK’s interests in global bodies such as the Basel Committee and the International Organisation of Securities Commissions. Article 219 says that we will have to follow the EU’s position on all those bodies. [Interruption.]

[Mr Speaker]

I think the House has captured what Jack Straw used to call the gra-vah-men of the hon. Gentleman’s point. I prefer the pronunciation gra-va-men, but there you go.

[Mr Hammond]

Let me say this frankly to my hon. Friend: there is no deal that is negotiable that involves leaving the EU and maintaining the financial services passport. That is a fantasy world outcome. There will not be passporting. What we have negotiated with the European Union is an enhanced equivalence approach that will allow us to maintain our vital financial services networks with the European Union in the areas where there is significant financial services trade between us and to do so in a way that will provide the reassurance that commercial companies need in London to continue operating.

A mere equivalence finding is of no use to a company operating a book of derivatives worth several trillion dollars when there could be an abrupt ending of the equivalence arrangement unilaterally by one side. There has to be a more structured basis for that co-operation in the future. We have agreed that with the European Union, and I absolutely agree with my hon. Friend’s point that, even though we will not have direct influence over new European Union rules, we can have a significant influence over the shaping both of the global rules and, indeed, the European rules.

Over many decades of membership of the European Union, the UK has had a huge influence over the EU’s financial services regulatory environment. We have done that not through voting power, but through the skill, the diligence and the commitment of our civil service and industry teams who have engaged in Brussels and who have provided their expertise to try to shape the European Union’s financial services regulation in a way that is effective and that works for us all, and we will carry on doing so in the future.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 6th November 2018 Commons Chamber

[Mr Speaker]

Very well done.

[Mr Hammond]

As the hon. Gentleman will know, the national funding formula is providing every local authority with more money for every pupil in every school.

--- Later in debate ---

[The Chancellor of the Exchequer (Mr Philip Hammond)]

My principal responsibility is to ensure economic stability and the continued prosperity of the British people, and I will do so by building on the plans set out in last week’s Budget. This is a Budget that supports our vital public services, such as the NHS, invests in Britain’s future, keeps taxes low and continues to reduce the nation’s debt. It is a Budget that shows that the hard work of the British people is paying off and that austerity is finally coming to an end. We have turned an important corner in this country and a bright, prosperous future is within our grasp.

[Mr Speaker]

Hopelessly long.

[Sir Edward Leigh]

As our economy is cyclical and sooner or later there will be another recession, will the Chancellor take this opportunity to deny the claim that by spending an extra £30 billion by 2023, we are going to be taking out of the economy exactly the same proportion as Gordon Brown did at the end of his chancellorship? Will the Chancellor assure me that we remain as committed as ever to fixing the roof while the sun shines and that he has a firm plan to reduce the debt?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 11th September 2018 Commons Chamber

[Mr Hammond]

Many people are dependent on vehicles for everyday living and for work. As I have already said, we understand the pressure that higher oil prices and their feed-through to the pumps presents for individual consumers. We take all such matters into account when setting future policy.

[Mr Speaker]

I hope the House will join me in welcoming the hon. Member for East Dunbartonshire (Jo Swinson) back from her maternity leave.

--- Later in debate ---

[Nicky Morgan (Loughborough) (Con)]

One of the people most interested in the trends in wage growth and inflation—and who gives the Treasury Committee evidence about that—is the Governor of the Bank of England. Will my right hon. Friend indicate to the House when he expects to be able to let us know about the discussions that he has been having with the current holder of that post about extending his position?

[Mr Speaker]

Not least because he will have important views about wage growth and inflation.

[Mr Hammond]

I know that he does have such views, Mr Speaker. As my right hon. Friend asked—and I know that her Committee questioned the Governor on this subject last week—I can now announce to the House that I have been discussing with the Governor his ability to serve a little longer in post in order to ensure continuity through what could be quite a turbulent period for our economy in the early summer of 2019. I can tell the House today that the Governor has agreed, despite various personal pressures to conclude his term in June, that he will continue until the end of January 2020 in order to help to support continuity in our economy during this period.

Points of Order

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 11th September 2018 Commons Chamber

[Mr Speaker]

I must say I have never found anything wrong with the hon. Member for Bolsover’s hearing. I think it was an off-the-cuff remark. It probably was not the best chosen, but it is a matter for the Chancellor to judge whether he wants to say anything.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

indicated dissent.

[Mr Speaker]

The Chancellor is shaking his head. Fair enough. The right hon. Member for Hayes and Harlington (John McDonnell) has registered his point. Knowing the hon. Member for Bolsover as I do, I very much doubt he will lose any sleep over it.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 3rd July 2018 Commons Chamber

[Mr Hammond]

The recent announcement of an additional £20 billion a year by 2023-24 for NHS funding was about core NHS funding. That is a huge commitment: £83 billion over the next five years. However, the hon. Lady is of course right to say that public health spending is also very important and has a direct impact on the way the NHS operates. Local authorities will receive more than £9 billion to spend on public health between now and 2021, but that is not the only stream of funding for public health. NHS England and the Department of Health and Social Care pay for Public Health England and for immunisation, screening and other preventive programmes. The NHS 10-year plan, which is currently under development, will set out proposals for public health.

[Mr Speaker]

We thank the Chancellor for his views, which have been set out in considerable detail. The right hon. Gentleman cannot be accused of excluding any consideration that might, at any time, to any degree, be judged material.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Last year, NHS England was given £337 million to prepare for winter pressures, but the Scottish Government received only £8.4 million rather than the expected £32 million. The Secretary of State for Health and Social Care has claimed that Scotland will get £2 billion from this recent uplift. When we will know the real figure?

--- Later in debate ---

[Imran Hussain (Bradford East) (Lab)]

T5. The Chancellor and his Ministers accuse Labour of doom and gloom. Well, let me ask him this: what does he say to the hundreds of people in my constituency who are homeless as a result of his austerity? What does he say to the parents who send children to school hungry as a result of his austerity? What does he say to the communities that have been devastated as a result of his austerity? Is it not time that the Chancellor came out of his ivory tower and connected to reality?

[Mr Speaker]

The hon. Gentleman is a cheeky chappie in this Chamber. I counted no fewer than four questions, to which I know the Chancellor, with his customary intellectual dexterity, will reply with one answer, embracing the gamut of issues if he wishes.

[Mr Hammond]

Indeed, Mr Speaker. What I will say is that we have spent the last eight years cleaning up the mess that was left behind for us by the last Labour Government and trying to mitigate its impacts on ordinary families up and down this country. It is the same whenever Labour gets into power: it is always ordinary people and the most vulnerable in society who suffer the most, and it is always the Tory party that has to clean up the mess.

--- Later in debate ---

[Vicky Ford (Chelmsford) (Con)]

British insurers, such as the ones based in Chelmsford, face a dilemma over what will happen to their European clients’ contracts: it would be immoral for them not to pay out on claims, but illegal if they do so. Will you urge the European regulators to come up with the same sensible, pragmatic solutions as the British regulators?

[Mr Speaker]

Well, I won’t, but the Chancellor might.

[Mr Hammond]

Yes, Mr Speaker, I will. I can tell my hon. Friend that we have established a European working group between the Bank of England and the European Central Bank to look at questions of contract continuity and other threats to financial stability over the period when we leave at the end of March. That will be looking at insurance contracts, and it will also be looking at the very large number of outstanding derivative contracts that could also, theoretically, become unenforceable at that point.

--- Later in debate ---

[Mr Speaker]

The hon. Gentleman is clearly a devoted fan of the semicolon.

[Mr Hammond]

That is the answer, Mr Speaker.

There will be a spending review next year, when we will look at the overall spending envelope and the Government’s priorities across the entire range of public spending.

--- Later in debate ---

[Mr Philip Hammond]

When I have the money in the bank, I will invite them around for a glass of champagne.

[Mr Speaker]

That is a pretty generous offer from the Treasury—[Interruption.] It will be recorded in Hansard; it will be in the Official Report tomorrow.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 22nd May 2018 Commons Chamber

[Mr Speaker]

Especially for the purposes of generating economic growth.

[Mr Hammond]

Precisely, Mr Speaker. It is the economic growth generation potential of housing development that we will take into account when evaluating transport proposals. In relation to the specific project to which my hon. Friend refers, the Exchequer Secretary advises me that the Department for Transport is eagerly awaiting a business plan for the project from the relevant local authority.

--- Later in debate ---

[Mr Philip Hammond]

The Government are committed to exploring all technologies that will keep data safe and create opportunities for innovation. Blockchain is one such technology, but the Government will also be examining other even more innovative distributive ledger technologies.

[Mr Speaker]

I look forward to learning more about blockchain. I am uninitiated on the matter, as the hon. Member for Walsall North (Eddie Hughes) can tell, but I feel sure that he will put me in the picture erelong.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The Governor of the Bank of England has stated that economic uncertainty caused by the Brexit vote will knock 5% off wage growth and is costing the UK economy £10 billion a year. Does the Chancellor agree with the Governor?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 17th April 2018 Commons Chamber

[Mr Hammond]

My right hon. Friend the Financial Secretary to the Treasury tells me that he agreed to meet the hon. Gentleman but has not heard from him to arrange a meeting. Let me reiterate on my right hon. Friend’s behalf that he would be happy to meet the hon. Gentleman to discuss this case.

[Mr Speaker]

Young Philp was standing a moment ago. The fella has stopped standing. Do you want to get in there, man? Go for it.

--- Later in debate ---

[Mr Speaker]

The hon. Gentleman’s job application is in the post.

[Mr Hammond]

Thank you for your very carefully tailored piece of demand stimulation, Mr Speaker. It was much appreciated for the economy of the Chamber.

My hon. Friend is right. As I have already said, working with the EU on this interim proposal for a turnover-based tax is, we believe, the right thing to do. We have, of course, also introduced an interim measure of our own, seeking to tax licence fees that are paid to low-tax jurisdictions where we judge that the underlying basis of the licence fee is economic activity taking place in the UK. We have that measure already in place, and we will continue to work with the EU on its proposed measure.

--- Later in debate ---

[Mr Hammond]

Not for the first time, I do not recognise the picture of our economy that is painted by Opposition Front Benchers. Figures today tell us that we have new record high numbers of people in employment, and new record low unemployment figures. That should be something that we are celebrating. Real wages are forecast to turn positive from this quarter and to go on growing thereafter. Employment is expected to grow by another 500,000 by 2022. We are working hard to ensure that productivity performance increases across the economy because that is the only sustainable way to achieve higher wages and higher living standards.

[Mr Speaker]

Order. I am afraid that progress has been terribly slow today. I would like to get through some more questions from Back Benchers, but we will need to have single-sentence questions and pithy replies. We do not have time for long pre-prepared speeches.

--- Later in debate ---

[Mr Philip Hammond]

I have already answered the question on the Swansea Bay lagoon—we are studying the project. All of these projects have to meet value-for-money tests. We already have a fantastic offshore wind sector, with record low costs to the consumer through offshore wind generation. We have to decarbonise our economy in a way that also keeps electricity prices as low as possible for consumers and businesses.

[Mr Speaker]

Single-sentence inquiries: I call Vicky Ford.

[Vicky Ford (Chelmsford) (Con)]

Last night, the pound hit its highest rate against the dollar since the referendum. Will the Chancellor join me in welcoming this sign of international confidence, which is so contrary to the run on the pound predicted by the shadow Chancellor?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 27th February 2018 Commons Chamber

[Mr Hammond]

We absolutely value transparency in the public-private partnerships that are delivered. They are an important part of the overall infrastructure. As I just explained to the House, there are currently no PF2 projects in procurement. That indicates that we have set the bar for value for money in public-private partnerships very high, and we will continue to do so.

[Mr Speaker]

Order. This is a rather extraordinary state of affairs. I hope that the hon. Member for Hyndburn (Graham P. Jones) is not indisposed, and if he is I am sorry, but otherwise there is absolutely no basis for his leaving the Chamber during the exchanges on his question. That is a rank discourtesy to the House—and a discourtesy to the Chancellor as well, for that matter. It must not happen.

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

The shadow Chancellor recently wrote to the Chancellor asking when he will produce revised value for money guidance, as highlighted by the National Audit Office; an updated list of PFIs, as existing data is nearly two years old; and details of any assessment the Treasury carried out on Carillion’s readiness to fulfil its PFI contracts. When will we get them?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 16th January 2018 Commons Chamber

[Mr Hammond]

Yes, it is absolutely true that for both Scotland and Wales leaving the UK single market would be far more economically damaging than leaving the European single market, which prompts the question why the Scottish National party has advocated so strongly remaining in the European single market and also advocated so strongly breaking up the UK single market.

[Mr Speaker]

Order. I am not very interested in hearing that, which has nothing to do with Government policy, but I am interested in hearing Wes Streeting. I hope the Chancellor will take note: put very briefly, Chancellor, “Stick to your last—your business, not theirs.”

[Wes Streeting (Ilford North) (Lab)]

Thank you, Mr Speaker; that is the nicest thing anyone is likely to say to me today.

The Chancellor rightly extols the benefits of the UK single market, but is not the rank hypocrisy of the Government exposed by listening to the comments of the chief executive of Airbus last night that leaving the European single market would be hugely damaging to the UK economy? We do not have to pick and choose: why will the Chancellor not put a jobs first Brexit at the heart of the Government Brexit strategy and commit to keeping us in the European single market?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 24th October 2017 Commons Chamber

[Philip Davies (Shipley) (Con)]

Given that more people are in employment, there is more opportunity for people to take advantage of employee share ownership saving schemes. Unfortunately, the maximum amount of time someone can pause one of those schemes is six months, which means that many women on maternity leave for up to a year have to cash in their schemes and cannot take advantage of them to maximum effect. I am sure that is an out-of-date anomaly, so in the Budget will the Chancellor extend the period of time that an employee share ownership saving scheme can be paused to up to 12 months? In that way, women on maternity leave can enjoy the same benefits of those schemes as everybody else.

