Oral Answers to Questions

Sajid Javid Excerpts

Tuesday 6th February 2024 Commons Chamber

[The Exchequer Secretary to the Treasury (Gareth Davies)]

The Government continue to work with Ofgem. In fact, I met the chief executive officer very recently. Ofgem continues to monitor the levels of energy debt to ensure that consumers are protected. The hon. Gentleman will know that, last year, the Chancellor announced measures to ensure that households with prepayment meters paid no more than those with standard meters, and that is on the back of the energy price guarantee, which effectively paid 50% of people’s household energy bills.

[Sir Sajid Javid (Bromsgrove) (Con)]

The Chancellor will be aware of a proposal from the World War Muslim Memorial Trust to establish a memorial at the National Memorial Arboretum, honouring an estimated 750,000 Muslims who have fought for the British armed forces, with tens of thousands of them paying the ultimate sacrifice. Previous Budgets have supported memorials that honour those who have given us the freedoms that we enjoy. May I ask the Chancellor to personally consider this proposal and help make it a reality?

[Jeremy Hunt]

My right hon. Friend is absolutely right: we must remember and honour the sacrifices made by those of all nationalities and religions who fought for our freedom, including, I believe, nearly 150,000 Muslims who died in the second world war. My officials would be happy to engage with him to identify how best the Government can help make this vision a reality.

Autumn Statement

Sajid Javid Excerpts

Thursday 17th November 2022 Commons Chamber

[Jeremy Hunt]

I think the hon. Lady must have written her speech before actually listening to what I said. She talked about soaring mortgages, but she might have heard the OBR confirm today that because of the decisions we have taken, inflation will be lower, and that means less pressure on interest rates and less pressure on mortgages. The truth is that the people of this country voted for a Conservative Government because they know that we will take the tough and difficult decisions necessary to deal with a global pandemic, a global energy crisis and a global economic crisis, and that is what we have done today.

[Sajid Javid (Bromsgrove) (Con)]

The Chancellor rightly talked about the importance of global headwinds—we have seen two 100-year events in just the last three years. I commend him on his autumn statement, which has risen to the challenge that he has set out. He said rightly how important growth is; we know that it is the only way to improve opportunity and social mobility in our country in the long term. He has rightly protected investment in skills, capital infrastructure and R&D, but can he say a little more about how he will ensure that such investment is spent wisely and for the maximum possible impact?

[Jeremy Hunt]

I thank my right hon. Friend—I always listen very carefully to what he says because of his enormous experience in economic posts in Government and in spending posts. The reason why growth matters is that it is not often something that can be delivered in one or two years—a long-term strategy is needed. I talked about Nigel Lawson’s big bang in 1986, but that actually took decades to come to fruition and turn London and the UK into one of the world’s great centres for financial services. Every Government have a duty to lay those foundations and make sure that, as far as possible, there is cross-party support for what they do.

The Economy

Sajid Javid Excerpts

Thursday 24th September 2020 Commons Chamber

[Rishi Sunak]

The temporary increase in universal credit already lasts all the way through to the end of March next year. For those who are most vulnerable, as I have said previously, we have provided significant enhanced support through the welfare system, including almost £1 billion of extra investment in local housing allowance, to help with private rent payments, and a hardship fund, to help people who are struggling to pay their council tax bills. As our analysis showed in the summer, the interventions that this Conservative Government have made over the past several months have made the most difference to those on the lowest incomes.

[Sajid Javid (Bromsgrove) (Con)]

I know what it is like to have to postpone a much anticipated Budget, but I am pleased to see that it has not prevented my right hon. Friend from doing whatever it takes to protect the economy. Since the onset of this crisis, he has shown the decisiveness, resilience and creativity that the country needs right now, and I commend him for it. I know that he values infrastructure investment and knows that it is going to form an important part of our recovery, so may I urge him to publish the national infrastructure strategy, which has been delayed time and again, as soon as he possibly can, so that we can get on with levelling up across our great country?

[Rishi Sunak]

I thank my right hon. Friend, who is a very good friend of mine, for his warm comments. Whatever I have been able to do over the past several months is in no small part thanks to the instruction that he has given me when he was my boss in not one, but two different Department jobs. He is absolutely right about the importance of infrastructure investment, and he was one of the first people to talk passionately about the need to increase significantly the amount of money that the Government invest in the UK’s infrastructure. It was he, as Chancellor, who put in place the infrastructure revolution, and I can commit to him that I will absolutely deliver on that. He is right that we must publish the national infrastructure strategy; we will do so this autumn.

Economic Update

Sajid Javid Excerpts

Wednesday 8th July 2020 Commons Chamber

[Rishi Sunak]

The right hon. Gentleman asked about the self-employed; he will know that our self-employment scheme is without doubt one of the most comprehensive and generous—if not the most comprehensive and generous —anywhere in the world. That is considerable support that has already been provided. Also, 40% of those in the construction sector are self-employed. Many of the people installing the new energy-efficiency measures will be in that category and will benefit from that increased demand for their services—something that I am delighted will happen. Lastly, the right hon. Gentleman talks about Germany, as do other Members; it is important to remember that Germany’s plan for this €50 billion is one with unspecified dates stretching over five years. In March, we unveiled a £640 billion investment plan for the next five years.

[Sajid Javid (Bromsgrove) (Con)]

I commend my right hon. Friend’s statement and the actions he has taken to ensure that we get the strongest possible recovery. He has been absolutely right thus far to spend “whatever it takes”—something he set out clearly back in March—but he will be acutely aware that interest rates will not stay low forever and that we will eventually need to bring our national debt back under control in order to sustain recovery, continue to create jobs and keep taxes low. So may I encourage him to set out new fiscal rules in his autumn Budget with the aim of getting our national debt down as a proportion of our national income by the end of this Parliament?

[Rishi Sunak]

I thank my right hon. Friend for his kind support and also his advice. He is of course absolutely right, and I hope that he was heartened by what he heard me say in the statement about the importance of returning our public finances to a sustainable footing in the medium term. We can and will do exactly that. He is right to highlight the sensitivity of our debt to interest rates, which was why he was right to introduce into our fiscal framework the notion of an interest service rule, and that is something that I will look at keenly in the coming months.

