Autumn Statement

Debate between Lord Hammond of Runnymede and David Rutley

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

We have been round this loop before. We are putting £10 billion a year more into the national health service by the end of this Parliament. We are delivering exactly what the senior management of the national health service asked for, and we will work with them to ensure that it is effective, because the money has to be spent and delivered effectively. I keep in close contact with my right hon. Friend the Secretary of State for Health. He is working very closely with NHS management. I know that it is tempting for Opposition Members to paint everything as a crisis or to talk of looming chaos, but that is not the case. We have a programme for investment in the NHS. It is being delivered and we will keep a close eye on the way it is being delivered.

[David Rutley (Macclesfield) (Con)]

I welcome today’s announcement and the autumn statement. I am particularly pleased to welcome the extra £2 billion for research and development that was announced earlier this week—it is absolutely pivotal. Does my right hon. Friend agree that it will help to underpin our leadership in life sciences, which is a key sector for success in the northern powerhouse?

[Mr Hammond]

I completely agree. To be clear, by the end of the Parliament, an additional £2 billion a year will go into research and development. My hon. Friend is right that life sciences and synthetic biology are an area in which the UK has gained a really significant lead in a disruptive area of technology that will shape the future of our economy and the economy of the world. There are three or four such areas in which we really have to invest now to ensure that we get the critical footprint that will allow us to be leaders in this fourth industrial revolution, just as we were in the first industrial revolution.

EU Membership: Economic Benefits

Debate between Lord Hammond of Runnymede and David Rutley

Wednesday 15th June 2016 Commons Chamber

[Mr Hammond]

My hon. Friend is right. The world’s supply chain has globalised itself. If I am honest, when I listen to the arguments of some of our opponents in this debate, although framed in terms of hostility to the European Union, I sometimes wonder whether what I am hearing is hostility to the globalisation of our economy.

What is true for trade is also true for investment—the other side of the coin. The reality is that Britain benefits hugely as a platform for investment from both EU and non-EU countries, many of which see us as a gateway to the rest of the European Union. They come here because of our language, our skills, our flexible labour market and our domestic regulatory environment, but if I talk to foreign companies based in this country—I have lots of them in my constituency, and other Members will be in a similar position—and to others around the world thinking of making that investment decision, it is clear that the single most important factor in the decision making of most of them is our membership of the European Union. Our membership makes Britain a launch pad for doing business with the rest of Europe. Almost three in every four foreign investors cite our access to the European market as a principal reason for investment in the UK. If we lost that access, we would lose the investment. It is as simple as that.

[David Rutley (Macclesfield) (Con)]

Is my right hon. Friend aware of Ernst and Young’s recent report showing that the UK continues to be the No. 1 destination for foreign direct investment in Europe, with the north-west seeing the biggest increase? Does he agree that a vote to remain would encourage yet further investment in the northern powerhouse and in other regions?

[Mr Hammond]

My hon. Friend is right. Treasury analysis shows that the UK is the largest recipient of foreign direct investment in the EU, ahead of Germany and ahead of France. We get almost a fifth of total inward FDI into EU countries—20% of the investment, with less than 12% of the population. I remind the House that every pound of that investment creates jobs in the UK. It is why Australia is a disproportionately large investor here, it is why so many Indian firms use this country as a base, and it is why world leaders, such as President Obama, Prime Minister Abe and Prime Minister Modi, believe we would lose out if we voted to leave the EU.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Rutley

Monday 12th May 2014 Commons Chamber

[Mr Hammond]

The UK has excellent relationships with the Ukrainian armed forces, and we have worked with them over a period of years. We have received a request for additional equipment from the Ukrainian armed forces, and we are considering carefully how to respond to that request.

[David Rutley (Macclesfield) (Con)]

T8. In the light of Sir John Holmes’ review, will the brave aircrew who were involved with bomber aircraft that were not part of Bomber Command but still flew sorties over Germany—such as my constituent, Theo Eaves, who was then based in southern Italy—be recognised with the Bomber Command class?

