Civil Service Appointments

Rushanara Ali Excerpts

Tuesday 30th June 2020 Commons Chamber

[Michael Gove]

As ever, my right hon. Friend speaks good sense. It is the case that national security advisers, like other advisers, are there to advise, and then Ministers decide.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The Minister has said that he believes that civil service objectivity, neutrality and expertise is a source of pride, so why are his Government riding roughshod over that objectivity, neutrality and expertise and politicising a very important national security appointment?

[Michael Gove]

I should say that we never had a National Security Adviser under a Labour Government. Some of us might think that we were well or poorly governed at that time, but it seems to me slightly recherché of the Labour party to object to the evolution of a role that it had no part in either creating or advocating.

UK-EU Negotiations

Rushanara Ali Excerpts

Tuesday 16th June 2020 Commons Chamber

[Michael Gove]

My hon. Friend is absolutely right. I take this opportunity to say that whether it is the superb workforce at Rolls-Royce or others in aerospace, their technical expertise and manufacturing skill will be central to the future of Britain’s success. We need to make sure that we promote their expertise not just in our relationship with the European Union, but in our relationship with other countries. They are the best of British.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Last week, the Paymaster General admitted that the Government are making preparations for a no-deal Brexit, and we have seen the spectre of panic buying and stockpiling at the start of the coronavirus pandemic. What preparations has the Minister made to prevent stockpiling and panic buying by worried consumers in the event of the disruption and chaos that a no-deal Brexit would cause to the supply chain?

[Michael Gove]

It is the case that if we leave without a specific free trade agreement, certain steps will need to be taken by Government and by others to make sure not only that we can meet the challenges, but that we can take the opportunities. The Cabinet Office and others constantly review at all points what we need to do, but I think the spectre that the hon. Lady invokes is not one that should bother her or others.

EU-UK Partnership: EU’s Mandate

Rushanara Ali Excerpts

Thursday 4th June 2020 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Now that the UK has left the European Union, our focus must be on getting a deal that protects jobs and businesses and allows British firms to trade freely, as well as guaranteeing the supply of goods and services and frictionless trade, which we were promised. The coronavirus pandemic has shown how fragile the supply chain can be both across Europe and globally, and the impact that disruptions can have on people’s lives as well as businesses.

We need a deal that safeguards workers’ rights and environmental standards, and protects the Good Friday agreement as well as maintaining access to medical supplies and ensuring that they are kept intact. Crucially, the deal should reject the sort of tariffs and barriers that make it harder to trade abroad, push prices up and make it more difficult for people who are already suffering.

The deal we strike must protect our citizens’ wellbeing and security. That is the first duty of any Government. Ministers have insisted on sticking to the timetable drawn up before the extraordinary challenges posed by the pandemic. It is striking that recently two thirds of the British people said they agreed with the statement that the Government should request an extension to the transition period in order to focus properly on corona- virus and dealing with its consequences. Ministers’ timetables take no account of the disruption to the negotiations because of covid, nor the dramatic effect on our economy. I do not need to emphasise the Bank of England’s prediction that we face the worst economic slump for more than 300 years, with unemployment set to double this year and youth unemployment set to reach 1 million.

Millions of people coming through the pandemic face redundancy and great uncertainty. Many thousands have lost loved ones. Others face losing their businesses, their homes and, at worst, a deep economic depression. Yet Ministers insist on pursuing the same course of action as before the crisis. When the EU (Withdrawal Agreement) Bill was being debated, Opposition Members argued that it should be sensible and flexibility should be built in to keep our options open, but Ministers rejected that. It is like spotting the iceberg and still steering towards it.

The terrible economic prospects make a successful conclusion to the negotiations even more vital now for our country, security and wellbeing. That conclusion must ensure that even greater burdens are not placed on people and businesses. The signs are not promising. There has been a marked reluctance on the part of Ministers and the Prime Minister to provide regular updates. The Government are fearful of scrutiny, transparency and accountability. The fact that there has been only one statement after we requested an urgent question emphasises that. The chief negotiator said on Twitter:

“I regret… that we made very little progress towards agreement on the most significant outstanding issues”.

Looking forward, it is crucial that we have a trade agreement that truly ensures frictionless trade and protects our rights, and that we protect ourselves against no deal and crashing out. That means that Ministers need to be responsible, recognise the new reality of the pandemic and the dangers to people’s lives and our economy, and ensure that we exit properly, without disruption and damage to our country.