[Mr Speaker]

The hon. Gentleman used the words “employment” and “employee” and just about got his question in order.

[Mr Hammond]

I am sure he did, Mr Speaker. My hon. Friend raises an interesting but technical point that has been raised with me by others, including the TUC. I will take what he said as a Budget representation and look into it carefully.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 18th July 2017 Commons Chamber

[The Chancellor of the Exchequer (Mr Philip Hammond)]

Short-term indicators of growth are volatile. Quarterly growth was 0.2% in the first quarter of this year, but this followed strong growth of 0.7% in the quarter before. The underlying economy is robust, thanks to record employment levels. Although a recent rise in inflation, caused mainly by the depreciation of sterling last year, may temporarily dampen consumer spending—today’s inflation figure for June is a little lower at 2.6%—there are signs from surveys of business that export orders and business investment intentions are up.

[Mr Speaker]

I call the Chair of the Select Committee on the Treasury, Nicky Morgan.

[Nicky Morgan]

Thank you, Mr Speaker. Would the Chancellor not agree that a growing economy is necessary to pay for our essential public services? The Office for Budget Responsibility’s “Fiscal risks report”, which has already been referred to, says that

“governments should expect nasty fiscal surprises from time to time”—

I am not referring to the shadow Chancellor there—and “plan accordingly”, but this Government also have to manage the uncertainties posed by Brexit. Should not a responsible Government not worsen uncertainties and risks by the decisions that they take?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 18th April 2017 Commons Chamber

[Mr Hammond]

I am sure you are delighted, Mr Speaker, that my hon. Friend has lighted on the key role of Buckinghamshire as a bridge between the north, the south, the east, the west and every other part of the country. I should be happy to receive, and I confidently predict that I will receive, my hon. Friend’s detailed submission on the case for greater infrastructure investment in Buckinghamshire.

[Mr Speaker]

Be careful what you wish for, sir.

[Steven Paterson (Stirling) (SNP)]

25. According to the findings of independent analysis, a hard Tory Brexit could cost Scotland 80,000 jobs over 10 years and a 5% drop in GDP. Why have the UK Government failed to produce a comprehensive impact assessment of the effect of a hard Tory Brexit on our economy? Is it the case that, for some reason, now is not the time?

--- Later in debate ---

[Toby Perkins]

Throughout the last seven years, the needs of the British people have had to play second fiddle to the needs of the Conservative party. As a result, the Chancellor has been forced to disown the manifesto commitment to balance the Budget in this Parliament. Is it not the truth that today’s announcement about a general election is another example of this Government putting their party’s interest ahead of the country’s interests at a time when there is a desperate need for stability in this country?

[Mr Speaker]

The question is about the departure from the EU and the effect thereof on the public finances.

[Mr Hammond]

In terms of the effect on the public finances, the decision that the Prime Minister made today is very much in the national interest, to strengthen her hand as she goes into the negotiation with the European Union, to provide a clear mandate for the type of exit that she set out in the letter she wrote to President Tusk two and a half weeks ago, and to ensure that the UK can negotiate its exit from the European Union, execute that exit, and then transition to the new arrangements with a clear run before the next general election.

Class 4 National Insurance Contributions

Debate between Lord Hammond of Runnymede and John Bercow

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

The right hon. Gentleman says, “Dear me”. I repeat: he does not—[Interruption.]

[Mr Speaker]

Order. We cannot have these shouting matches across the Chamber. [Interruption.] It is not for me to tell anybody to do anything. I am asking people not to do things that they should not do: shouting across the Box. I now exhort the Chancellor to continue with his response.

[Mr Hammond]

Thank you, Mr Speaker.

The right hon. Gentleman does not believe in fiscal neutrality—that is a fact. He believes in borrowing £500 billion of additional money, and saddling our children and our grandchildren with that debt. However, I very much take my right hon. Friend’s advice on maintaining fiscal neutrality and dealing with the structural issue that underlies this statement.

--- Later in debate ---

[Roger Mullin (Kirkcaldy and Cowdenbeath) (SNP)]

This is another right boorach. The last Chancellor who had to make a U-turn lasted only a few weeks thereafter, so before this Chancellor leaves office, will he confirm that, since he said that this decision was only made at 8 o’clock in the morning, that means it has not been taken to the full Cabinet?

[Mr Speaker]

I am very grateful to the hon. Gentleman; I shall add the word “boorach” to my vocabulary.

[Mr Hammond]

Yes, the decision was made by me and the Prime Minister this morning.

--- Later in debate ---

[Mr Speaker]

The hon. Lady has made her request. The Chancellor can respond, but he is not procedurally obliged to do so. If the right hon. Gentleman wants to respond briefly, he may.

[Mr Hammond]

Further to that point of order, Let me merely and briefly read the hon. Lady’s words as recorded in Hansard:

“As we have heard, this Bill enacts the Conservatives’ manifesto pledge not to increase NICs in this Parliament.”—[Official Report, 3 November 2015; Vol. 601, c. 914.]

[Mr Speaker]

I cannot instruct Members on which sentence they should read, but I rather suspect that if Members wish to return to these matters, they may choose to do so.

Point of Order

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 28th February 2017 Commons Chamber

[The Chancellor of the Exchequer (Mr Philip Hammond)]

Further to that point of order, Mr Speaker. I did not accuse the hon. Lady of being hysterical; I urged her not to be hysterical. [Interruption.]

[Mr Speaker]

Order. A point of order has been raised. The Chancellor is responding. Before anybody else says anything, we must hear what he has to say.

[Mr Hammond]

If my comments have caused the hon. Lady any offence, I of course withdraw them unreservedly.

[Mr Speaker]

I think that we should leave it there. I thank the Chancellor for what he has said. There is a difference between order and taste. People will have their own view about taste, but the point has been raised, and the Chancellor has made a gracious statement in response. For today, we should leave it there.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 28th February 2017 Commons Chamber

[Mr Hammond]

First, I should say that the Government are committed to addressing infrastructure needs across the UK. We will look at how best to use the available infrastructure funds based on the value for money of the projects that are brought forward, and different regions of the country will receive different allocations according to the projects that are available for development. The hon. Gentleman’s constituency has done well out of infrastructure funding.

[Mr Speaker]

Order. We have to be sensitive to the fact that lots of other Members are trying to get in. It is a matter not just of giving the answer but of knowing that other people want to take part. It is a fairly elementary point.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 17th January 2017 Commons Chamber

[Mr Hammond]

My assessment is that by setting out our agenda and by setting out clear objectives, as the Prime Minister is right now, we are meeting the first ask of our European partners, which is to be clear about what we want. We are recognising the political red lines they have set out and saying that we will respect them. That is the first step towards sensible engagement with our European Union partners to reach an outcome that is positive for the UK and for the European Union. That of course must include freedom for financial services firms to continue doing their business.

[Mr Speaker]

I was going to call the hon. Member for Coventry South (Mr Cunningham), but he does not seem to be standing—

--- Later in debate ---

[The Chancellor of the Exchequer (Mr Philip Hammond)]

The Government do not comment on currency movements and we do not target an exchange rate, but I will tell the House that the pound has spiked in the last few minutes while the Prime Minister has been speaking. The vote to leave the EU has obviously caused some uncertainty in the movements of financial markets. More generally, the fundamentals of our economy over the last couple of years have been strong.

[Mr Speaker]

I think what the Chancellor means is that he does not comment on currency movements unless he does.

[Fiona Mactaggart]

But is it not the case that No. 10’s office briefed that the pound would fall as a result of the Prime Minister’s remarks today? Did it do that in a cynical attempt to get the soundbite that the Chancellor has just sought to achieve?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 29th November 2016 Commons Chamber

[Mr Andrew Tyrie (Chichester) (Con)]

Selsey Bill, in my constituency, is a special case, but the best thing that can be done for coastal areas is to secure stronger growth throughout the economy. Mario Draghi has suggested that UK growth would be lower if, as a consequence of Brexit, the UK economy were less open to trade and investment. Does the Chancellor agree that both the UK and the EU benefit from an open economy, and that, if the European Central Bank is worried about a Brexit shock to the eurozone, he can and should be lobbying EU leaders to press for a high degree of mutual market access in the Brexit negotiations?

[Mr Speaker]

Order. We are discussing concern for coastal areas.

[Mr Hammond]

Absolutely, Mr Speaker. I agree with Mario Draghi that a reduction in openness would be very bad for the economy of Selsey Bill, and my right hon. Friend is right to draw attention to that. I entirely agree that the best way for the Government to protect the UK’s economy is to argue for the most open possible trading relationship with the European Union after we leave.

--- Later in debate ---

[Ben Howlett (Bath) (Con)]

T4. As the Chancellor will know, this Saturday marks Small Business Saturday across the country. I will be heading out in Bath to do some Christmas shopping at some of the small businesses and encouraging them to join my Best of Bath business awards. Will he join me in encouraging my constituents, and hopefully my neighbours’ constituents, to come into Bath and shop local?

[Mr Speaker]

I am sure the hon. Gentleman will be wearing that excellent pullover as he does so.

[Mr Hammond]

This is year four of Small Business Saturday, and the campaign continues to get bigger each year. Small businesses and entrepreneurs are the backbone of the British economy. The Government will continue to support Small Business Saturday this year with events across the country. I encourage right hon. and hon. Members in all parts of the House to be in touch with their local enterprise partnerships and their local branch of the Federation of Small Businesses to find out what is going on locally and to get out there and support it.

Autumn Statement

Debate between Lord Hammond of Runnymede and John Bercow

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

Yes—it says here because I wrote it here.

My ambition is for the UK to be a world leader in 5G. That means a full-fibre network; a step change in speed, security and reliability. So we will invest over £1 billion in our digital infrastructure to catalyse private investment in fibre networks and to support 5G trials. From April, we will introduce 100% business rates relief for a five-year period on new fibre infrastructure, supporting further roll-out of fibre to homes and businesses.

We have chosen to borrow to kick-start a transformation in infrastructure and innovation investment, but we must sustain this effort over the long term if we are to make a lasting difference to the UK’s productivity performance, so today I have written to the National Infrastructure Commission to ask it to make its recommendations on the future infrastructure needs of the country, using the assumption that the Government will invest between 1% and 1.2% of GDP every year from 2020 in economic infrastructure covered by the commission. To put that in context, we will spend around 0.8% of GDP on the same definition this year.

I am also backing the commission’s interim recommendations on the Oxford-Cambridge growth corridor, published last week, with £110 million of funding for east-west rail and a commitment to deliver the new Oxford-Cambridge expressway. That project can be more than just a transport link. It can become a transformational tech corridor, drawing on the world-class research strengths of our two best-known universities. I welcome the commission’s continuing work on delivery model options. We will carefully consider its final recommendations in due course.

The major increase in infrastructure spending I have announced today will represent a significant increase in funding through the Barnett formula, of more than £250 million to the Northern Ireland Executive, £400 million to the Welsh Government and £800 million to the Scottish Government.

Public investment is only part of the picture, however. About half of our economic infrastructure is financed by the private sector, and we will continue to support that investment through the UK guarantee scheme, which I am today extending until at least 2026. The new capital investment I have announced will provide the financial backbone for the Government’s industrial strategy that the Prime Minister spoke about on Monday, a firm foundation upon which my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy will work with industry to build our ambition of an economy that works for all.

I can announce four further measures to back business. I am doubling the UK export finance capacity to make it easier for British businesses to export. I am funding Charlie Mayfield’s business-led initiative to boost management skills across British businesses. I am taking a first step to tackle the long-standing problem of our fastest growing start-up tech firms being snapped up by bigger companies, rather than growing to scale, by injecting an additional £400 million into venture capital funds through the British Business Bank, unlocking £1 billion of new finance for growing firms. I am also launching today a Treasury-led review of the barriers to accessing patient capital in the UK, so that we can take further action to address them.

This Government recognise that, for too long, economic growth in our country has been too concentrated in London and the south-east. That is not just a social problem but an economic problem. London is one of the highest-productivity cities in the world and we should celebrate that fact. But no other major developed economy has such a gap between the productivity of its capital city and its second and third cities, so we must drive up the performance of our regional cities. Today we publish our strategy for addressing productivity barriers in the northern powerhouse, and give the go ahead to a programme of major roads schemes in the north. Our midlands engine strategy will follow shortly, but I am today providing funding so that the evaluation study for the midlands rail hub can go ahead.

In addition, we are investing in local infrastructure in every region of England. I can announce the allocation of £1.8 billion from the local growth fund to the English regions: £556 million to local enterprise partnerships in the north of England, £542 million to the midlands and east of England, and £683 million to LEPs in the south-west, south-east and London. We will announce the detailed breakdown of allocations to individual LEPs shortly.

Devolution remains at the heart of this Government’s approach to supporting local growth, and we recommit today to our city deals with Swansea, Edinburgh, north Wales and Tay cities. I can also announce today we are beginning negotiations on a city deal for Stirling so that every single city in Scotland will be on course to have a city deal. To support new mayoral combined authorities in England, I can announce that we will grant them new borrowing powers to reflect their new responsibilities.

While we continue discussions with London and the west midlands on possible devolution of further powers I can announce today that London will receive £3.15 billion as its share of national affordable housing funding, to deliver a commitment of more than 90,000 affordable homes. I can also announce that we are devolving to London the adult education budget, and giving London greater control over the delivery of employment support services for the hardest to help.

I have deliberately avoided making this statement into a long list of individual projects being supported, but I am going to make one exception. I will act today, with just seven days to spare, to save one of the UK’s most important historic houses, Wentworth Woodhouse near Rotherham. It is said to be the inspiration for Pemberley in Jane Austen’s “Pride and Prejudice”. But in 1946, in an extraordinary act of cultural vandalism, the then Labour Government authorised extensive opencast coal mining virtually up to the front door of this precious property. Perhaps that is Labour’s idea of a northern powerhouse. Wentworth Woodhouse is now—[Interruption.]

[Mr Speaker]

Order. I want to hear about this house. It sounds very interesting indeed.