Treasury

Sajid Javid Excerpts

Thursday 13th February 2020 Ministerial Corrections

[Sajid Javid]

The hon. Gentleman needs to get his facts right. The EU has not ruled out equivalence. Indeed, it agreed in the political declaration to work at speed on an equivalence decision by the end of July this year, and that is welcome. We are working very carefully and closely with the EU on having a broad agreement that will mean that our financial services continue to thrive—not only for our benefit, but for its benefit.

[Official Report, 11 February 2020, Vol. 671, c. 690.]

Letter of correction from the Chancellor of the Exchequer, the right hon. Member for Bromsgrove (Sajid Javid):

An error has been identified in my response I gave to the hon. Member for Stalybridge and Hyde (Jonathan Reynolds).

The correct response should have been:

[Sajid Javid]

The hon. Gentleman needs to get his facts right. The EU has not ruled out equivalence. Indeed, it agreed in the political declaration to work at speed on an equivalence decision by the end of June this year, and that is welcome. We are working very carefully and closely with the EU on having a broad agreement that will mean that our financial services continue to thrive—not only for our benefit, but for its benefit.

Oral Answers to Questions

Sajid Javid Excerpts

Tuesday 11th February 2020 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

1. What assessment the Government have made of the potential effect on the (a) manufacturing sector and (b) economy of the UK not having access to the EU single market.

[The Chancellor of the Exchequer (Sajid Javid)]

We want a relationship with the EU that is based on friendly co-operation between sovereign equals and is centred on free trade. The economy has grown every year since 2010. Employment is at a record high and wage growth has outpaced inflation for 17 consecutive months. The upcoming Budget will set out ambitious plans to level up across the UK and usher in a decade of renewal.

[Matt Western]

The Chancellor will be aware that the CBI has spoken out and claimed that business is not ready for Brexit, which has already cost businesses billions of pounds in planning. But the advice is unclear. I spoke to the Federation of Small Businesses and to several small businesses last night, and they are extremely concerned that neither the infrastructure nor the advice is in place.

[Sajid Javid]

I can assure the hon. Gentleman that we are working very closely with individual businesses and their representative groups. The one thing they have certainly welcomed in the past few weeks is that we have ended the uncertainty around Brexit by actually leaving the European Union, as we said we would. We will be working very closely with business as we forge that new free trade agreement, which I know we will do.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Three years ago, at my first shadow Treasury questions from this Dispatch Box, I asked the Government about their plan to continue market access for financial services to EU countries after Brexit. Since that time, the Government’s ambitions have faded from the wide-ranging access-all-areas free trade deal that we were promised, to a basic agreement barely covering goods. The Chancellor has announced this morning that he is asking for enhanced equivalence for financial services, which the EU has already ruled out and which does not even exist in sectors such as insurance. This is our largest export sector, so how is it that we are still waiting for a credible plan after three years?

[Sajid Javid]

The hon. Gentleman needs to get his facts right. The EU has not ruled out equivalence. Indeed, it agreed in the political declaration to work at speed on an equivalence decision by the end of July this year, and that is welcome.[Official Report, 13 February 2020, Vol. 671, c. 12MC.] We are working very carefully and closely with the EU on having a broad agreement that will mean that our financial services continue to thrive—not only for our benefit, but for its benefit.

[Alison Thewliss (Glasgow Central) (SNP)]

Figures released this morning by the Office for National Statistics show that GDP was flat in quarter four, growth is at one of its slowest rates since the financial crisis, the service sector is stagnating, and manufacturing has been particularly hard hit. When will the Chancellor accept the reality that these Tory Brexit plans are playing havoc with the economy, and damaging the wellbeing and prospects of all our constituents?

[Sajid Javid]

The hon. Lady will know that growth would have been hit by the uncertainty created in this Parliament before the general election. Since the general election, confidence is back because this country has said no to Marxism and has got on with Brexit.

[Alison Thewliss]

The Chancellor puts forward a ridiculous prospect of the choices facing this country, because Brexit is the real and present danger for the economy. Just-in-time manufacturing is a critical part of the economy. Elizabeth de Jong of the Freight Transport Association has said of the revelation that the Chancellor of the Duchy of Lancaster’s smart border will not be ready until 2025:

“Frictionless trade has been kicked to the touchline… It’s going to be really costly for business.”

Can the Chancellor tell me what impact four years of Brexit chaos at the border will have on the UK economy and jobs in manufacturing in all our constituencies?

[Sajid Javid]

The hon. Lady talks about the importance of manufacturing. Since the change in Government in 2010, we have seen 58% growth in auto manufacturing and 22% growth in aerospace manufacturing. Again, because of the recent general election result, a survey of manufacturers carried out by the CBI a few weeks ago saw the biggest increase in confidence in the history of that survey—in more than 60 years.

[Greg Hands (Chelsea and Fulham) (Con)]

The financial services sector generates 7% of UK GDP, provides 1.1 million jobs and is responsible for £29 billion-worth of tax revenue. Does the Chancellor agree that we need to ensure that the financial services sector is looked after in any trade agreement with the European Union if we are to pay for the infrastructure projects that we expect an announcement on today?

[Sajid Javid]

My right hon. Friend, as always, is absolutely right. The financial services sector employs millions of people—not just in London, but in Edinburgh, Birmingham and so many other parts of our great country—and generates more revenue for public services than any other industry. He is right that financial services will be a key part of forging that new relationship with our European friends.

[Jacob Young (Redcar) (Con)]

Does my right hon. Friend agree that the best way to boost our manufacturing sector, and the economy, is by creating 10 new freeports—and the best place for a freeport is, of course, in Redcar?

[Sajid Javid]

I absolutely agree with my hon. Friend on the importance of freeports. It is a reminder that, as we forge a new chapter for our country outside the EU, there is so much we can do to boost opportunity in our country, and freeports are a key part of that.

[Vicky Ford (Chelmsford) (Con)]

About 3,000 people work in the insurance sector in Chelmsford—it is a massive contributor to our economy and to the tax take. Given that the EU grants equivalence in the insurance sector to countries such as Bermuda, is it not perfectly reasonable that the EU should offer the UK the same?

[Sajid Javid]

My hon. Friend is absolutely right. On day one, we will have exactly the same rules. We will not be rule takers. We will have the right to diverge in future, but on day one we can absolutely see why the EU will be looking very carefully at the equivalence decision.