Armed Forces Restructuring

Debate between Lord Hammond of Runnymede and David Rutley

Thursday 23rd January 2014 Commons Chamber

[Mr Hammond]

As I have been at pains to point out, the fact that we are making people redundant in certain areas does not always mean that we will not be continuing to recruit in those areas. The armed forces are bottom-fed organisations, and we have to get the correct rank structure within each of the specialisms. My hon. Friend will have heard me say that the maximum number of Royal Navy redundancies will be 10, all of which will be in the medical and dental field. I expect the impact on the Royal Navy to be very limited. We will, however, have smaller medical and dental services in the future, to reflect the way in which we provide those services to our armed forces in peacetime.

[David Rutley (Macclesfield) (Con)]

Will my right hon. Friend remind the House of the scale of the financial challenge faced by the MOD in 2010 compared with that in other nations? Will he also tell the House what steps are being taken to ensure that we do not face such challenges again?

[Mr Hammond]

I am grateful to my hon. Friend for that. I know that Opposition Members do not like it being said that we inherited a £38 billion black hole in the defence budget. We have dealt with that and we have put in place a balanced equipment plan that is fully funded with a contingency of £4.5 billion in it. More importantly, we have put in place mechanisms to ensure that projects do not get signed off willy-nilly by politicians when the resources are not in place to pay for them. That ensures that we have a coherent defence budget and that we never again find ourselves in the position of the former Labour Defence Secretary Lord Hutton who, for the want of £300 million over two years, was forced to delay the aircraft carrier project and drive £1.6 billion of additional costs into that programme. We will not get ourselves into that position.

Nuclear-powered Submarines

Debate between Lord Hammond of Runnymede and David Rutley

Monday 18th June 2012 Commons Chamber

[Mr Hammond]

The Government do not expect that the people of Scotland will opt for independence in a referendum in 2014. We are quite confident that, on mature consideration, they will see the advantages of remaining within a United Kingdom and enjoying the benefit of the security afforded by the United Kingdom’s nuclear umbrella.

[David Rutley (Macclesfield) (Con)]

Does my right hon. Friend agree that in an uncertain world, a replacement for Trident is a vital insurance policy for the security of the whole United Kingdom, including Scotland?

[Mr Hammond]

I do, and that is a key point. The people of Scotland benefit from the UK’s nuclear umbrella, and I hope they will continue to do so.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and David Rutley

Thursday 2nd December 2010 Commons Chamber

[David Rutley (Macclesfield) (Con)]

T7. Will my right hon. Friend tell the House when he will be able to give further details on any impact the extension of High Speed 2 to Manchester will have on existing rail services, including those from Manchester to Euston, which make an important stop at Macclesfield?

[Mr Hammond]

My hon. Friend is right to observe that the introduction of HS 2 services in 2025 will of course change the nature of operations on the west coast main line. It will create additional capacity on that line and provide the opportunity for more trains that stop at more places, which is one of the demands that we regularly receive, and it will also create the opportunity for more freight paths and thus more transfer of freight from road to rail. The precise detail of service patterns will have to be decided when the franchise for west coast main line post-2025 is let.

Transport (Investment)

Debate between Lord Hammond of Runnymede and David Rutley

Tuesday 26th October 2010 Commons Chamber

[David Rutley (Macclesfield) (Con)]

What view has my right hon. Friend’s Department formed of the long-term prospects of the south-east Manchester multi-modal strategy, the A6 to Manchester airport relief road? Will he set out what steps he will be taking to review the relative merits of that scheme?

[Mr Hammond]

My ministerial colleagues are telling me—there are a lot of schemes to file in our minds—that this was going to be a private finance initiative scheme. However, PFI funding will no longer be available in the way it was, so if the scheme is to go forward, it will need to be resubmitted for conventional funding.