Tax Credits, Child Benefit and Guardian's Allowance

Rishi Sunak Excerpts

Monday 4th November 2019 Written Statements

[The Chief Secretary to the Treasury (Rishi Sunak)]

The Government will bring forward regulations that will increase most tax credits rates and thresholds and will increase the Child Benefit and Guardian’s Allowance rates in line with the general rise in prices as measured by the September 2019 Consumer Price Index. The annual up-rating of benefits will take place for Tax Credits, Child Benefit and Guardian’s Allowance in the first full week of the tax year. In 2020, this will be the week beginning 6 April.

The annual up-rating process takes into account a variety of measures:

The majority of working-age benefits were frozen at their 2015-16 levels for four years under the Welfare Reform and Work Act 2016. From April 2020, the majority of elements and thresholds in Working Tax Credit and Child Tax Credit will be increased by CPI (1.7%). In line with established practice and the Office for Budget Responsibility’s expectations in their welfare forecast, the maximum rate of the childcare element, the family element, the withdrawal rate and the income disregards will remain unchanged.

Child Benefit will be increased in line with CPI (1.7%) from April 2020.

As set out in legislation, Guardian’s Allowance will be uprated in line with prices, measured by CPI (1.7%).

The full list of proposed benefit and credit rates will be placed in the Libraries of both Houses in due course.

[HCWS75]

Oral Answers to Questions

Rishi Sunak Excerpts

Tuesday 1st October 2019 Commons Chamber

[Robert Halfon (Harlow) (Con)]

8. What progress he has made on the allocation of capital funding for new NHS hospital projects.

[The Chief Secretary to the Treasury (Rishi Sunak)]

The Government have just announced the largest hospital building programme in a generation, with £2.7 billion of investment in six new large hospitals. I am delighted that one of those is the Princess Alexandra in my right hon. Friend’s constituency, and I pay tribute to him for his years of campaigning for his constituents on this issue.

[Robert Halfon]

Does my right hon. Friend agree that the hundreds of millions of pounds pledged for a new hospital for Harlow will mean not only that we have a building fit for purpose for the 21st century, but we will continue to attract the best and brightest staff, including through healthcare apprenticeships?

[Rishi Sunak]

My right hon. Friend is absolutely right about that. May I take this opportunity to congratulate all the hard-working staff in his trust for their efforts in campaigning for this. They do a wonderful job serving their community, and I am delighted that with this support they will have the resources they need to keep doing that for years to come.

[Mr Ben Bradshaw (Exeter) (Lab)]

This is just a fraction of the hospital building programme that took place under the last Labour Government. Why on earth should anyone believe a single word this Government say, given that they themselves admit that a no-deal Brexit will damage the economy and the public finances? So there will be less money for hospitals and everything else, will there not?

[Rishi Sunak]

The legacy of the last Labour Government’s hospital building programme is that we are left with £10 billion in private finance initiative payments every year, rather than this being spent on people’s healthcare. This Government are investing in hospital upgrades up and down the country, with 20 announced on the steps of Downing Street, six more announced this past weekend and business plans for another 20 more—and diagnostic equipment. This Government are committing to the NHS, and we will ensure that every patient gets the care and consideration they deserve.

[Dame Caroline Spelman (Meriden) (Con)]

I welcome the announcement of the makeover of the out-patient facilities at Heartlands Hospital, which serves some of the most deprived wards in east Birmingham and in my constituency. Does the Minister agree that it is possible to put this additional capital spending into the health service only because a Conservative Government have repaired the nation’s finances?

[Rishi Sunak]

I welcome my right hon. Friend’s comments. She is absolutely right: the only way we get strong public services is with a strong economy, and the only way we get a strong economy is with a Conservative Government.

[Several hon. Members rose—]

[Tim Farron (Westmorland and Lonsdale) (LD)]

You are very kind, Mr Speaker. In his announcement this week, the Chancellor chose not to invest a single penny in the Westmorland General Hospital in Kendal, but will he at least end the Treasury’s 3% deficit tax on our local hospitals trust, which has cost £4 million from hospital spending in the past three years? That is money that should have been spent on a new radiotherapy centre for local cancer patients.

[Rishi Sunak]

On cancer treatments, I am delighted that survival rates are at the highest they have ever been. On diagnostic treatments, the recent announcement of £200 million to upgrade diagnostic equipment up and down the country will make an enormous difference to early screening and testing. On funding in general, we are in the first year of a record five-year investment in the NHS—£34 billion more promised by this Government.

[Daniel Zeichner (Cambridge) (Lab)]

10. What recent discussions he has had with the Secretary of State for Education on raising the per student rate of 16 to 19 funding.

--- Later in debate ---

[Melanie Onn (Great Grimsby) (Lab)]

15. What (a) tax incentives and (b) regulatory changes he plans to introduce to encourage foreign businesses to use free ports in the UK.

[The Chief Secretary to the Treasury (Rishi Sunak)]

We are developing an ambitious and attractive UK free port offer to create hubs that will attract inward investment, create jobs and boost trade. Typically, free ports only offer customs benefits, but we are looking to go further than that to ensure that these turbo-charged areas can drive growth for their community.

[Melanie Onn]

I thank the Minister for that answer and for his speculative phone call earlier trying to tease out the nature of my question to him. The Conservative Mayor for Tees Valley, a member of the Government’s very carefully selected free ports advisory group, says that he hopes to see reduced corporation tax and exemption from employers’ national insurance contributions. Has the Minister made an assessment of the impact of these Tory proposals on the Exchequer and the state pension fund?