[Mr Hammond]

Wentworth Woodhouse is now at critical risk of being lost to future generations. A local effort has been hugely successful in securing millions in funding from various foundations and charities, subject to the balance required being found by 30 November. We will today provide a £7.6 million grant towards urgent repairs to safeguard this key piece of northern heritage—all but destroyed by a Labour Government, and saved by a Conservative one.

I can also confirm distribution of a further £102 million of LIBOR bank fines to armed forces and emergency services charities, including, my hon. Friends will be pleased to hear, £20 million to support the Defence and National Rehabilitation Centre at Stanford Hall in Nottinghamshire, as well as £3 million from the tampon tax fund for Comic Relief to distribute to a range of women’s charities.

We choose to invest in our economic infrastructure because it can transform the growth potential of our economy, as well as improving the quality of people’s lives. That investment is possible only because the Government are prepared to take the tough decisions—every one of them opposed by the Labour party—to maintain control of current spending. When we took office in 2010, public spending was 45% of GDP; this year, it is set to be 40%. During those six years, we have seen crime fall by more than a quarter, the highest proportion ever of good or outstanding schools, the number of doctors in our NHS increasing by 10,000, pensioner poverty at its lowest level ever, the lowest ever number of children being raised in workless households and the highest ever number of young people going on to study full time at university.

We have demonstrated beyond doubt that controlling public spending is compatible with world-class public services and social improvement. But, as the OBR’s debt projections demonstrate, we have more work to do to eliminate the deficit. Departmental spending plans set out in the spending review last autumn will therefore remain in place, and departmental expenditure in 2021-22 will grow in line with inflation. The £3.5 billion of savings to be delivered through the efficiency review, announced at the Budget and led by my right hon. Friend the Chief Secretary to the Treasury, must be delivered in full. I have, however, exceptionally agreed to provide additional funding to the Ministry of Justice to tackle urgent prison safety issues by increasing the number of prison officers by 2,500.

Having run two large spending Departments in previous roles, I came to this job with some very clear views about the relationship between the Treasury and spending Departments. I want Departments to be incentivised to drive efficiencies, and I want the Treasury to be an enabler for good, effective spending across government. To kick-start this new approach, I will allow up to £1 billion of the savings found by the efficiency review to be reinvested in 2019-20 in priority areas and I have budgeted today accordingly.

We manage public spending so that we can invest in the public’s priorities. The Government have underlined those priorities with a series of commitments and protections for the duration of this Parliament. I can confirm today that, despite the fiscal pressures, we will meet our commitments to protect the budgets of key public services and defence; keep our promise to the world’s poorest through our overseas aid budget; and meet our pledge to our country’s pensioners through the triple lock. But as we look ahead to the next Parliament, we will need to ensure that we tackle the challenges of rising longevity and fiscal sustainability, so the Government will review public spending priorities and other commitments for the next Parliament in the light of the evolving fiscal position at the next spending review.

I now turn to taxation. Since 2010, the Government have put a business-led recovery at the heart of our plan. We have cut corporation tax from 28% to 20%, sending the message that Britain is open for business. The additional investment in productivity and infrastructure that I have announced today underscores that message, and the raft of investments in the UK announced since the referendum—by SoftBank, Glaxo, Nissan, Google and Apple among others—confirms it. My priority as Chancellor is to ensure that Britain remains the No. 1 destination for business, creating the investment, the jobs and the prosperity to protect our long-term future. I know how much business values certainty and stability, so I confirm today that we will stick to the business tax road map we set out in March. Corporation tax will fall to 17%, by far the lowest overall rate of corporate tax in the G20. We will deliver the commitments we have made to the oil and gas sector. The carbon price support will continue to be capped out to 2020, and we will implement the business rates reduction package worth £6.7 billion. I can also confirm today that, having consulted further, my right hon. Friend the Communities Secretary will lower the transitional relief cap from 45% next year to 43%, and from 50% to 32% the year after. That’s complicated, but it’s good news—just in case anybody wasn’t sure, Mr Speaker. I will also increase the rural rate relief to 100%, giving small businesses in rural areas a tax break worth up to £2,900 a year.

In return for these highly competitive tax rates, the tax base must be sustainable. From April 2017, we will align the employee and employer national insurance thresholds at £157 a week. There will be no cost to employees, and the maximum cost to business will be an annual £7.18 per employee. Insurance premium tax in this country is lower than in many other European countries, and half the rate of VAT. In order to raise revenue, which is required to fund the spending commitments I am making today, it will rise from 10% currently, to 12% from next June. At the same time, I can confirm the Government’s commitment to legislate next year to end the compensation culture surrounding whiplash claims, a major area of insurance fraud. That will save drivers an average of £40 on their annual premiums.

Technological progress is changing the way people live and work, and the tax system needs to keep pace. For example, the OBR has today highlighted the growing cost to the Exchequer of incorporation. So the Government will consider how we can ensure that the taxation of different ways of working is fair between different individuals doing essentially the same work, and sustains the tax base as the economy undergoes rapid change. We will consult in due course on any proposed changes. In the meantime, the Government will take action now to reduce the difference between the treatment of cash earnings and benefits. The majority of employees pay tax on a cash salary, but some are able to sacrifice salary by agreement with their employer and pay much lower tax on benefits in kind. That is unfair, so from April 2017 employers and employees who use these schemes will pay the same taxes as everyone else. Following consultation with stakeholders, ultra-low emission cars, pension savings, childcare and the cycle-to-work scheme will be excluded from this change, and certain long-term arrangements will be protected until April 2021. For pensions that have been drawn down, I will also reduce to £4,000 the money purchase annual allowance, to prevent inappropriate double tax relief being gained.

This Government have done more than any other to tackle tax evasion, avoidance and aggressive tax planning. The UK tax gap, it may surprise some Opposition Members to hear, is now one of the lowest in the world. But we must constantly be alert to new threats to our tax base and be willing to move swiftly to counter them. At the Budget, we committed to removing the tax benefits of disguised earnings for employees, and I am now going to do the same for the self-employed and employers, raising a further £630 million over the forecast period. We will shut down inappropriate use of the VAT flat rate scheme that was put in place to help small businesses. We will abolish the tax advantages linked to employee shareholder status, in response to growing evidence that it is primarily being used for tax-planning purposes by high-earning individuals. We will introduce a new penalty for those who enable the use of a tax avoidance scheme that HMRC later challenges and defeats. These measures, and others set out in the autumn statement document, raise about £2 billion over the forecast period.

There is understandable public concern that the pitch is tilted in favour of large multinational groups, which are able to use cross-border structures to manage their tax liabilities. Following detailed consultation, I can confirm that we will implement our new restriction on tax relief for corporate interest expenses and reform the way relief is provided for historic losses. These measures, scored at Budget 2016, will help to ensure that large businesses will always pay tax in years where they make substantial profits. They will also mean that businesses cannot avoid tax by borrowing excessively in the UK to fund their overseas activities. They take effect in April, and will raise over £5 billion from the largest businesses in the UK.

I said that the tax system must be fair, and that means rewarding those who work hard by helping them to keep more of what they earn. There is one tax reform the Government have pursued since 2010 that has done more than any other to improve the lot of working people: raising the tax-free personal allowance. When we entered Government in 2010, it was £6,475. After six years, it is now £11,000, and will rise to £11,500 in April. As a result, we have more than halved the tax bill of someone with a salary of £15,000 to just £800. That is a massive boost to the incomes of low and middle earners. Since 2010, we have cut income tax for 28 million people and taken 4 million people out of income tax altogether. I can confirm today that, despite the challenging fiscal forecasts, we will deliver on our commitment to raise the allowance to £12,500, and the higher rate threshold to £50,000, by the end of this Parliament. Once that £12,500 has been reached, the personal allowance will rise automatically during the 2020s in line with inflation, rather than the national minimum wage, as currently planned. It will be for the Chancellor to decide from year to year whether more is affordable.

As well as taking millions of ordinary people out of tax, we are the Government who introduced the national living wage and gave a pay rise to over 1 million workers. [Interruption.] Labour Members don’t like it—a Tory Government gave a pay rise to over 1 million of the lowest-paid workers. We are the Government who introduced 15 hours a week of free childcare for all three and four-year-olds, and we will double that for working families from September. We are the Government whose education reforms have raised standards and expanded opportunity, with 1.4 million more children now in “good” or “outstanding” schools, while the new capital funding I have provided today for grammar schools will help to continue that trend. We are the Government who pledged to invest in our NHS, and we are delivering on that promise by backing the NHS’s “Five Year Forward View” plan for the future with £10 billion of additional funding by the end of 2020-21. But we recognise that more needs to be done to help families make ends meet and to ensure that every household has opportunities to prosper. So today I can announce that the national living wage will increase from £7.20 to £7.50 next April. That is a pay rise worth over £500 a year to a full-time worker.

Creating jobs, lowering taxes and raising wages address directly the concerns of ordinary families, and the revenue-raising measures that I have announced today enable me to go further to help families on low wages. Universal credit is an important reform to our benefits system and is designed to make sure that work always pays. We want to reinforce that position. I have considered very carefully the arguments made by my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) and others, and weighed them carefully against the fiscal constraints, and I have concluded that from April we can reduce the universal credit taper rate from 65% to 63%. This is effectively a targeted tax cut that will be worth £700 million a year by 2021-22 for those in work on low incomes. It will increase the incentive to work and encourage progression in work, and it will help 3 million households across our country.

We believe that a market economy is the best way of delivering sustained prosperity for the British people. We will always support a market-led approach, but we will not be afraid to intervene where there is evidence of market failure. We will look carefully over the coming months at the functioning of key markets, including the retail energy market, to make sure they are functioning fairly for all consumers. In the private rental market, letting agents are currently able to charge unregulated fees to tenants. We have seen these fees spiral, despite attempts to regulate them, often to hundreds of pounds. This is wrong. Landlords appoint letting agents and landlords should meet their fees. So I can announce today that we will ban fees to tenants as soon as possible. We will also consult on how best to ban pension cold calling and a wider range of pension scams.

We can also help today those who rely on the income from modest savings to get by. Low interest rates have helped our economy to recover, but they have significantly reduced the interest people can earn on their cash savings, so we will launch a new, market-leading savings bond through NS&I. The detail will be announced at the Budget, but we expect our new investment bond will have an interest rate of around 2.2% gross and a term of three years. Savers will be able to deposit up to £3,000, and we expect around 2 million people to benefit.

The announcements I have made today lower taxes on working people, boost wages, back savers and bear down on bills. In early 2017, we will begin the roll-out of tax-free childcare across Britain, providing a saving of up to £2,000 per child. Once it is rolled out, we pledge to keep it under review to ensure that it is indeed delivering the support that working families need.

There is one further area of household expenditure where the Government can help. The oil price has risen by over 60% since January, and sterling has declined by 15% against the dollar. That means, of course, significant pressure on prices at the pump here in Britain, so today we stand on the side of millions of hard-working people in our country by cancelling the fuel duty rise for the seventh successive year. In total, this saves the average car driver £130 a year and the average van driver £350 a year. This is a tax cut worth £850 million next year and means that the current fuel duty freeze is the longest for 40 years.

I have one further announcement to make. This is my first autumn statement as Chancellor. After careful consideration and detailed discussion with the Prime Minister, I have decided that it will also be my last. I am abolishing the autumn statement. [Hon. Members: “Hear, hear.”] No other major economy makes hundreds of tax changes twice a year, and neither should we, so the spring Budget in a few months will be the final spring Budget. Starting in autumn 2017, Britain will have an autumn Budget announcing tax changes well in advance of the start of the tax year. From 2018, there will be a spring statement responding to the forecast—[Laughter.]

[Mr Speaker]

Order. The House is in a great state of emotion. Some people are very easily humoured. I am glad they are so humoured, but we must hear the Chancellor.

[Mr Hammond]

Perhaps they should have read their briefing, Mr Speaker, because they might then have remembered that Parliament has mandated the OBR to produce a report to Parliament twice a year and has mandated the Government to reply. From 2018, therefore, there will be a spring statement responding to the forecast from the OBR but no major fiscal event. If unexpected changes in the economy require it, I will of course reserve the right to announce actions at the spring statement, but I will not make significant changes twice a year just for the sake of it. This change will allow for greater parliamentary scrutiny of Budget measures ahead of their implementation. It is a long-overdue reform to our tax policy-making process and brings the UK into line with best practice recommended by the IMF, the Institute for Fiscal Studies, the Institute for Government and many others.

The OBR report today confirms the underlying strength and resilience of the British economy. This autumn statement responds to the challenge of building on that strength, while also heeding the warnings in the OBR’s figures, as we begin writing this new chapter in our country’s history. It re-states our commitment to living within our means and sets out our choice to invest in our future. It sends a clear message to the world that Britain is open for business and it provides help to those who need it now. We have made our choices and set our course. We are a great nation, bold in our vision, confident in our strengths and determined in our ambition to build a country that works for everyone. I commend this statement to the House.

--- Later in debate ---

[Mr Hammond]

If my hon. Friend names the bar, I will meet him.

[Mr Speaker]

That was a splendidly pithy answer, but questions are becoming rather long. There are still nearly 50 Members seeking to contribute, and I am keen to accommodate them, but I can do so only if people can—to put it bluntly—abandon the preamble and get on with the pithy, preferably single-sentence, inquiry. I am sure that we can led in this by Caroline Lucas.

[Mr Speaker]

One sentence if it involved the abandonment of punctuation.

[Mr Hammond]

If the hon. Lady looks carefully at the statement, she will see that I did announce significant additional funding to pursue ultra-low emission vehicles. That is an area in which the UK is already a technology leader. I have also announced today that, from next April, there will be 100% first-year allowances on all electric charging infrastructure. We know that the biggest deterrent to moving to electric vehicles is the fear of being unable to charge them. Getting a widespread charging network rolled out will allow us to meet our ambition to electrify the fleet.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 25th October 2016 Commons Chamber

[Mr Hammond]

I know that my right hon. Friend the Secretary of State for Communities and Local Government will want to look at the allocation of funding to local authorities, including Derbyshire County Council. As the hon. Member for Bolsover (Mr Skinner) will know, there are many powerful advocates for Derbyshire on both sides of the House.

