National Insurance Contributions Bill
Andrew Jones Excerpts(6 years, 6 months ago)
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The Exchequer Secretary to the Treasury (Andrew Jones)
The Government are announcing today that they will introduce the National Insurance Contributions (NICs) Bill in 2018. The measures it will implement will now take effect one year later, from April 2019. This includes the abolition of class 2 NICs, reforms to the NICs treatment of termination payments, and changes to the NICs treatment of sporting testimonials.
The Government have decided to implement a one-year delay to allow time to engage with interested parties and parliamentarians with concerns relating to the impact of the abolition of class 2 NICs on self-employed individuals with low profits. The Government have committed to abolishing class 2 NICs to simplify the system, so it is therefore right to take the time to ensure that there are no unintended consequences for the lowest paid.
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Taxation: Beer and Pubs
Andrew Jones Excerpts(6 years, 6 months ago)
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The Exchequer Secretary to the Treasury (Andrew Jones)
It is always a pleasure to serve under your chairmanship, Mr Owen. I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on securing this well attended and enthusiastic debate. I participated in the Adjournment debate seven years ago—I remember it well. I take this opportunity to commend the work of both the all-party parliamentary beer group, which my hon. Friend the Member for Dudley South chairs so effectively, and of which my hon. Friend the Member for Burton (Andrew Griffiths) is a distinguished former chair, and the all-party parliamentary save the pub group. No one in the pubs and brewing sector across our country can be in any doubt that they have some enthusiastic and eloquent champions within Parliament.
I will try to respond to as many of the issues as I can, but I am sure that hon. Members will appreciate that I am not able to pre-empt what my right hon. Friend the Chancellor may or may not say in three weeks and one day’s time. The requests to do so have been very tempting, but I am afraid that those making them will be disappointed. Before commenting on duty, let me just say that the Government recognise the importance of the UK beer and pubs sector. We hugely value the industry and its contribution to employment, to promoting responsible drinking and to community life. The sector’s footprint covers every single constituency in the country.
As colleagues across the House have said, pubs play a central role in our communities, whether in urban areas, in villages or on the high street. They are often far more than just a social venue; they double as restaurants and I can think of somewhere where they are also the village shop and, indeed, the post office. In my constituency we have a very good not-for-profit organisation called Pub is The Hub, led by John Longden, which does fantastic work helping pubs to diversify their offering.
Colleagues have also mentioned the charitable work in which pubs are involved. Pubs raise more than £120 million per year for charity, so there is a significant impact. The British Beer and Pub Association estimates that the sector as a whole invests more than £2 billion per year in its pubs and breweries, which in turn has an impact on employment; the sector is estimated to employ nearly 900,000 people throughout its supply chain, generating £23 billion in economic value. The very good points made by colleagues about the sector’s employment record have been powerful, and I entirely agree with them. In the run-up to preparing the Budget, I have met the British Beer and Pub Association and other businesses from the industry, including pubs and brewers of all sizes, and we recognise the contribution they make to economies and to the wider beer market—I have made that very clear to them.
The number of breweries in the UK has risen by 64% in just the past five years, to more than 2,000. The growth in the number of small breweries in recent years has increased the diversity and choice in the beer market, and has promoted consumer interest in a much larger range of beers, which has benefited the entire sector. My hon. Friend the Member for Dudley South commented on export, and I can provide some further information about that. More than 1 billion pints of beer are exported from Britain every year and reach 184 countries. Beer is one of the top three food and drink exports, generating nearly £700 million in sales—nearly £2 million, therefore, every day.
Colleagues have spoken about beer duty. I must say, first, that since ending the escalation of the beer duty in 2013, we have demonstrated clear Government support for this industry. After ending the duty escalator, the Government proceeded to cut beer duty in the 2013, 2014 and 2015 Budgets, before freezing it in 2016. It is worth noting that, as has been the Government’s policy since 2013, the public finances assume that alcohol duties will rise with the retail prices index each year. That means that there is a cost. If we choose to cut or freeze duties, there is an impact on the amount of money taken into our Treasury, which affects other areas of public expenditure or perhaps means that we have to seek to raise tax elsewhere. We just need to balance all those points; colleagues must remember that we are still running a giant deficit, which we inherited from the Labour party.
I know that hon. Members will want to reiterate the point made here this afternoon, that cutting duty supports growth and increases revenue. We have seen some evidence of that. I am, instinctively, a low-tax Conservative and I recognise that the lower the tax environment, the more businesses have to invest. It is not as straightforward to see direct cause and effect where we have had cuts, but the principle is, I think, understood. We, therefore, had to take the difficult decision last March that beer duty, along with other alcohol duty rates, needed to rise in line with RPI, but it is worth noting that in light of all the cuts and freezes to beer duty since 2013, a pint of beer costs 11p less than it would otherwise.
Some hon. Members have mentioned the price difference between the on-trade and the off-trade. That issue is raised regularly, and people would like to see the Government applying higher duty rates in the off-trade. Currently, however, that is not legal. European Union law requires member states to charge excise duty on all alcohol and alcoholic beverages, which prevents the UK from selectively charging excise duty on particular products, such as off-trade alcohol, or relieving other sectors, such as on-trade. I need to be clear about that so that we can manage expectations here. I cannot say what is in the forthcoming Budget, but I can say that I will take to it all the representations from today’s debate and share them with my right hon. Friend the Chancellor.
