Spending Review and Autumn Statement

Debate between Andrew Murrison and George Osborne

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

I hope that the right hon. Lady welcomes the decision that we have taken on the money that is raised from the tampon tax—the VAT on sanitary products. The truth is that we have not been able to change the European Union rules. The previous Labour Government tried. Indeed I remember the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper), when she was in the Treasury, standing at the Dispatch Box saying that she was trying to get the rules changed. What I have done is provide the best interim solution, which is to set up a fund to support women’s charities. As with LIBOR money, I have been able to help charities that Members from across the House have proposed. Hopefully, we can carry that forward.

On local government, the right hon. Lady makes a very fair point about the regional economic disparities. What I said was that business rates would be retained 100% by local government. There is already a re-allocation of business rates through a tariff system. I propose that, on day one, those tariffs are set in stone. Thereafter any growth in business rate income in that area can go to the local council. An area such as Doncaster—I do not have the details here—might well be already receiving some additional money from the re-allocation of business rates from, say, central London. Thereafter, it would be up to Doncaster council, the local enterprise partnership and the elected mayor in South Yorkshire to ensure that they are doing everything they can to grow the area and get in the investment. I am sure that the right hon. Lady will welcome the investment in small modular reactors, which will be a big boost to that industry in South Yorkshire, which is a world leader in that field.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

I warmly congratulate my right hon. Friend on a truly outstanding statement, and particularly on the 3.7% increase in NHS funding above inflation that he announced. However, he knows that healthcare inflation has always run at about 4%, and that spending in the UK lags far behind countries with which we can reasonably be compared, such as France, Germany and the Netherlands, yet outcomes tend to be inferior. What is he doing to ensure that we plan sustainably for the future in healthcare funding so that we can continue to see the substantial increases in funding that will be necessary in the future?

[Mr Osborne]

I thank my hon. Friend for his support. Hopefully, as both a doctor and a former serviceman, he welcomes the support for the NHS and for our defence forces. On the question of the NHS, what we have done is ask the NHS to come forward with a plan for its own future. That five-year forward view was drawn up by the NHS, independently of us, and put forward by Simon Stevens, who is not affiliated to any political party and who worked for the former Labour Government. That plan, which is supported by the NHS, provides a sustainable future for the NHS. We have fully funded it up front, so that we can achieve the transformations in, for example, primary care that the plan sets out. We are requiring of the NHS, as we are of the public sector, real efficiencies, but in the NHS’s case, those efficiencies are put into the frontline healthcare that he is so determined to champion.