ECOFIN: 22 June 2018
Lord Hammond of Runnymede Excerpts(5 years, 10 months ago)
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The Chancellor of the Exchequer (Mr Philip Hammond)
A meeting of the Economic and Financial Affairs Council (ECOFIN) will be held in Luxembourg on 22 June 2018.
ECOFIN will be preceded by a morning meeting of the EIB board of governors:
Annual EIB governors meeting
The EIB board of governors meeting will include a speech by the EIB President Werner Hoyer, a governors discussion, reappointment of the board of directors, and approval of the audit report.
Following this, EU Finance Ministers will discuss the following at ECOFIN:
Early morning session
The Eurogroup President will brief the Council on the outcomes of the 21 June meeting of the Eurogroup, and the European Commission will provide an update on the current economic situation in the EU.
VAT “Quick-Fixes”
The Council will be invited to agree a general approach on the presidency compromise text in regards to the directive on harmonising and simplifying certain rules in the VAT system and introducing the definitive system for the taxation of trade between member states; the regulation regarding certain exemptions for intra-community transactions and the regulation regarding certified taxable persons.
European deposit insurance scheme
The Council will be invited to take note of the presidency progress report on the European deposit insurance scheme.
Current financial services legislative proposals
The presidency will provide an update on current legislative proposals in the field of financial services.
Insolvency directive
The presidency will provide an update on the solvency, restructuring and second-chance directive.
National reform programmes 2018
The Council will be invited to approve 2018 country-specific recommendations as part of the European semester process.
Implementation of the stability and growth pact
The Council will be invited to adopt Council decisions and recommendations in the context of both the excessive deficit procedure and the significant deviation procedure, also part of the European semester.
Convergence reports
Also as part of the European semester, the Commission and the European Central Bank will present the convergence reports, which will then be followed by an exchange of views by the Council.
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Notification of Contingent Liability
Lord Hammond of Runnymede Excerpts(5 years, 10 months ago)
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The Chancellor of the Exchequer (Mr Philip Hammond)
I have today laid before the House of Commons a departmental minute describing the contingent liability associated with the new financial framework between HM Treasury and the Bank of England (the “Bank”) 1. On this occasion it has not been possible to notify Parliament in advance of the contingent liability coming into effect, which is due to the market sensitive nature of the measure.
The contingent liability arises from the new capital framework under which the Treasury commits to provide a capital injection to the Bank in the event that its level of loss-absorbing capital drops below a floor level. At present that floor is set at £500 million. The Bank’s level of loss-absorbing capital will be raised to £3.5 billion during 2018-19. This is part of wider reforms to the financial arrangements between the Bank and Treasury, including clearer principles regarding risk-sharing in future Bank operations.
It is not possible to quantify the size of the contingent liability given the unprecedented nature of economic conditions required for the liability to crystallise. A full departmental minute is laid in the House of Commons providing more detail on this contingent liability.
1As set out in a memorandum of understanding:
https://www.gov.uk/government/publications/financial-relationship-between-the-treasury-and-the-bank-of-england
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ECOFIN: 25 May 2018
Lord Hammond of Runnymede Excerpts(5 years, 11 months ago)
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The Chancellor of the Exchequer (Mr Philip Hammond)
A meeting of the Economic and Financial Affairs Council (ECOFIN) was held in Brussels on 25 May 2018. EU Finance Ministers discussed the following:
Early Morning Session
The Eurogroup President briefed the Council on the outcomes of the 24 May meeting of the Eurogroup, and the European Commission provided an update on the current economic situation in the EU.
Banking Package
The Council agreed a general approach to the banking risk reduction package including proposals for legislative amendments to the capital requirements regulation (CRR) and directive (CRD), single resolution mechanism regulation (SRMR), and the bank recovery and resolution directive (BRRD).
Strengthening administrative co-operation
The Council discussed measures to strengthen administrative co-operation in the area of VAT, but were unable to reach agreement on a general approach.
General reverse charge mechanism
The Council discussed proposals to allow member states to apply a temporary VAT general reverse charge mechanism, but were unable to reach agreement on a general approach.
E-publications
The Council discussed proposals to allow member states to apply reduced rates of VAT on e-publications, but were unable to reach agreement on a general approach.
Current financial services legislative proposals
The Bulgarian presidency provided an update on current legislative proposals in the field of financial services.
European semester
The Council adopted Council conclusions on the in-depth reviews of macroeconomic imbalances in member states as part of the macroeconomic imbalances procedure, and the implementation of 2017 country-specific recommendations as assessed in the Commission’s Country Reports, published on 7 March.
2018 Ageing report
The Council adopted Council conclusions on the 2018 Ageing report on age-related spending and the sustainability of public finances.
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ECOFIN
Lord Hammond of Runnymede Excerpts(5 years, 11 months ago)
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The Chancellor of the Exchequer (Mr Philip Hammond)
A meeting of the Economic and Financial Affairs Council (ECOFIN) will be held in Brussels on 25 May 2018. EU Finance Ministers will discuss the following:
Early morning session
The Eurogroup President will brief the Council on the outcomes of the 24 May meeting of the Eurogroup, and the European Commission will provide an update on the current economic situation in the EU.
Banking package
The Council will be invited to agree a general approach to the banking risk reduction package including proposals for legislative amendments to the capital requirements regulation (CRR) and directive (CRD), single resolution mechanism regulation (SRMR), and the bank recovery and resolution directive (BRRD).
Strengthening administrative co-operation
The Council will be invited to agree a general approach to strengthen administrative co-operation in the area of VAT.
General reverse charge mechanism
The Council will be invited to agree a general approach on the VAT general reverse charge mechanism.
E-publications
The Council will be invited to agree a general approach on reduced rates for VAT e-publications.
Current financial services legislative proposals
The Bulgarian presidency will provide an update on current legislative proposals in the field of financial services.
European semester
The Council will be invited to adopt Council conclusions on the in-depth reviews of macroeconomic imbalances in member states as part of the macroeconomic imbalances procedure, and the implementation of 2017 country-specific recommendations as assessed in the Commission’s country reports, published on 7 March.
2018 ageing report
The Council will be invited to adopt Council conclusions on the 2018 ageing report on age-related spending and the sustainability of public finances.