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

In the South Lakes we have 3,000 local families waiting for a council home, yet the Government’s own Migration Advisory Committee says that the Government’s plan for visas and migrant pay will see an 8% reduction in the construction workforce. So will the Chancellor explain who is going to build the homes that families in the South Lakes so desperately need?

[Sajid Javid]

The hon. Gentleman will know that, under this Government, since 2010, we have seen a dramatic increase in the number of homes being built. I think that last year there was the highest number of homes built in all but one of the past 30 years. When it comes to building more of those homes, of course we do need enough workers in the industry. That is exactly what our points-based system is about—making sure that it focuses on those areas where we need most support.

[Katherine Fletcher (South Ribble) (Con)]

2. What steps he is taking to allocate funding for improved transport infrastructure throughout the UK.

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[Paul Holmes (Eastleigh) (Con)]

6. What steps he is taking to improve the UK's national infrastructure.

[The Chancellor of the Exchequer (Sajid Javid)]

Infra- structure is a top priority for the Government, which is why we are publishing the national infrastructure strategy alongside the Budget. It will set out further details of the Government’s plan to increase investment to transform the UK’s infrastructure.

[Paul Holmes]

I welcome my right hon. Friend’s commitment to vital national infrastructure, but does he agree that bespoke local infrastructure projects benefit the national infrastructure network by increasing connectivity? An example is the much-needed Chickenhall Lane road link in Eastleigh, for which my constituents have been waiting for over 20 years.

[Sajid Javid]

My hon. Friend is right. Local transport is the backbone of our community, which is why hopefully a welcome announcement will be made today on buses and cycling—a new £5 billion package on local transport. There is also the £150 million fund for smaller projects to deal with congestion hotspots. I would be pleased to consider the Chickenhall Lane link road in the next available competition.

[Nick Smith (Blaenau Gwent) (Lab)]

Blaenau Gwent needs investment in the Ebbw Vale to Cardiff train line for extra services. The shared prosperity fund could be a crucial route to providing that. When will the fund be ready to support infrastructure projects in our eastern valleys?

[Sajid Javid]

The hon. Gentleman will know that, as we transition from EU structural funds to the shared prosperity fund, it will be important that we set out exactly how that will work. With reference to his question, it means that the Welsh Government will have to work closely with us to see how we can use that for infrastructure projects in Wales.

[Claire Coutinho (East Surrey) (Con)]

Thanks to heavy usage by HGVs, Surrey is sometimes called the pothole capital of England. What steps is the Department taking to invest in tackling potholes nationally, which I am very keen to see in East Surrey?

[Sajid Javid]

My hon. Friend raises an important issue that affects many communities. All our constituents would say that the number of potholes is unbearable nowadays, which is why we made it clear in our manifesto that we will have the largest fund ever put in place by any Government to tackle potholes, with more details at the Budget.

[Jessica Morden (Newport East) (Lab)]

7. What progress his Department is making on its review of the implementation of changes to the off-payroll working rules; and if he will make a statement.

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[Tom Randall (Gedling) (Con)]

11. What plans he has to help ensure equity of economic opportunity throughout the UK.

[The Chancellor of the Exchequer (Sajid Javid)]

We will level up opportunity across the UK to ensure that every region and nation benefits from growth, including through better infrastructure, public services and investment in skills. I will set out more details in the Budget through the national infrastructure strategy.

[Tom Randall]

Many of my constituents are delighted about the Government’s plans to level up funding across the country. Will my right hon. Friend tell me what that will mean for the people of east midlands and my constituents in Gedling?

[Sajid Javid]

As we level up opportunity in every region, we will make sure that the whole country benefits, including the east midlands. That includes, for example, the £3.6 billion towns fund that we have announced, with 16 town deals in the east midlands. The Government are also committed to the £250 million growth deal, which provides funding for the Derby, Derbyshire, Nottingham and Nottinghamshire areas and will include projects such as the Gedling access road.

[Ms Lyn Brown (West Ham) (Lab)]

This is beyond parody. The reality is that after 10 years of Tory rule, the five richest families in this country own more wealth than 13 million of us put together. Fourteen million of us live in poverty. Two out of three of those are in working households. Childcare, transport and the cost of rent hold millions back, so will the Chancellor accept some tests for his Budget? Will he cut child poverty? Will he cut homelessness? Will he end the need for food banks? Will his Budget match his words? The hell it will.

[Sajid Javid]

Let me tell the hon. Lady what we have seen under 10 years of Tory rule, after Labour’s great recession. We have had nine consecutive years of growth. We have an economy that is nearly 17% bigger than it was in 2010, and 3.9 million jobs have been created—I would think that a party that calls itself the Labour party would welcome that. Unemployment is at its lowest level for 45 years, and according to the International Monetary Fund, our economy will grow faster this year than those of Italy, Japan, France and Germany.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

Small and medium-sized enterprises are critical to economic opportunity and would undoubtedly benefit from greater access to business finance, yet challenger banks suffer from the same capital requirements as larger banks, despite the fact that they do not present the same systemic risk. Will my right hon. Friend say what he might be able to do to change that situation?

[Sajid Javid]

This is something that I have discussed with regulators. My hon. Friend is right in his general point about challenger banks and the risks that they may or may not represent. It is right that we take a fresh look at this because having more competition in the banking sector is a good thing, especially for SMEs.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

12. What recent assessment his Department has made of the contribution to the public purse of tax paid by co-operative and mutual businesses.

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[Alan Mak (Havant) (Con)]

16. What steps he is taking to improve UK productivity.

[The Chancellor of the Exchequer (Sajid Javid)]

You ain’t no Deputy, Mr Speaker!

Increasing productivity is the best way to boost wages and improve living standards. We have worked hard to build a stronger, fairer economy, dealing with the deficit, helping people into work, and cutting taxes for families and businesses.

[Alan Mak]

The link between investment in research and development and increased productivity is well recognised. What steps is my right hon. Friend taking to encourage more private sector investment in R&D to help Britain become a leader in the fourth industrial revolution?