A number of colleagues have raised the issue of business rates, recognising that they are a high fixed cost for some businesses, including pubs. We fully recognise that, and that is why in last March’s spring Budget the Chancellor announced a £1,000 business rates discount for pubs with a rateable value of less than £100,000. To put that into context, that is 90% of all pubs, which basically means that the pubs that do not qualify are more likely to be managed by the much larger chains and are therefore able to manage business rates much more easily. Having said that, I can assure colleagues that we are aware of the request made both here and by the sector to extend the discount, and I can confirm that we will include it within our Budget representations, as we will the comments on business rates overall. However, I should just note that the cuts in business rates announced in the 2016 Budget will cost nearly £9 billion over the next five years, so we are out there helping businesses.
I turn finally to small brewers relief. We know that the number of small brewers has increased significantly over the years, from 400 in 2002 to 2,000 now. I mentioned earlier that the Government recognise that that diversification has added to the sector and the small brewers relief has really helped the growth of the industry. However, we are aware of the concerns about small brewers relief that many have raised with me. When I consider what we need to do, I want to ensure that we work with the whole sector. I want to work with the sector, not against the sector, to support growth, and I would like to see what evidence can be produced to suggest that we can have some uniformity of opinion before moving anywhere forward.
We have heard the points that my hon. Friend the Member for Congleton (Fiona Bruce) made about white cider and will respond in due course. We have had a consultation on that; there is no doubt that it is a problem area.
I finish the debate by saying that it has been a great, constructive and positive one. We have clearly demonstrated support for the sector and the Government are clearly a part of that, with all the actions we have been taking, for all the excellent reasons that have been presented throughout the debate. I assure everyone here that I have listened keenly and that we will take the contributions to be Budget representations. It is only three weeks and one day until we all get to hear what the Budget says—not very far away. I thank hon. Members once more for their contributions and for raising the issue.
Albert Owen (in the Chair)
I thank the Minister. I call Mike Wood to make the concluding remarks.
Scotch Whisky Industry
Andrew Jones Excerpts(6 years, 6 months ago)
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The Exchequer Secretary to the Treasury (Andrew Jones)
It is always a pleasure to serve under your chairmanship, Mr Bone. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this debate. I understand his passion for the subject, given his constituency’s long-standing tradition of producing fine whiskies. He mentioned the Highland Park and Scarpa distilleries; I have been fortunate enough to visit his constituency and those places on my holidays and I entirely agree with his basic point. I also agree with his underlying point that producing whisky is a lifetime commitment. People cannot enter into it for the short term. It takes a long time to produce the product, particularly in the premium sector. It is a proper, significant long-term commitment. We are seeing huge innovation and people entering the marketplace—both signs of a good, strong sector.
I will try to answer as many of the issues raised as I can, but in particular I must comment on the duty rates—a key element of the right hon. Gentleman’s speech. However, as one might expect, I am unable in discussing that to pre-empt what my right hon. Friend the Chancellor may or may not do in the forthcoming Budget. That is only three weeks tomorrow, so there is not long to wait. Before I discuss the duties, I reassure the House that the Government recognise the important contribution that the Scotch whisky industry makes to both the UK economy and local communities.
I met with the Scotch Whisky Association and with large and small distillers in the run-up to and preparation of the Budget. The Scotch Whisky Association estimates that the industry adds over £5 billion to the UK economy and supports over 40,000 jobs, 7,000 of which are in the rural economy. Its footprint extends beyond those fortunate enough to have a distillery in their immediate constituency. As my hon. Friend the Member for South Suffolk (James Cartlidge) says, the industry creates jobs throughout the UK, whether in the agricultural sector in East Anglia or, in this case, the bottling technology, but primarily it is a great Scottish industry. Distilleries are also increasingly significant tourist attractions in their own right. Some 1.6 million tourists visited distilleries in 2015, an increase of more than 20% in visitor numbers since 2010.
The Government also recognise that Scotch whisky is a UK export success story. Exports account for about 93% of total production. More Scotch whisky is sold in France in one month than cognac in an entire year—an enjoyable stat to consider. In 2015, we exported 1.2 billion bottles of whisky worldwide. The industry estimates that whisky exports were worth nearly £4 billion last year. That is over £7,500 of Scotch whisky sold every minute, accounting for around a quarter of all UK food and drink exports. It is a fantastic success story for the UK to be proud of.
The reach is equally impressive. In 2016, whisky was exported to 184 countries—that means that over 90% of countries have a taste for whisky. South-east Asia in particular has grown as an export market, with Singapore alone importing £224 million of Scotch whisky last year.
We are seeing an increasing premiumisation of some exports, which reflects a broader food and drink trend within the UK, and Scotch whisky is poised to take advantage of the appetite for premium British products in this area.
Mr Carmichael
I agree with everything the Minister is saying, but two things are worth consideration. First, although we are seeing that growth in premiumisation, it is on the basis of a shrinking market share globally in a very competitive market. Secondly, when opening up new market opportunities, Governments in other countries look here to how we treat our own industry. That is why the domestic market and taxation of it cannot be divorced completely from the export market.
