Non-domestic Energy Support

Simon Hoare Excerpts

Monday 9th January 2023 Commons Chamber

[James Cartlidge]

The hon. Gentleman makes a very good point. Just to be clear, we are aware that some domestic customers receive energy bill support via the EBRS—the current scheme, which is non-domestic. They include people in park homes and on heat networks, which are presumably the sort of case that he is talking about. While domestic consumers on a non-domestic meter will continue to benefit from the discount offered through the extension of the EBRS to the new discount scheme, we are developing options to ensure that they receive support in line with other domestic users after April.

[Simon Hoare (North Dorset) (Con)]

Micro and small businesses are the lifeblood of my constituency. Many of those businesses will be off grid and will be using oil. I welcome my hon. Friend’s statement, but can he say something to give them a crumb of comfort? Can he assure me that they and others in similar circumstances across the country will be in his thoughts going forward?

[James Cartlidge]

I am grateful to my hon. Friend for raising those cases and exceptions, as did his fellow Select Committee Chair, the hon. Member for Bristol North West (Darren Jones), who chairs the Business, Energy and Industrial Strategy Committee. As we announced at the 2022 autumn statement, the Government will provide £150 in support for UK non-domestic consumers who are off the gas grid and who use alternative fuels, with larger users of heating oil receiving additional top-up payments based on actual usage. No decisions have been made on further support. We will continue to monitor the situation.

Energy (oil and gas) profits levy

Simon Hoare Excerpts

Tuesday 22nd November 2022 Commons Chamber

[The Financial Secretary to the Treasury (Victoria Atkins)]

It is a pleasure to be at the Dispatch Box to respond to the many powerful and passionate contributions made by my right hon. and hon. Friends and the sometimes incorrect contributions made by other hon. Members, and it is a genuine privilege to wind up on behalf of the Government in support of the autumn statement. We have discussed and debated many aspects of the autumn statement. We have heard some passionate and clear analyses of the situation in our constituencies as well as nationally and internationally, and of the state of the economy at home and around the world.

The autumn statement sets out our ambitions for stability, growth and public services. We say that it is a balanced plan: on the one hand, it will strengthen our public finances, bring down inflation and protect jobs, and on the other hand, it will protect standards in schools, cut NHS waiting times, fund social care, cap energy bills and support those on benefits. We have been frank, however, that that has been difficult. We as a Government are prepared to take those decisions in the country’s best interests. There is no question but that these are challenging times, but neither the origins nor the impacts are unique to this country.

To correct some Opposition Members, the independent Office for Budget Responsibility has said that the fall in living standards is almost entirely driven by rising world prices. We can see the evidence in the international figures. Inflation is high here, but it is higher in Germany, the Netherlands and Italy. My hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) explained the terrible impacts that inflation can have and my hon. Friend the Member for Wantage (David Johnston) made the critical point that inflation hurts the poorest the most. That is precisely why the Government’s No. 1 priority is to tackle inflation.

Interest rates have risen here, but they have risen more quickly in the United States, Canada and New Zealand. My hon. Friend the Member for Newbury (Laura Farris) reminded the House that the Governor of the Bank of the England gave evidence to the Treasury Committee this week and said that the disruption in the mortgage market caused by the mini-Budget had subsided—indeed, that it subsided in mid to late October. I am grateful to her for that reminder.

Growth forecasts have fallen here, but they have also fallen elsewhere in the world, including falling further in Germany. The OBR says that higher energy prices explain the majority of the downward revision in cumulative growth since March. Governments do not have the luxury of choosing the context in which they must operate. Indeed, the IMF expects one third of the world’s economy to be in recession this year and next. The job is to understand what we face, address those issues deliberately and responsibly on behalf of the communities we serve and then deliver that action, and that is exactly what we are doing.

[Simon Hoare (North Dorset) (Con)]

Does the Minister agree with me that the measures set out in the statement and under discussion over these last few days will mean that, when the international economy and our own start to improve, we will be in a far better place to reap the benefits of that global economic improvement than if we were just to sit here, twiddle our thumbs and pretend that everything was okay?

[Victoria Atkins]

My hon. Friend is absolutely right. Indeed, the OBR—the independent OBR—again confirms that because of our plans the recession is shallower, and inflation is reduced because of these very difficult decisions we have taken. Unemployment is also lower, with about 70,000 jobs protected as a result of our decisions.