[Sajid Javid]

I thank my hon. Friend for all the work that he has done to put the UK at the forefront of the fourth industrial revolution. He is right to raise the importance of research and development. We are committed to investing an additional £7 billion in R&D by 2021-22 —the largest increase in 40 years—and, as my hon. Friend will know, in our manifesto we committed ourselves to going even further.

[Alison McGovern (Wirral South) (Lab)]

The people with the least productive, lowest-paid jobs, although often highly skilled, are women working in care, retail or hospitality. Where is the Chancellor’s productivity plan for the women in our country?

[Sajid Javid]

The hon. Lady will be pleased to know that we have more women in employment than ever before in our history, and that the gender pay gap is the narrowest ever recorded. However, she is right: we need to do more, and more investment will help, whether it is in infrastructure or skills. What will also help is our new points-based immigration system. Too often businesses have sought to take unskilled labour from abroad and cut the wages of people locally, and we must put an end to that as well.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (Sajid Javid)]

We have ended the uncertainty over our departure from the European Union, and we stand at the beginning of a new chapter. I know that the future is bright as we level up our country and unleash Britain’s potential. We have confirmed that 31 million people will receive a tax cut in April, and in the Budget on 11 March I will continue to lay the foundations for a decade of renewal. We will also set out our plans for an infrastructure revolution and for better investment in our most important asset of all, our human capital.

[Stephen Crabb]

Will my right hon. Friend reaffirm that when we talk about levelling up, we are indeed talking about levelling up the whole United Kingdom—all regions and all nations? May I encourage him to show real determination to ensure that the devolved nations also see and feel the benefit of his ambitious infrastructure proposals?

[Sajid Javid]

I can absolutely confirm that to my right hon. Friend. We are blessed with talent throughout our country. Wherever we look, we have talent. Our country is oozing with talent, and that, of course, includes Wales: we have just seen a demonstration of that talent. We need to ensure that there is much more opportunity, which means investment in infrastructure and skills and retaining a dynamic, competitive economy.

[John McDonnell (Hayes and Harlington) (Lab)]

In the last month we have seen the Financial Times predicting that the Chancellor will miss his balanced budget target, and today we have seen zero growth in the economy. At the same time, Mr Dominic Cummings has demanded cuts in taxes and massive spending commitments, so the Chancellor has resorted to floating a possible raid on middle-income pensions, a mansion tax—once described as Marxist—and a 5% cuts round to find some money to pay for Mr Cummings’s demands. Yet in the real world out there, the victims of Wonga, the payday loan company, were told a fortnight ago that they would receive less than 5% of the compensation that they are owed. Will the Chancellor take a break from his arm-wrestling with Mr Cummings, and introduce measures to compensate the Wonga victims fully?

[Sajid Javid]

I think that I have to correct myself. I said that there was talent throughout the country, but, judging by what we have just heard, I do not think that that includes the Labour party.

There is all sorts of speculation about the Budget, and I am not going to respond to that. However, the right hon. Gentleman will know that when the Budget is published, it will be published alongside a report by the independent Office for Budget Responsibility. Those are the figures that are going to matter, not the ones that are speculated about in the press. As for growth, the right hon. Gentleman will also know that although there has been a fall in global growth, the International Monetary Fund forecasts that Britain will grow faster this year than France, Germany, Italy and Japan.

[John McDonnell]

I asked about Wonga. [Hon. Members: “You did.”] On the basis of that answer, I can see why No. 10 nicknamed the right hon. Gentleman CHINO: Chancellor in name only.

Wonga is just one example of the recent scandals in the financial sector. We have seen the scandals of closet tracking last year, London Capital & Finance, Woodford Investment Management, the tax avoidance by Lycamobile —a Tory party donor—NMC Health’s misreporting today, large-scale money-laundering, and audit failure after audit failure. Regulation of the finance sector—I say it again—is clearly failing, and now there is the risk to jobs resulting from the tardiness of a post-Brexit settlement. Let me put this to the Chancellor: can he assure me that the White Paper that he has promised today will address the failure of regulation and the culture of recklessness and abuse that has developed in some sections of the City, in addition to the risks from Brexit, so that we can plan a long-term stable future for our finance sector?

[Sajid Javid]

I remember that not long ago the shadow Chancellor stood here and said that he wanted to be known as the “people’s Chancellor”. I think the people had a very different idea, however. On his question about high-cost credit, when I was last in the Treasury as Economic Secretary, that was the first time that any Government had introduced proper regulation around high-cost credit. This is something that we keep under review, which is why, as we present our White Paper, we will be looking to see what more we can do.

[Stephen Hammond (Wimbledon) (Con)]

T2. Many in financial services will warmly welcome the Chancellor’s remarks in the papers yesterday about equivalence arrangements, but does he agree that the real value to those arrangements is in the length of the revocation period? Will he therefore press for revocation notices of a minimum of a year and preferably three years?

[Sajid Javid]

Yes, I agree with my hon. Friend. Equivalence arrangements, done properly, would require a period of stability to be agreed, and that is exactly what we are working on with our European friends.

[Bill Esterson (Sefton Central) (Lab)]

T3. Funding for coal mining ended in 2012, but it carries on for oil and gas, as we saw at the recent Africa summit and in the lobbying for the Petrofac oil refinery in Bahrain. When is the Chancellor going to end funding for fossil fuel projects and take the action that is needed to tackle the climate crisis?

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[Mrs Flick Drummond (Meon Valley) (Con)]

T4. Over the past few weeks, I have met a number of businesses in the Meon Valley whose growth is being held back by poor internet connectivity. What funding exists to help businesses in rural areas to boost their productivity and growth by improving their broadband?

[Sajid Javid]

My hon. Friend is right to raise this matter. The Government have already put in place the gigabit broadband voucher scheme and the rural gigabit connectivity scheme, which is available to small and medium-sized enterprises and gives support of up to £3,500 per company. She will also be pleased to know that the Government have committed £5 billion to invest in new infrastructure to ensure that every part of our country has the best possible broadband.

[Matt Western (Warwick and Leamington) (Lab)]

T8. Will the Chancellor ensure, in the Budget in March, that the automotive manufacturing sector gets the support it requires? He will know that there was a decline of 14% in our manufacturing production last year, which represents a big hit to the Treasury. Will he put in place the support to ensure a transition from fossil fuels, so that we can still produce vehicles such as diesel-powered units in good numbers while supporting the switch to electric vehicles?