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Oral Answers to Questions
Lord Hammond of Runnymede Excerpts(5 years, 11 months ago)
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Huw Merriman (Bexhill and Battle) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
One year on from the appalling Manchester Arena attack, I am sure that I speak for everyone in the House in saying that on this day our thoughts are with those who lost their lives and their families, and those who suffered life-changing injuries. We will remember them with a minute’s silence later today.
The UK’s 5.7 million small businesses make a vital contribution to our economy, employing 60% of the private sector workforce, and the Government are determined to facilitate their success. We are keeping taxes low and ensuring that firms can access the support that they need to thrive. Following the patient capital review, we are expanding the tax reliefs available to entrepreneurs that will support them in growing their businesses, and we have launched a patient capital action plan to unlock £20 billion of funding to help high-growth firms to reach their potential.
Sir David Amess
Will my right hon. Friend confirm that he will not raise taxes on small businesses, and will he share with the House what help the Government will give to entrepreneurs who are setting up for the first time, with particular regard to the business rate?
Mr Hammond
We have already introduced business rate concessions to reduce the burden of rates on small businesses, including by bringing forward by two years the switch in indexation from the retail prices index to the consumer prices index. We are ensuring that Britain is the world’s leading place to start and grow a business, including through reducing corporation tax rates. There are almost 7,000 small businesses in Southend-on-Sea alone, and this Government back them every step of the way. I can tell my hon. Friend who will raise taxes on small businesses, and has said so publicly: he is sitting opposite me.
Huw Merriman
In the rural and coastal parts of east Sussex that I represent, infrastructure delivery is key to bringing more businesses and entrepreneurs to the area. What plans does the Chancellor have to continue investment in road, high-speed rail and broadband connections so that we can attract more businesses to rural parts of this country?
Mr Hammond
The national productivity investment fund is investing in all those areas. We have the biggest rail investment programme since Victorian times and the biggest road building programme since the 1970s, and we are investing in superfast broadband, which is critical to this country’s future. As my hon. Friend will know, in his area we are investing in the A21, and we are working with Network Rail on exploring options for connecting HS1 services to Hastings via Ashford International.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Surely the Chancellor knows that the thing holding back most businesses—small, medium-sized and large—is the lack of good skilled people to work for them. When is he going to give the Secretary of State for Education a good shaking and make him do something about the apprenticeship levy, apprenticeship schemes and the higher education graduate apprenticeship scheme?
Mr Hammond
The hon. Gentleman is right that skills are a critical factor for business in an economy with such high levels of employment and low levels of unemployment as we have achieved. We are investing in apprenticeships with the new apprenticeship levy, providing funding for more and better apprenticeships; we are investing in T-levels, improving substantially the level of technical training for 16 to 19-year-olds; and we are reviewing the operation of tertiary education funding.
Sarah Jones (Croydon Central) (Lab)
Marks & Spencer is closing 14 stores, affecting hundreds of jobs, and Debenhams and House of Fraser would be doing the same were it not for their longer lease commitments. The nature of the high street is changing, and the risk is the loss of hundreds of thousands of jobs. What are the Government doing about this, and will the Chancellor consider meeting me and businesses in Croydon as we push ahead for a new Westfield shopping centre in what is undoubtedly a difficult environment?
Mr Hammond
The hon. Lady correctly identifies the underlying problem: the nature of retailing is changing. Britain is leading the world in the adoption of online retail, which has huge opportunities, but will also bring huge changes. This is a microcosm of the changes we will face in this economy over the next 10, 20 or 30 years, as the digital revolution changes fundamentally the way we do business. The answer is not to try to resist change, but to embrace it, and to make sure that we train our people so that they can take up the new challenges and have the new opportunities that this economy will bring.
Helen Whately (Faversham and Mid Kent) (Con)
Mr Hammond
We have taken steps that I have already outlined this morning to reduce the burden of taxation on businesses large and small, although of course small businesses are most beneficially affected by the £10 billion programme of reducing business rates costs and through the reduction in corporation tax levels. But we are always looking for further ways to support the smallest businesses and to encourage them to become larger businesses.
Peter Dowd (Bootle) (Lab)
I associate myself with the Chancellor’s remarks about the Manchester bombing.
For the Chancellor to make up his own small business tax policies on the hoof is one thing; making them up for the Labour party is a fantasy. The Government have ruled out a customs union with the European Union worth £16 trillion for an alternative customs union with British overseas territories worth only £22 billion. Is the Chancellor happy with that decision? Can he give us any clue about how such a decision will support businesses and entrepreneurs?
Mr Hammond
I do not know whether that was an announcement of a change in Labour party policy. My understanding is that the Labour party’s position is to increase corporate tax rates for small businesses. Perhaps the hon. Gentleman will tell us whether he has changed his position.
On the question of our future customs arrangements with the European Union, the hon. Gentleman will know that I have consistently sought arrangements that will protect our existing trade with the European Union, allowing British businesses to continue to trade freely with the minimal possible friction at the border with the European Union. We do not believe it is necessary to be in a customs union to achieve that.
Peter Dowd
For the Chancellor’s information, he can easily find our policies on www.labour.org.
When the Chancellor met David Cameron last October to give a thumbs-up emoji to Mr Cameron’s UK-China investment fund, presumably to help businesses and entrepreneurs, was he aware that the fund is to be domiciled in the Republic of Ireland? If so, did he think to ask the former Prime Minister whether that was for the purposes of tax avoidance?
Mr Hammond
I have already answered the hon. Gentleman’s questions about my meeting with Mr Cameron last October. In a meeting that ranged across a number of issues, Mr Cameron was good enough to inform me of his intention to take up this role with a fund promoting investment both in China and the UK. The Government support all initiatives that improve trade and investment between the UK and China.
Trudy Harrison (Copeland) (Con)
Alan Mak (Havant) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
The Government are committed to helping firms to harness the benefits of new technologies, and we are taking action to do so. For example, we have set the annual investment allowance at £200,000 a year, its highest-ever permanent level; we have announced a 10-year action plan to unlock more than £20 billion to finance growth in innovative firms; and we have delivered the biggest increase in research and development investment in 40 years.
Mr Hammond
Yes. I congratulate my hon. Friend on his commitment in this regard, especially in his role as chairman of the all-party parliamentary group on the fourth industrial revolution. Science, research and innovation are areas in which the UK has huge strengths. Our challenge is to provide the right environment—including the right tax environment—to ensure that that potential stays in the UK, and is developed here. We have introduced a range of incentives through the tax system, such as R&D tax credits and entrepreneurs’ relief, as well as the lowest corporation tax rate in the G7.