[Mr Speaker]

I wish the hon. Member for Solihull (Julian Knight) a speedy recovery. He may ask his question from his seat.

[Julian Knight (Solihull) (Con)]

Thank you, Mr Speaker. The Chancellor will be well aware that the west midlands has a trade surplus with China, thanks to Jaguar Land Rover in Solihull and wider manufacturing. On their visits to BRIC nations, previous Chancellors have been keen to trumpet business in the northern powerhouse. Will this Chancellor help the cogs of the midlands engine to turn by taking west midlands businesses with him on future visits?

--- Later in debate ---

[Shabana Mahmood]

The Chancellor’s predecessor had many a failed target and plan, one of which was a target of £1 trillion in exports by 2020, a target that is nowhere near being reached even with full access to, and membership of, the single market. Meanwhile other countries such as Germany currently export more than we do to China and other growth markets. Does the Chancellor agree that the failure of the Government to improve the UK’s export performance has left us unable to take full advantage of opportunities outside the EU and more vulnerable to—

[Mr Speaker]

Order. I think the hon. Lady should leave a full version of her question in the Library of the House.

[Mr Hammond]

The Government can of course support and enable exporters, but we cannot do their job for them. It is for British exporters to make their businesses competitive and to go and sell their wares around the world, but we will do everything we can to support them in that endeavour.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 19th July 2016 Commons Chamber

[Mr Hammond]

My right hon. Friend will know that the surplus rule always came with the caveat that if the Office for Budget Responsibility forecast four rolling consecutive quarters of less than 1% annualised growth, the target would be suspended. The consensus among pretty much all forecasters is that that is likely to be what they forecast this autumn statement, so my predecessor’s announcement was merely pre-empting something that almost everybody expects to happen. I am afraid to tell my right hon. Friend the Member for Chichester (Mr Tyrie) that how we are going to respond over the longer term to the resulting deficit will be set out at the autumn statement.

[Mr Speaker]

In the hope that the hon. Gentleman will provide a masterclass in the asking of a question, I call Mr Jacob Rees-Mogg.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Thank you, Mr Speaker. I congratulate my right hon. Friend on his appointment. I accept that that is not a question but a statement. May I go on to point out to him that Brexit provides a great opportunity? The £24 billion purchase of ARM by SoftBank is a sign of that. The trade deals that are being offered are a sign of that. Will he grasp this fantastic opportunity and lead us through to the “broad, sunlit uplands”?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 12th July 2016 Commons Chamber

[Ms Tasmina Ahmed-Sheikh (Ochil and South Perthshire) (SNP)]

Last week at the Foreign Affairs Committee Oliver Letwin stated that

“we clearly need a new cadre of highly skilful and highly experienced trade negotiators.”

I hope the Secretary of State sees the irony in the fact that the very best of our trade negotiators are based in Brussels, but can he assure the House that from now on we will indeed bring in the best trade negotiators notwithstanding their nationality?

[Mr Speaker]

I think the hon. Lady had in mind the Chancellor of the Duchy of Lancaster, the right hon. Member for West Dorset (Mr Letwin). I am not sure I recognised the name she mentioned.

[Mr Hammond]

I was puzzling about that myself and am grateful for your clarification, Mr Speaker, and, having had it, I am very happy to answer the hon. Lady’s question. As I said in response to the initial question, we will need to hire significant numbers of trade negotiators and—I said this in the House a couple of weeks ago—I see no reason why we would not hire people who were non-British if they were the best people to do the job. Clearly, one would not want to hire a citizen of another country to negotiate a trade deal with that country, but having entered that caveat, I would hope we put together the best and most capable teams from wherever.

--- Later in debate ---

[Mr Hammond]

Perhaps I dare say to the hon. Lady that I might have been a bit closer to those negotiations than she was and I can confidently say that engaging with the Opposition would not have affected the outcome.

[Mr Speaker]

I am sorry, but the questions and answers are taking too long. [Interruption.] Order. What we need now is a couple of pithy inquiries, not elongated ones.

[Alex Salmond (Gordon) (SNP)]

The whole of Scotland is deeply concerned about the personal future of the Foreign Secretary, given his apocalyptic statements during the recent referendum. For example, he told Chatham House on 2 March that leaving would take longer to negotiate

“than the second world war.”

Will it take longer to negotiate Brexit than the second world war? How would any future Chancellor of the Exchequer deal with such uncertainty?

--- Later in debate ---

[Mr Hammond]

The UK’s position has always been, and will remain, that we urge respect for international law and the rules-based international system, and decisions arising from international tribunals. As the hon. Lady will know, the ruling is 501 pages long. It flopped on to my desk just before coming over here to answer questions—[Interruption.] The hon. Member for Islington South and Finsbury (Emily Thornberry) is obviously super-efficient; I might test her later. We will study the decision carefully. If the hon. Lady can give me any insight into her understanding of page 432, I would be very grateful.

[Mr Speaker]

So would we all.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 24th May 2016 Commons Chamber

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Philip Hammond)]

The FCO facilities management contract covers pest control activities. However, the continued presence of mice in the FCO main building has given my officials “paws” for thought. After careful consideration, we appointed Palmerston the cat last month as chief mouser to the FCO to complement the work of our contractor. I am pleased to report to the House that he has settled in “purr-fectly” and is performing his duties more than satisfactorily.

[Mr Speaker]

I congratulate the Foreign Secretary on following my excellent example in Speaker’s House, where for five years we have had a first-class cat who has done the necessary. Its name, of course, is Order. [Laughter.]

--- Later in debate ---

[Mr Hammond]

Turkey applied to join the European Union in 1987, and, as the Prime Minister observed—I think—yesterday, given the current rate of progress it will be decades, if not longer, before it gets anywhere near EU membership. However, there is a benefit for us in seeing Turkey on a European-facing path, and thus under pressure to improve human rights and compliance with the rule of law. If we do not keep that path open, we shall not have that leverage.

Ultimately, though, we have a veto. [Interruption.] We have a veto over the terms and conditions on which any applicant country is able to join the European Union, and we have made it absolutely clear that there can be no question of further accessions and access to free movement within the European Union until an applicant country has reached the average level of GDP per capita across the European Union. That means no more poverty gradient in the EU. [Interruption.]

[Mr Speaker]

I think we all know that the hon. Member for Shipley (Philip Davies) cannot be vetoed. He never has been, and he never will be.

[Mr David Winnick (Walsall North) (Lab)]

Earlier questions have referred to the middle east, and to deploring extremism wherever it may be found. Is it not a matter of grave concern that the new Israeli Defence Minister is extremely right-wing and ultra-nationalist? He said last year that what he described as “disloyal” Israeli Arabs should be beheaded. Does that not illustrate how far the Israeli Government have gone in their extremism and their rejection of any idea of a two-state solution, and should that not be condemned?

Libya

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 19th April 2016 Commons Chamber

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

Last week, on the Floor of the House, with a note of urgent caution, the hon. Member for Beckenham (Bob Stewart) reminded us of how missions change and about the impact on our armed services, who might have to make decisions on the hoof. I urge the Secretary of State to reflect on that debate and the participation in it.

We are consistently told in this Parliament that NATO is our primary model of defence, yet all we heard about in the statement was the European Union and Europe’s role. I am grateful for the European Union naval deployment and other initiatives by our European partners, who are doing a great job, but if the Libyan Government of national accord makes a request, what role will NATO play in that, given the myriad other organisations and nations involved, from Jordan to Hungary?

[Mr Speaker]

May I gently suggest that the hon. Gentleman submits his academic treatise to his PhD adviser?

[Mr Hammond]

I thought that the hon. Gentleman was all in favour of the EU doing more. We are very clear. NATO is our principal war-fighting alliance, but we are not talking about war fighting here. We are talking about stabilisation, training and rebuilding, and the European Union and bilateral arrangements delivered by other European countries are absolutely the right way to go about achieving that. It is not a role of NATO.

--- Later in debate ---

[Mr Hammond]

I would be very pleased to hear that the Algerians wanted to provide assistance, based on their own experience of rebuilding a country after a bitter civil war, and I am sure the Libyans would be pleased to receive such an offer.

[Mr Speaker]

I trust that the Algerian parliamentarians felt suitably privileged to meet the hon. Member for Elmet and Rothwell (Alec Shelbrooke).

[Jim Shannon (Strangford) (DUP)]

I welcome the £10 million for technical support that the Foreign Secretary referred to, in particular for security, justice and defence. Will he consider that those who have served in the Royal Ulster Constabulary and the Police Service of Northern Ireland, who have demonstrated substantial knowledge, experience and ability in Afghanistan, Iraq, Serbia and Bosnia, should be part of the security training that will be offered?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 12th January 2016 Commons Chamber

[Mr Hammond]

Regrettably, such incidents do occur in China, but we have a forum for raising concerns, through a formal human rights dialogue with China. We expect the next human rights summit to be in March or April, and we have a list of issues we will raise with the Chinese, including the question of how they operate around labour activists.

[Mr Speaker]

I always used to wonder why Foreign Office questions took longer. A senior Clerk said to me, “Mr Speaker, the reason they tend to take longer is that Ministers, perhaps understandably, feel they are addressing not merely the House but the world.” I think that probably explains it, but I would like to make a bit of progress.

Daesh: Syria/Iraq

Debate between Lord Hammond of Runnymede and John Bercow

Wednesday 16th December 2015 Commons Chamber

[Mr Hammond]

I want to answer that question carefully. I have said before in this House that, while I deplore many things that the Russians do, I do not believe that Russia is soft on Daesh. Russia and President Putin recognise a threat from Daesh to Russia, which is at least as great as the threat from Daesh to the west. Russia has 13 million Sunni Muslims living inside the borders of the Russian Federation. What we disagree about is methodology. Mr Putin would say, if he were here to answer the question, that he is going about defeating Daesh in the way that he believes will be most effective. We fundamentally disagree with him for the reason that I explained to the hon. Member for Batley and Spen (Jo Cox), which is that unless and until Assad is gone, we will not get a reconciliation in the Syrian civil war and we will not get all Syrians turning their guns on Daesh.

[Mr Speaker]

The fellow may have some difficulty securing election in a UK constituency by the recognisably democratic methods that we favour, but I know what the Foreign Secretary was saying. I call Mr David Tredinnick.

[David Tredinnick (Bosworth) (Con)]

My right hon. Friend has referred at some length to the challenges presented by Russia, but does he not agree that there are now also huge opportunities? A very good example is the co-operation we saw yesterday with Tim Peake going into space. Does he recall that, 24 years ago, another British cosmonaut, Helen Sharman—she was known as the woman from Mars, because she worked for the Mars confectionery company—went up in space, and the former Member for the Western Isles, Calum MacDonald, and I were there to see it at the Baikonur cosmodrome? Does my right hon. Friend not agree that, overall, it is now in the British national interest to have better relations with Russia, and that if he wants more co-operation at the UN, it would be a good idea to look again at the Russian-Ukrainian situation?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 20th October 2015 Commons Chamber

[Mr Philip Hammond]

I visited Cyprus a couple of months ago, and I am committed to going there again next month. I have been keeping in touch with both the Greek Cypriots and Mr Akinci, the Turkish Cypriot leader, whom I spoke to a couple of weeks ago. I am cautiously optimistic that we are seeing an alignment in Cyprus that may make a settlement possible—I do not want to over-enthuse about this, but many people think we now have a chance, the like of which we have not seen for decades.

[Mr Speaker]

Last, but not least, I call Mr Hendrick.

[Mr Mark Hendrick (Preston) (Lab/Co-op)]

Will the Foreign Secretary give us his assessment of the current strength, effectiveness and numbers of the Free Syrian Army, a subject on which he has been very quiet recently? We want to get rid of ISIL and Assad, but there has been no mention of the FSA.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 9th June 2015 Commons Chamber

[Mr Hammond]

I understand my hon. Friend’s concern. I think he is referring to the media comments about the proposal to disapply section 125 of the Political Parties, Elections and Referendums Act 2000. I shall have more to say about that, including a detailed explanation, during my Second Reading speech later today. I hope that I will satisfy his concerns then.

[Mr Speaker]

I call Mr Peter Grant.

[Peter Grant (Glenrothes) (SNP)]

24. Thank you, Mr Speaker, for calling me to speak for the first time in this Chamber.As part of the right hon. Gentleman’s assessment of public support for holding a referendum, what discussions has he had with all parties in Scotland about the massive public support that there is for extending the franchise for the referendum to 16 and 17-year-olds, who will, after all, be the people who have to live longest with the result, whatever that might be?

--- Later in debate ---

[Mr Hammond]

I agree with the last part of the hon. Gentleman’s question: it is crucial that we move forward. The issue with timing is that until we have resolved the nuclear negotiation with Iran, which is an extremely sensitive issue in the middle east—including with Israel—our judgment is that we would be throwing away an opportunity to play an important card in the middle east peace process. We need to get the Iran thing dealt with first, and then we need to press the US Administration to deliver on the commitment that they have repeatedly made to us—that after the Israeli elections and the Israeli Government had been formed, there would be a new, American-led initiative.

[Mr Speaker]

Extreme brevity is now required.

[Mr David Burrowes (Enfield, Southgate) (Con)]

What has been the impact of the unilateral action last October by Sweden to recognise the state of Palestine?

--- Later in debate ---

[Mr Speaker]

A question worthy of a knight. I apologise to Sir Eric.

[Mr Philip Hammond]

We are working intensively with our E3+3 partners and Iran to conclude the nuclear agreement that we set out in principle in Lausanne a couple of months ago. It is essential that, as part of the agreement, the International Atomic Energy Agency can verify all Iran’s nuclear-related commitments, including through access to all relevant locations. We are not going to do a bad deal with Iran. Proper access is central to the deal we agreed in Lausanne and has to be delivered.