Economic Responsibility and a Plan for Growth

Simon Hoare Excerpts

Wednesday 19th October 2022 Commons Chamber

[The Chief Secretary to the Treasury (Edward Argar)]

I think I last stood at this Dispatch Box about three months ago, so it is a privilege to close this debate on behalf of the Government. I welcome the kind words from the shadow Chief Secretary, the right hon. Member for Wolverhampton South East (Mr McFadden). I suspect, knowing him as I do, that he will be tough in his challenges, with, as we have seen, a suitably dry delivery and sense of humour, but I have huge respect for him, as he knows. I have yet to be treated to his singing voice—sadly, we were not just then—but on a future occasion he might be tempted.

I thank all hon. and right hon. Members for their contributions. The debate has understandably invited the expression of strong views on the part of all Members who have spoken. That is because economic stability is not just about abstract numbers and graphs. As the shadow Chief Secretary knows, I am nothing if not a pragmatist. This is about our constituents, our families, our friends and our neighbours, and it matters. As the Chancellor set out to the House on Monday:

“Behind the decisions we take and the issues on which we vote are jobs that families depend on, mortgages that have to be paid, savings for pensioners, and businesses investing for the future.”—[Official Report, 17 October 2022; Vol. 720, c. 395.]

Sometimes those decisions are difficult or, indeed, very difficult, as the Chancellor acknowledged. We know we need to do more to give certainty to the markets about our fiscal plans, and we have. I am clear, as is my right hon. Friend the Chancellor and, indeed, the Prime Minister, that we need to prioritise the needs of the most vulnerable, and we will.

We also know that the long-term economic wellbeing of this country relies on our achieving sustainable growth. In the coming weeks and months, responsibly and sustainably, we will continue that urgent mission. Indeed, the reason the United Kingdom has always succeeded is that, at big and difficult moments, we have taken tough decisions in the long-term interest of the country. When conditions allow, when it is consistent with sound public finances, we will seek to cut taxes to support further economic growth.

I remind the House that, since 2010, the United Kingdom has seen the third highest real GDP growth rate in the G7, increasing by more than Germany, France, Japan and Italy. The UK is forecast to be the fastest growing economy in the G7 in 2022. We have a strong labour market with the lowest unemployment rate in almost 50 years, which gives genuine grounds for optimism about our long-term prospects for growth.

[Simon Hoare (North Dorset) (Con)]

I warmly welcome my right hon. Friend to his place. He has used the word “pragmatism.” The shadow Chief Secretary to the Treasury was on the money with regard to the folly of applying ideology when the circumstances do not allow it. Will my right hon. Friend, from the Dispatch Box, give both the country and the House confidence that good, old-fashioned Tory pragmatism and common sense—people can call it Treasury orthodoxy if they wish—are back at the helm?

[Edward Argar]

I have just set out where we are and what the Prime Minister and the Chancellor have said about the approach we are adopting. It is my firm belief, and the Chancellor’s firm belief, that we wish to be a tax-cutting Government, but that must be done from a basis of sustainability. When taxes are cut sustainably, we see behaviours change that help to generate investment and growth, which is what the Prime Minister and the Chancellor seek.

Economic Update

Simon Hoare Excerpts

Monday 17th October 2022 Commons Chamber

[Jeremy Hunt]

I would gently say to the hon. Gentleman that, while I completely understand how important it is to support our most vulnerable pensioners, what they need more than anything is a strong economy that can pay for the support that we would want to give them.

[Simon Hoare (North Dorset) (Con)]

I welcome my right hon. Friend to his place and breathe a sigh of relief at the grown-up and sensible approach he has taken to the issues at hand. I also echo the remarks of my right hon. Friend the Member for Forest of Dean (Mr Harper) and the hon. Member for Ceredigion (Ben Lake) about the need to take into account those who are off grid and using heating oil. They deserve as much support as possible.

My right hon. Friend is newly empowered and he is able to slay many dragons. Could he slay the dragon of fracking, which was not in our manifesto?

[Jeremy Hunt]

This is an issue that has raised its head in my own constituency. Let me simply say to my hon. Friend that the Government’s position is clear: we will not proceed unless there is local support.

Finance (No. 2) Bill

Simon Hoare Excerpts

Report stage
Wednesday 2nd February 2022 Commons Chamber

[James Murray]

No, I am going to make some progress.