Jim Shannon (Strangford) (DUP)
Given that Northern Ireland is the cyber-security centre of the UK, what steps is the Chancellor taking to provide tax relief to encourage global businesses to consider using Belfast and other equipped cities as their bases?
Mr Hammond
We have a globally competitive offer for businesses seeking to locate in the United Kingdom, and, of course, Northern Ireland will have corporation tax flexibilities of its own in due course. However, we seek to make all parts of the UK attractive to foreign direct investment, and Northern Ireland has done extremely well from that.
Robert Courts (Witney) (Con)
Will the Government please explain what is being done to help firms in places such as west Oxfordshire to harness 5G and broadband, making them more competitive, making them raise more money, and creating the capital that will enable us to fund the public services that the Labour party wants to overthrow?
Mr Hammond
This is partly about public investment and partly about private investment to encourage the roll-out of full-fibre broadband technologies and give companies access to the funds that they need to make investments and take advantage of the public infrastructure. We will make further announcements about our forward broadband strategy during the summer.
Neil Gray (Airdrie and Shotts) (SNP)
The Scottish Government’s Budget included a 70% increase in investment in business R&D. To prevent that investment from being undermined by the Government’s approach to Brexit, will the Chancellor commit himself to maintaining the EU levels of R and D funding beyond the current cycle?
Mr Hammond
Once we have left the European Union the money that was reaching the UK from EU sources will be allocated to the UK shared prosperity fund, and over the course of this year we will consult on both the distribution and the application of those funds and the size that that fund should be.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Andrew Percy (Brigg and Goole) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
The best way to drive economic growth is to raise our productivity growth rate. That is why since 2010 the Government have overseen over half a trillion pounds in capital investment including in the national productivity investment fund, have increased investment in skills and have reduced taxes for business, and I tell my hon. Friend that the way not to support economic growth is through more borrowing, more debt and higher debt service costs.
Andrew Percy
After we voted to leave the EU, a vote endorsed by huge numbers across the north of England, we were told by some that mismanagement of the economy would occur under this Government. The reality in the north, despite those who talk the economy down, is that we have record employment and some of our areas have the fastest growing economies in the country, so may I urge the Chancellor to continue investing in the north and to ignore those, on the Opposition Benches especially, who repeatedly talk down the north of England?
Mr Hammond
Since 2010 the shadow Chancellor has predicted that the UK would go into recession on no fewer than eight separate occasions—that is eight out of zero. But the UK economy is growing steadily and is now 10.7% bigger than its pre-crisis level, and the Office for Budget Responsibility expects it to continue to grow in each year of its forecast to 2022. While we know that the shadow Chancellor does not think that a growing economy matters, let me tell him why I do: a growing economy means more jobs, more prosperity and more security for working people.
Ben Lake (Ceredigion) (PC)
What consideration has been given to the contribution that varying certain business taxes, such as VAT, according to the nation or region of the UK could make to encouraging economic growth?
Mr Hammond
The Government’s view is that a unified rate of VAT across the United Kingdom is an important part of our single market of the United Kingdom, which is an essential economic good for the whole of this country.
Douglas Ross (Moray) (Con)
Mr Hammond
We absolutely look forward to being able to make progress on the Moray growth deal, and I am very happy to meet my hon. Friend. I know that the Exchequer Secretary, who is dealing with this matter, would also be pleased to meet him.
Albert Owen (Ynys Môn) (Lab)
The Government acknowledge that they want to spread wealth and economic growth across the United Kingdom through their industrial strategy. Does the Chancellor of the Exchequer therefore agree with the Welsh Affairs Committee, chaired by the hon. Member for Monmouth (David T. C. Davies), that the money from the cancelled rail electrification between Cardiff and Swansea should be spent in Wales, so that we can have that shared prosperity?
Mr Hammond
As the hon. Gentleman knows, I firmly believe that the service that will be provided on the route from London to Swansea will deliver exactly what passengers have bargained to get, without the need for the disruption and cost of overhead electrification. We will look at the funding needs of all parts of the United Kingdom appropriately, to support economic growth and to reduce regional disparities.
Several hon. Members rose—
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.
John Grogan (Keighley) (Lab)
Does the Chancellor agree that a devolution settlement for all Yorkshire with an elected Mayor, as supported by all Conservative councils in the county, could improve economic growth in the region?
Mr Hammond
The Government will look carefully at proposals from Yorkshire leaders for a devolution settlement, provided that it does not undermine the existing South Yorkshire-Sheffield city region devolution settlement that has already been established, with a Mayor already elected.
Martin Vickers (Cleethorpes) (Con)
The port operator Associated British Ports, the Hull and Humber Chamber of Commerce and many local businesses are giving serious consideration to free port status for the Humber ports in the post-Brexit world. Will the Chancellor or his Ministers agree to meet representatives of the business community in the area and to give serious consideration to this proposal when the idea has been further developed?
Mr Hammond
As my hon. Friend will know, the Chief Secretary to the Treasury has a great interest in that proposal. Without even needing to consult her, I can say without hesitation that she will be delighted to meet him and his colleagues.
Nic Dakin (Scunthorpe) (Lab)
Tom Brake (Carshalton and Wallington) (LD)
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 the autumn Budget and the spring statement. The Government’s balanced approach to the public finances enables us to give households, businesses and our public services targeted support in the near term, and to invest in the future of this country, while also being fair to the next generation by at last beginning to reduce a national debt that is far too large.
Tom Brake
On prosperity, Mark Carney has just said that household incomes are now about £900 lower than was forecast in May 2016, before the referendum. How much lower still does the Chancellor estimate household incomes will be when the UK leaves the customs union and the single market? When will he publish his analysis?
Mr Hammond
On the publication of Government analysis, I have made it clear on several occasions that once Parliament is being asked to vote on a proposal—on a package—it will be appropriate for the Government to publish the analysis that they have, to make sure that that debate is as informed as possible. The future trajectory of household incomes will depend, in part, on the quality of the deal we negotiate as we exit the EU, and we are focused on getting the very best deal for British jobs, British prosperity and British businesses.