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[Afzal Khan (Manchester, Gorton) (Lab)]

T9. In September last year, standing at the Dispatch Box the Chancellor declared that austerity was at an end, but just last month he demanded that each Department cut 5% of its budget—hardly a glowing endorsement of the end of austerity. Will the Chancellor now admit that the Government never had any intention of ending austerity or easing the pain felt by millions around the country?

[Sajid Javid]

With respect, I think the hon. Gentleman is confusing cutting spending and tackling waste, and we know that the previous Labour Government was good at neither of those, with overspending and loads of waste. It is right that as a Government we look carefully at every single pound that is spent and make sure it is done so appropriately.

[Damian Hinds (East Hampshire) (Con)]

T6. Creditor enforcement action can greatly exacerbate the problems that people going through mental health crises can experience. May I commend the Chancellor and the Economic Secretary for the breathing space initiative, which will help to ease the pressure on those people and so many more?

[Mr Ben Bradshaw (Exeter) (Lab)]

Depending on which briefing to today’s newspapers was accurate, the infrastructure announcement will fund a grand total of either 250 or 1,000 miles of new designated cycleway. That is to be compared with the 1,800 being provided by the Labour Mayor in Manchester alone. How can a small city such as Exeter hope to get any of the help, resources or the powers it needs to deliver on the cycling infrastructure as it desperately wants to do?

[Sajid Javid]

I can tell the right hon. Gentleman that the announcement today was of £5 billion of fresh funding for local transport—buses and cycling. When it comes to cycling—something we all want made easier to access for all our constituents—there will be 250 miles of new dedicated cycle track.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T7. I know that the Government are committed to renewing and improving our national infrastructure. However, those improvements have to represent value for money. I therefore urge the Chancellor to question both the cost and effectiveness of the current proposals for a new lower Thames crossing and suggest that he re-examines both the business case and the alternative options.

[Sajid Javid]

I understand my hon. Friend’s concerns and he is right to raise this. He will be pleased that Highways England is conducting a supplementary consultation on the lower Thames crossing to make sure that any benefits are maximised. The consultation will close on 25 March, and I will then look at it carefully. I would encourage him to have his say.

[Wera Hobhouse (Bath) (LD)]

As a former teacher, I know that a good education is a key driver to economic opportunities for young people, but sixth forms have been heavily damaged by years of under-investment. Will the Chancellor commit to implementing the recent recommendation from the Education Committee and Ofsted to raise the rate of funding per pupil to at least £4,760 in next month’s Budget?

[Mel Stride (Central Devon) (Con)]

My right hon. Friend the Chancellor will know that I have written to him about the legal duty that the OBR has to produce two economic forecasts in each financial year, which of course has been complicated by the cancellation of the last Budget. Can I ask him to set out for the House the approach that he intends to take and how he will avoid the necessity of having two forecasts very close together saying essentially the same thing?

[Sajid Javid]

I congratulate my right hon. Friend on being elected as the Chair of the Treasury Committee. I look forward to working with him and to the scrutiny that he will provide, as he is doing right now. The issue about the forecasts the OBR needs to provide is a live one, and we will make sure that the OBR meets its statutory requirements. I am pleased that the head of the OBR, Robert Chote, has discussed it with my right hon. Friend, and I would be happy to discuss it with him too.

[Gavin Robinson (Belfast East) (DUP)]

The Chancellor will know of the association between productivity, economic opportunity and regional productivity. Noting that Flybe is in the news again today, and knowing how important it is to Belfast City airport in my constituency and regional hubs throughout this United Kingdom, will he remember those three principles as he charts a course to find a permanent solution for that aviation company?

[Sajid Javid]

Of course I will keep that in mind. I assure the hon. Gentleman that the Government are absolutely committed to spreading opportunity throughout the country—throughout each of the nations that make up the United Kingdom—and we want to look at all the ways we can improve connectivity.

[Jo Gideon (Stoke-on-Trent Central) (Con)]

The Goodwin International training school in my constituency is an exemplar of skills training by a successful modern manufacturer with a world-class reputation. For less established firms such as challenger small and medium-sized enterprises, what support is on offer to level them up to Goodwin International standards?

[Peter Grant (Glenrothes) (SNP)]

Every year Scotland exports a quarter of a billion pounds worth of salmon to the European Union. This week, the Scottish Salmon Producers’ Organisation expressed serious concern about the continuing uncertainty of Brexit. What assessment has the Chancellor of the Exchequer made of the impact on this vital industry of the Chancellor of the Duchy Lancaster’s announcement that “as friction-free as possible” trade with the EU means “not friction-free at all”?

[Sajid Javid]

I assure the hon. Gentleman that we are working closely with the fishing industry, including salmon producers, to make sure that as we put in place our new free trade agreement, it will continue to thrive.

ECOFIN: 21 January 2020

Sajid Javid Excerpts

Thursday 30th January 2020 Written Statements

[The Chancellor of the Exchequer (Sajid Javid)]

A meeting of the Economic and Financial Affairs (ECOFIN) Council was held in Brussels on 21 January 2020. The Council discussed the following:

Early morning session

The Eurogroup President briefed the Council on the outcomes of the 20 January meeting of the Eurogroup, and the European Commission provided an update on the current economic situation in the EU. Following this, Ministers took stock of the process of nominating a European candidate for the European Bank for Reconstruction and Development (EBRD) presidency.

Current financial services legislative proposals

The Croatian presidency provided an update on current legislative proposals in the field of financial services.

Presidency work programme

The Croatian presidency presented its work programme for January to June 2020.

European green deal

The European Commission presented the economic and financial aspects of the European green deal.

European semester 2020

To launch the new European semester exercise, the European Commission presented the annual sustainable growth strategy, the Alert Mechanism Report, and the Euro area recommendation.

Tax challenges arising from digitalisation

The Council held an exchange of views on the state of play of negotiations in the OECD on tax challenges arising from digitalisation.

