(4 years, 6 months ago)
Commons ChamberThe right hon. Gentleman makes a fair point about the Disclosure and Barring Service. It is something we are looking at, but it is important that we look at this across the board, and that is why we have set up the commission.
My right hon. Friend is absolutely right. It is vital we get our children back into school. My right hon. Friend the Education Secretary is working very hard on this, and we are doing everything we can to make it happen.
(4 years, 6 months ago)
Commons ChamberThere will be no question, no impediment and nothing to prevent the citizens of Northern Ireland—whose rights I know the hon. Lady has taken a keen interest in upholding—from securing access to vital medicines or any other goods after we leave the European Union.
First, I commend my right hon. Friend and our chief negotiator, David Frost, for their resolve in ensuring that we deliver our promise to end the transition period at the end of this year. Can my right hon. Friend confirm that it remains the intention of the Government to negotiate a security arrangement outside the ambit of the European Court of Justice that will ensure that we remain protected from foreign criminals coming into Britain and that we stop criminals escaping the jurisdiction of our courts so that we can bring them to justice?
My right hon. Friend was a very effective Home Office Minister, and he speaks with great authority on these questions. He is absolutely right. We need to be outside the ambit of the ECJ, but we need to ensure that we have security, criminal justice and other forms of co-operation, precisely in order to ensure that we keep our citizens safe and work with the EU to keep its citizens safe.
(4 years, 7 months ago)
Commons ChamberThis is something that we are keeping a close eye on. We are seeing a disproportionate impact on ethnic minorities, as I mentioned before, but NHS England is the right body to make the decisions on how each and every care organisation should look after its staff. We are not calling for ethnic minority medical staff to be taken off the frontline, as that would disproportionately impact ethnic minority communities, but we are doing everything that we can to ensure that they are protected. With regard to PPE, this is something, as I said earlier, that we have been working round the clock to deliver. We have had more than 1 billion items of PPE delivered to health organisations across the country, and we will continue to ensure that our frontline staff are very well protected.
We are doing everything we can to ensure that no child, whatever their background, falls behind due to coronavirus. We have already committed more than £100 million to boost remote learning, and we are funding access to IT devices and software focused on the most disadvantaged. It is worth remembering that schools continue to receive pupil premium funding worth around £2.4 billion annually, and that should help to support disadvantaged children during this period.
I am grateful to the Minister for that answer, but there is anecdotal evidence that school closures bear down more heavily on those from already disadvantaged backgrounds. As the Government are able to reopen schools, can we look at any measure that is necessary to enable children from more challenged backgrounds to catch up, including, if necessary, weekend and summer schools? Even if it is not possible to have schools opened fully during those periods, can we look at what we can do to help?
May I reassure my right hon. Friend that this is something that we are looking very closely at? We are working with partner organisations, exploring targeted support options for disadvantaged people while schools remain closed and in the summer break, and considering how best to support pupils to rapidly catch up when schools reopen. He should know that we have already taken prompt wide-ranging action to help schools and parents support all young people, publishing a list of online education resources for parents, launching a new online academy, and working with the BBC to create a package of TV and online materials to support learning at home.
(4 years, 7 months ago)
Commons ChamberThe Chancellor of the Duchy of Lancaster will know how important it will be, as we move into the next phase of dealing with coronavirus, to maintain the high levels of public trust that the Government currently have. To avoid any unnecessary confusion, can he set out for the House, for the purposes of the 100,000 testing target, how the Government define a completed test?
My right hon. Friend makes an important point, and there has been some confusion over capacity and tests administered. The target is tests administered, and the figure for the number of tests administered on Thursday, which is the day we have set for the target, will be published on Saturday.
(4 years, 9 months ago)
Commons ChamberIt is a great pleasure to follow the right hon. Member for Birmingham, Hodge Hill (Liam Byrne), because I did not spot in his remarks his declaration of interest as the opponent of the fantastic Andy Street in the west midlands mayoral contest, which coloured his remarks—
I was teasing. It is also a great pleasure because one would not know from listening to the right hon. Gentleman’s remarks and criticism of our economic record that he was, of course, the outgoing Chief Secretary to the Treasury who had to write the note reminding us all that there was “no money”. [Interruption.] I hear the groans from Labour Members, but it is worth reminding them that the difficult decisions we had to take from 2010 onwards were all because we were left an unsustainable budget deficit, the highest in the developed world, and it had to be dealt with.
The right hon. Gentleman is a sophisticated thinker, so I will give him a sophisticated intervention. The judgment that had to be made in 2010 was how we closed the deficit. We said that one third of it should be closed by spending cuts and two thirds of it by taxes. The former Chancellor George Osborne changed that judgment, seeking to close 90% of the deficit with spending cuts. That slowed the economy and meant that instead of having falling debt by 2016 we still had rising debt. The judgments were wrong, which is why things went off track.
I fundamentally do not agree with the right hon. Gentleman on that, and I will come on to say a little about tax in my remarks. I do not agree with him because the tax burden is very high and was then. I forget which Opposition Member alleged this, but we have never said that the financial policies of the Labour party in government caused the financial crisis, as that was a much more complicated problem. Our criticism of the Labour Government, particularly under Gordon Brown as Chancellor, was that they assumed when they made their spending judgments that there would be perpetual economic growth and that there would never be a downturn. The root problem is that they were spending too much money, assuming that the tax revenues would continue forever, and when the financial crisis happened and the tax revenues fell, we were spending too much money. That had to be dealt with and we had to make the necessary decisions.
I just want to say that the Conservative party backed our spending plans up until November 2009.
I do not agree with that either. We had to make some difficult decisions when the crash happened and they were the right decisions. As the Chancellor set out today, because we made those difficult decisions and put the economy in good shape, we are well positioned to deal with the challenge facing the country and the challenge of tackling the coronavirus.
