Oral Answers to Questions

Rishi Sunak Excerpts

Tuesday 21st July 2015 Commons Chamber

[Mr Gauke]

I am grateful for that question—I think. It is a review; I do not want to judge in advance what the conclusions will be, but we have engaged very fully with small business organisations and listen very carefully to what they have to say, and we will report by the end of the year.

[Rishi Sunak (Richmond (Yorks)) (Con)]

10. What progress he has made on his deficit reduction plans.

[The Chief Secretary to the Treasury (Greg Hands)]

Since 2010, the Government’s long-term economic plan has halved the deficit as a share of GDP, but the job is not yet done. At 4.9%, the deficit remains too high. The summer Budget set out the action that the Government will take to eliminate the deficit and run an overall surplus and start paying down debt. The Government will reduce the deficit at the same rate as over the last Parliament, to reach an overall surplus of £10 billion in 2019-20, according to the forecast from the Office for Budget Responsibility.

[Rishi Sunak]

Future Governments need flexibility to respond to economic shocks. Does my right hon. Friend agree with me that the Charter for Budget Responsibility and plans to run a fiscal surplus are sensible measures that will provide that flexibility?

[Greg Hands]

I thank my hon. Friend for that question and he is absolutely right. The reliable way to reduce debt effectively over time is to run a surplus in normal time. Public sector net debt as a share of GDP reached 80.8% last year and the Government are committed to getting debt falling as a share of GDP from here on.

Budget Resolutions and Economic Situation

Rishi Sunak Excerpts

Tuesday 14th July 2015 Commons Chamber

[Rishi Sunak (Richmond (Yorks)) (Con)]

It is a privilege to be called to speak in this debate, Madam Deputy Speaker, and a pleasure to follow the hon. Member for Streatham (Mr Umunna).

There is much to commend in this excellent Budget, but to me one conclusion stands out: that by the end of this Parliament, under this Government, Britain will live within its means. No more irresponsible borrowing. No more spiralling debt at the taxpayer’s expense. No more passing the debt to the next generation. I was delighted to hear the Chancellor’s plans for this nation finally to run a budget surplus.

I have spent my career in business. Every company I have been involved in sets a budget, as indeed does every household in this nation, and when they do they operate with these basic principles: first, “How much is coming in?” and only then, “How much can I spend?” For too long, Governments have got that back to front, spending first, ignoring how much is coming in, then letting borrowing endlessly make up the difference.

Coming from a financial background, I decided to spend some time analysing our nation’s fiscal history. I wanted to know, when it comes to our Government’s revenue, how much does in fact come in. I can tell the House that, since 1955, tax receipts, with limited variation and remarkable consistency, have averaged 36% to 38% of GDP. In spite of the vast differences between Labour and Conservative Members in our approach to setting tax rates, the average tax take has been remarkably similar under Governments of both parties. There appears to be a natural ceiling to what any Government can extract from the pockets of its hard-working taxpayers.

That to me suggests a simple conclusion: in normal times, public spending should not exceed 37% of GDP. That is the best estimate of our income as a Government and therefore the best guide to what we can afford to spend. So the Government’s plans to get public spending to that level are not, as some Opposition Members have suggested, an ideological crusade or clever politics; rather, tackling excessive public spending is simply the sensible, logical and responsible course of action. That action, taken to make sure that we live within our means, is the same course of action that any business or household would take when presented with the facts. We all know what happens when those facts are ignored: more borrowing, more debt.

[Catherine West]

The hon. Gentleman makes a good point about debt. Does he agree that a graduate in social care from London Metropolitan University with personal debt of £54,000 not only has a personal problem on her hands, but represents a long-term national problem for us, because in the end we will have to pick up that debt?

[Rishi Sunak]

It is clear that university graduates’ earning power is raised. It is hardly fair to ask people working hard without the benefits of a university degree to pay for the earnings of someone in the legal profession or the City who is earning a great deal. That is why this Government created a progressive system whereby those who earn more pay more back and those who do not pay just a fair share.

[Catherine West]

Will the hon. Gentleman give way?

[Rishi Sunak]

I would like to make some progress. As you said, Madam Deputy Speaker, many people wish to speak.

All debts need to be repaid, with interest. For the next generation, that means higher taxes or less money to spend on public services. As the hon. Member for Streatham said, we already spend more money on debt interest than we do on the police, transport or housing. That simply cannot go on.

Whether one is a Thatcherite or a Trotskyite, the rules of budgeting are the same: one cannot sustainably spend more than one earns. I commend the Chancellor for acting on that principle and ensuring that Britain’s finances will once again be back in the black.

Oral Answers to Questions

Rishi Sunak Excerpts

Tuesday 16th June 2015 Commons Chamber

[Damian Hinds]

The Prime Minister has made this extremely clear by stating categorically that child benefit stays as is. The most important thing in regard to affordability and household budgets is to increase employment and ensure that people are in good jobs. The Government have also done an awful lot to bear down on household costs to make them more affordable.