[HCWS83]

ECOFIN

Sajid Javid Excerpts

Tuesday 21st January 2020 Written Statements

[The Chancellor of the Exchequer (Sajid Javid)]

A meeting of the Economic and Financial Affairs (ECOFIN) Council will be held in Brussels on 21 January 2020. The Council will discuss the following:

Early morning session

The Eurogroup president will brief the Council on the outcomes of the 20 January meeting of the Eurogroup, and the European Commission will provide an update on the current economic situation in the EU. Following this, Ministers will take stock of the process of nominating a European candidate for the European Bank for Reconstruction and Development (EBRD) presidency.

Current financial services legislative proposals

The Croatian presidency will provide an update on current legislative proposals in the field of financial services.

Presidency work programme

The Croatian presidency will present its work programme for January to June 2020.

European Green Deal

The European Commission will present the economic and financial aspects of the European Green Deal.

European semester r2020

To launch the new European semester exercise, the European Commission will present the annual sustainable growth strategy, the alert mechanism report, and the Euro area recommendation.

Tax challenges arising from digitalisation

The Council will hold an exchange of views on the state of play of negotiations in the OECD on tax challenges arising from digitalisation.

I would also like to inform the House about the ECOFIN meetings that took place on 5 December 2019 and 8 November 2019.

ECOFIN: 5 December 2019

A meeting of the Economic and Financial Affairs (ECOFIN) Council was held in Brussels on 5 December 2019. The UK was represented by Matthew Taylor, Director Europe, HM Treasury.

The Council discussed the following:

Early morning session

The Eurogroup president briefed the Council on the outcomes of the 4 December meeting of the Eurogroup, and the European Commission provided an update on the current economic situation in the EU.

Banking Union

The Council noted a report on progress on the banking union.

AOB: Directive as regards disclosure of income tax information

Ministers held an exchange of views on the legal basis for country-by-country reporting of incometax information, as requested by Sweden.

Current financial services legislative proposals

The Commission provided an update on current legislative files in the field of financial services.

Energy taxation

The Council adopted conclusions in regards to energy taxation.

European financial architecture for development

The Council adopted conclusions on the European financial architecture for development.

Climate action work plan

In response to discussions at September informal ECOFIN meeting, the Council approved the proposed work plan on climate action.

“Stable-coins”

The Council and Commission adopted a joint statement on “stable-coins”.

Capital Markets Union

The Commission gave an update on the capital markets union, welcoming work on sustainable finance and FinTech.

Anti-money laundering and counter-terrorist financing



The Council adopted the conclusions on proposed changes to the future EU framework for anti-money laundering and the financing of counter-terrorism.

Sustainable finance

The Council held an exchange of views the sustainable finance.

Non-performing loans

The Commission updated on the action plan for non-performing loans in Europe.

Stability and growth pact

The Council issued decisions confirming no effective action has been taken by Hungary and Romania in response to Council recommendations of June 2019.

AOB: EU list of non-co-operative tax jurisdictions

As an AOB, the Danish delegation requested Ministers to strengthen ambitions on the EU list of non-co-operative tax jurisdictions.

ECOFIN: 8 November 2019

A meeting of the Economic and Financial Affairs Council (ECOFIN) was held in Brussels on 8 November 2019. The UK was represented by Mark Bowman (Director General, International Finance, HM Treasury). The Council discussed the following:

Excise duties

The Council discussed the directive on general arrangements for excise duty (recast); the regulation on administrative co-operation of the content of electronic registers; and amendments to the directive on the structures of excise duty on alcohol.

VAT data from payment service providers

The Council agreed a general approach on amendments to: the directive on the common system of VAT with regards to requirements for payment service providers; and the regulation on administrative co-operation in the field of VAT concerning measures to combat VAT fraud.

VAT treatment for small enterprises

The Council agreed amendments to the directive on the common system of VAT in regards to the special scheme for small enterprises.

Current financial services legislative proposals

The Finnish presidency provided an update on current legislative proposals in the field of financial services.

European Central Bank – Executive Board member

The Council adopted a recommendation to the European Council on the appointment of a new member of the Executive Board of the European Central Bank.

Digital taxation

The Council was updated on the current state of play of digital taxation and discussed the way forward.

European Fiscal Board report

The Council were presented with the 2019 annual report of the European Fiscal Board.

EU statistical package

The Council adopted Council conclusions on the EU statistical package and to review progress achieved.

Climate finance

The Council adopted Council conclusions on climate finance for the COP25 climate summit.

Follow-up to international meetings

The presidency and Commission informed the Council of the main outcomes of the G20 meeting of Finance Ministers and central bank governors and the IMF and World Bank annual meetings held in October 2019.

Stable coins

As an AOB, the presidency informed the Council about a joint statement on stable-coins ahead of December ECOFIN.

[HCWS48]

Economy and Jobs

Sajid Javid Excerpts

Monday 20th January 2020 Commons Chamber

[The Chancellor of the Exchequer (Sajid Javid)]

The Shadow Chancellor really is a shadow of his former self; that was a litany of complaints and unreconstructed misery. While he is reading from the same old script—one that has been decisively rejected by the British people—we are writing a new chapter for our great country. We have an unshakeable belief in the brilliant future of this great country. While Labour just keep on refighting the same old internal battles, this Conservative Government are getting on with improving our schools and our NHS, tackling crime and getting Brexit done. We will repay the trust that millions of voters have put in the people’s Government.

[Robert Halfon (Harlow) (Con)]

Does my right hon. Friend agree that, with the national living wage, the freeze in fuel duty and the investment in apprenticeships and skills, it is the Conservative party that is the true workers’ party of Great Britain?

[Sajid Javid]

Absolutely. May I take this opportunity to commend my right hon. Friend for all the work he has done on all three of those issues. He is absolutely right in what he says.

Our work has started with this Queen’s Speech, the most radical Queen’s Speech in a generation. It will enshrine in law the largest cash settlement in the NHS’s history and invest more in our schools; it will revolutionise our national infrastructure and make great strides towards net zero emissions by 2050; it will level up, spreading prosperity and opportunity across every region and country of the United Kingdom; and it will build that brighter future for our country on the foundation of economic security and sound public finances. This is a one nation Government delivering the people’s priorities as we embark on a decade of renewal.

As we begin this new chapter in our country’s history, we start with strong economic fundamentals. Our economy has grown in each of the past nine years, and just today, when the International Monetary Fund updated its world economic outlook, it forecast that this year the UK will grow faster than France, Germany, Italy and Japan. Our jobs miracle continues—it is a miracle; Members would think that a party that calls itself the Labour party would welcome a jobs miracle—with the highest employment rate ever and an unemployment rate that is the joint lowest for 45 years.