Might it be worth my reminding my right hon. Friend that bank leverage, which had been 20 times capital for 40 years between 1960 and 2000, on average, went from 20 times capital to 50 times capital in seven years under Labour? Therefore, when the bank crisis struck, it was all the worse because the whole sector was wildly over-leveraged.
Following on from what the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) said, that was a very sophisticated intervention from my right hon. Friend, and I thank him for it.
The Chancellor rightly opened his Budget statement by setting out the challenge facing the economy from the coronavirus. The combination of what was set out this morning by the Bank of England was welcome—both the interest rate cut and, more importantly, the credit easing, enabling the financial sector to be able to support sound businesses that are fundamentally in good shape but that are going to have an economic shock caused by the coronavirus, both on the demand and supply sides. It was very encouraging to hear of the close co-operation between an independent central bank and the Treasury to make sure that both fiscal and monetary policy are being used to deal with the crisis.
Both individuals and businesses listening to the Budget will welcome the many changes that the Chancellor set out—the three big areas he set will be very welcome across the country, including in my constituency. One key issue that he set out, which I think is on the front page of the Red Book and which he referred to when he was doing some media interviews at the weekend, was trust. On Sunday, when he was interviewed on the BBC, the Chancellor said that the Budget
“is going to first and foremost deliver on our promises to the British people.”
That is the headline on the front of the Red Book. He went on:
“I think trust in politics has been undermined by the things that have happened over the past few years. I’m very keen to make sure that we rebuild that trust and that starts with doing the things that we said we would do.”
That means keeping our promises. As you will know, Mr Deputy Speaker, we made clear commitments in our manifesto: to keep costs down for small businesses by cutting their taxes; to borrow not to fund day-to-day spending but to invest in infrastructure—we saw that in the Budget; and to make sure that debt would be lower at the end of the Parliament. We see the percentage of debt to GDP—the measure that really matters—falling across the Budget period.
We also made it clear that we want to make sure that people get to keep more of the money that they earn and that we keep their bills low, whoever they are. We said that we would not raise the rates of income tax, national insurance or VAT. I welcome those promises and am pleased that we have kept them.
However, the issue is not just the letter of those promises, but their spirit. Any voter at the election in December had a clear choice: a party that promised to keep taxes low or the Labour party, which was clearly going to raise them. As the Institute for Fiscal Studies made clear, it was not credible for Labour to say that it would raise them only for the top 5% of earners if it was to spend what it was proposing.
We have to keep the spirit of our promises and not have any disguised tax rises later in the cycle. I mention that because I spotted a report in The Sun about how we might want to raise taxes to pay for social care. It talked about a 2.5% social care tax. I support increasing the resources going into social care, but I do not want us to increase taxes to pay for it. To voters, a tax of 2.5% on their income will be seen as an income tax. I have no idea whether the report is true or idle speculation, but I counsel Ministers that we need to keep our promises. We said we would not increase the rate of income tax, and we should stick to that approach. I also note that the Chancellor’s proposals—other than the coronavirus proposals, which obviously were introduced late in the day—meet the fiscal rules, with a current Budget surplus in each year of the forecast period. I welcome that.
I want to welcome a couple of the specific measures. The fuel duty freeze is important in a constituency such as mine, where people have to use a car to get around easily and there are not a lot of other choices. I also welcome the exemption in respect of keeping red diesel for farmers, for which the Chancellor particularly credited my right hon. Friend the Government Chief Whip—whose proper title is Parliamentary Secretary to the Treasury, demonstrating the value of that role. As a previous holder of it, I thank him for his efforts in ensuring that those who produce our food and drink are rewarded by having their costs kept under control.
In my response to the right hon. Member for Birmingham, Hodge Hill, I said that the tax burden remains at a 50-year high. That is why we need to make sure we keep spending under control. I am pleased that we are going to keep current spending under control, although it is very sensible to borrow for investment in infrastructure. For Conservatives, living within our means should not come to an end: we have to remember that we are spending not our money but taxpayers’, and we have to spend it wisely. Clearly, we need to make sure that we grow the economy faster. I welcome what the Chancellor said about how some of the long-term investment that we are introducing will improve the long-term productivity of the economy by 2.5%, which is what the OBR has said. That investment and the other Budget measures will add half a percentage point to our growth rate.
One way that we will grow the economy is by levelling up across the economy, getting all parts of the United Kingdom to be as productive as London. As a Unionist, I mean not only Wales, Northern Ireland and Scotland, but all parts of England from the south-west to the north-east, and from Cornwall to County Durham. I am very pleased to see that the Government have started to do that with the proposals that they have set out.
In the south-west, we have some important priorities. I was very pleased to see the investment in the A303, which was one of the key asks from my colleagues in the south-west, and in the A417 missing link in Gloucestershire. We also prioritised digital connectivity, and I was pleased to see the £5 billion to be invested in faster broadband through fibre to the premises and the measures to improve connectivity for mobile telephony with the shared rural network, which is very important in areas such as mine. Education funding is also absolutely critical if we are to improve skills. Moving to a national funding formula is incredibly valuable, as is the investment in our further education colleges.
Finally, we welcome the investment in flood defences. About 73 homes in my constituency and many more across the catchment area of the River Severn were affected by the recent floods, so that £5.2 billion investment is very welcome, as is the £2.5 billion for repairing the potholes in our roads, which will be incredibly important for motorists. Overall, I welcome this Budget. The Chancellor, as a new Chancellor facing some very difficult headwinds, put together a fantastic package. As such it should be welcomed by everyone not just on the Conservative Benches but from across the House, and by the British people.