Andrew Jones
The right hon. Gentleman makes points that I broadly agree with. The signal that the UK supports the industry and recognises its impact on our economy and our exports particularly is entirely understood. In recognition of the quality of the product, Scotch whisky was one of the first food and drink products to feature in the Government’s GREAT campaign, which gave it high international visibility in key markets. I assure Members that we will continue to support the Scotch whisky industry, so that it continues to thrive and prosper.
Kirstene Hair (Angus) (Con)
I welcome all the export trends the Minister has outlined, but we have the fourth highest excise duty rate in the EU. Other EU countries support their home industries and we need to follow suit—even more so, now. Does he agree?
Andrew Jones
That tempts me towards Budget comments, which I cannot make at this moment. I need to rewind a little bit from that question and make a quick point before coming on to duty rates.
The protected food name scheme remains in place while we are still a member of the EU. The European Union (Withdrawal) Bill, which is currently passing through this place, will ensure that all EU law passes into UK law when we leave the EU. That will include the legal definition of whisky, which is a significant point for the protection of the sector in the long term.
Ian Murray
I am grateful to the Minister for giving way; I know he has limited time. I wonder whether the Treasury and the Department for International Trade would talk to the industry in Scotland, which is such a successful exporter. In the post-Brexit world, the Government could learn a lot from the industry and how it has been able to export so successfully. That could happen to other sectors when we leave the EU.
Andrew Jones
The hon. Gentleman makes an important point. I have to say, though, that I have been talking to the industry and will continue to do so. One thing I have learned in the preparation of Budgets is that a significant number of representations are made either for Government spending or relating to duty. My door is open. I want to hear from the industry and ensure it understands that it can access the Treasury, which will be entirely supportive of British companies developing, investing and exporting. I particularly include the Scotch whisky industry. I have been trying to get across my support for it, and my door will be open for future meetings.
Let us get to the issue of duty rates. The actions taken by this Government are estimated to have reduced all alcohol duty receipts by around £2 billion since 2013. That is a significant duty cut. The actions taken to freeze or cut spirits duty at Budgets in 2014, 2015 and 2016 mean that the tax on a bottle of Scotch is now 90p lower than it would otherwise have been. I understand the point made by the right hon. Member for Orkney and Shetland about price elasticity within the marketplace. The £4 billion of exports per year are unaffected by duty changes as no duty is paid on exported spirits. No UK duty is paid therefore on around 93% of all Scotch whisky produced.
As we approach the Budget, the Government face some pretty tough choices. As I said, I cannot pre-empt what my right hon. Friend the Chancellor of the Exchequer may announce. However, it is the Government’s policy for our public finances to assume that alcohol duties will rise by retail prices index inflation each year.
Bill Grant (Ayr, Carrick and Cumnock) (Con)
We had a success in reducing corporation tax, which increased the tax take, and we are minded to further reduce corporation tax to achieve the same goal. Does the Minister think that that would also apply to a reduction in the duty on spirits? Would that generate an increased tax take, as per the corporation tax?
Andrew Jones
That is a very interesting question, and it slightly tempts me into a Budget thought, which I am sure was entirely my hon. Friend’s intention. While not commenting on the Budget, I assure him that I am instinctively a low-tax Conservative. That is my principle when dealing with the industry, and I think that can be said of my predecessors in the Treasury, otherwise we would not have had the £2 billion reduction in duty rates over the past few years.
Douglas Ross
I know the Minister does not want to be dragged into questions about future Budgets, but does he accept the scenarios that have been painted since previous Budgets? As the right hon. Member for Orkney and Shetland (Mr Carmichael) said, a 2% reduction increased revenue by £124 million, yet the increase of 3.9% on spirits in March this year reduced the revenues going to the Treasury in the first quarter by 7%. That is looking not at the future but at the impact these decisions have had in the past.
Andrew Jones
That is an important question, and it has certainly been considered within the Treasury. There is a general view that if we cut duties, we can increase growth and therefore revenue, as the evidence suggested in 2015. However, sales of some drinks have increased after duty cuts, and sales of some drinks have increased after duty increases. It is very hard to evidence that the sales growth my hon. Friend talks about is directly caused by that duty cut.
The principle of supporting a sector in a competitive way through a fiscal and regulatory regime, with support for infrastructure and skills, is exactly what the Government are about: creating the most benign environment in which to do business. I reinforce to the House that our public finances are under some significant pressures. The Government estimates of costs to the Exchequer are scrutinised by the Office for Budget Responsibility before they are certified, so they have independent scrutiny.
I would like to emphasise in the last moments that we will carefully consider all Members’ representations this morning as part of the representations for the forthcoming Budget. I want nobody to leave the debate without a clear understanding that this Government support the Scotch whisky industry. We recognise its importance and are utterly committed to ensuring that this great British success story maintains its global pre-eminence and global growth. The passion for the sector is clearly shared by colleagues here today. When we look at recent trends within the industry and the new entrants into the marketplace, new products becoming available, innovation and export growth, I think we can all say that the future for the Scotch whisky industry is bright.
Question put and agreed to.