The UK is an open and competitive economy with some of the most innovative and exciting businesses in the world. Just last week, new figures showed that tech investment in the UK grew faster last year than in the US, China, France and Germany. Although we are optimistic about the future, we are not complacent. It is clear that the uncertainty and indecision of recent months has held back our economy. The global economy is slowing, and an open economy like ours is not immune to global trends. Our productivity growth has not yet recovered to pre-crisis levels, acting as a brake on the potential of our country. The Government have a real opportunity to tackle some of these long-term challenges. I will set out our new economic plan in the Budget on 11 March.

[Julian Knight (Solihull) (Con)]

On my right hon. Friend’s point about investing in new technology and in the future, will he confirm that the Government remain committed to the 2018 automotive sector deal on funding for research into and the development of the infrastructure necessary to support connected and autonomous vehicles? That is a matter of great concern to my constituents and the wider west midlands.

[Sajid Javid]

Yes—I am pleased that my hon. Friend has asked me that. We are absolutely committed to that deal; indeed, we want to go further. The automotive sector is one of our most important sectors, responsible for much of the growth and many of the jobs in our economy. It will certainly get the Government’s strong support.

Let me briefly address an important question for the future of our economy: our future relationship with the EU. We are leaving the EU, its single market and the customs union. We are seeking an ambitious, Canada-style free trade agreement. In doing so, we will be a sovereign and independent country, not a rule taker, so yes, some things will change. It is a new chapter. We are ambitious for British businesses, through a close relationship not only with the EU but with other partners. Some 90% of global growth is expected to come from outside the EU over the next decade, so there are real opportunities for the UK. We will maintain high standards not because we are told to, but because that is what the British people want. Above all, we will be driven by British interests.

[Sir Robert Neill (Bromley and Chislehurst) (Con)]

I welcome what my right hon. Friend is saying, but will he bear in mind in particular the need to protect the interests of the financial services sector, as Britain is a world leader in financial services? It is right that so large a sector would not necessarily be a rule taker, but does he recognise that we need better than the current equivalence regime, to make sure that we maximise access for our world-leading financial services?

[Sajid Javid]

I agree absolutely with my hon. Friend and will come to that topic in just a moment.

The foundation of our new economic plan is fiscal responsibility. It has taken a decade of hard work by the British people to turn our public finances around. The deficit has fallen from 10% of GDP in 2010 to just 1.8% today. We are not going to throw that away. We were elected on a platform to manage the public finances responsibly, so it is a matter of trust, as well as economic credibility, that we deliver on that promise to the British people. We will be bound by a credible new fiscal framework that will keep our borrowing and debt under control while allowing for new investment in levelling up and spreading opportunity throughout the country. At the Budget, I will publish a new charter for budget responsibility that will give effect to those rules, and the Office for Budget Responsibility will scrutinise our performance against them.

Thanks to the hard work of the British people, we have got that deficit down, and debt is under control. We can now afford to invest more in levelling up and spreading opportunity right across our country. The first step will be our national infrastructure strategy. Better infrastructure can boost people’s earning power by making it easier to find work. It can help businesses access new markets. It can help us thrive and grow. It can boost communities and places and improve standards of living. It is simply not good enough that we have fallen behind so many other countries on infrastructure, and the Government are going to fix that.

[Peter Grant (Glenrothes) (SNP)]

The Chancellor may be aware that a very welcome infrastructure announcement was made just before Christmas, when the Scottish Government gave the long-awaited confirmation that the Levenmouth rail link will be reinstated. Exactly how much money do the United Kingdom Government intend to put into that vital project?

--- Later in debate ---

[Sajid Javid]

I am afraid I did not catch the name of the project the hon. Gentleman mentioned. If he wants to stand up again and mention it, I will reply.

[Peter Grant]

The Levenmouth rail link—I can give the Chancellor a map if he wants to know where it is.

[Sajid Javid]

The good news for our citizens, whether in Scotland, England, Northern Ireland or Wales, is that our infrastructure revolution and the funds we intend to use to build new infrastructure will benefit every part of the United Kingdom. When we set out our plans and provide more detail in the forthcoming Budget, there will no doubt be a lot more investment in Scotland.

[Wera Hobhouse (Bath) (LD)]

The climate emergency is real, and we need to transfer quickly to energy resources that are not fossil fuels. That means we need a much bigger electricity grid. Is part of the Chancellor’s proposals for new infrastructure about how we actually get to a fourfold increase in electricity and the infrastructure that needs to go with that?

[Sajid Javid]

The infrastructure revolution will include significant new investment in our ambition—the statutory requirement to get to net zero by 2050, and also our ambition to make great strides towards that. If she will allow me, I will get in a few moments to the amendment in the name of the right hon. Member for Kingston and Surbiton (Sir Edward Davey), which touches on the all-important issue of climate change.

We will invest in infrastructure in every corner and nation of the United Kingdom. We will invest in roads, in railways and in broadband so that our country can boast the most formidable connectivity on the planet.

We will put significant investment into one of the most critical challenges we face, and that is climate change. Our strategy will take huge strides towards achieving our world-leading commitment to achieve net zero emissions by 2050. We will invest in new technologies and markets as we look ahead to the critical COP26 talks later this year.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

The Chancellor talks about the investment in technology to challenge climate change. Does that mean the Conservative party will now drop its ideological opposition to onshore wind?

[Sajid Javid]

We have a review into how net zero will be achieved by 2050, and when we publish it the hon. Gentleman will see exactly how we are going to achieve that.

As well as securing our fiscal foundations, levelling up across our country and decarbonisation, our new economic plan will build on one of our more fundamental economic strengths as a country, and that is our openness. This country has always been an open, global, outward-looking country. At the heart of that openness is our belief in free trade. Free trade has raised living standards around the world, it has created jobs and it has lifted millions around the world out of poverty. It will remain a guiding principle of our economic policy.

As we leave the EU, we will have the opportunity to strike new trade deals with our friends and partners across the world. This is a huge opportunity for Britain, especially with so many of our businesses having fantastic trading relationships abroad. The trade Bill that was announced in the Queen’s Speech will help make this opportunity a reality.

