Budget Resolutions

Debate between Lord Mann and Justine Greening

1st reading: House of Commons
Tuesday 14th March 2017 Commons Chamber

[Justine Greening]

Germany has its own approach to corporation tax. Ours has been steadily, and dramatically, to reduce it in order to make sure that companies can retain the profits they are making to be able to reinvest in growing their companies. The proof of the pudding is in the substantial and significant job creation that we have seen in our economy, by comparison with many other countries, over recent years. That is why we are able to put money into our public services.

As we prepare to leave the European Union, we will need to be more self-sufficient in our workforces, in our skills and in the training of our young people to set ourselves up for success. We will need new ideas, new jobs and new investment to confidently meet every challenge and grasp the opportunities ahead of us. We want a global Britain strong at home and strong abroad. It is now time for Britain to step up a gear to begin the shift up to the high-skill, high-productivity economy that we can be. This Government are ready to act.

[John Mann (Bassetlaw) (Lab)]

Is it not a fact that under this Government, while the Secretary of State has been in office, we have fallen two places in the research and development international league tables, behind Slovenia and the Czech Republic?

[Justine Greening]

The autumn statement saw us provide further investment for R and D. Indeed, the national productivity fund has been set up to make sure that we can fund infrastructure, including R and D, more broadly. However, it is not just through physical infrastructure that our country will be successful—we need to invest in our people and in human capital as well. Through this Budget we are investing in human capital in skills, education and training to create a strong economy that works for everyone.

Oral Answers to Questions

Debate between Lord Mann and Justine Greening

Wednesday 23rd October 2013 Commons Chamber

[John Mann (Bassetlaw) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for International Development (Justine Greening)]

During the past month I have attended the UN General Assembly, meetings at the World Bank and I have put in place a new £30 million “Lost Generation” initiative to provide protection, counselling and basic educational supplies to children affected by the Syrian crisis. I have announced a £1 billion commitment to the Global Fund to Fight AIDS, Tuberculosis and Malaria, and the Department is committed to transparency, results and value for money. I am proud that in procurement in DFID, despite competition from the public and private sectors, my departmental procurement team recently won the annual award for best international procurement from the Chartered Institute for Procurement and Supply.

[John Mann]

The Batwa, who were evicted from the forests to allow tourists to trek gorillas, are the most socially excluded group in east Africa. Will the Secretary of State look at her programmes to ensure that they too do not exclude the Batwa?

[Justine Greening]

I assure the hon. Gentleman that I will look into the specific point he raises. Human rights run through all DFID programmes, and when dealing with Governments we have partnership principles that also include human rights.

Budget Responsibility and National Audit Bill [Lords]

Debate between Lord Mann and Justine Greening

Tuesday 22nd March 2011 Commons Chamber

[Justine Greening]

I hope I can provide some clarification. The OBR has the freedom to consider the impact of policies on sustainable public finances, including employment policies. If the hon. Gentleman looks at some of the forecasts the OBR has already made, he will see forecasts for employment, average earnings, ILO unemployment, the percentage of the claimant count and, of course, growth. Hon. Members talked about the OBR’s assessment of growth and what it will show over the coming years. The OBR is already producing an awful lot of the analysis that hon. Members want to see, but it is fair to say that today’s debate will—I hope—be of interest to the OBR in understanding what information and analysis it might feel it needs to provide to convey what it wants to, which is some assessment of the economic growth forecast for this country.

Let us be clear that the duty of the OBR is very clear and is set out in clause 4. It should examine and report on the sustainability of public finances but, as hon. Members have said, Government policy clearly impacts on that. By definition, the OBR will consider how policy impacts on the sustainability of public finances.

[John Mann]

From what the Minister is saying, I presume that if the OBR—or even the Treasury Committee, but the OBR in particular—were to say that it was unable to provide the analysis that it would like to because it was not sufficiently resourced, that would be seen as a serious question for the Government to address.