Oral Answers to Questions
Andrew Jones Excerpts(6 years, 6 months ago)
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The Exchequer Secretary to the Treasury (Andrew Jones)
The Government are investing more than £1 billion to stimulate the market to build the next generation digital infrastructure that the UK needs for the future. This includes the £400 million digital infrastructure investment fund and the £740 million for full fibre broadband and 5G mobile. That is in addition to the Government-led £1.7 billion superfast programme, which will extend coverage to 95% of UK premises by the end of the year.
Andrew Percy
The vast majority of my constituents in east Yorkshire and north Lincolnshire now enjoy superfast broadband, but a small number in rural areas still struggle with access to broadband and to good 4G, 3G or even 2G mobile coverage. What more can the Government do to give BT Openreach and the mobile networks a kick up the backside to make sure that we get the coverage that we are all paying for?
Andrew Jones
The Government are working to continue their progress on the superfast broadband roll-out. We expect to reach 95% by the end of this year. We have already seen some changes from the internal reorganisation within British Telecom, separating out Openreach. The progress will be maintained through Government expenditure in that programme and in the digital infrastructure investment fund.
Helen Goodman (Bishop Auckland) (Lab)
The Office for Budget Responsibility has just reported on the poor productivity record in this country. Investment in broadband is crucial to improving that, so when will the Minister respond to the letter that I wrote to him on 1 September about broadband in Teesdale?
Andrew Jones
I absolutely agree that broadband and digital progress are critical to the productivity of our economy. I am not aware of that letter. I will look into it with immediate effect, and I apologise for the delay.
Alan Mak (Havant) (Con)
As the fourth industrial revolution accelerates, superfast broadband will be key to the productivity of our high-growth technology businesses. Will the Minister continue working with entrepreneurs and businesses to ensure that they get the broadband system that they need?
Andrew Jones
I most certainly will continue to work on that. My hon. Friend has consistently spoken up on behalf of entrepreneurs and enterprise since he arrived in this House. The Government’s intention to pursue our broadband investment, whether it is superfast or full fibre, is right at the heart of our efforts to improve productivity.
Sammy Wilson (East Antrim) (DUP)
BT has received hundreds of millions of pounds from the Government for public investment in the digital network. But there are parts of my constituency—both rural and urban—where broadband coverage is still very poor, such as the town of Carrickfergus. BT refused to look at innovative ways of splitting the network. Is it not time that the Government looked to other bids for some of the money they are investing in broadband in order to ensure that there is better coverage?
Andrew Jones
The hon. Gentleman makes an important point. All our constituencies have some areas that are not yet fully able to access the important benefits of broadband. I will discuss his points with my colleagues in the Department for Communities and Local Government, and report back to him.
Peter Dowd (Bootle) (Lab)
I am pleased that the Communities Secretary has been inspired by Labour’s fiscal credibility rule in relation to investment in infrastructure—including digital infrastructure and, recently, house building. But this does beg crucial questions. Does the Minister support his colleague’s bid to “borrow more to invest” or is it more a bid to steal the Chancellor’s job?
Andrew Jones
I have already outlined the Government’s progress on broadband. The hon. Gentleman mentions, I think, some kind of speculative comment regarding the forthcoming Budget. The Chancellor has already answered that question.
Peter Dowd
The digital infrastructure plans are wholly inadequate, as my hon. Friend the Member for Bishop Auckland (Helen Goodman) indicated. Is the Minister aware that productivity figures are at pre-crisis levels, and is he really aware that regional industries are up to seven times more productive than others? What is the digital investment strategy doing to close that shocking gap?
Andrew Jones
The hon. Gentleman seems to have forgotten the announcement of the national productivity investment fund—a £23 billion pot of money for investment in infrastructure, including digital infrastructure, across the country. I have already mentioned the £400 million digital infrastructure investment fund and the £740 million for full-fibre broadband and 5G. We are already approaching the figure of 95% of UK premises having access to superfast broadband by the end of the year, and that puts us in a strong place for the future.
Sir Edward Leigh (Gainsborough) (Con)
Ms Esther McVey (Tatton) (Con)
The Exchequer Secretary to the Treasury (Andrew Jones)
I wish my right hon. Friend many happy returns of the day.
I confirm that the Government are taking big decisions for Britain’s future and investing in transport infrastructure in Cheshire and across the north. Just last week, my right hon. Friend the Secretary of State for Transport announced road investment of £65 million in Cheshire. That included £18 million of funding for five different local road schemes and £47 million for the Middlewich bypass. That is on top of improvements that the Government are already making to the M6, M62 and M56.
Ms McVey
I welcome the Minister’s reply. The Cheshire and Warrington local enterprise partnership has a bold agenda for increasing business in Tatton and Chester. The local plan has an equally bold agenda for increasing the number of houses, which will bring money to the Exchequer and help to meet the country’s housing need, but we have a significant need for the mid-Cheshire rail line. May I ask the Chancellor and his team to look at that for the forthcoming Budget?
Andrew Jones
I will take that as a Budget representation. The basic point is that we are clearly very ambitious to unlock, through transport investment, both residential and commercial opportunity. That has been a feature of Government policies over the past few years, and I am sure that it will continue to be.
Tony Lloyd (Rochdale) (Lab)
In Cheshire and across the north, the reality is, as the Minister says, that infrastructure investment will unlock productive capacity. Does the Minister recognise that the disproportionate investment per head between the south-east and the rest of the country is unacceptable and must change?