The truth is that this tax cut is going ahead at a time when bankers’ earnings are on the rise, with investment banks’ profits soaring off the back of a wave of takeovers and mergers caused by the pandemic. The UK arm of Goldman Sachs—a business that the Chancellor will know well—boosted its pay by more than a third last year, Barclays is set to raise bonus payments by more than 25% in its corporate investment bank, and boutique banks in the City are expected to do especially well, as they are exempt from rules that limit bonuses.

These measures show just how out of touch this Government and this Chancellor are: they are championing a tax cut for banks while ignoring calls from the TUC, the Federation of Small Businesses, the Institute of Directors, Labour MPs, some on their own side, and the British public, to abandon their tax cut on working people and their jobs. If Ministers are still refusing to listen, today we are giving their Back Benchers an opportunity to say, “Enough is enough.” They can vote with us tonight to cancel the banking tax cut and make the Government think again.

The national insurance hike is wrong because it threatens people’s financial security. I will now turn to other aspects of the Bill that relate to wider economic security and the threat of economic crime.

[Simon Hoare (North Dorset) (Con)]

Just before the hon. Gentleman leaves the rise in national insurance contributions—a difficult decision for any Government, particularly given the backdrop of a manifesto commitment—surely he would criticise the Government were they to put the ideology of a manifesto front and centre, instead of trying to find a way of ameliorating what would clearly be growing waiting lists and people queuing at all our advice surgeries and offices, complaining that they could not get the treatment they needed, which they were denied during the pandemic. Surely that is the right thing to do for public health and all our citizens.

[James Murray]

No one denies that the NHS needs more money, but hiding behind the hon. Member’s intervention is the idea that there is no other way to raise the £12 billion that the national insurance rise will raise. It takes some cheek to hear that from Conservative Members, when just yesterday we heard of £8.7 billion being wasted on PPE procurement and £4.3 billion of fraud being written off by the Chancellor—there is the £12 billion. Frankly, the Chancellor should stop wasting money, stop letting criminals get away with fraud, and stop expecting working people to pick up the bill.

Northern Ireland Protocol

Simon Hoare Excerpts

Thursday 15th July 2021 Commons Chamber

[Simon Hoare (North Dorset) (Con) [V]]

I thank my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) for instigating the debate. It is nice to see a mainstream debate on the affairs of Northern Ireland taking place on the Floor of the House.

Let us remind ourselves of two things at the start. Lord Frost confirmed to our Committee, the Select Committee on Northern Ireland Affairs, just a few weeks ago that he negotiated the protocol, he understood the protocol and he signed off the protocol. How people have interpreted one or two parts of it may be surprising, but it is not legitimate for the Government effectively to say, “This was new, it was an impost, it crept up on us.” This was a negotiated document between the two parties.

Without the protocol, there would still have to be checks. We are talking about the defence, for want of a better phrase, of an internal market and a single market. Those alternative arrangements, as some called them some little while ago, would, according to HM Revenue and Customs, be likely to be as, if not more, complicated and possibly more costly. For those who may be thinking that, if we get rid of the protocol, everything will go back to being normal, that will not happen. We are all in a new normal now.

This is important because there are a lot of concerns, predominantly among the loyalist community, that this is in some way a stepping stone to a united Ireland or a move to a border poll. Everybody, from the Taoiseach to the Prime Minister—at last week’s Liaison Committee, in response to a question from me—to those in Brussels and anywhere else, has to recognise that the integrity of Northern Ireland as an intrinsic and key part of the United Kingdom remains. The protocol does not change that constitutional balance one way or another.

I take the point just made by the right hon. Member for Lagan Valley (Sir Jeffrey M. Donaldson). I have yet to be persuaded that anybody, in their heart of hearts, ever defines their sense of belonging or loyalty by invisible trading arrangements. Citizenship, a sense of belonging and a sense of nationhood are far more powerful and emotive than that.

We should remind ourselves that there are some—there will be none in this House, I know—who refuse to accept the referendum result on the Good Friday agreement itself, and have gone around saying, “Unless we get our way on the protocol and unless it is scrapped”. Let us pause there for a moment to say that there is no majority view in support of the scrapping of the protocol. Nobody by the same token is saying that it is perfect; there is scope for change and improvement. But let us not inadvertently fall into the trap of using this debate on the protocol as a Trojan horse to undermine the Good Friday agreement. Everybody knows that, without that bedrock, there can be no progress in Northern Ireland, and none that we have seen over the past several decades.