[Justine Greening]

The hon. Gentleman will be aware through his role as a member of the Treasury Committee that when the chair of the OBR, Robert Chote, was asked whether he felt it was sufficiently resourced he said he felt it was. The hon. Gentleman will also be aware that one reason we have carved out sufficient money not just for this year but for the whole spending review period, which will be reported on separately, is to ensure that the OBR understands that it is sufficiently resourced not just for this year but for the years ahead, so that it has that certainty about its resource base to do the work it needs to do.

[John Mann]

That is a vital point, because Robert Chote was speaking as the first permanent employee. Others are now employed by the OBR who might have different perspectives and priorities. There is a critical question: if the OBR feels restrained by resources, will that become a politically contentious issue as regards objective statistics? Presumably, in such a case, if the OBR was kicking up about being unable to provide the detail in independent statistics, the Government would regard it as vital to address that resource need.

[Justine Greening]

I can go back to the reply I just gave the hon. Gentleman. The charter and the Bill clearly set out the OBR’s duties and Sir Alan Budd, as the interim chair, produced his report and talked about what he thought that the duties of the OBR should be, about its resourcing and about how it should be run. Of course, we reflected many of those comments as we introduced this Bill to set up the OBR. If we take that together with the fact that the permanent chair, Robert Chote, has said that he does not feel that there will be an issue with resourcing, we can be relatively confident that the OBR will be adequately resourced to fulfil the duties clearly set out in the Bill.

Let me turn briefly to the amendments. They all concern growth and the problem is that they start to stray into the OBR’s becoming bound up in policy rather than analysis. Amendment 1 would require the charter to include the Government’s economic policy objectives and the means by which that objective would be attained—what has been called a growth mandate. The charter, however, is a fiscal policy document that transparently sets out the fiscal policy framework. The purpose of the charter, the OBR and the Bill is to create the fiscal policy framework that supports the Government’s delivery of our fiscal policy objectives. Rightly, the charter focuses on fiscal policy issues, as was the case with the previous Government’s code for fiscal stability.

Fuel Prices and the Cost of Living

Debate between Lord Mann and Justine Greening

Wednesday 16th March 2011 Commons Chamber

[Justine Greening]

One of the problems is that the Labour party and the shadow Chancellor do not even accept that there is a structural deficit. My hon. Friend is absolutely right to point out that the steps we are taking to tackle the deficit and bring our public finances back under control and into a sustainable shape, so that we can fund public services affordably for the long term, will give us a much better chance of keeping interest rates and inflation low. That is critical to ensuring that we can support our economy more broadly.

[John Mann (Bassetlaw) (Lab)]

It would help the debate and the Economic Secretary’s own Back Benchers if she could tell us which party is responsible for the majority of the taxation on fuel today.

[Justine Greening]

I am sure the hon. Gentleman was quite happy trotting through the Aye Lobby when his party brought forward its 12 fuel duty rises and the Budget in which it announced a further six. His question is particularly disingenuous because at that time the Conservative party was campaigning against unreasonable and unfair rises in such things as road tax. The Labour party paid no attention and continued to hammer motorists again and again.

[Justine Greening]

Perhaps I will make a bit of progress, because I know that many Members want to take part in the debate.

[John Mann]

We want an answer.

[Justine Greening]

I shall answer the hon. Gentleman, who is hectoring from a sedentary position. When his party was in government, it knew all about raising taxes. In fact, it formed the ultimate tax-and-spend Government, who got us into such a situation that their final Chief Secretary wrote a note saying that there was no money left. I really do think that if the Labour party wants to be taken seriously on the economy, it must start living in the real world instead of the fantasy world that it currently finds itself in, particularly in relation to EU VAT directives.

Finance (No. 2) Bill

Debate between Lord Mann and Justine Greening

Monday 11th October 2010 Commons Chamber

[Justine Greening]

The hon. Gentleman should direct his question at his colleagues, who had planned the capital cuts that he no doubt hates so much. If he comes and looks at other schools, he will see that his Government left schools such as my own Elliott school in Putney in an appalling state. I do not think he has an answer to that.