Andrew Jones
The hon. Gentleman’s assessment is simply mistaken: Government investment is broadly equal across the different regions of our country. I highlight to him that the central Government investment going into the north during this spending period is £13 billion, which is a record in British history.
Several hon. Members rose—
Amanda Milling (Cannock Chase) (Con)
The Exchequer Secretary to the Treasury (Andrew Jones)
I will most certainly join my hon. Friend in both celebrating the project and urging everybody working on it to be as ambitious as possible. In terms of support, since 2010, my hon. Friend’s area has benefited from more than £300 million in grants to support cutting-edge innovation in the west midlands through Innovate UK. The Government welcome private investment in innovative and high-tech businesses right across the economy, which is why we announced an additional £4.7 billion for research and development at the 2016 autumn statement.
Joanna Cherry (Edinburgh South West) (SNP)
Geoffrey Clifton-Brown (The Cotswolds) (Con)
Andrew Jones
I will take the matter up with my right hon. Friend the Secretary of State for Transport and get back to my hon. Friend.
John Mc Nally (Falkirk) (SNP)
Antoinette Sandbach (Eddisbury) (Con)
May I urge my right hon. Friend when looking at the business case for HS2 phase 2b to consider carefully the additional £750 million cost to the Exchequer of building over the Cheshire salt fields?
Andrew Jones
We discussed this issue when I was a Transport Minister. All the topography and construction implications as the route is finalised will be taken into consideration as part of the business case.
Mr Speaker
We all remember when the hon. Gentleman was a Transport Minister and he enjoyed telling us how he travelled to work by bus; I remember thinking that the fellow passengers on the bus must have been absolutely exhilarated to know that they were accompanied at the time by the Under-Secretary of State for buses.
Infrastructure (Financial Assistance) Act 2012: Annual Report
Andrew Jones Excerpts(6 years, 6 months ago)
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The Exchequer Secretary to the Treasury (Andrew Jones)
The annual report to Parliament under the Infrastructure (Financial Assistance) Act 2012 for the period 1 April 2016 to 31 March 2017 has today been laid before Parliament.
The report is prepared in line with the requirements set out in the Infrastructure (Financial Assistance) Act 2012 that the Government report annually to Parliament on the financial assistance given under the act.
Copies are available in the Vote Office and the Printed Paper Office.
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Crown Estate Transfer Scheme 2017
Andrew Jones Excerpts(6 years, 6 months ago)
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The Exchequer Secretary to the Treasury (Andrew Jones)
The Smith Commission agreement recommended that the management of The Crown Estate’s assets in Scotland should be devolved. It also stated that, following this transfer, responsibility for the management of those assets should be further devolved to local authority areas. It was agreed that the UK Government would not determine how the Scottish Government managed further devolution. The Crown Estate Transfer Scheme 2017 brought this change into law on 1 April 2017.
During the passage of the Scotland Bill which implemented the Smith Commission recommendations, the UK Government promised that they would update Parliament on progress made by the Scottish Government with the onward devolution of management of The Crown Estate assets via a written ministerial statement six months after the transfer.
The Scottish Government held a consultation on the long term management of The Crown Estate in Scotland, including opportunities for further devolution. The consultation opened on 4 January and closed on 29 March 2017. It covered four key areas:
Vision
Managing Crown Estate Assets for Scotland and Communities
Securing the Benefits for Scotland and Communities
Assessing Impact
The Scottish Government are currently in the process of analysing the consultation responses. These will inform policy and proposals for a Bill to be introduced in the current session of the Scottish Parliament.
The consultation document is available at: https://consult.scotland.gov.uk.
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Oral Answers to Questions
Andrew Jones Excerpts(6 years, 9 months ago)
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Ian C. Lucas (Wrexham) (Lab)
3. What steps he is taking to incentivise private sector investment infrastructure projects in the nations and regions.
The Exchequer Secretary to the Treasury (Andrew Jones)
This Government are committed to supporting private investment, which finances about half our infrastructure. We have a trusted and stable regulatory system, and through the UK guarantees scheme we have supported projects worth more than £4 billion. We are also introducing innovative support such as the digital infrastructure investment fund, which will accelerate the roll-out of the ultrafast network.
Ian C. Lucas
The north Wales Mersey Dee region hosts world-beating businesses such as Kellogg’s, Airbus and JCB, but we need competitive infrastructure in order to ensure that we remain competitive. For that reason, and in the absence of the public sector investment we are crying out for, may we please have the ability to deliver private sector investment? What are the Government going to do to deliver roads and rail?
Andrew Jones
I simply do not recognise what the hon. Gentleman says; investment in our infrastructure is at a record high. We are seeing investment in roads, rail and south-east air capacity—in all modes of transport. The point is how we deliver that investment, and it is a combination of public and private. He is clearly right to champion the requirement for infrastructure in his area and to highlight its impact on the economy, but to say we are not doing anything is just factually wrong.
Robert Neill (Bromley and Chislehurst) (Con)
One disincentive for the private sector to invest in infrastructure is the delay that sometimes occurs in bringing major projects through to completion and commencement. The private sector is already committed to making a significant contribution to the funding package for Crossrail, but we have been waiting since March for a decision to take it forward. Will the Minister do all he can, across government, to speed up that regional and national infrastructure project?