Tim Loughton (East Worthing and Shoreham) (Con)
Laura Pidcock (North West Durham) (Lab)
Mr Philip Hammond
The hon. Lady focuses rightly on output per hour. The problem is a productivity gap between the regions of the UK and the most prosperous areas of London. We have to close that productivity gap. That is in the interest of not only those individual regions, but our overall national economy. We will do so by investing in public infrastructure and in skills, and by ensuring that the conditions are right for business investment, both domestic and foreign.
Andrew Bridgen (North West Leicestershire) (Con)
Luke Graham (Ochil and South Perthshire) (Con)
The UK productivity and prosperity funds are meant to benefit all local authorities across the United Kingdom. Will my right hon. Friend meet me to talk about how Scottish local authorities can apply directly to those funds?
Rachel Reeves (Leeds West) (Lab)
The cap on charges on payday loans legislated for by Parliament has made a huge difference in bringing down the costs, but it is now more expensive for a person to go into an unarranged overdraft at their own bank. Will the Government look to extend that legislation to cap also the rip-off fees and charges put on customers by our banks?
Sir Patrick McLoughlin (Derbyshire Dales) (Con)
In the autumn statement, the Chancellor announced the extension of the railcard from age 26 to 30. When will my constituents be able to take advantage of that?
Mr Philip Hammond
A pilot railcard for that age group was launched as a trial, and was fully subscribed very quickly. The Department for Transport will be announcing in due course when the continuation of the scheme will take place.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
As the Minister knows, the communities that I represent in Carmarthenshire received the highest form of EU structural aid. Will he give a guarantee that they will not lose a single penny following the introduction of the UK Shared Prosperity Fund?
Mr Hammond
As I think I have already said earlier in this session, we will be consulting, during the course of this year, on the design of the UK Shared Prosperity Fund, the scope and scale of the fund and how the money in the fund should be allocated. I look forward to the hon. Gentleman’s input to that consultation.
Kirstene Hair (Angus) (Con)
Research has shown that those who live in rural areas are getting hit harder at the fuel pump than those in urban areas. Can my right hon. Friend update me on what his Department is doing to ensure that motorists in Angus, and indeed across the United Kingdom, have their taxes cut?
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?
Mr Hammond
We have not yet concluded our negotiations with the European Union, so it is impossible to make any assessment of the impact of our departure until we know what the future relationship with the EU will be. This Government’s agenda is to get the best possible deal for Britain that protects jobs, prosperity and businesses, so that we can protect our existing trade with the EU as well as build new trade opportunities beyond Europe.
Several hon. Members rose—
Michael Fabricant (Lichfield) (Con)
Manufacturing accounts for 24% of the west midlands economy but, as others pointed out earlier, there are skills shortages. Will the Chancellor therefore support any bid from the Mayor of the West Midlands for a devolution deal to take over responsibility for skills from the Department for Education?
Mr Philip Hammond
I am tempted to wonder whether my hon. Friend might have discussed that question with the Mayor of the West Midlands before asking it. It would be remiss of me to stand at the Dispatch Box and say that I would accept any bid, but I am certainly willing to consider any proposals from the Mayor of the West Midlands, or from any other elected mayor, to address the skills challenge that we face across the country.
Alison Thewliss (Glasgow Central) (SNP)
Several of my constituents who are highly skilled migrants made entirely legitimate and timely changes to their tax returns and are now facing removal by the Home Office under immigration rule 322(5). Will a Treasury Minister confirm that people should make entirely legitimate changes to their tax returns? Will they also have a conversation with their Home Office colleagues to prevent these highly skilled contributors from being removed from the UK?
ECOFIN: 27-28 April 2018
Lord Hammond of Runnymede Excerpts(6 years ago)
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The Chancellor of the Exchequer (Mr Philip Hammond)
An informal meeting of the Economic and Financial Affairs Council (ECOFIN) was held in Sofia on 27-28 April 2018. The Council discussed the following:
Working lunch—Deepening of the economic and monetary union
Based on a presidency issues note, the Council exchanged views on the ECOFIN Council roadmap of June 2016 on completing the banking union. This was followed by an update from the Eurogroup president on reform of the European stability mechanism.
Working Session I
The Council were then joined by Central Bank Governors for the first working session.
a) Convergence in the EU—Inside and outside the euro area
Following a presentation from the Centre for European Policy Studies, the Council discussed the possibilities to increase convergence in the EU among both euro area and non-euro area member states.
b) Further reducing fragmentation within the capital markets union
Following a presentation from Bruegel on deepening of the capital markets union, the Council discussed measures to further reduce capital markets fragmentation.
c) Miscellaneous
The Council were then debriefed on the outcomes of the G20 Finance Ministers and Central Bank Governors meeting on 19-20 April.
Working Session II—Improving revenue collection and fighting tax fraud in the single market
The Council exchanged views on ways to improve administrative co-operation and the exchange of tax information between member states in order to improve revenue collection and fight tax fraud in the single market.
Working Session III—Corporate taxation and tax challenges of the digital economy
Following the recent publication of Commission proposals regarding fair taxation of the digital economy, the Council exchanged views on the. approach to corporate taxation in the single market and the tax challenges arising from digitalisation of the economy.
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ECOFIN
Lord Hammond of Runnymede Excerpts(6 years ago)
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The Chancellor of the Exchequer (Mr Philip Hammond)
An informal meeting of the Economic and Financial Affairs Council (ECOFIN) will be held in Sofia on 27-28 April 2018. The Council will discuss the following:
Working Lunch - Deepening of the economic and monetary union
Based on a presidency issues note, the Council will exchange views on the ECOFIN Council roadmap of June 2016 on completing the banking union. This will be followed by an update from the Eurogroup president on reform of the European stability mechanism.
Working Session I
The Council will then be joined by Central Bank Governors for the first working session.
a) Convergence in the EU - Inside and outside the euro area
Following a presentation from the Centre for European Policy Studies, the Council will discuss the possibilities to increase convergence in the EU among both euro area and non-euro area member states
b) Further reducing fragmentation within the capital markets union
Following a presentation from Bruegel on deepening the capital markets union, the Council will discuss measures to further reduce capital markets fragmentation.
The Council will then be debriefed on the outcomes of the G20 Finance Ministers and Central Bank Governors meeting on 19 -20 April.
Working Session II - Improving revenue collection and fighting tax fraud in the single market
The Council will exchange views on improving revenue collection and fighting tax fraud in the single market.
