Oral Answers to Questions
Debate between Lord Hammond of Runnymede and Margaret Ferrier(7 years ago)
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Mr Hammond
The only way of delivering strong public finances is through a strong economy, with sensible and balanced regulation. We have a very large financial services sector in this country, which is a very important contributor to our fiscal balances, and its success depends on our getting that regulatory equation exactly right: too much regulation and we would drive away industry from London; too little regulation and we may lose our reputation as a safe and secure place to do business. We have to get it right.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Chancellor recently said that Brussels had set out a very aggressive starting line on the UK’s bill for quitting the EU. What assessment has he made of the worst case scenario, reported to be in the region of €60 billion, and what impact would that have on public finances?
Mr Hammond
I am not sure what the worst case scenario that the hon. Lady is talking about relates to. We have heard various figures bandied around in Brussels in terms of an exit charge. The work that the Government have been doing—which I was asked about earlier—relates to the economic and fiscal impact of different possible exit scenarios. The numbers being bandied around in Brussels are simply a question of a potential demand which would be raised in the negotiating process, but they are simply that: a negotiating strategy.
Class 4 National Insurance Contributions
Debate between Lord Hammond of Runnymede and Margaret Ferrier(7 years, 1 month ago)
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Mr Hammond
The self-employed benefit from increased personal allowances, taking 3 million people out of tax altogether, and a tax cut for 29 million people. From April this year, the self-employed, like the employed, will have access to tax-free childcare and the additional childcare offer for three and four-year-olds. That is a new extension of the entitlement to the self-employed. As I mentioned, the extension last year of the state pension to the self-employed on the same basis as employees really was a dramatic step-change in the way the system operates. It is worth noting that with all these enhanced entitlements there has been no change at all to the contribution asked of self-employed people.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Evening Standard delivered a damning verdict on its front page today, “Hammond U-turn on Budget Fiasco: Chancellor’s job on line as he climbs down over tax rise for entrepreneurs.” It is looking like the last spring Budget may also be the Chancellor’s last Budget. In fact, we just heard him endorse Laura Kuenssberg from the BBC. How does he intend to build trust in his competence following this utterly shambolic episode?
Mr Hammond
I explained how we approached this issue. We have a bigger job to do here. The country is embarking on a great venture that will shape the future of this country for many years to come. National insurance class 4 contributions are important, but I suggest they are not the only challenge facing the country today. It is important that we focus on the other issues that are vital to get right.