When it comes to trade, our biggest exporting sector is our financial and professional services sector, which is a national asset. It employs more than 1 million people, contributes nearly £130 billion to our economy each year and adds value to every region and nation in the UK, not just the City of London. The Queen’s Speech introduces a new financial services Bill that will make sure we secure and enhance the success of that industry.

Of course, openness to the world does not mean that we give up control of our borders. The immigration Bill in the Queen’s Speech will take the necessary steps to end free movement as we leave the EU and regain control, but that does not mean that this country is closed to the best and the brightest from around the world. I am proud of living in a country as diverse as this. Diversity adds to the vibrancy of our society and the growth of our economy. Some of our greatest scientists, artists and entrepreneurs have been first and second-generation migrants. We will never forget their contribution. That is why we have dropped any arbitrary immigration targets, and we are reforming our immigration system through initiatives such as the new, highly flexible fast-track visas for scientists. I urge Members of the House to vote against amendment (b) in the name of the right hon. Member for Ross, Skye and Lochaber (Ian Blackford).

The Queen’s Speech will also support the living standards of our people. The best way to boost living standards is to support working families to earn more and to keep more of what they earn. That is why we aim to raise the national living wage to two thirds of median earnings within five years, and why we are extending its reach to those aged 21 and over. I recently announced a rise in the national living wage of more than 6%, starting on 1 April. This is its largest increase since it was introduced. That is a pay rise for 2.3 million of Britain’s lowest-paid workers.

We are cutting taxes, too. We have already increased the personal allowance to £12,500 and the higher-rate threshold to £50,000 one year earlier than planned, and we will go further when we increase the national insurance threshold next year—a tax cut for more than 30 million people. We have also set out our tax plans regarding the triple tax lock, with no increases in the rates of income tax, VAT or national insurance in this Parliament.

Let me turn briefly to the amendment in the name of the right hon. Member for Kingston and Surbiton (Sir Edward Davey). The UK is already a world leader in clean growth. Between 1990 and 2017, the UK reduced its emissions by 42% while growing the economy by two thirds. We have reduced the carbon intensity of our economy faster than any other G20 country since 2000. Our clean growth strategy sets out how we will continue to cut emissions, while keeping costs down for consumers, creating good jobs and growing our economy, but, of course, we need to go further. The Treasury is carrying out a world-leading net zero review. Our national infrastructure strategy will provide significant new investment into the decarbonisation of our economy and we are acting internationally through the COP26 talks, which will be in Glasgow later this year, so I urge hon. Members to reject the amendment.

[Rachel Reeves (Leeds West) (Lab)]

I welcome the investment that the Chancellor speaks of and the commitment to get to net zero by 2050. Climate change also means more extreme weather events. In Leeds West, we had serious floods in 2015, and yet still the Government refuse to put in the funding to build the flood defences to protect against the one in 200-year flood event that we experienced. When will the Government put the money into that infrastructure?

[Sajid Javid]

That is an important point. I am aware of some of the serious flooding to which the hon. Lady has referred. That is why our national infrastructure plan includes much more funding—significant new funding—for flood defences, and I hope that she will welcome that and support those plans when they come before this House.

Let me also briefly address the amendment in the name of the Leader of the Opposition. Every Labour MP stood on a manifesto that would have cost the average taxpayer an extra £2,400 each year—each and every one of them did that. Labour committed to spending an extra £1.2 trillion over five years, which is equivalent to funding the NHS budget for nine years. It is no wonder that the hon. Member for Salford and Eccles (Rebecca Long Bailey) said, just a few days ago, that the policies that she helped to write lacked “economic credibility”. It is a bit late for that.

Whatever they may say now, every single one of the would-be Labour leaders tried to make the Leader of the Opposition Prime Minister. They endorsed his vision, his world view and his ideas for Britain, and that is why they will never be able to bring the change that the British people voted for. Instead, they are confirming that Labour is the party of the past and that it is out of touch with working people. Labour will just keep on refighting the same old internal battles while this Conservative Government get on with renewing the country.

[Mike Amesbury (Weaver Vale) (Lab)]

I remind the House that taxpayers paid billions of pounds to bail out banks that the Chancellor worked for when he was an investment banker; he should be thanking the British taxpayer.

[Sajid Javid]

May I remind the hon. Gentleman that the banking crisis was so much worse in this country because of the changes made by the previous Labour Government? They were responsible for the depth of that crisis. Gordon Brown and Tony Blair should have listened to the then shadow Chancellor Lord Lilley, who now sits in the other place; at the time, he said that if Labour went ahead with those changes it would be a “field day” for “spivs and crooks”. If they had listened to him, things would have been different. It was the Labour Government who were responsible for the largest banking bail-out in history, and the British people will never forget that.

Just a few weeks ago, the British people were given the starkest choice in decades, between two completely opposed economic visions. On the one hand, the Labour party wants to reach into every corner of people’s lives with the dead hand of nationalisation, excessive regulation and punitive taxation, and its answer to any question one cares to name is yet more state intervention. On the other hand, the Conservatives believe in a dynamic market economy, founded on a promise of openness, enterprise and freedom. The British people have made a decisive choice. They have given us a mandate to deliver. We have a tremendous opportunity to get on with tackling some of the long-term challenges for our economy. A new economic plan will transform the country as we go from a decade of recovery to a decade of renewal. I commend this Queen’s Speech to the House.

Retail Prices Index: Consultation

Sajid Javid Excerpts

Tuesday 14th January 2020 Written Statements

[The Chancellor of the Exchequer (Sajid Javid)]

Yesterday, I wrote to the Chair of the House of Lords Economic Affairs Committee to inform him that the joint consultation between the Government and UK Statistics Authority (UKSA) on a proposed change to address the shortcomings in the Retail Price Index (RPI) will now launch at Budget 2020. The consultation had been scheduled to launch this month. However, following the general election and my confirmation of the Budget date, I have agreed with UKSA that the consultation will now launch at Budget.

The consultation will launch at the Budget on 11 March. It will be open for responses for a period of six weeks, closing on 22 April. The Government and UKSA will respond to the consultation before the Parliamentary summer recess.

[HCWS33]