Andrew Jones
I see significant merits in Crossrail 2, just as I see them in northern powerhouse rail and projects right across our country. I will of course take on board my hon. Friend’s point and relay it to the Transport Secretary.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
Private investment thrives on stability, but we have a Cabinet in a state of anarchy when it comes to the terms of our exit from the European Union. Do the Government agree with Labour Members that an early announcement on transitional arrangements is therefore essential? If the Minister does agree with that, will he tell us the Government’s position on the latest date such arrangements could be announced—or are we more likely to see a transitional Chancellor than a transitional deal?
Andrew Jones
I am not going to speculate on the negotiations, as that would be way above my pay grade. I just refer the hon. Gentleman to the Chancellor’s answer a moment ago on the merits of a Brexit deal that secures our economic future.
Vicky Ford (Chelmsford) (Con)
4. What assessment he has made of the effect of Government investment in infrastructure since 2010.
Mims Davies (Eastleigh) (Con)
7. What assessment he has made of the effect of Government investment in infrastructure since 2010.
The Exchequer Secretary to the Treasury (Andrew Jones)
Infrastructure is at the heart of this Government’s economic strategy, and our investments will boost productivity and growth. Since 2010, more than a quarter of a trillion pounds has been invested by the public and private sectors, about 3,000 individual projects have been completed, we have almost completed Crossrail, and more than 4 million homes accessed superfast broadband for the first time.
Vicky Ford
Nearly 100 years ago, the world’s first radio broadcast was sent out from Britain—from Chelmsford. Does my hon. Friend agree that the digital infrastructure investment fund will give a massive boost to fibre and superfast broadband so that the UK can continue to lead the world in the digital and communications sectors?
Andrew Jones
I thank my hon. Friend for that question. I have just learned something about Chelmsford and its history in the development of our digital and radio infrastructure. The investment will boost Britain’s internet, making it more reliable and consistent and easier for people to live and work more flexibly, which will of course boost productivity right across the UK. Fibre is the technology of the future, just as radio was 100 years ago, and this fund will significantly assist small and medium-sized enterprises with capital to roll it out, with both Chelmsford and the UK benefiting.
Mims Davies
Investment and infrastructure projects are absolutely key to keeping our nation moving. As the Minister knows, Chickenhall link road and Botley bypass in my constituency were helped to do just that and to improve the quality of life of my constituents. I welcome road funding through the national productivity investment fund. Will Ministers meet me to discuss the delivery of those projects, which will affect my constituency in Eastleigh?
Andrew Jones
My hon. Friend is a great champion for her constituency and for these projects. I have absolutely no doubt about the importance of them locally. If nothing else, we have met on the subject a number of times, and she is very tenacious. These projects not only open up opportunities for development, but help to relieve the congestion in the heart of her constituency. I will of course ensure that she meets the Transport team as soon as possible to progress those projects.
Chris Evans (Islwyn) (Lab/Co-op)
The electrification of the Great Western Railway between Paddington and Swansea was to provide huge economic benefits for businesses along that line. Unfortunately, the project has now overspent by £1.2 billion, and not a yard of the line has been electrified. What are the Government doing to ensure that projects such as this do not run over and waste taxpayers’ money in future?
Andrew Jones
The efficiency in the way that we deliver our infrastructure is a critical consideration when the Government are putting in so much money to transform our infrastructure. The points that the hon. Gentleman makes about Network Rail will have been heard by my hon. Friends in the Transport team, and I will highlight his comments to them.
Kirsty Blackman (Aberdeen North) (SNP)
Last month, the Institute for Government produced a report on infrastructure spending that said that decision makers do not know whether projects deliver value for money. It also believes that Parliament and the public are misinformed. What action are the Chancellor and his Department taking to ensure that future infrastructure spend delivers value for money and that costs do not spiral out of control like they have for Hinkley Point C?
Andrew Jones
I simply highlight the extremely rigorous business case process, which every single project has to go through before it receives approval. The idea that these schemes are not considered is just wrong.
Kirsty Blackman
The Scottish Government have committed to delivering 50,000 affordable homes by 2021. We recognise the calls that are being made by organisations such as Shelter Scotland and Big Issue, which believe in prioritising affordable housing. Why are the UK Government committing to build only 40,000 affordable homes in the same period?
Andrew Jones
Again, that is a question that will have to go to colleagues in another Department. I will make sure that they hear the hon. Lady’s comments.
Bob Stewart (Beckenham) (Con)
5. What assessment he has made of how to balance the needs of (a) business and (b) the Exchequer in setting the corporation tax rate.
Alex Chalk (Cheltenham) (Con)
18. Government investment in Cheltenham’s cyber-accelerator since 2015 is now yielding results, with numerous cyber start-ups benefiting from local mentoring from experts at GCHQ. Does my hon. Friend agree that mobilising the UK’s sovereign expertise in areas such as cyber boosts jobs for young people and opportunity in places such as Cheltenham?
The Exchequer Secretary to the Treasury (Andrew Jones)
The GCHQ cyber-accelerator in Cheltenham is part of the Government’s £1.9 billion cyber-security strategy. It allows business start-ups to gain access to GCHQ’s world-class personnel and expertise, and the accelerator helps these businesses to expand, contributing to jobs and opportunities, including in Cheltenham, and it makes the UK a safer place online. I know that my hon. Friend has worked very hard on this for a considerable period of time. He makes an important point as he speaks up for his constituency, and how it is leading in the UK and across the world.