Business wants to be engaged. Let me say to the Minister, and I look forward to her summing up: let us have that investment conference. Let us maximise those opportunities. Invest Northern Ireland is dealing with 30 requests at the moment. The business engagement forum needs to be formalised with a set agenda and regular meetings.

Trust is so important here. My hon. Friend the Member for Harwich and North Essex talked about the need for the EU to change. I agree in many respects. We need to see flexibility on goods at risk. We need to see flexibility on the precautionary principle and the differential of how we use laws. It is either illegal unless it is made legal, or legal unless it is made illegal. The benefit of the extensions of the grace periods has illustrated that the single market does not collapse as a result of that. Common sense is required.

I am not here to act as an apologist for the EU, but from all my conversations with them I think the issue is one of trust. They still remain uncertain as to whether Her Majesty’s Government are intent upon implementing a reformed protocol using the offices of the Joint Committee. Without that trust or certainty, there can be no progress. We need to switch our mindset from negotiate or renegotiate, to reform and implement. Let us remind ourselves that the Vice President has no mandate to renegotiate. That would have to be given by the member states and any hope for that would come only if we see that trust rebuilt. I therefore urge the Government to have that joint investment conference, build on the trust and formalise business engagement.

The Select Committee heard today from two witnesses. Let me quote both of them. Aodhán Connolly, from Northern Ireland Retail Consortium said: “The most frustrating thing for business in Northern Ireland is we can see the solutions, we just don’t see the political will to do them.” From the Ulster Farmers’ Union, Victor Chestnutt said: “Solutions are sitting there.” Well, let us not just let them sit there; let us grab them. Let us make them work and let the twin benefits of access to the UK internal market and the European Union’s single market be that blue touch paper that will reignite and light a post-covid Northern Ireland economy where the benefits to business and to citizens can be fully felt.

[Madam Deputy Speaker (Dame Eleanor Laing)]

To confirm the answer to the question which is being silently asked, there is no mechanism whereby Members can intervene on someone who is speaking virtually. I just ask for patience from hon. Members. Hopefully, we will only have three more days of this arrangement—we all hope.

Economy and Jobs

Simon Hoare Excerpts

Monday 20th January 2020 Commons Chamber

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

I beg to move an amendment, at the end of the Question to add:

‘but respectfully regrets that the Gracious Speech fails to put an end to a decade of austerity, to invest in the UK’s underfunded public services, or to scrap universal credit; notes the damaging impact that the four-year freeze in working-age benefits has had on families on low income; and calls on the Government to bring forward a plan to reverse the damaging impact austerity has had on communities in the UK, tackle the climate and environmental emergency, and reshape the economy to work for everyone by clamping down on tax avoidance, tackling insecurity in work by extending full employment rights to all workers, ending in-work poverty, and introducing a real living wage.’.

I appreciate that many new Members will want to speak today, so I will seek to be as brief as possible. [Interruption.] I thought that would be appreciated on both sides. We aim to please.

You, Mr Speaker, have been in the House as long as I have, so you will know that the classic approach to a good Queen’s Speech and its subsequent debate combines an assessment of the position of the country—a state of the nation address—with at least some attempt to address the issues facing our people. On both counts, the latest Queen’s Speech and this process is by any stretch of the imagination crushingly disappointing—I believe that the overriding view that will come to be associated with this Government may well be one of disappointment. They appear to have no appreciation of the lives so many of our fellow citizens live or of the often heartrending problems they face.

The Government’s programme in the Queen’s Speech fails to reverse the decade of austerity. As the Institute for Fiscal Studies has said, austerity is baked into the Government’s economic policies, which fail to tackle insecure work, to end in-work poverty and to introduce a real living wage. Worst of all, the Queen’s Speech fails to address the brutal hardship caused by universal credit, introduced by this Government. We face twin emergencies: first, a climate emergency, an existential threat to our planet that, as we have seen only too well in Australia and Indonesia, is rapidly spiralling beyond control; and, secondly, in this country, a social emergency resulting from a decade of harsh austerity and decline. Last year, the House resolved that we faced a climate emergency. We should also resolve that we face a social emergency.

[Simon Hoare (North Dorset) (Con)]

If what the right hon. Gentleman says is true—and I very much doubt it—and if his Eeyore approach to what the country thinks is correct, to what does he ascribe the best result for the Conservative party since 1987 just last month?