--- Later in debate ---

[Mr Hammond]

Yes. I think I have told the House before that there are two issues that we are trying to deal with in order to reopen the embassy. One is around the visa regime and how we deal with Iranian overstayers in the UK, and the other is around the importation of communications equipment that we need to import, uninspected by the Iranians, in order to be able to safely operate our embassy. Until we have resolved those two issues, we really cannot make progress.

[Mr Speaker]

Last but not least, Andy Slaughter.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 3rd March 2015 Commons Chamber

[Mrs Gillan]

The Conservative party is the only sane and significant party to guarantee, following a renegotiation, an in/out referendum on our membership of the EU. How many countries has the Foreign Secretary visited to discuss that renegotiation, what levels of engagement has he had, and is there a positive desire for change in other states that matches ours?

[Mr Speaker]

I am grateful for the right hon. Lady’s three questions. The Foreign Secretary is a specialist in providing a pithy answer on a postcard.

[Mr Philip Hammond]

Thank you, Mr Speaker, for that vote of confidence.

I have currently visited 23 of our partners in the European Union. In a nutshell, there is a very strong view that all member states want Britain to remain in the EU, an understanding that that can happen only if there is significant change in the EU, and a clear willingness to engage with us, particularly on our demands for improved competitiveness in the EU, which all member states want.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 20th January 2015 Commons Chamber

[Mr Hammond]

Let me make two responses to the hon. Gentleman. First, is the straightforward response: we apply the consolidated criteria to all arms exports, including arms exports to Bahrain, so we would not license for export any equipment where there was evidence it was likely to be used for internal repression purposes. But let me say something wider about the situation in Bahrain, because I have looked at the situation in Bahrain quite carefully. It is clearly the case that Bahrain is by no means perfect and that it has quite a long way to go in delivering on its human rights commitments, but it is a country that is travelling in the right direction. It is making significant reform. The Crown Prince, who is charged with this agenda, is directly engaged and has made significant progress even over the last few months. We continually remind the Bahrainis of their commitments and how much further they have to go, but I think we should support them to get there.

[Mr Speaker]

It would be good to get through some questions.

[Richard Burden (Birmingham, Northfield) (Lab)]

But will not the Foreign Secretary accept that what undermines the UK’s credibility on these matters is the charge of double standards? In relation to Bahrain, it has been estimated that 54 people have been arrested just this month. There is no consistency between our arms sales policy and our human rights policy. Will the Foreign Secretary not accept that we need to address that more seriously than we have done up till now?

--- Later in debate ---

[Mr Hammond]

As the Prime Minister has set out on more than one occasion, we have increasing agreement across the European Union that we need to address abuse of free movement. Free movement to work is one of the principles of the European Union; free movement to freeload is not one of the principles of the European Union. Britain is not the only country affected by this problem and not the only country determined to address it.

[Mr Speaker]

I note the sibling solidarity as brother and sister Vaz are today seated together.

[Keith Vaz (Leicester East) (Lab)]

We will do this every day, if it gets me called, Mr Speaker.

Will the Foreign Secretary join me in welcoming the decision taken 30 minutes ago by the EU to raise the ban on the import of Alphonso mangoes from India? Does he agree that a lesson should be learned by the EU that before it makes such decisions, there should be proper consultation and full transparency?

Iran (Nuclear Talks)

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 25th November 2014 Commons Chamber

[Mr Hammond]

I can tell the right hon. Gentleman that Foreign Minister Zarif refers often to the negotiations that took place in the middle of the last decade. I suppose he does that to emphasise that he was involved in the discussion long before any of us at the table were. It is, as the right hon. Gentleman suggests, absolutely essential that the sanctions regime remains robust. Last November, we said that the easing of certain specific sanctions under this deal did not imply, and would not be allowed to imply, a general weakening of the sanctions regime. We have seen nothing to suggest that the sanctions regime has weakened. We monitor it carefully and it remains effective and robust and it must continue to do so. I too saw, while I was still in Vienna yesterday, those remarks attributed to President Putin. I was with Foreign Minister Lavrov, who gave me no reason to believe that they were likely to be true, and I note that they were reported by an Iranian source. We are seeking clarification from the Russians, but I do not expect to see them break ranks. The Russians have been entirely constructive and very much engaged in this process, as have the Chinese.

[Mr Speaker]

Having called one co-chair, a most illustrious co-chair, of an all-party group, I am inclined to call another. Mr Richard Bacon.

Points of Order

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 28th October 2014 Commons Chamber

[Mr Speaker]

The hon. Gentleman is a canny enough fellow to know that he has now, for his own part, substantially achieved his objective, but I know him well enough to know that he will want lots of other colleagues to have comparable opportunities.

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Philip Hammond)]

rose—

[Mr Speaker]

The Foreign Secretary’s excitement knows no bounds as he seeks to respond.

[Mr Hammond]

Further to that point of order, Mr Speaker. My hon. Friend raises an important and interesting point. I am sure that Members of the House will want an opportunity to pay tribute to the service and commitment that our servicemen and women have shown in Afghanistan. I will undertake to discuss with the Leader of the House whether such an opportunity could be found.

[Mr Speaker]

I am very grateful to the Foreign Secretary for that extremely helpful reply.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 14th July 2014 Commons Chamber

[Mr Hammond]

My hon. Friend makes a very good point. There have been suggestions that, to save a relatively small sum of money, Britain should abandon continuous at-sea deterrence and opt for a part-time deterrent, with boats tied up alongside or even sent to sea without nuclear weapons on board. I can assure my hon. Friend that the Government firmly reject such advice and I can further assure him that a Conservative Government will never take risks with Britain’s strategic security.

[Mr Speaker]

Time for the good doctor. I call Dr Julian Lewis.

[Dr Julian Lewis (New Forest East) (Con)]

In welcoming what the Secretary of State for Defence has said, may I remind him that those on the Labour Front Bench have similarly committed to the retention of Trident and continuous at-sea nuclear deterrence? Does he therefore agree with me that whatever the complexion of the next Government, there can be no possible excuse for failing to renew Trident—whether in coalition, in government or in opposition? Wherever we are, we all ought to be committing to renewal in the next Parliament.

--- Later in debate ---

[Mr Hammond]

My hon. Friend is exactly right, although of course we maintain our strategic deterrent as the ultimate guarantee of our sovereignty and independence of action. It is worth remembering that there are still 17,000 nuclear weapons in the world, and so long as that is the case, we must be able to protect the British people against them.

[Mr Speaker]

As the hon. Member for Moray (Angus Robertson) just had the finger rather distinctly pointed at him, I rather thought that he might be pricked into responding.

--- Later in debate ---

[Mr Hammond]

What I can say to the hon. Gentleman is that my Department has an excellent relationship with the DWP, looking at ways in which we can support those who are out of work and seeking to acquire the skills, soft and hard, necessary to get back into work, to get them into the reserve forces and trained in the reserve forces while looking for civilian employment at the same time. [Interruption.]

[Mr Speaker]

Order. An hon. Gentleman should not be talking about kicking people in an unspecified location. It is rather unseemly. I think I heard what he was driving at, if I may put it that way.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 3rd February 2014 Commons Chamber

[Mr Philip Hammond]

First, I agree with my hon. Friend. The outcome of the Trident review precisely showed that the negative impact on our strategic defence would not be justified by the small amounts of money that would be saved by changing the posture. May I also say to him that in respect of the specific article to which he refers, the content was much more measured than the headline suggested and in fact made it clear that there would be very significant additional risks in adopting a different nuclear posture?

[Mr Speaker]

Last but not least is Mr Alex Cunningham.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 16th December 2013 Commons Chamber

[Mr Speaker]

I do not wish to disappoint the hon. Gentleman or the Secretary of State, but frankly I have no recollection of that exchange, and I expect that my experience is widely shared in the House.

[Mr Philip Hammond]

I may be suffering from early onset whatever, but I do not think that at any stage I have suffered from the delusion that the hon. Gentleman was ever Secretary of State for Defence. I have made it clear in answer to similar questions in the House that Defence is not funded to maintain a regular force at the scale of 94,000 through to beyond 2018. We are required for budgetary reasons to draw down the regular force as we build the reserve force, and that is what we are doing.

Defence Procurement

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 10th December 2013 Commons Chamber

[Mr Hammond]

That was predictable stuff. The hon. Gentleman claims that we have wasted three years. When it comes to reforming defence procurement, his lot are responsible for wasting 13 years. If I can give him a bit of friendly advice, I would be very careful about using the words “debacle” and “aircraft carrier” in the same sentence if I was sitting on the Opposition Front Bench. Let us remember that it was his Government who, by delaying the programme for two years to manage an in-year cash-flow crisis, drove £1.6 billion of cost into it.

The hon. Gentleman tells us that the Opposition support the DE&S plus model, but until now they have supported the competition, which is exactly what we propose to do. The former Labour Defence Secretary, John Hutton, said:

“It is time for a radical rethink that can align the necessary project-management skills with the right performance incentives...This is precisely what the GOCO concept…can offer and why the British government would be well advised to pursue it.”

The former shadow Secretary of State, the right hon. Member for East Renfrewshire (Mr Murphy) said:

“There needs to be rigorous examination of all the possible options and a robust comparison between the two options of a GoCo model and DE&S+…we will support what we hope is a genuine competition.”—[Official Report, 10 June 2013; Vol. 564, c. 53-54.]

That is what we have conducted and the hon. Gentleman is standing at the Dispatch Box complaining about it.

The hon. Gentleman tells me that this is the statement I did not want to make. Well, he gets the prize—of course it is the statement I did not want to make. I hoped that we would find a wide field of GoCo competitors able to engage with the process of delivering a value for money proposition to the taxpayer, but let me tell him how it works. The Opposition can stand on the sidelines slinging mud and insults, but the Government have to deal with the situation as it exists in the real world. We have to take the situation as we find it and manage the risks. [Interruption.]

[Mr Speaker]

Order. The hon. Member for Plymouth, Moor View (Alison Seabeck) must calm down. She is shouting noisily and I can hear her above her hon. Friends, who are also misbehaving. They must calm themselves. Let us hear from the Secretary of State.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 4th November 2013 Commons Chamber

[Mr Hammond]

I am grateful to the hon. Lady for raising that important point. At the moment, the armed forces recruit about 8% of their strength from women, who make up about 50% of the target age group population, and just 3% of their strength from black and ethnic minority communities, which will make up about 24% of the target age group population by 2020. We have to do better in those areas, and one of the challenges that we have set for the armed forces, and for the Army in particular, is for them to work out how they can pitch an offer that is more attractive to female and black and ethnic minority recruits, and specifically how they can use female recruits more effectively within Future Force 2020.

[Mr Speaker]

Ian Lavery—not here.

--- Later in debate ---

[Mr Hammond]

Perhaps my hon. Friend did not hear me earlier. I was not talking about inquiries; I was talking about 1,576 applications to join the Army Reserve in the first four weeks of the campaign. The simple fact is that if we are to live within our budgets and restructure the Army for its tasks in the future, the decisions we made about the size and shape of the regular Army must go forward, and the recruitment and training of 30,000 Army reserves must happen. We will make sure that they do so.

[Mr Speaker]

Progress on the first question was desperately slow; we really need to pick up.

Reserve Forces

Debate between Lord Hammond of Runnymede and John Bercow

Wednesday 3rd July 2013 Commons Chamber

[Mr Speaker]

It is certainly open to the right hon. Gentleman to continue. If it was the Government’s intention that such further details should be available in the Vote Office and they are not, that is at the very least regrettable, and arguably incompetent. If it was not the intention for the material to be available, it should have been.

[Mr Hammond]

rose—

--- Later in debate ---

[Mr Speaker]

Order. Before the Secretary of State rises to respond, he said in his statement:

“With your permission Mr Speaker, I will distribute a summary sheet that identifies the reserve locations being opened and those being vacated.”

It was not clear from that wording quite when the intention to distribute was, but clearly significant numbers of Members had not received a copy of the tri-service site summary by location, which is a detailed piece of information on one sheet. It was, however, apparently available to members of the media. I hope that the Secretary of State—[Interruption.] Order. I hope that the Secretary of State can clarify the situation, but on the face of it, it is a very considerable discourtesy to the House of Commons, and I hope he can either prove it is not, or if he recognises or accepts that it is, I am sure he will be gracious enough fulsomely to apologise to the House of Commons.

[Mr Hammond]

I was intending to open my remarks by apologising for the evident delay in distributing these summary sheets. The summary sheet I referred to relates to the basing and structure statement that has been made today as a written statement. However, I felt that Members would wish to have a summary of the most important element of that—the base closures—and it was my intention, Mr Speaker, with your permission to distribute that sheet as I sat down at the end of my statement, and I deeply regret that it was not available until just a few moments ago. I am also not aware that it has been distributed outside this House.

I am grateful to the right hon. Member for East Renfrewshire (Mr Murphy) for his broad support for these measures. We have discussed these issues before, and I know the Opposition wish these measures to succeed. It is our intention that the reserves, and, as the right hon. Gentleman said, civilian contractors, will play a crucial role in the delivery of Future Force 2020, and the integrated regular reserve whole force will be at the centre of that construct.

The right hon. Gentleman referred to “longer deployment periods”. It is not the intention to increase the maximum length of deployment period. That will remain as now, usually six months in an enduring operation, with a period of pre-deployment training to precede it.

The right hon. Gentleman asked about transparency and security, and mentioned specifically the context of Northern Ireland. This is a perfectly fair point. We want to be as transparent as possible with employers, and we want to recognise employers, but we also recognise that there will be both employers and reservists who for various reasons will be reluctant to be identified, and we will, of course, respect that as we deliver this agenda.

The right hon. Gentleman asked about small and medium-sized enterprises. We have today introduced a very significant bonus for SMEs, with a £500 per month per reservist cash bonus on top of the other allowances that are already available for SMEs when an employee reservist is called up for operations, but the right hon. Gentleman is absolutely right: on top of the cash inducement, flexibility is crucial to SMEs, and we will continue to exercise flexibility in dealing with requests for postponement.