Working Session III - Corporate taxation and tax challenges of the digital economy
Following the recent publication of Commission proposals regarding fair taxation of the digital economy, the Council will exchange views on the approach to corporate taxation in the single market and the tax challenges arising from digitalisation of the economy.
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Treasury
Lord Hammond of Runnymede Excerpts(6 years ago)
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Wes Streeting (Ilford North) (Lab)
It is astonishing that Brexit, the single biggest risk to the economy, merited only two sentences in the Chancellor’s otherwise uneventful spring statement. If the economy and economic outlook are so rosy, perhaps he can explain why almost every school in my constituency is facing budget cuts, why my local NHS trust is in special measures, and why, when my constituents are crying out in the face of one of the worst waves of burglaries we have ever seen, the police are not responding because the Metropolitan police is subject to real-terms budget cuts. Is that not the grim reality facing our country, and is it not set to get worse because of the hard Brexit course his Government are following?
Mr Philip Hammond
No. The Government are pursuing a Brexit that protects British jobs, British businesses and British prosperity, as the hon. Gentleman well knows. We have protected school funding so that it will rise in real terms per pupil over the next two years, and as we move to the fair funding formula for schools, every school will receive a cash increase. The police settlement on which the House recently voted provides £450 million of additional resource for police forces across the country. We have protected police budgets since 2015.
[Official Report, 13 March 2018, Vol. 637, c. 735.]
Letter of correction from Mr Philip Hammond:
An error has been identified in the response that I gave to the hon. Member for Ilford North (Wes Streeting).
The correct response should have been:
Mr Hammond
No. The Government are pursuing a Brexit that protects British jobs, British businesses and British prosperity, as the hon. Gentleman well knows. We have protected school funding so that it will rise in real terms per pupil next year, and as we move to the fair funding formula for schools, every authority will be funded to enable every school to receive a cash increase. The police settlement on which the House recently voted provides £450 million of additional resource for police forces across the country. We have protected police budgets since 2015.
The following is an extract from the Chancellor of the Exchequer’s spring statement on 13 March 2018.
Mr William Wragg (Hazel Grove) (Con)
My right hon. Friend has struck the right balance between the need for financial discipline and the justifiable need for investment in public services. With that in mind, will he ensure in the autumn Budget that additional funds are provided for schools to ensure the successful implementation of the national funding formula, which we welcomed in Stockport?
Mr Philip Hammond
When she was Education Secretary, my right hon. Friend the Member for Putney (Justine Greening) announced that the fair funding formula would be introduced in a way that would protect per capita spending per pupil, and we would guarantee that every school would receive a cash-terms increase. That guarantee stands today.
[Official Report, 13 March 2018, Vol. 637, c. 742.]
Letter of correction from Mr Philip Hammond:
An error has been identified in the response that I gave to my hon. Friend the Member for Hazel Grove (Mr Wragg).
The correct response should have been:
Mr Hammond
When she was Education Secretary, my right hon. Friend the Member for Putney (Justine Greening) announced that under the fair funding formula every authority will be funded to enable every school to receive a cash-terms increase.
Oral Answers to Questions
Lord Hammond of Runnymede Excerpts(6 years ago)
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Nigel Mills (Amber Valley) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
Since 2010, Her Majesty’s Revenue and Customs has secured more than £175 billion that would have gone unpaid and introduced more than 100 new measures to crack down on tax avoidance, tax evasion and other forms of non-compliance, so that the tax gap is now at a record low, and one of the lowest in the world, at 6%.
Alex Chalk
It is extremely encouraging that the UK tax gap is at a record low, but it appears that multinationals are trying to run rings around HMRC, so will my right hon. Friend outline what further steps the Government are taking to build on that excellent success?
Mr Hammond
I am grateful to my hon. Friend for raising this issue. It is a great achievement to have got the tax gap down to one of the lowest in the world, but we are not complacent. We are currently calling for evidence on whether online platforms should play a greater role in ensuring tax compliance by their users; we are consulting on an innovative split payment method to tackle online VAT fraud; and we will continue to lead in the G20 and other forums on seeking agreed multilateral solutions to the challenge of where and how to tax global digital companies, which are particularly difficult to tax under the current system.
Nigel Mills
I echo the praise for HMRC’s performance in tackling tax avoidance and evasion over recent years. Is the Chancellor becoming more convinced of the importance of having public country-by-country reporting, so that not only HMRC but customers and campaigners can see where multinationals are making their profit? That way, we can make sure that they are paying the right tax in the right countries.
Mr Hammond
As my hon. Friend will know, the UK was one of the first countries to implement the OECD model for country-by-country reporting to tax authorities. Those reports have been required for periods that started on or after 1 January 2016. On public reporting, the Government are committed to a multilateral approach to ensure that reporting provides comprehensive information and is fair between UK-headquartered and non-UK-headquartered multinationals. We are engaging constructively on the EU proposals for public country-by-country reporting, which we see as a step in the right direction.
Sir Vince Cable (Twickenham) (LD)
The Chancellor will be aware of President Macron’s proposal for taxing the revenue of the big internet platforms, which the Chancellor acknowledges are difficult to tax under the existing rules. Are the Government considering building on the entente cordiale of recent days by co-operating with and learning from the French model for how we should tax that revenue?
Mr Hammond
I would not call it a French model; it is a Franco-German initiative. We have been working closely with the French and the Germans on this issue. We discussed it at the G20 in Buenos Aires a couple of weeks ago and we will discuss it again at the informal ECOFIN meeting in Sofia at the end of next week. The Government’s position is that we are supportive of the EU proposals, but we want to be clear that any such measure can only be a temporary solution. The long-term solution has to be an agreed multilateral approach to the taxation of the digital economy. That requires us to get the United States on side, because most of these global digital companies are domiciled there. Without the United States’ co-operation and support, it will be difficult to make any tax system sustainable.
Neil Gray (Airdrie and Shotts) (SNP)
It is critical that HMRC collects tax correctly. To that end, will Ministers tell me when I am likely to receive a reply to my letter of 6 February regarding the Roadchef case? HMRC is still to settle with the Roadchef employees benefit trust in respect of money paid to HMRC as tax in error.
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.
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.