[Rishi Sunak]

I pay tribute to the Conservative Mayor, Ben Houghton, in Teesside for championing his community. He has been advocating a free port because he believes that such a phenomenon will create jobs in his area, drive inward investment and boost trade. I hope that the hon. Lady would welcome that for her community in Grimsby, where the seafood industry and Associated British Ports, the port employer, has loudly called for such free port status for her area. I hope that, when the opportunity comes, she will support her community in applying for that.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

My right hon. Friend is truly a champion of free ports, but will he agree to meet me to discuss the potential benefits for ports such as the port of Poole and the advantage for the wider region as well?

[Rishi Sunak]

I would be happy to meet my hon. Friend. I believe that it is his birthday today, so I wish him a happy birthday. I am happy meet him and his colleagues from Poole to discuss free ports. We believe that these should be opportunities for the entire country to take advantage of.

[Mr Speaker]

The unadulterated charm of the Chief Secretary has, in my experience, not been surpassed—at any rate among Treasury Ministers.

--- Later in debate ---

[Paula Sherriff (Dewsbury) (Lab)]

T8. The real wages of working people are lower than they were before the global financial crisis, and while many Tory shires are better off, areas and residents like those in my constituency have been left behind by this Government. Is it not about time that this Government stopped lining the pockets of corporations and Tory shires and invested in people in communities like mine?

[The Chief Secretary to the Treasury (Rishi Sunak)]

This Government passionately believe in helping those at the bottom end of the pay scale, which is why the Chancellor announced yesterday an increase in the national living wage, to abolish low pay in this country once and for all. Our track record over the last few years in this area has been exemplary. The fastest growth in incomes has been for those at the bottom end of the pay scale. Today, someone earning the national living wage is £3,500 better off than they were when we came into office. This is a Conservative Government on the side of those who are working hard.

[Sarah Newton (Truro and Falmouth) (Con)]

I very much welcome the Prime Minister’s announcement of pound-for-pound replacement through the shared prosperity fund of the EU funding that Cornwall receives. We are really ready in Cornwall to drive our economy forward. Will the Chancellor meet the local enterprise partnership and all Cornwall’s MPs, so that we can make rapid progress in designing that fund?

--- Later in debate ---

[Marsha De Cordova (Battersea) (Lab)]

The social security benefits freeze has led many children and families into poverty and destitution. The Chancellor failed to answer the question from my hon. Friend the Member for Bootle (Peter Dowd), so I ask him again: yes or no, will he lift the social security freeze next year?

[Rishi Sunak]

Announcements on welfare will of course be for the Budget, but it is important to note that this Government have done the most important job in lifting people out of poverty, which is getting them into work. Today, a million fewer people are living in workless households as a result of the actions taken by this Government.

[Several hon. Members rose—]

Guarantee of EU-funded Programmes

Rishi Sunak Excerpts

Monday 30th September 2019 Written Statements

[The Chief Secretary to the Treasury (Rishi Sunak)]

Today the Treasury is confirming that £4.3 billion of funding will be allocated to Departments and the devolved Administrations for the financial year 2019-20 to deliver the HMG guarantee of EU-funded programmes, with a total of around £16.6 billion expected to be allocated over the lifetime of the guarantee.

Leaving the EU on 31 October with a deal which works for the whole of the UK remains the Government’s top priority.

However, the Government are continuing with no-deal preparations to ensure the country is prepared for every eventuality. It is the responsible thing to do and an important part of this process is giving certainty to UK citizens and organisations.

To provide this certainty, and as previously announced in the written statement of 24 July 2018 (HCWS926), the Government have guaranteed certain EU funding. The guarantee covers the following:

the full multiannual financial framework allocation for structural and investment funds over the 2014-20 funding period, with payments to beneficiaries made up to the end of 2023;

the payment of awards where UK organisations—such as charities, businesses and universities—successfully bid directly to the European Commission on a competitive basis while we remain in the EU (e.g. before exit day), for the lifetime of the project;

the payment of awards where UK organisations successfully bid to the European Commission on a competitive basis to participate as a third country after exit, and until the end of 2020, for the lifetime of the project; and

the current level of agricultural funding under CAP pillar 1 until 31 December 2020.

[HCWS1834]

Oral Answers to Questions

Rishi Sunak Excerpts

Tuesday 18th July 2017 Commons Chamber

[Mr Hammond]

The hon. Lady is assuming that we will lose trade with the European Union. It is clear to me that, all other things being equal, the ability to enter bilateral trade deals with third countries will be a positive for our economy. Of course, we also want to protect our trade with the European Union. My focus is on ensuring that we get a Brexit deal that protects our existing patterns of trade and commercial engagement with the European Union, as well as, over time, allowing us to explore new opportunities beyond the European Union.

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

The Chancellor will be aware that the current cost of Government borrowing is at a historical low, with gilt yields at 1%. Does he agree that, if markets lose confidence in our ability to live within our means, the cost of that borrowing would spiral, costing us billions of pounds? That would mean less to spend on our public services.

[Mr Hammond]

My hon. Friend is right to warn of the danger of a loss of market confidence in UK fiscal policy—I am looking very hard at the right hon. Member for Hayes and Harlington (John McDonnell). If markets lose confidence in UK fiscal policy, they will re-price lending to the United Kingdom. We already spend more every year on servicing our debt than on our armed forces and police services together. It would do a huge disservice to taxpayers in this country if we created conditions that would cause the cost of that debt to rise.