The right hon. Gentleman asked about public sector employers. I absolutely agree that the public sector must lead the way. Central Government have already set out a very generous offer to reservist employees in excess of that which is statutorily available. We are challenging the wider public sector to match that, and the NHS is already a very considerable provider of reservists, but I should just clarify that public sector employers are not eligible for the financial inducements we have announced today, and, indeed, for the ones that were already available.

The right hon. Gentleman referred to the issue of discrimination at the point of hiring. As he knows, the consultation response identified that some 46% of reservists reported a perception of discrimination at some point either in the workplace or in applying for work. We have announced in the White Paper that we are today establishing a website at which reservists can report incidences of perceived discrimination, which we will then investigate. If we discover that there is a case for further action, we will take it, including considering the possibility of further measures in the next quinquennial armed forces Bill, which is due for introduction in 2015.

The right hon. Gentleman asked about the specific issue of the spare room subsidy as it affects members of the reserve forces. We have been clear about that. There is a section in the White Paper on benefits and related matters. If the situation is still not clear to him after he has looked at that, I will be very happy to clarify further, although the Department for Work and Pensions is, of course, the lead Department on this matter. I can say this to the right hon. Gentleman, however: where any adult member of the reserves is deployed on operations or pre-deployment training and is called up and as a consequence vacates a room in their parents’—or another person’s—house, that room will not be treated as unoccupied for the purposes of calculation of the spare room subsidy.

--- Later in debate ---

[Mr Speaker]

Order. The hon. Gentleman is an eager beaver. The Secretary of State has given his reply. If he decides he wants to say anything further in response to a subsequent question, he is well able to do so.

[Mr Hammond]

rose—

[Mr Speaker]

Does the Secretary of State wish to say it now?

[Mr Hammond]

Inspiration has just come to me. A new Army Reserve unit will move into Kilmarnock on an existing site, which will reopen to accommodate it.

--- Later in debate ---

[Mr Speaker]

Order. The hon. Gentleman has availed himself of the opportunity to ask four questions, which he had no right to do, but I think that he will get one answer.

[Mr Hammond]

I am grateful to the hon. Gentleman for the opportunity to choose between his four questions. I will answer the RMLY question, because I know that other Members will be interested in it. The reason I did not include it in the oral statement is that it is a complex matter and one must limit the content of an oral statement, or else one would be severely admonished from the Chair. The RMLY’s regimental headquarters, the headquarters squadron, will be relocated to Edinburgh, where it will be renamed the Scottish and North Irish Yeomanry. The troop squadrons will remain where they are and will come under the command of other yeomanry units. At Telford, a troop will remain and come under command of A squadron, which will remain based at Dudley. It is a complex change that the hon. Gentleman will be able to understand if he looks at the documents that have been laid in the Library. We expect the troop squadrons remaining in the west midlands to adopt the name of the Royal Mercian and Lancastrian Regiment in their squadron titles.

--- Later in debate ---

[Mr Hammond]

I sense that the Minister for the Armed Forces is anxious to meet my hon. Friend. I can say this: if the facility has 200 cadets, the vacation by the reserves will not make any difference to the cadets’ continued use of it. It will remain in use by the cadets, as will be the case for a significant number of the bases being vacated.

[Mr Speaker]

The hon. Member for Pendle (Andrew Stephenson) has beetled forward by two Benches from his normal position; I am grateful that I am nevertheless able to see and recognise him.

[Andrew Stephenson (Pendle) (Con)]

Thank you, Mr Speaker.

There is a lot to welcome in today’s statement, particularly the incentives for small and medium-sized enterprises. Last Friday, I organised a jobs and apprenticeship fair at Colne municipal hall. More than 1,200 people attended and I am pleased to say that there was a great deal of interest in both the regular and reserve forces. What more does the Secretary of State believe right hon. and hon. Members across the House can do to help deliver the plans and ensure that we recruit more reserve forces in our local areas?

Points of Order

Debate between Lord Hammond of Runnymede and John Bercow

Wednesday 3rd July 2013 Commons Chamber

[Mr Speaker]

If the Secretary of State wishes to respond, he is welcome to do so.

[The Secretary of State for Defence (Mr Philip Hammond)]

Thank you, Mr Speaker. I cannot answer the hon. Gentleman’s question from the Dispatch Box, but I will of course write to him as soon as I get back to the MOD. I am not sure that it does represent what he is suggesting it represents. Some of the sites in question are complex. I am happy to write to him and copy the letter to you, Mr Speaker, as soon as I get back to the MOD.

[Mr Speaker]

I happily accept that offer from the Secretary of State. As he will know, I am principally concerned with matters of order and good form. Although in a human sense, no doubt, particular sites are of interest, they are not within my sphere of competence, and he knows that. What I am interested to hear about is the handling of the matter. He has given me a commitment on that, and I am grateful for it.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 17th June 2013 Commons Chamber

[Mr Hammond]

I have to say to my hon. Friend—who is a great expert on this subject and has been one for longer than I can remember—that the essence of our strategy for defence procurement, which is at the heart of our determination to maintain a balanced budget, is that we do not make contractual commitments until we need to for the delivery of equipment in a timely fashion, when we need it. Locking in decisions before they need to be made merely reduces flexibility and, as the previous Government found out, drives cost into the programme if changes have to be made.

[Mr Speaker]

The hon. Member for New Forest East (Dr Lewis) has spoken eloquently at me on the matter for 30 years.

Operation Herrick

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 14th May 2013 Commons Chamber

[Mr Hammond]

I am sure my hon. Friend is aware that a NATO chiefs of defence staff meeting at which that question will be discussed is taking place today in Brussels. No concrete proposal has yet been accepted, and the UK has made no commitments beyond the Afghan national army officer academy. However, we will consider what ISAF and our NATO allies propose to do in future. We will look at the requirements that any NATO plan involves, make a decision on what, if any, participation the UK should have post-2014, and notify the House as soon as any such decision is made.

[Mr Speaker]

I am grateful to the Secretary of State and to colleagues.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 15th April 2013 Commons Chamber

[Mr Hammond]

A significant proportion of the underspend in 2012-13 is, in fact, the result of delayed spending on equipment programmes and will be needed to be spent in 2013-14 and 2014-15. As the hon. Gentleman will also know, part of the underspend is being used to meet the additional reductions in the budget announced by the Chancellor in the autumn statement and the Budget, which is why we are able to meet those requirements without cutting into the delivery of our core outputs in 2013-14 and 2014-15. To amplify the point about the pay settlement that is effective from 1 May, I will say this: the practical reality is that the MOD’s pay system is quite fragile, and the possibility of making a retrospective change was considered significantly high-risk. It would introduce a significant risk of a catastrophic breakdown in the pay system. We therefore—

[Mr Speaker]

Order. We have a lot of questions to get through and I intend to get through them. Frankly, the answer to the first supplementary question was an abuse of the procedure at topical questions. Answers should be brief. [Interruption.] The Secretary of State can look at me quizzically, but I am telling him that the answer was simply too long for me, too long for the House and it delayed us unnecessarily. It must not happen again.

--- Later in debate ---

[Mr Hammond]

There is no doubt in my mind that the most cost-effective way of delivering a credible and effective nuclear deterrent is through continuous, at sea, submarine-based deterrence.

[Mr Speaker]

Last, but not least, I call Penny Mordaunt.

Army Basing Plan

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 5th March 2013 Commons Chamber

[Sir Menzies Campbell (North East Fife) (LD)]

You know, Mr Speaker, that my interest in these matters is directly related to the fate of Royal Air Force Leuchars in my constituency. You may also be interested to know that I almost need not have attended the statement since full details are contained in this morning’s edition of the Dundee Courier, a daily newspaper circulating in my constituency.

Let us make no mistake and let us be in no doubt, the decision to transfer Typhoons from Leuchars to Lossiemouth is a political decision, and I do not repent of my view that to base air defence aircraft away from centres of population and away from sensitive installations, such as nuclear power stations, is both operationally and strategically inept. I hope that we never have cause to regret doing so.

I assure my right hon. Friend that the local community of Leuchars will go out of its way to establish a warm and co-operative relationship with the Army. But does he also understand that the considerable disappointment there is that the numbers announced today are significantly less than those that were promised before? When will the Army be fully deployed at Leuchars, and will there be any gap between the departure of the Air Force and the arrival of the Army? Today, will he give us, and in particular my constituents, his guarantee that the damaging uncertainty of the last 20 months is now at an end?

[Mr Speaker]

There are many questions there for the Secretary of State. If he thinks, in attending to them, that he can throw any light upon what appears on the face of the observation of the right hon. and learned Gentleman to be a leak of Government policy, I am sure we shall all be immensely obliged to him.

[Mr Hammond]

It does indeed appear to be a leak in the Dundee Courier; I have its front page here. It is an inaccurate leak: the headline refers to a tank regiment. Of course, the Royal Scots Dragoon Guards is not a tank regiment.

I assure my right hon. and learned Friend that there will be no gap in the drawdown between RAF personnel and the build-up of Army personnel at Leuchars. This will take place in stages throughout 2015. By the end of 2015, the Army will be fully in place and the RAF will have vacated it.

My right hon. and learned Friend will also be interested to know that the plan provides for the runway at Leuchars to be maintained as an operational runway with a contingent of about 50 RAF personnel remaining on the base. This will operate as a diversionary runway for the Typhoon squadrons at Lossiemouth. That does mean that the air show will go ahead this year and that the runway will be there in future to make flying from Leuchars possible.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 25th February 2013 Commons Chamber

[Mr Hammond]

I think the hon. Lady needs to go away and read the National Audit Office report carefully. To put it into context, she probably needs to read some previous NAO reports on equipment plans. For example, in its 2010 report the NAO discovered that in a single year under Labour just two programmes—Typhoon and the Queen Elizabeth-class aircraft carrier—rose by £3.3 billion in cost. In 2009, it said that

“the budget remains consistently unaffordable over the next ten years”

and that attempts to rebalance the defence budget had represented poor value for money. We are very happy with the NAO’s review of the equipment plan, which recognised the huge steps of progress that we have made and set out an affordability assessment model for the Department’s assumptions.

[Mr Speaker]

Order. Both the question and the answer are hopelessly long-winded; we need to get better.

[Derek Twigg]

The Prime Minister promised real-terms growth in the post-2015 budget. Can the Secretary of State confirm that that will still be the case for the equipment budget and the non-equipment budget?

--- Later in debate ---

[Mr Speaker]

The ministerial statement is now forthcoming.

[The Secretary of State for Defence (Mr Philip Hammond)]

Our priority is and will remain the success of the operation in Afghanistan. Beyond that, my priority is to deliver the military tasks for which the MOD is mandated. The MOD is also engaged in a major project of transformation to bring about the behavioural change that is needed to maintain a balanced budget and to deliver equipment programmes, so that our armed forces can be confident of being properly equipped and trained. To deliver that project, we need to complete the rebasing of the Army from Germany, secure our target level of trained reserves and restructure the Defence Infrastructure Organisation and Defence Equipment and Support. In parallel with the defence transformation project, I am focused on the steps we need to take to restore confidence in the future to those who serve in the armed forces after a period of turbulence and uncertainty.

--- Later in debate ---

[Mr Hammond]

Let me say to the right hon. Gentleman that the way in which we will not increase confidence in the Territorial Army, and will not increase reserve numbers, is arbitrarily cancelling its members’ training, cutting their kit and relegating them to the second division, which is what his party did in government. [Interruption.]

[Mr Speaker]

Order. The right hon. Member for East Renfrewshire (Mr Murphy) is assuming that there is an automatic link between what he says and what the Secretary of State says, which is itself the creation of a notable parliamentary precedent. However, it is not for the right hon. Gentleman to yell from a sedentary position. He asked the question; whether he likes the answer or not, he is getting an answer, and he owes the Secretary of State the courtesy of hearing it.

Future Reserves 2020

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 8th November 2012 Commons Chamber

[Mr Speaker]

Order. Just before the Secretary of State answers, may I just say to the hon. Member for Truro and Falmouth (Sarah Newton) that she was 23 minutes late for the statement and therefore really has absolutely no business seeking to catch my eye? I am sure she momentarily forgot when she arrived, but she has now been reminded.

[Mr Hammond]

I can tell my right hon. Friend the Member for North Somerset (Dr Fox) that legislation is already in place to protect the employment position of reservists who are mobilised. He will also see when he reads the Green Paper that we are proposing legislation to extend the circumstances under which we are able to mobilise reservists, so that they can be mobilised not only for operational service overseas, but for homeland resilience and routine operations, such as the crucial defence of the Falkland Islands. He will also see that the Green Paper contains a section setting out some examples of practice in important allied nations. I am sure he already knows this, but what others will learn from that section is that at present we have a disproportionately low percentage of reserves in our total force mix compared with most of our comparable allies. What we are doing will move us back a bit further towards the average force mix of our normal allies.

--- Later in debate ---

[Mr Hammond]

My hon. Friend asks an extremely good question, and I shall go away and look into that matter. I have not heard of such an initiative. I suspect it may require legislation, but if there is a pool of talented ex-regular skill that we can tap into, we should certainly look to do so.

[Mr Speaker]

I was pleased to see the hon. Member for Reading East (Mr Wilson) agreeing that his question was, indeed, a very good one, and it will warrant a reply, but perhaps, like a good wine, it will need to mature.

--- Later in debate ---

[Mr Hammond]

The consultation is being made available online. Indeed, it is being published in electronic form only, apart from the requirement of the House to deliver hard copies here. If it were not for that, this would be an all-electronic consultation. It will be given publicity through the chain of command. Furthermore, the responses that we receive will be processed by an independent contractor and anonymised before we get them, so reservists may feel confident that they can respond anonymously with their views.

[Mr Speaker]

I am grateful to the Secretary of State and to colleagues.