Anneliese Dodds (Oxford East) (Lab/Co-op)
Despite promising to tighten up on Scottish Limited Partnerships, not a single non-compliant SLP appears to have been fined, which could have raised up to £2.2 billion. When will SLPs be banned, and what action are the Government taking on other shell companies to stop tax fiddling and money laundering?
Mr Hammond
The hon. Lady asks a specific and detailed question about Scottish Limited Partnerships. The legislation is designed to deter the kind of activity to which she refers. The absence of fines should not be taken as an indication of an absence of activity. As she will know, Her Majesty’s Revenue and Customs always seeks, first of all, to deter non-compliant behaviour before it moves into hard compliance. If I may, I will write to her with a more detailed answer on the very specific point about Scottish Limited Partnerships.
Kirsty Blackman (Aberdeen North) (SNP)
To follow up on that question about Scottish Limited Partnerships, I am concerned that the Chancellor is not able to stand up and talk about tangible action that he is taking on this matter. This has been a live issue for a very long period of time. Will he commit to taking action on Scottish Limited Partnerships?
Mr Hammond
What I can commit to the House is this: wherever HMRC detects non-compliant behaviour, it will act, but it is for HMRC to determine how best to act in individual cases, and it is right that Ministers do not have direct involvement in HMRC pursuing individual cases. I will write to the Opposition spokesman, the hon. Member for Oxford East (Anneliese Dodds), and I am sure that the hon. Member for Aberdeen North (Kirsty Blackman) will be interested in that reply.
Kirsty Blackman
There were 2,800 Scottish Limited Partnerships registered last year, only 1,100 of which have registered persons of significant control That is a very low percentage. Of that 1,100, 172 are registered as belonging to Russian individuals. Given all that is happening just now, it is vital that the Chancellor takes urgent action on this—not just a letter at some point in the future. This needs to happen as soon as possible.
Mr Hammond
I will ensure that the hon. Lady gets the letter as soon as possible. It is right to focus on groups that are using structures for non-compliance or purposes that we would wish to deter, and HMRC will always do so. I will update her by letter, hopefully later today.
Mr Laurence Robertson (Tewkesbury) (Con)
Andrea Jenkyns (Morley and Outwood) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
My hon. Friend is asking the right question. The only way to deliver a high-wage, high-skill economy of the future and to sustainably raise living standards is to raise our productivity growth rate. This requires investment by the Government in infrastructure, skills, and research and development. Since 2010, this Government have provided over half a trillion pounds in capital investment, increased investment in skills and reduced taxes for business. But raising the productivity growth rate also requires action at the level of the firm. Lower taxes provide a strong incentive for businesses to invest in raising their productivity. These tax reductions include the £9 billion package to reduce business rates that the Financial Secretary has just mentioned.
Andrea Jenkyns
Productivity is a key element in determining our future standard of living. The current productivity gap in Yorkshire and the Humber provides great opportunities for growth. However, significant and sustained investment is required to achieve this. Will my right hon. Friend commit to the excellent northern powerhouse project and ensure that the region gets the vital investment in infrastructure that it needs to improve productivity?
Mr Hammond
My hon. Friend is right again. We will only build an economy that works for everyone and every region if we succeed in narrowing the regional productivity gap. For that reason, the Government are fully committed to the northern powerhouse. We have announced a funding boost of £436 million to improve transport connections within the northern city regions through the transforming cities fund, with a further £840 million to be competitively allocated to the largest cities in England. This builds on the record amounts of more than £13 billion over this Parliament that we are already investing in northern transport, which is more than any previous Government.
Chris Elmore (Ogmore) (Lab)
One of the ways in which the Chancellor could improve productivity across south Wales and beyond is to invest in the tidal lagoon project, which will bring skills and investment to the area, in line with what he said in answer to the hon. Member for Morley and Outwood (Andrea Jenkyns). So may I encourage him please to bring this investment forward and start delivering for the people of south Wales?
Mr Hammond
As the hon. Gentleman knows, the tidal lagoon project is under careful consideration by the Government, and a decision will be made and announced in due course.
Nicky Morgan (Loughborough) (Con)
One of the consequences of increasing productivity is of course higher wage growth, which I think would make everyone feel much better. The Chancellor may be aware of the Treasury Committee’s recent report on childcare, which called for more childcare support for those undergoing retraining—another way of increasing productivity. What were his thoughts on that, and what is his progress on talks with the national retraining scheme?
Mr Hammond
I am happy to tell my right hon. Friend that we have had a very productive first meeting with the CBI and the Trades Union Congress to flesh out the shape of the national retraining partnership, which is clearly going to be a crucial part of our investment in skills in future. I do take her point on childcare. We have of course seen the Select Committee’s report and will respond to it in due course.
Peter Dowd (Bootle) (Lab)
On 6 April, the Treasury bizarrely used a “thumbs up” emoji in a tweet celebrating the worst decade of productivity figures since 1817. I will help the Chancellor with the arithmetic—that is 201 years ago. I know that he has a new-found Tiggerish optimism, but is not his Department’s tweet, even with his misplaced exuberance, more like self-delusion for which local government, the police, the NHS, the fire service and public services more generally are paying the price?
Mr Hammond
We have a challenge in this country around productivity, and it is not a new challenge, as the hon. Gentleman well knows. For eight years, the OBR has estimated UK productivity growth, and on eight occasions it has had to revise down the estimates that it had made. This is a long-term challenge facing this country. Rather than trading insults about what has happened in the past, I suggest that the most constructive approach would be for us to work on improving the UK’s productivity performance. That means investing in infrastructure—this Government have committed half a trillion pounds of capital investment since 2010—addressing the skills gap, ensuring that capital is available to businesses, and addressing management challenges at the level of the firm. All those strands need to be taken forward together if we are going to create the high-tech, high-wage economy that we all want to see in this country.
Stephen Hammond (Wimbledon) (Con)
The Chancellor of the Exchequer (Mr Philip Hammond)
Productivity, as I have already said, is at the very forefront of the Government’s agenda. That is why we established the national productivity investment fund, a £31 billion package of investment in infrastructure and research and development, and committed to introducing a national retraining scheme, which we are developing in partnership with the CBI and the TUC to ensure that British workers have the skills they need to benefit from technology change. The focus now has to be on moving forward with firm-level initiatives, such as Be the Business led by Charlie Mayfield and Made Smarter led by Juergen Maier, that start to look at the challenges we face at the level of the firm in this country to make sure that we are doing what we need to do not only in infrastructure and skills but in investment in management at the level of the firm.