Future Relationship with the EU: Negotiations

Rushanara Ali Excerpts

Tuesday 19th May 2020 Commons Chamber

[Michael Gove]

My hon. Friend is absolutely right. The people of Stoke-on-Trent, whom she represents so ably, have consistently voted to leave the European Union and for politicians who have argued that we should leave the European Union, the customs union and the single market. In so doing, there will be new opportunities for the ceramics sector, which does so much for our economy.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

In February this year, the Chancellor of the Duchy of Lancaster admitted that border checks would be inevitable, yet the Prime Minister promised voters that frictionless trade with the EU would continue after Brexit. What guarantees—not meaningless assurances—can the Minister give, based on negotiations so far, that British businesses will be able to export to the EU without any tariffs, fees and charges when the transition period comes to an end?

[Michael Gove]

That is the agreement to which the EU committed itself in the political declaration, so I expect to hold it to it.

Budget Resolutions

Rushanara Ali Excerpts

Wednesday 11th March 2020 Commons Chamber

[Mel Stride]

I am afraid I have to completely disagree. To give them credit, the Government were in the vanguard of making the commitment to net zero by 2050. Indeed, the Chancellor made a very important announcement just now about a huge investment in carbon capture and storage, which could be a part of further revolutionising the production of power and energy in our country, and making sure it is greener.

Turing briefly to the remarks the Chancellor made in respect of the Green Book and how investments are analysed, it is very important that we get that right, not least in encouraging green investment. The Chancellor might want to look at the kind of discount rates we apply to green investment propositions to make sure that the Government are encouraged to invest upfront rather than further back in time. On levelling up, the Green Book needs to accommodate the fact that we need to get away from the natural returns we get in London and the south-east, and get investment out into the regions, particularly the south-west of England. [Interruption.] I see the Chancellor nodding again. That all helps to meet our net zero quest.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I am very grateful to the right hon. Gentleman, a fellow member and Chair of the Treasury Committee, for giving way. Does he agree that while there should be a rebalancing, it is important to recognise that inequality has to be tackled in cities like London as well as in towns and across the country? For instance, my constituency has the highest rate of child poverty in the country. We need a much more nuanced and granular response to inequality. Will he say something about the fact that the Chancellor has left out much-needed investment in local government? The investment in housing is welcome, but it needs to go a lot further to tackle the housing crisis.

[Mel Stride]

On where the investment is going, I have yet to pore over the granular detail, as the hon. Lady suggests, in the Red Book. What I do know, with regard to looking after the less advantaged and the lowest paid in our society, is that important reference was made by the Chancellor to the increase in the national living wage, worth £1,000 a year. Of course, this is a Government who increased the personal allowance, taking millions of people, particularly the lowest paid, out of tax altogether. The changes to the threshold of national insurance contributions to £9,500 will also serve that particular purpose.

Turning to the support that the Chancellor has identified for small and medium-sized enterprises, this is absolutely vital and lies at the core of how we will cope, or otherwise, with what is to follow over the coming weeks and months. We face both a supply and demand-side effect for SMEs. The Bank of England dropped the base rate by 0.5% today, which was clearly co-ordinated with the Budget, and made changes to the counter-cyclical buffers that banks have to hold. That is all well and good and will help banks to put more money into those businesses, but the real issue will be around the fiscal measures that the Chancellor has announced, particularly relating to business rates, time-to-pay arrangements and the deferral of taxation.

I will just say to the Chancellor that the Committee will look at three particular aspects, the first of which is how quickly help can be got out there and whether HMRC is spring-loaded to ensure that businesses are aware of what is available and how to take advantage of it as quickly as possible. I am encouraged by his comments about the helpline. Secondly, is it enough support? That needs to be monitored very carefully. Finally, there is the targeting aspect. Businesses in particular sectors are hurting more than others. We need to make sure that additional help is provided for them, just as we did in similar circumstances in the 2001 foot and mouth crisis, when the agricultural sector needed support. We need to recognise that there are particular types of businesses in that situation.

I am conscious of the time that I have taken and the fact that other Members will want to come in, so I will end by touching on a specific measure that the Chancellor raised: entrepreneurs’ relief. He has taken a brave step, and the right step, in that respect. He is absolutely right that making the changes that he suggested—a reduction from £10 million to £1 million—is not about beating up on the self-employed or entrepreneurs; it is about making sure that tax reliefs are fit for purpose. The changes that he has made, including the increase in R&D tax credits, the more generous treatment in the structures and building allowance and the changes in the employment allowance, will be much more meaningful and powerful in supporting small businesses than entrepreneurs’ relief ever was.