Mr Jim Cunningham (Coventry South) (Lab)
How does the Minister expect to reduce youth unemployment, given the further education budget cuts across the country, particularly in Coventry, where the budget has been cut by 27%?
Christian Matheson (City of Chester) (Lab)
10. What fiscal steps his Department is taking to incentivise businesses to invest in rooftop solar.
The Exchequer Secretary to the Treasury (Andrew Jones)
Immaculate parliamentary manners, but not immaculate parliamentary procedure—sorry about that, Mr Speaker; I thought we had moved on from that question.
Solar is a UK success story. In 2013, solar capacity was expected to reach between 10 and 12 GW by 2020; we now expect Government support to bring forward about 13 GW by then. Feed-in tariffs provide an incentive for businesses to invest in rooftop solar.
Christian Matheson
The sun might be going down on the Chancellor’s time at No.11, but it remains an important source of energy and income for 44,000 microgenerators, including schools and hospitals. But since April they have seen their business rates increase by up to 800%, in some cases. Some major deployers of the technology are now pulling out of the rooftop market. Will the Government reassess the business rate levy paid on rooftop solar, so that we can give real growth to this important environmental sector?
Andrew Jones
The Government are continuing to support the take-up of solar panels through business rates by maintaining the exemption for new installations of solar power generating less than 50 kilowatts of power; of course, we also have all the transitional relief schemes and the cut in business rates announced in the Budget last year, which cost nearly £9 billion. The Government have listened to the voice from solar. We are keen to see progress on solar, and these schemes will help that.
Mr Jacob Rees-Mogg (North East Somerset) (Con)
Will not the roll-out of solar panels be greatly helped by Brexit, when the very high tariffs imposed on cheaper Chinese photovoltaic cells are removed and we will no longer be protecting the inefficient German industry?
Andrew Jones
I thought my hon. Friend was going to say that the sun may be shining more brightly post-Brexit. We are very keen to see the progress of solar as well as all other renewables. We will have to see what happens with pricing, but the key thing is that we will be supporting solar, as it is a key part of our power mix for the future.
Mr Speaker
There was I thinking that the hon. Member for North East Somerset (Mr Rees-Mogg) was taking an interest in energy saving because he has six children. Apparently not.
Kelvin Hopkins (Luton North) (Lab)
Have not the Government actually cut support for solar because, together with new storage technologies, it threatens to become so successful that it would kill off any case for horrendously expensive nuclear?
Andrew Jones
The support for solar comes directly from people’s bills. When the costs of installation and generation come down, through efficiencies and economies of scale and production, so should support. We are taking steps to control the cost of support schemes and putting solar on the path to delivery without subsidy.
Catherine West (Hornsey and Wood Green) (Lab)
11. What plans he has to introduce measures to tackle tax avoidance and evasion carried out through non-domiciled status and offshore trusts.
Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)
T7. The new Conservative Mayor of the Tees Valley, Ben Houchen, is setting up the first mayoral development corporation outside London on the former SSI site in Redcar. The regeneration of the site and the attraction of inward investment are obviously vital. Will my hon. Friend work with me and the Mayor to deliver the best outcome for the site and the local economy?
The Exchequer Secretary to the Treasury (Andrew Jones)
The South Tees Site Company is currently undertaking ground investigations to assess the levels of any contamination on the SSI site. The mayoral development corporation is leading on the development of plans for the future of the site. I look forward to working with my hon. Friend, the Mayor of the Tees Valley and others to promote the economy of the area.
Rachael Maskell (York Central) (Lab/Co-op)
In the Budget, the Chancellor promised a consultation on business rates, but we have not yet seen that. Businesses in York are really struggling and some are leaving the city because of the astronomical business rates. When will we have that consultation—what is the date?
Future Government Spending
Andrew Jones Excerpts(9 years, 1 month ago)
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Andrew Jones (Harrogate and Knaresborough) (Con)
At the heart of the motion is the idea that the Government’s economic policy is failing. It raises a scenario of a country going back to the 1930s—a country without the NHS and with mass unemployment. It was indeed a dark time, as the hon. Member for Blaydon (Mr Anderson) said. I simply do not recognise that scenario, however—either for my own constituency or for the country more broadly. The motion raises the spectre of no NHS. That is absolute nonsense. The NHS budget has risen by £12.7 billion during this Parliament.
Mark Hendrick
The budget may have risen, but the delivery of front-line services, and of services more generally, has been overshadowed by the top-down reorganisation which the Government, when in opposition, said would not happen. That is where much of the money has gone. It has not been spent on the delivery of services.
Andrew Jones
I think that the hon. Gentleman is mistaken. The restructuring of the NHS has saved money, and we have more doctors and nurses as a result. Indeed, Members on both sides of the House have backed the NHS’s “Five Year Forward View”. To suggest that we are not investing in health in our country is simply mistaken. The Opposition’s suggestion that the NHS is somehow under enormous pressure is scaring people, because we all rely on the NHS.