Sir Nicholas Soames
May I congratulate my right hon. Friend on all the steps he is taking, with the Government, to improve productivity, which is very badly needed indeed in our economy? Does he agree that it is becoming increasingly difficult, with a very modern, interconnected, internet-driven economy, to successfully garner the information needed to truly assess how well we are doing on productivity and across the whole scale of Government statistics on the economy? Does he agree that this is first-order business and that we need to get this matter resolved so we may have a better picture overall?
Mr Hammond
My right hon. Friend is right that there is some evidence of a measurement challenge around the productivity figures. My right hon. Friend the Member for New Forest West (Sir Desmond Swayne) asked a few moments ago about the relationship between rising wage costs and continued economic and employment growth. The question is why the tightening labour market is not driving a higher productivity performance and whether an element of that is in fact a management challenge. A great deal of time and energy is being spent on this issue. Indeed, the figures on productivity for the last two quarters do, on the face of it, show some improvement. Now, one swallow does not make a spring and we should be very cautious about interpreting—even a summer, Mr Speaker. I am even less ambitious! We should be very cautious about interpreting those figures, but, as we see record high levels of employment in the economy, we should expect them to help to drive the UK economy’s productivity performance.
Stephen Hammond
I listened to my right hon. Friend set out the Government’s plans for investment in transport and infrastructure a few moments ago. What direct impact on productivity does he expect those investments to have in the regions where they occur?
Mr Hammond
We are undertaking the largest rail investment programme since Victorian times and the largest road investment programme since the 1970s. Overall, the Government are now investing public capital at the highest rate for 40 years. This is one of the components that drives productivity in one of the areas where we have a long-standing gap with our principal competitors: too little public infrastructure. We are closing that gap and that will have a positive impact on productivity growth, but we still have to tackle skills, capability at the level of the firm, and access to capital. It is an important strand, but it is only one strand of the productivity conundrum.
Helen Goodman (Bishop Auckland) (Lab)
As the Chancellor just said, skills are a crucial plank of improving the nation’s productivity. Since the introduction of the apprenticeship levy, apprenticeships have collapsed. The Government have also slashed resources for further education institutions, such as the excellent Bishop Auckland College in my constituency, so what is the Chancellor going to do about the middle-level skills base?
Mr Hammond
The Government are highly committed to the apprenticeship programme. I recognise that starts are down—we always expected that—but something else is happening, because analysis shows that now that employers are contributing with their own levy to apprenticeship programmes, they are opting for higher-level apprenticeships. There are fewer starts than we expected, but we are seeing a much higher level of apprenticeship. There are more degree-level apprenticeships and more apprenticeships at the higher levels. The Department for Education and the Treasury are looking carefully at how this is working—[Interruption.] This is a serious issue, but the important question is about making sure that the skills that the economy needs are generated.
Peter Dowd (Bootle) (Lab)
The only productivity figures worse than the UK’s are the Chancellor’s—that is not an insult, but a statement of the blindingly obvious. Is he aware that a recent TUC assessment indicated that, in effect, the UK economy is on a negative trajectory? GDP growth is weak—on an annual basis, it is the weakest it has been for five years—and hours worked have declined. Public investment lags significantly behind that of our comparators. Wages remain stagnant and inflation is stubbornly high. What is his answer to this—perhaps a tweet, and maybe with a smiley emoji this time?
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.
Jessica Morden (Newport East) (Lab)
The Chancellor of the Exchequer (Mr Philip Hammond)
My principal responsibility is to ensure economic stability and the continued prosperity of the British people. I shall do so by building on the plans set out in the autumn Budget and the spring statement. The Government are determined to meet the important challenges we face and to seize the opportunities ahead as we create an economy fit for the future.
Jessica Morden
The Treasury is holding on to £10 million from the Roadchef employees benefit trust following a High Court dispute. Can Ministers ensure that HMRC returns the money to the trust with interest so that the 4,000 workers and former staff, including a number of my constituents, can finally receive what is owed to them?
Mr Hammond
We touched on this matter earlier, I think. It is important that HMRC deals with matters separately from Ministers, but we are aware that HMRC is in discussion with the trustees in this case and we hope for a resolution soon.
Nigel Huddleston (Mid Worcestershire) (Con)
Mr Philip Hammond
I do not have a figure for the latest valuation of those assets. Many of the assets in question will be property assets, I suspect, meaning that the values will move from time to time. I can assure the right hon. Gentleman that the Treasury is fully engaged in the process across Whitehall of seeking to deal with unacceptable behaviours of the type that we have seen in Syria. Financial sanctions will remain an important tool in our armoury, whether we are dealing with chemical attacks in Syria or attacks on the streets of the UK.
John McDonnell
I welcome the Chancellor’s response, but the problem is that the lack of transparency in our financial system makes it virtually impossible for him to know exactly how many assets linked to such regimes are owned in the UK. It is estimated that more than £5 billion of assets owned by Assad and his associates are being held overseas and, according to international reports, the UK is recouping far less of the corrupt assets owned by individuals linked to the Syrian regime than is being recouped by other countries. For example, assets linked to the Assad regime worth more than half a billion pounds have been not just frozen but seized by the Spanish authorities. So far, no unexplained wealth orders have been used against Syrian regime figures.
The Government promised to give a date for the publication of a register of owners of UK property based overseas back in 2015, but now, three years later, we are told that a register will not be published until 2021. Will the Chancellor bring forward the date for the introduction of what is an essential defence against corruption?
Mr Hammond
I think that the right hon. Gentleman is being a little bit harsh on the unexplained wealth orders. The legislation has been in place for only a couple of months, and we will of course look at opportunities to use it. As for his challenge on the date for the registers, I will look into the matter, as he has asked me to do. I will then write to him to let him know the reason for the date that we have set, and whether there is any opportunity for it to be brought forward.
I think that we are all in the same place on this issue. We all want to ensure that London cannot be used as a route for dirty money—for the ill-gotten gains of regimes that are stealing from their people and channelling money offshore. It must be recognised that London is the world’s largest global financial centre, which presents us with some challenges, but we will continue the work.