Afghanistan (NATO Strategy)

Debate between Lord Hammond of Runnymede and John Bercow

Tuesday 18th September 2012 Commons Chamber

[Mr Denis MacShane (Rotherham) (Lab)]

I do not think that I have ever seen a Defence Secretary so humiliated. Twice he has had to be dragged to the House, instead of having decided to make a statement—first to talk about the original problem, and now to discuss the change of policy. Either his officials are informed but do not tell him things, or he is not in charge of his officials. It is time for this Government to get a grip, and to start telling the generals what to do, instead of re-reading generals’ press releases at the Dispatch Box. The fundamental problem remains the same: I do not believe that our country is willing to accept any more blood sacrifices, now that the strategy of fighting, training and patrolling with the Afghans has been blown away by Washington and the generals in the field. The Prime Minister announced today that the Cabinet will re-examine the policy. I say: the quicker the better.

[Mr Speaker]

We have got the gist. We will try to detect a question in there somewhere.

[Mr Hammond]

On the humiliation of Defence Ministers, the right hon. Member for Rotherham (Mr MacShane) might want to have a look at the experience of many of his right hon. Friends under the previous Prime Minister who routinely humiliated his Defence Ministers by ignoring them and passing over them. It is very clear to me that politicians and the military have a role. I do not seek to involve myself in the tactical decisions that military commanders make; it is wrong for us to do so. There has been no strategic change whatever. This is a tactical decision for a short period of time; it will be reviewed and reversed, as General Allen made clear, as soon as the situation has stabilised.

--- Later in debate ---

[Mr Speaker]

We now move on. I think that the Secretary of State had, if memory serves, responded, but if not, he will now do so.

[Mr Hammond]

My response was simply going to be to note that the hon. Gentleman’s accusation was scandalous.

[Mr Speaker]

I am grateful to the right hon. Gentleman. I would point out that his response is to the House, which is why it is perfectly proper for him to respond.

[Peter Luff (Mid Worcestershire) (Con)]

The Secretary of State has made it commendably clear that it is in our vital national interest to stick to the strategy that has been set in Afghanistan. When it comes to the security of British troops, does he take comfort from the words of Brigadier Bob Bruce, who will be leading the 4th Mechanised Brigade in its forthcoming tour of Afghanistan, who has said that we are sending to Afghanistan

“the best prepared and the best equipped…Task Force”

the United Kingdom has ever put into the field?

Afghanistan (Force Protection)

Debate between Lord Hammond of Runnymede and John Bercow

Monday 17th September 2012 Commons Chamber

[Mr Hammond]

There are lots of reasons we should not and could not bring our brave soldiers home by Christmas. We have a legacy in Afghanistan, and it has been won at a great cost. Four hundred and thirty British service personnel have given their lives, and we intend to protect that legacy—[Interruption.] We intend to protect that legacy by ensuring that the UK’s national security interests are protected in future by training and mentoring the Afghan national security forces to take over the role we are currently playing—[Interruption.]

[Mr Speaker]

Order. Hon. Members should not shout, but I look to a very senior figure on the Treasury Bench not to get over-excited. I knew the right hon. Member for Rayleigh and Wickford (Mr Francois) when he was a very calm and rational 23-year-old. Now he is 48 he should be even more calm and rational. That is what we want to see.

[Mr Edward Leigh (Gainsborough) (Con)]

Can we not just be calm and rational, and concentrate on our national interest, which is our own defence? Given that the old Liberal Imperialist dream of making Afghanistan safe for democracy is dead and that, after 2014, the Taliban will be in control of large areas of the country, why do we not concentrate on our national security, on the use of special forces and drone attacks to keep the heads of the Taliban down, and not pretend that we are in there to fulfil our national destiny of promoting democracy in Afghanistan? It will not happen.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 16th July 2012 Commons Chamber

[Mr Hammond]

I do not think that there was a previous unclear answer. We have made a decision to revert to the STOVL––short take-off and vertical landing—solution. We are highly confident of the delivery of the F-35B STOVL variant, which the US Marine Corps depends on. We have had the highest level discussions with the US Administration, who strongly support the programme. I am looking forward to seeing US Marine Corps aircraft flying at Pax River on Wednesday.

[Mr Speaker]

Before I call the shadow Home Secretary to ask the urgent question that I have allowed, I must tell the House that I intend to bring proceedings on it to an end after half an hour. In view of the proceedings on Thursday, I ask Members not merely to repeat questions already posed and answered then, but to explore new territory that has since arisen.

Army 2020

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 5th July 2012 Commons Chamber

[Mr Speaker]

Order. I remind the House that, in accordance with convention, Members who arrived in the Chamber after the Secretary of State had begun his statement, of whom there was a significant number on both sides of the House, should not expect to be called.

[Mr Hammond]

We have been treated to a lecture on the strategic context by a member of a Government who did not conduct a strategic defence review in 12 years. We have been told about reductions in the Army by a shadow spokesman who wrote to his party’s leader saying that they would have to examine the structure of the Army and that he recognised the need for manpower reductions. The Labour leader wrote back to him saying that

“we can expect to have to make further savings after the next election”.

What we have not heard from the right hon. Gentleman today is any kind of plan for how he would manage the £38 billion deficit in the Ministry of Defence’s budget that we inherited from him—no plan, no clue.

Let me address some of the specific points that the right hon. Gentleman raised. He referred to Germany and France. Germany spends 1.2% of its GDP on defence, while this country spends 2.1% of its GDP on defence. He talked about France. France is only at the beginning of a fiscal review that will lead to the production of a new livre blanc in the spring for the French armed forces. If he knows that there will not be cuts in the French armed forces, he is better informed than I and better informed than most of the French politicians and staff officers to whom I talk.

The right hon. Gentleman talked about sustainability. One of the achievements of the work that has been carried out over the past few months—it has been a huge piece of work—is the maintenance of capability through an intelligent approach to the challenge of doing more with less. We are using the reserves more intelligently, using our contractors more effectively and reshaping the Army—this process is about the shape of the Army in the future—to improve the tooth-to-tail ratio. We are ensuring that the manpower cuts are made in the areas that will have the least impact on the Army’s fighting capability. I assure him that the Army will be able to deliver the SDSR outputs required of it.

The right hon. Gentleman talked about the strength of individual units. He referred to a leaked letter from the colonel of the Royal Regiment of Fusiliers. The Army has looked at the recruiting ability of regiments and battalions not at a spot-point in time, but over a period of 10 years. It has looked at the demographic projections in the areas where the regiments and battalions recruit and drawn the appropriate conclusions.

The right hon. Gentleman clearly does not understand how a public duties incremental company works. The 100 or so men who make up the PDIC in Scotland will be drawn in rotation from the other battalions in the Royal Regiment of Scotland, so no one will serve a career in the Army being, as he disparagingly put it, photographed by tourists.

The right hon. Gentleman asked about the arrangement of affairs within the regiments where battalions are being lost. He asked specifically about the Green Howards and the Duke of Wellington’s. When battalions are withdrawn, it is for the regiments to decide how the antecedents and the thread behind those battalions are merged into the other battalions.

Finally, the right hon. Gentleman referred to the reserves. We are talking about an Army reserve of 30,000 trained strength, not 15,000 as he mentioned. Reserves will be deployed on operations. That is what will give the Army its sustainability in the future. On an enduring operation, we would expect the first six-month tours to comprise less than 10% reserves, with the reaction forces making up the bulk of the land forces.

Nuclear-powered Submarines

Debate between Lord Hammond of Runnymede and John Bercow

Monday 18th June 2012 Commons Chamber

[Mr Hammond]

I am afraid that the hon. Gentleman resorts, not for the first time, to hyperbole. He talks about weapons of mass destruction, but the announcement has nothing to do with weapons; it is about reactor power plants for powering submarines, both the strategic successor submarine and the Astute class attack submarine, which will form the core of the Navy’s attack submarine force in future. He talks about the position of the Scottish National party and the Scottish TUC. Perhaps he has taken the trouble to consult the 6,000 people whose jobs depend on Her Majesty’s naval base Clyde and Coulport.

The hon. Gentleman asked about the review in 2016. We decided to proceed with long-lead items to enable the currently planned programme for the replacement of the Vanguard class submarine to proceed. A decision will be taken in 2016. It will take into account the review of alternatives to the successor, which is currently under way and being chaired by the Minister for the Armed Forces. We understand from speculation in the media that the SNP is about to reverse its policy on membership of NATO, which is a nuclear alliance, so perhaps he could enlighten us on whether his party will endorse the nuclear NATO alliance, because he did not tell the House in his earlier comments.

[Mr Speaker]

Order. I appreciate that the Secretary of State was making a kind of rhetorical point, but I should say for the benefit of the House that there will be no further dollop of the hon. Member for Moray (Angus Robertson), at any rate in respect of this matter, this afternoon. We await further particulars at a later stage.

[Dr Julian Lewis (New Forest East) (Con)]

Given that as long ago as 9 February 2011 the Prime Minister told this House:

“The replacement of Trident is going ahead… I am in favour of a full replacement for Trident, a continuous at-sea deterrent… it will remain Conservative policy as long as I am the leader of this party”—[Official Report, 9 February 2011; Vol. 523, c. 296.],

is there any reason for surprise that this step should have been taken, and is there any reason for the undue delay in the study of alternatives, which can only come to the conclusion that replacing Trident is the only sensible option?

[Alison Seabeck (Plymouth, Moor View) (Lab)]

May I offer the condolences of the Opposition to the families and friends of the two brave servicemen who lost their lives last week? For the record, the shadow Secretary of State is out of the country on official defence-related business.

In a security landscape of few guarantees, our independent nuclear deterrent provides us with the ultimate insurance policy, strengthens our national security and increases our ability to achieve long-term global security aims. As the Secretary of State made clear, the initial gate decision announced in May last year set in train £3 billion of expenditure on the design, development, assessment and ordering of long-lead items to make the 2016 main gate decision feasible.

If the hon. Member for Moray (Angus Robertson) had re-read the May statement, he would have known that half the money is for renewing the infrastructure of the Rolls-Royce facility in Derby, which is essential for the next generation of nuclear submarines. That is not new but necessary investment.

This is a vital programme that a separate Scotland would not be able to afford or benefit from—[Hon. Members: “We don’t want it!”]—in terms of security or jobs if it did not go ahead. Indeed, the development of the new reactor needs to go ahead whether or not there is a final decision on Trident, because it relates to the UK’s defence capability and to our submarine programme —with huge implications for places such as Barrow, a point completely missed by the hon. Member for Moray.

It is very easy to become blinkered by the concerns held in some quarters about the successor programme and to lose sight of the wider need for the research and development and investment required to keep our nation safe. If the Lib-Dem alternative review, which is ongoing, is to be evidence-based, it must stand up to scrutiny when published, and the Opposition will certainly look at any new evidence brought forward.

Some issues rise above party politics, and the nation’s security is one of them. The country would therefore be deeply disappointed if defence of the Government ever took precedence over defence of the national interest. The previous Government were strong advocates of the nuclear non-proliferation treaty, and although multilateral disarmament is not the only route to achieving a world free of nuclear weapons, it is one that we must accelerate if we are to achieve that collective goal.

Will the Secretary of State say how the Government are strengthening each of the three pillars of the NPT? What dialogue is he having with some of the key Governments about their position in that regard?

When the Government do the right thing on defence, we will support them. We look forward to the evidence that they will provide and to a clear commitment to multilateral disarmament.

[Mr Speaker]

Order. May I very gently say to the Secretary of State that any remarks about the non-proliferation treaty should be pretty brief? I know that he will want other colleagues to be accommodated.

[Mr Hammond]

I am grateful to the hon. Lady, who is absolutely right. We have long shared a consensus that the crucial strategic defence of the United Kingdom is a matter that should be above party politics, and in an increasingly uncertain world it looks increasingly certain to me that maintaining our nuclear deterrent is the right posture for ensuring the future security of this country and of our allies. She is absolutely right also to point out that a significant part of this investment is about maintaining a UK sovereign capability, not just through the strategic submarine deterrent but through our attack submarines and future generations of them. That is a skill set, which, if we lose it, we will never, ever be able to regain.

As for the non-proliferation treaty, the Government of course remain committed to non-proliferation and have already taken steps in relation to our strategic submarine programme to reduce the missile and weapons payload to the minimum required for strategic deterrence, hoping to set an example to others.

I just wonder, Mr Speaker, whether I could air this thought. While the hon. Lady was speaking, nationalist Members were saying, “We don’t want it!” May we have an assurance that, if they do not want it, they will not reverse their policy on NATO and seek to shelter under NATO’s nuclear umbrella while refusing to share the burden?

--- Later in debate ---

[Mr Hammond]

I think I just need to explain to the hon. Lady that the decision in 2016 will be about the replacement of the Vanguard class submarines to carry strategic nuclear missiles. We have a second class of submarines, the Astute class of nuclear powered attack submarines. The Royal Navy will always need nuclear powered attack submarines whatever we do with the successor to the Vanguard class. So this sovereign capability is required if the Royal Navy wishes to remain in the business of having nuclear powered submarines, and we certainly do. [Interruption.]

[Mr Speaker]

Order. The hon. Member for Na h-Eileanan an Iar (Mr MacNeil) is signalling, from a sedentary position, his interest in participating. He is holding out his hands to imply the wings of an aeroplane. He may have flown here, but I am afraid that he did not fly here quickly enough. It is always a delight to hear the product of the hon. Gentleman’s lucubrations, but I am afraid that that will have to wait for another day, as he was not here at the start. We will hear the hon. Gentleman another time. We will save him up. It will be worth hearing, I feel sure.

[Mark Menzies (Fylde) (Con)]

As a Member of Parliament lucky enough to have HMS Inskip on the edge of my constituency, may I welcome today’s announcement? As someone who went to school on Clydeside, just a few miles down the road from Faslane, may I ask the Secretary of State, when he looks at job numbers, to look also at the wider supply chain and the taxi firms and hotels that would benefit from this decision?