Is our plan failing? No, it is not. The evidence simply is not there. Our economic growth is faster than that of any other developed economy, but the best evidence that the plan is succeeding is what that growth means to people, and that is the level of work. Unemployment has been falling, and a huge number of jobs are being created: 1.85 million have been created during this Parliament. In my constituency, the figures are extremely positive. At the start of this Parliament, there were 13,084 unemployed people; now there are 529. That pattern is mirrored throughout the country, and it means that more people are able to provide for themselves and their families.
The motion suggests that the economic plan is unfair. It is not. There is nothing fair about saddling future generations with debt. Of course dealing with a huge recession is a challenge. We all know that people have been under enormous pressure which has been compounded by food price and fuel inflation, although that it is passing. However, the key Government tax policy has been an enormous help. The huge increases in the personal allowance have benefited about 25 million people, and in my constituency about 4,500 people have been taken out of tax altogether. Both the Treasury and the Institute for Fiscal Studies have confirmed that the richest are making the largest contribution to reducing our deficit, as they should. My hon. Friend the Financial Secretary referred to that earlier.
How does the Government’s plan compare with others? If we are failing here, how are other countries doing? I think that they are looking at our progress with some envy. The international response from the OECD, and the national response from business groups, is that the plan is working. The head of the OECD has said that Britain “needs to stick with” its long-term economic plan.
Sir Greg Knight (East Yorkshire) (Con)
Does my hon. Friend agree that there is an alternative to the Government’s long-term economic plan, namely the Labour party’s proposals, which would take this country in the direction of Greece?
Andrew Jones
I entirely agree. There is indeed an alternative, and that alternative is pretty stark. The choice to be made at the next election will be one of the most important that we have faced for a generation.
I am sure that, when the motion was drafted, the Opposition did not realise that the IFS would publish a report today highlighting the fact that average incomes have returned to pre-crisis levels. I recognise that the position is not the same for different groups in our community, and that much more needs to be done. I know that we all want to see living standards rise. I am strongly in favour of the living wage, and was pleased when it was adopted by Harrogate borough council. However, the motion is nonsense. Claims that we are heading back to the 1930s are ridiculous.
Yes, an incoming Conservative Government would see public spending fall as a percentage of our economy, from about 40% now to 35.2% at the end of the next Parliament. That is very similar to the 35.9% that we saw in 2000, and in real terms, when we allow for inflation, the level is the same as it was in 2002. However, we will then be living within our means, and the sooner we reach the point at which we are living within our means, the better it will be for our country.
Austerity has not choked jobs and growth, as the shadow Chancellor predicted. It has been a key ingredient in the progress that we have made. That is why we must continue our drive to balance the books, create the most favourable possible environment for the wealth creators in business, and not pretend that the job is done or that there is an easy way to make progress.
Oral Answers to Questions
Andrew Jones Excerpts(9 years, 3 months ago)
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Mr Gauke
The reality is that the tax gap for 2012-13 was lower than in any year under the previous Labour Government. As for the yield—the money that is brought in by HMRC as a consequence of its activity—that has gone up by £9 billion since 2010-11, and is forecast to be £26 billion this year. That is a very good record.
Andrew Jones (Harrogate and Knaresborough) (Con)
Will the Minister confirm that the compliance tax yield for this year has been revised up to £26 billion, which is an increase of £9 billion since this Government came to office?
Mr Gauke
My hon. Friend is absolutely right to make that point, and there has been an increase—[Interruption.] It is a point that bears repeating. Members really should take in the fact that, under this Government, we have seen a significant increase in HMRC’s yield. HMRC is more effective than ever in dealing with tax evasion and tax avoidance.
Autumn Statement
Andrew Jones Excerpts(9 years, 5 months ago)
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Mr Osborne
Today we have increased the personal allowance, which increases the number of low-paid people taken out of income tax to 3.5 million.
It is interesting to look at the caricature of what is happening in this country that Labour Members have tried to present. They said that all the jobs were part-time; it turns out that 85% of them are full-time. They talked about the gender pay gap; of course that remains a challenge, but it is at its lowest level in British history, and has fallen since the period of the last Labour Government. They complained about the abuse of zero-hours contracts; I had to sit there for 13 years listening to Labour Chancellors, and never once did they introduce a reform of zero-hours contracts. That reform is now taking place, and we are ending the abuse that comes with the exclusive contracts.
Ultimately, the people who suffer most when the economy fails—when economic stability is destroyed and unemployment rises—are the poorest people in the country. That, sadly, was their experience under a Labour Government, but under this Government, employment is growing and economic security is returning.
Andrew Jones (Harrogate and Knaresborough) (Con)
I warmly welcome the statement. I welcome, for instance, the support for small businesses, apprenticeships and the NHS, but the news that the Pacer trains will go from the northern franchise will be particularly welcome in my constituency. Will my right hon. Friend continue to prioritise infrastructure investment as a driver of economic growth?
Mr Osborne
Yes, I will. When it comes to these Pacer trains—[Interruption.] Labour Front-Benchers had all those years in which they could have got rid of the Pacer trains. They complain about them now, but what about all the endless Labour Transport Secretaries who did nothing about them? This is happening now, with a Conservative Chancellor, a Conservative Transport Secretary, and a Conservative Member of Parliament for Harrogate and Knaresborough.