Maria Caulfield (Lewes) (Con)
Mr Hammond
My hon. Friend puts her finger on the significant structural challenge that we face. This country has a higher penetration of online retailing than any other major economy—we are at the cutting edge—but that, of course, has an impact on traditional retailing, and we have to expect that patterns of retailing will change. We have brought forward by a year the switch to three-year business rates reviews, and we have introduced a package of £9 billion of business rates relief, but we will have to consider this major structural challenge over the coming years as a nation.
Stephen Timms (East Ham) (Lab)
Mr Hammond
As the right hon. Gentleman will well understand, I much prefer a system based on mutual recognition. There are problems with the EU’s equivalence regime: it is arbitrary, it is unilateral, and it can be withdrawn with zero notice. No one can operate a multitrillion-dollar business on the basis of such arbitrary arrangements. However, we are working with the Commission and key member states, and I am optimistic that we will reach a satisfactory solution.
Alex Chalk (Cheltenham) (Con)
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Automation, machine learning and artificial intelligence have the potential to offer huge productivity gains. What discussions has my right hon. Friend had with colleagues across Government about providing leadership in this important field so that we can reap the maximum productivity boost and be at the forefront of this exciting technology?
Mr Philip Hammond
As I have said many times in this House, we have two choices: we can either run away from this challenge; or we can run towards it and embrace it. In fact, if we want to maintain the living standards of our people and the status of our economy in the future, we have no choice but to embrace it—and we are doing so. I announced at the autumn Budget funding to support the uptake of digital technologies across Government, allowing the Government to be an exemplar, but we are also promoting these technologies to private business. The UK is at the forefront of many of these cutting-edge technologies.
Ellie Reeves (Lewisham West and Penge) (Lab)
Anna McMorrin (Cardiff North) (Lab)
The Government’s green rhetoric is nothing more than empty promises. They say that they have ambition, so when will the Chancellor commit funding for onshore wind, solar and, importantly, the Swansea Bay tidal lagoon? The benefits of these investments would boost not only our green economy, but the supply chain and jobs.
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.
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?
Mr Hammond
I welcome all signs of international confidence, but I never comment on the exchange rate of the pound.
Tonia Antoniazzi (Gower) (Lab)
Six in every 1,000 people in the UK have lymphoedema. What commitment will the Government make to deliver a comprehensive and equitable strategy for NHS England and to end the postcode lottery for lymphoedema patients in the United Kingdom?
James Cartlidge (South Suffolk) (Con)
The shadow Chancellor mentioned frozen Syrian assets. There has been a long-running cross-party campaign to unfreeze frozen Libyan assets so that that money can be spent compensating the victims of Libyan-sponsored IRA terrorism. Will my right hon. Friend look at that again? Is he aware that it would require a UN resolution? Is that the case with Syria’s assets, and does he think that all the members of the UN Security Council would be in favour of such a move?
Mr Philip Hammond
My hon. Friend tempts me down a complex route. I will look at that again; I am familiar with the issue from my time as Foreign Secretary. The decision that Ministers have to make around the freezing of assets is a quasi-judicial one, and it has to be made very carefully in the light of the specific facts. There are great complexities in Libya, where in some cases competing authorities are claiming ownership of assets.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Last year, the Department of Health announced £7.8 million for building a cancer unit in my constituency, which of course I was delighted about. However, the money is stuck in the Treasury and the Humber NHS Foundation Trust is unable to withdraw it in order to start the building work. Please can the Minister urgently unlock that money so that the trust can start to build that desperately needed cancer unit straight away?
Mr Philip Hammond
I will look at what the hon. Lady has said, but I very much doubt that an amount of money of that size will be stuck in the Treasury, because of the NHS’s delegated limits. But let me look at it, and I will write to her.
James Frith (Bury North) (Lab)
In Bury, a small business and its supply chain are still owed £4.1 million by Carillion for their work on the Royal Liverpool Hospital. Will the Chancellor agree to meet me and them to hear their ideas about how we can prevent the likes of the Carillion collapse from happening again and protect our small employers from the changes in the construction industry?
David Linden
How many apprentices in the UK are being paid just £3.70 an hour?
Mr Philip Hammond
I will write to the hon. Gentleman, Mr Speaker. I do not have the number immediately to hand.
Mary Glindon (North Tyneside) (Lab)
What message will the Chancellor be sending to the thousands of public and civil servants who will be at the march organised by the TUC on 12 May asking for a fully funded, above-inflation pay rise?
Mr Hammond
The Government have been clear that the cap on public sector pay has been abolished and that it is for individual Departments and bodies to talk to their workforces about how pay can be increased in a self-funding way through productivity enhancements. We have seen that being done in the NHS with the “Agenda for Change” deal, which is now with the unions and staff for voting. It is a very good pay deal, but it will be supported by significant improvements in productivity. If we can do it there, we can do it across the piece.
Several hon. Members rose—
Jim Shannon (Strangford) (DUP)
Thank you, Mr Speaker; it is a straightforward question. In this age of online shopping, what help is available for start-up businesses that are focused on internet shopping?
Mr Hammond
Start-up businesses involved in online shopping are able to avail themselves of the full range of support for any start-up business. There is no specific regime for online shopping businesses.
Asian Infrastructure Investment Bank
Lord Hammond of Runnymede Excerpts(6 years, 1 month ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Chancellor of the Exchequer (Mr Philip Hammond)
In 2015, the UK became a founding member of the Asian Infrastructure Investment Bank. The AIIB supports economic growth in Asia and drives up living standards. The UK’s membership deepens economic ties with Asia and creates opportunities for British businesses.
At the ninth UK-China economic and financial dialogue in Beijing on 16 December 2017, the Chancellor of the Exchequer signed a contribution agreement with the AIIB, formalising the UK’s commitment, made at the previous EFD in 2016, to provide $50 million USD to the AIIB’s special fund for project preparation. This fund provides grant support to low income developing country members of the AIIB to prepare infrastructure projects for the bank to finance. China and the Republic of Korea have committed $50 million USD and $8 million USD, respectively, and the fund is open for more contributions.
The contribution agreement states that the UK will make four equal payments of $12.5 million USD by the end of March in 2018, 2019, 2020 and 2021 respectively. The UK’s contribution to the special fund will score as 100% official development assistance (ODA) as projects using UK money will only take place in low-income countries.
HM Treasury will make these payments, and any future payments to the AIIB, under the powers of the International Development Act 2002. The first payment will be made before the end of March.
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