We heard a number of contributions from Opposition Members. The hon. Member for Wallasey offered no alternative to the plan set out by the Government. The hon. Member for Scunthorpe (Nic Dakin) spoke about scrapping the package that we presented in the emergency Budget to support business. We heard from the hon. Member for Wirral South (Alison McGovern), who apparently welcomed the Bill and wanted investment, but was against the cuts in corporation tax that we introduced. We heard from the hon. Members for Islwyn (Chris Evans), for Sefton Central (Bill Esterson), for Edinburgh East (Sheila Gilmore), and for Bassetlaw (John Mann) who were all against taking action to sort out the economy. At least the hon. Member for Bassetlaw acknowledged that his party has a gaping chasm in its economic policy. Until the Opposition fill that, they will have no credibility.

[John Mann]

I hope the hon. Lady did not miss the other part of my contribution, which was intended to expose the gaping chasm in the logic and the economics of the Treasury proposals.

[Justine Greening]

I decided to pick out the piece in which the hon. Gentleman talked about his party, which he obviously supports. Our plans are all about tackling the deficit. Funding that debt will cost our economy £43 billion this year. That means that every taxpayer in Britain will pay almost £1,400 of income tax to service that debt interest. The hon. Gentleman might consider that a good use of taxpayers’ money rather than spending it on front-line services. I do not. Unless we take the difficult but fair decisions that we are taking now to sort out the deficit, we will not be in a position to undertake sustainable funding of our public services again. That is why the measures that we are taking are so important.

Many of the clauses in the Bill were brought forward by the previous Government. We consulted stakeholders over the summer because we were keen to make sure that we have a more open and considered approach for our tax legislation than we have had in the past. Many respondents have been clear about how welcome that approach is. It has made the Bill more transparent, more robust and better focused. It was a pleasure to hear from the hon. Member for Bristol West (Stephen Williams) who, I believe, is a fellow chartered accountant and could therefore appreciate the care that has been taken with the Bill.

Let me pick up on some of the technical questions raised by my hon. Friend the Member for Boston and Skegness (Mark Simmonds) and the hon. Member for Dundee East (Stewart Hosie). I am pleased that my hon. Friend welcomes the measure on REITs in the Bill. I will write to him on some of the more specific issues that he raised. He should recognise that the measure in the Bill is symptomatic of the fact that we see REITs as a positive vehicle, and we will see what we can do to support them further.

The hon. Member for Dundee East raised so many issues so quickly that I barely had time to scribble them all down. I hope we will return to many of them in Committee.

The other thing that foxed me was that the hon. Gentleman went in reverse order, starting at clause 25 and moving on to clauses 7 and 5. But, he asked some broad questions, and on the corporation tax and petroleum revenue tax changes he was right to say that the measures are about creating a more harmonised system. He raised many specific issues, and we can go into more detail about them, including clause 7, in Committee. On clause 5, he raised a number of good questions about guidance, and we are looking to revise that. We are talking to stakeholders and hearing about the issues that they want clarified; indeed, he mentioned some of them in his speech. His points were well made, and I look forward to continuing the debate in Committee.

There are further measures in the Bill to support the private sector and contribute to more balanced growth in the UK. We heard from my hon. Friends the Members for Northampton South (Mr Binley), for Dover, for Watford (Richard Harrington), for Elmet and Rothwell (Alec Shelbrooke) and for Macclesfield (David Rutley) about how important it is that our Government take steps to support business so that business in turn can create jobs. We must not forget that without the steps that we took in our emergency Budget, small companies would face a small companies corporation tax rise, not one that is going to fall, and a national insurance rise—the jobs tax. Instead, they can look forward to enjoying a reduction in national insurance liability, so we are taking the steps that we need to take.