[Rishi Sunak (Richmond (Yorks)) (Con)]

Will my hon. Friend tell my constituents what this Government will continue to do to cut the costs of childcare for hard-working families?

[Damian Hinds]

The coalition Government had a very strong record on extending childcare, and we are going to go much further in this Parliament with the extension from 15 to 30 hours of childcare for the three and four-year-old children of working parents, the introduction of tax-free credits and the further extension of childcare provision under universal credit when that migration happens.

European Union (Finance) Bill

Rishi Sunak Excerpts

Thursday 11th June 2015 Commons Chamber

[Rishi Sunak (Richmond (Yorks)) (Con)]

Thank you, Madam Deputy Speaker, for allowing me to make my first contribution to this House, and may I take this opportunity to commend all the excellent maiden speeches we have heard today on both sides of the House?

It may surprise my hon. Friends to learn that part of me is a little sad to be here, because the fact that I am standing here means that this Chamber has said goodbye to one of its finest parliamentarians, my predecessor the right hon. William Hague.

William enjoyed a distinguished career over 26 years. He oversaw a landmark Bill to improve rights for the disabled, led our party and served as Foreign Secretary. But his true mark can be found at home in Richmond. He was an outstanding local MP, as well as an outstanding Yorkshireman.

I once arranged a visit to a tiny, remote village and imagined that, for once, I might outdo my predecessor. On arrival, I was told that not only had he held a surgery in the village recently, but that the Foreign Secretary had arrived in a Harrier jet having flown in from a meeting with the President of the United States.

Some have wondered about William Hague’s future. Perhaps he will heed the advice of his Prime Minister who suggested he ought to become the new James Bond. In the Prime Minister’s own words:

“he’s fit, he’s healthy, he does Yoga, he can probably crack a man’s skull between his knee caps.”

That is hard to beat, but I did find a scintilla of encouragement on the campaign trail. Wandering through an auction market, I was introduced to a farmer as “the new William Hague”. He looked at me, quizzically, then said, “Ah yes, Haguey! Good bloke. I like him. Bit pale, though. This one’s got a better tan.” [Laughter.]

In today’s debate on Europe, we should remember that, as leader, William Hague campaigned to prevent Britain from joining the single European currency and instead to keep the pound. His judgment looks even more excellent today than it did then.

We will miss his oratory, wit and intelligence, and I know that the whole House will join me in wishing him well. [Hon. Members: “Hear, hear!”]

Sadly, William Hague’s predecessor, the late Lord Brittan, is no longer with us. Fortunately, however, Lord Brittan’s predecessor, Sir Timothy Kitson, still lives locally and his years of dedicated service are remembered fondly.

The constituency of Richmond is known for its remarkable natural beauty. In the east lie the North Yorkshire moors and in the west sit the Yorkshire dales, with their distinctive dry stone walls, stone barns and softly rolling valleys. In fact, admiration for my constituency has even spread to the other side of the English channel, which is why, last year, the remote splendour of Wensleydale and Swaledale became part of the Tour de France.

Interlaced with this natural beauty is a constant reminder of our nation’s heritage. Richmond castle sits magnificently at the heart of the constituency. Built by William the Conqueror, it has witnessed centuries of our nation’s history unfolding. Further afield in Great Ayton, Captain James Cook grew up and left Yorkshire to explore the world.

I am also deeply honoured to represent our soldiers, airmen and their families living at RAF Leeming and at Catterick garrison, our largest Army base. We are home to the historic Green Howards, who served in the Napoleonic Wars, the Normandy landings and Afghanistan. I will never forget that so many of my constituents have risked their lives to protect our nation so that we may debate here in peace today.

In spite of all this, the most remarkable aspect of my constituency is the strength, warmth and independent spirit of our communities. I am fiercely proud to represent them. And although I am not from Yorkshire, they were immensely relieved to learn I was not from Lancashire either! [Laughter.]

I intend to be a champion for the causes of the countryside. I want my hard-working rural constituents to have the strong public services they deserve and every opportunity to prosper.

Our excellent hospital, the Friarage, serves a sparse area of 1,000 square miles, with some patients travelling over an hour and a half to reach it. I shall be a loud voice for ensuring that our local hospital remains strong.

Our rural schools require fair education funding so that they can remain the beating hearts of our villages. I shall be relentless in pushing for better broadband and better mobile phone coverage. The farmers who feed us, proud stewards of our landscape, are too often taken for granted and left alone to battle regulation. Many of our small businesses are making significant exports, and I am determined to help them to give Yorkshire an even bigger place on the map of the world than it already has—if that is possible!

My grandparents arrived in this country with little. My parents, now a GP and a pharmacist, grew up wanting a better future for their children. Today, I have the enormous privilege of standing here as a Member of Parliament. I owe a great debt to our country for what it has done for my family: showing tolerance, providing opportunities and rewarding their hard work.

A great man once remarked that “some of you might not be here in 30 or 40 years” before reminding his audience that decisions made today shape the future for the next generation.

I believe in a compassionate Britain that provides opportunity and values freedom. I hope I can play a small part in ensuring that our great nation continues to hold to those enduring values.