[John McDonnell]

I suppose we will have a longer debate at some stage about the outcome of the last general election. I will be straight with the hon. Gentleman: I think the overriding issue was Brexit and that the overriding message was the one the Conservative party put out of “Get Brexit Done”. I ascribe the victory of the Conservative party to that. I cannot be straighter with him than that.

In the last three months in this Chamber, we have had debates on the spending review and the last Queen’s Speech in which hon. Members have highlighted report after report from independent agencies exposing the impact of a decade of austerity. I want to seize on one group as an example—a group dear to all our hearts. If we are to lay any claim to being a compassionate or even a civilised society, surely the most effective test is how we care for our children, and on that count the Government fail appallingly. Surely no Government could ignore organisations such as the Children’s Society and the Child Poverty Action Group, which have reported that more than 4 million of our children are still living in poverty. That means that one child in three is living in poverty in our country in the 21st century. Some 125,000 of those children are homeless and living in temporary accommodation.

The effects on our children of living in poverty are well documented by the Children’s Society. Those children are more likely to be in poor health, to experience mental health problems, and to have a low sense of wellbeing. They underachieve at school, and experience stigma and bullying. The shocking statistic, though, is that 70% of children living in poverty are in households in which someone is in work. The Children’s Society describes that experience as being hit by a perfect storm of low wages, insecure jobs and benefit cuts. The result is remarkable: this Government have achieved the historic distinction of being the first modern Government to break the link between securing work and being lifted out of poverty.

The Chancellor boasted recently that wage rises were at record levels compared with those of the last 10 years. That is a bizarre boast. Wage rises are at a 10-year record high because his Government have kept wage growth so low for the last decade. Average real wages are still lower than they were before the financial crisis. [Interruption.] The Chancellor, from a sedentary position, has again used the slogan “Labour’s crisis”. Let me try to find a quotation for him. George Osborne said:

“did Gordon Brown cause the sub-prime crisis in America? No.”

He went on to say that “broadly speaking”, the Labour Government

“did what was necessary in a very difficult situation.”

The Chancellor, again from a sedentary position, refers to the deficit. Let me quote again. In 2007, George Osborne said:

“Today, I can confirm for the first time that a Conservative Government will adopt these spending totals.”

He was referring to the spending totals of a Labour Government, by implication. Let me caution the Chancellor, because we might want to examine his role at Deutsche Bank, where he was selling collateralised debt obligations, described by others as the weapon of mass destruction that caused the crisis.

As I was saying, average real wages are still lower than they were before the financial crisis. The Resolution Foundation has described the last decade as the worst for wage growth since Napoleonic times. The recent increase in the minimum wage. announced with such a fanfare by the Government, reneges on their minimal commitment that it would be £9 an hour by this year. It certainly is not. The UK is the only major developed country in which wages fell at the same time as the economy grew after the financial crisis.

The Government seem to believe that the answer to low pay is raising national insurance and tax thresholds. When tax thresholds are raised, the highest gainers are largely the highest earners, and raising them and national insurance contributions is the least effective way of tackling poverty. According to the IFS, only 3% of the gains from raising the national insurance threshold would go to the poorest 20% in our society. A £3 billion cut in the national insurance contributions of employees and self-employed people—which, at one stage, was promised by the Prime Minister—would raise the incomes of that group by 0.1%, which pales into insignificance in comparison with the losses endured from benefit and tax credit cuts since 2010. It is also worth bearing it in mind that, while the heaviest burden of austerity has been forced on the poorest in our society, this Government have given away £70 billion of tax cuts to the corporations and the rich.

We have also heard Ministers refer to the so-called jobs miracle. Of course we all welcome increased employment, but when we look behind the global figures we find nearly 4 million people in insecure work with no guaranteed hours and 900,000 people on zero-hours contracts. Britain has one of the highest levels of income inequality in the developed world. A FTSE 100 chief executive will be paid more in three days than the average worker’s annual wage. Surely no Member of this House can think that that is right, can they? The gender pay gap is 17.3% and there is now an inter-generational pay gap of over 20%. There is an 8% pay gap for black workers, and if you are disabled the pay gap is 15%. There is nothing in the Queen’s Speech that will address any of this. There is nothing that will address the grotesque levels of inequality in our society and at work, certainly on the scale that is needed.