--- Later in debate ---

[Mr Hammond]

I can assure the hon. Gentleman that the Government are pressing ahead with their plans on the confident assumption that the referendum will deliver a vote in favour of the Union.

[Mr Speaker]

I call Mr Rob Wilson.

[Mr Rob Wilson (Reading East) (Con)]

I am still smiling, Mr Speaker. Is the Secretary of State’s understanding, based on the SNP’s opposition to this investment, that an independent Scotland would leave its citizens fairly defenceless against nuclear attack, or would it rely on another nation to protect it?

[Mr Hammond]

At the risk of incurring the wrath of the hon. Member for Moray (Angus Robertson), let me say that my hon. Friend takes me back to a point that I have made before. The SNP needs to be clear whether it will seek to reverse its policy on NATO membership, and thus to shelter under the nuclear umbrella provided by others while shirking any responsibility for delivering that strategic security.

[Mr Speaker]

I was advised that the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) came into the Chamber at three minutes past 4, which is very late—

--- Later in debate ---

[Mr Hammond]

It really was not worth it, Mr Speaker. You might think that during such a long, delayed flight, the hon. Gentleman would have been able to come up with a rather more interesting question. He missed the initial answer to the question. This announcement is about the production of cores for submarine nuclear reactors for both strategic missile submarines and conventional attack submarines. It is about maintaining a vital, sovereign UK capability. He will have to draw his own conclusions about the politics of nuclear deterrence.

[Mr Speaker]

I am grateful to the Secretary of State and colleagues. Before we proceed to the main business, I feel sure that the House will want to hear the point of order of the hon. Member for Cheltenham (Martin Horwood), of which he was very seized fewer than five minutes ago.

Point of Order

Debate between Lord Hammond of Runnymede and John Bercow

Monday 18th June 2012 Commons Chamber

[The Secretary of State for Defence (Mr Philip Hammond)]

Further to that point of order, Mr Speaker. Now I understand the hon. Gentleman’s point. Of course this is about a propulsion system, and the reactors are independent of what type of missiles the submarine might carry.

[Mr Speaker]

I am sure that the House is greatly enlightened by that clarification. I would simply say to the hon. Member for Cheltenham (Martin Horwood) that if his essential complaint—that the answer did not relate to his question—were to form the basis for subsequent points of order, our proceedings would become very heavily extended indeed. We will leave it there for now.

Defence Budget and Transformation

Debate between Lord Hammond of Runnymede and John Bercow

Monday 14th May 2012 Commons Chamber

[Mr Hammond]

That is an interesting question, because the Labour party’s position is to deny that there was a £38 billion black hole. It is rather helpful to us that we have in our possession a letter from the right hon. Member for East Renfrewshire to the Leader of the Opposition, setting out his view that the £38 billion black hole was Labour’s greatest weakness and vulnerability when it came to defence.

[Mr Speaker]

I am grateful to the Secretary of State and to colleagues.

Carrier Strike Capability

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 10th May 2012 Commons Chamber

[Mr Hammond]

My right hon. Friend is absolutely right that at the SDSR, a view was taken about the amount of risk that was tolerable, about the horizon to which we could accept an absence of carrier capability and, as I have said, I am certainly not prepared to see us go beyond 2020 without the carrier strike capability.

My right hon. Friend is absolutely right. This is the question for Opposition Members to answer: why did they order two 65,000 tonne carriers without cats and traps, which anyone involved in naval aviation operations knows is itself an absurdity? [Interruption.]

[Mr Speaker]

Order. I appeal to the House to calm down. The hon. Member for North Durham (Mr Jones), assisted by his colleagues, is chuntering repetitively from a sedentary position, in breach of the conventions of the House. I ask the hon. Gentleman to exercise what modicum of self-restraint he is able, in the circumstances, to muster.

[Mr Hammond]

We inherited this programme, and frankly I am not interested in trading insults with the Opposition about what happened in the past. What I need to do now is take the carriers that are in build and that are being built under a contract that makes it more expensive to cancel them than to complete them, and put them to the best possible military use for the defence of this country.

--- Later in debate ---

[Mr Hammond]

I agree.

[Mr Speaker]

We can leave it at that. I am grateful to the hon. Member for Bournemouth East (Mr Ellwood), but in future, a question mark would be appreciated.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Secretary of State confirm if he has investigated whether Mr Adam Werritty met any companies or lobbyists involved in the original very bad decision?

--- Later in debate ---

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

Even a first-week midshipman could tell the Prime Minister that adopting two 180° U-turns takes us back to where we started two years ago. Will the Secretary of State give a commitment that the Government will continue to stand beside the use of Rosyth dockyard for the long-term maintenance of the carriers when they enter service? Will he tell the House what we will achieve, except squandering he knows not how many millions of pounds, by flogging our Harrier fleet for spare parts for a peppercorn, scrapping a generation of fast-jet Harrier pilots, and leaving the nation with—

[Mr Speaker]

We have got the gist. I am most grateful to the hon. Gentleman.

[Mr Hammond]

A first-week midshipman could probably tell the hon. Gentleman that it is not normal to order a 65,000 tonne STOVL carrier without any cats and traps. With regard to the hon. Gentleman’s question on Rosyth, no decision has been taken on where the carriers will be maintained in future.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 26th March 2012 Commons Chamber

[Mr Philip Hammond]

I think the right hon. Gentleman perhaps spends too much time reading the Sunday newspapers. I too read an article yesterday that said we had spent £500 million refurbishing the Harriers shortly before selling them to the United States. In fact, the programme in question was instigated by the previous Government in 2002 and sustained the Harrier through to the end of its service with UK forces. Far from sneaking the Harriers to the US in secret, when the deal was signed the MOD issued a press release announcing the sale price, $180 million, which was nearly twice the figure that I was told when I arrived at the MOD had been pencilled in as the receipt. It was a success, although the right hon. Gentleman would hate to admit it.

[Mr Speaker]

Order. May I just remind the House that there is a lot to get through so from now on we need shorter questions and shorter answers?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Monday 20th February 2012 Commons Chamber

[Stephen Hammond]

I thank my right hon. Friend for the scale of support that he has announced. I recently visited the regional fire control centre that is opening in my constituency, which will provide emergency fire control at the Olympics. Will my right hon. Friend offer some insight to the House about who might be in overall command of an emergency or of security, and what procedures he is putting in place to ensure that both the civil and military authorities concerned with the Olympics security will work together?

[Mr Speaker]

I thank the Secretary of State, who had intended to group Question 5 with Question 11. He did not, so I do so on his behalf. I know he will be grateful.

[Mr Philip Hammond]

I had understood that Question 11 had been unstarred. Perhaps I misunderstood.

[Mr Speaker]

I think the Secretary of State did, and I did too. However, the hon. Member for Pudsey (Stuart Andrew) says that he never withdrew it in the first place. A gremlin got into the system.

[Stuart Andrew (Pudsey) (Con)]

11. What contribution the armed forces will make to security at the London 2012 Olympics; and if he will make a statement.

--- Later in debate ---

[Mr Philip Hammond]

I and my colleagues are asking ourselves, “What’s he talking about?” I’m not quite sure what the hon. Gentleman is referring to. Is he talking about whether the Army is top-heavy? [Interruption.] I am at a loss to know exactly what he is talking about, but we intend to reduce numbers in the senior ranks of the Army in order to address the disproportion there.

[Mr Speaker]

I think that arrangements can be made for a conversation outside the Chamber, possibly over a cup of tea—who knows?—if the hon. Member for Leyton and Wanstead (John Cryer) is lucky.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 15th September 2011 Commons Chamber

[Maria Eagle]

So the Deputy Prime Minister was wrong—there is no plan to bring forward projects and no plan for growth. May I ask the Transport Secretary about the procurement of trains for Crossrail? After his disastrous decision to award the Thameslink train contract to a company that will build the trains in Germany, putting at risk Britain’s train manufacturing industry, he has said that he is reviewing the Crossrail contract. As he has just confirmed that Crossrail is still being delivered on his slower timetable, rather than reviewing it for six months, why does he not scrap the process and start again, and this time ensure that Bombardier has a fair chance to secure the work. Finally—

[Mr Speaker]

Order. I think we have the gist, and we are grateful.

[Mr Hammond]

The hon. Lady is all over the place. There is nothing to scrap in relation to the Crossrail rolling stock procurement programme, because we have not started that procurement yet. We announced that we will postpone the issue of the invitation to tender until the new year, in order that consideration be given to the findings of the growth review and how public procurement in this country can best support the strategic interests of the supply chain. The broader Crossrail project, involving a major infrastructure investment—the tunnels across London—is, as the hon. Lady and anyone who travels around London knows, already under way as is manifest in the large number of big holes in the ground.

--- Later in debate ---

[Mr Hammond]

The hon. Gentleman says “we”. I am not sure who the “we” is. We have decided that we will have to increase rail fares by 3% in real terms for the next three years in order to protect the major programme of investment in the rolling stock, electrification and new infrastructure that the country needs. It is a tough decision, but it is the right decision.

[Mr Speaker]

Order. May I ask the Secretary of State to face the House, as he is addressing us?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 10th March 2011 Commons Chamber

[Mr Hammond]

Yes, I have seen it.

[Mr Speaker]

We are extremely grateful to the Secretary of State for that pithy reply.

--- Later in debate ---

[Mrs Siân C. James (Swansea East) (Lab)]

I shall not express my disappointment with the decision again, but I would like to know this: are you going to publish the information on how you reached the financial decision? People in Swansea ought to be told what that decision was based on.

[Mr Speaker]

Order. I am not publishing anything, but the Secretary of State might be.

[Mr Philip Hammond]

If the hon. Lady would like to see the business case analysis for electrification from Cardiff to Swansea, I am happy to make it available to her. I can tell her that it will not reinforce her case.

--- Later in debate ---

[Mr Hammond]

Yes, I am happy to do so, although I should tell the right hon. Gentleman that, despite what was said at the time, the previous Government did not conduct a business case analysis of the proposal for electrification from Cardiff to Swansea.

[Mr Speaker]

Nicky Morgan. Not here.

[Greg Mulholland (Leeds North West) (LD)]

I warmly welcome the Government’s clear commitment to take high-speed rail to Leeds, but will the Secretary of State give proper consideration in the consultation to the high-speed north proposal by Harrogate engineer Colin Elliff? The route would not go through the Chilterns, hence avoiding some of the environmental concerns there.

Winter Weather

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 2nd December 2010 Commons Chamber

[Mr Hammond]

rose—

[Mr Speaker]

Order. I know that the Secretary of State always attempts to respond very comprehensively, but may I appeal to him to do so briefly as well? These are principally Back-Bench occasions; many Members wish to contribute, and brevity is the order of the day.

[Mr Hammond]

I shall attempt to be brief, Mr Speaker, but the hon. Member for Garston and Halewood (Maria Eagle) asked me a good many questions.

I can assure the hon. Lady that there is no complacency whatsoever. I recognise the absolute frustration and, indeed, anger of many people who have been stranded and had their journeys and their lives disrupted over the past 48 hours. Let me repeat, however, that the question is not whether a foot of snow and double-digit negative temperatures create disruption. They will create disruption; they will always create disruption. The question is whether we should or could have done anything differently, and that is what I have asked David Quarmby to consider. As soon as we have the answers to all the very sensible questions asked by the hon. Lady, I will report back to the House.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 28th October 2010 Commons Chamber

[Mr Speaker]

Order. This is the hon. Lady’s debut. In future, questions must be shorter.

[Mr Hammond]

I think Members will understand that what matters is the real-terms increase in fares, and that is what I was referring to.

The hon. Lady asked about the average fare cap. She talks as if in the past rail companies were restricted on individual fares. That is not the case. There was always a basket approach until this year—strangely enough, a general election year. For this year only, the previous Government announced that that system would be abolished and that companies would be limited on individual fares. We have gone back to the basket system because it provides the freedom to respond.

--- Later in debate ---

[Ian Lavery (Wansbeck) (Lab)]

On the rail network and fare increases, is the Minister aware that the proposed formula increase outlined in the CSR—that is, RPI plus three—will mean a cumulative increase of approximately 33.5% by 2015? That means, on the Newcastle to London line, an increase up to £500 for first class and £350 for second class—

[Mr Speaker]

Order. May I remind Members, both Back Benchers and Front Benchers, because I think they have forgotten, that topical questions and answers are supposed to be shorter? I think the Minister has got the thrust of the question, although the hon. Gentleman is certainly not the only offender, by any means.

[Mr Hammond]

I can do no better than refer the hon. Gentleman to my earlier exchange with the Opposition Front-Bench spokesman.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 22nd July 2010 Commons Chamber

[Mr Speaker]

Order. This is Topical Questions, so one question—short and sharp.

[Mr Hammond]

I think I can gather the balance of the question, Mr Speaker. We well understand that the national strategic and economic benefits of the high- speed rail network have to be balanced against local environmental disbenefits. Of course, the project will be designed with maximum sensitivity in mind, and I am happy to tell my hon. Friend that I will be visiting the line of the proposed route in the summer recess.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and John Bercow

Thursday 17th June 2010 Commons Chamber

[Mr Hammond]

Although we want to continue to increase passenger usage of the railways, we have to operate within a tightly constrained public spending environment. Our first priority must be to maintain and improve the trunk railway network that we have already. I will consider any proposals for reopening branch lines, but I have grave doubts about whether it is likely to be affordable in the foreseeable future.

[Mr Speaker]

Order. I gently point out that we need to make better progress, so short questions and short answers would be appreciated.

--- Later in debate ---

[Mr Speaker]

Order. I do apologise, but the questions are still too long. We are getting mini-essays. I want short questions.

[Mr Hammond]

I can tell my hon. Friend that we will be happy to consider proposals from local authorities and the Highways Agency for improvements, but he will understand that they will be affordable only once the deficit has been eliminated.

--- Later in debate ---

[Mr Hammond]

Yes.

[Mr Speaker]

We are grateful to the Secretary of State.