The Growth Plan
Debate between Angela Eagle and Kwasi Kwarteng(2 years, 2 months ago)
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Kwasi Kwarteng
My hon. Friend is absolutely right to say that bankers are concerned about the overall tax burden. That is why many of the bankers in the City of London are going to Paris: because they pay 30% tax there. That is a legitimate thing, and it is why we have reduced tax levels.
With respect to monetary and fiscal policy, my hon. Friend will know that monetary policy is the responsibility of the Bank and is targeted on inflation. The fiscal course that we have charted has absorbed two exogenous shocks, in the form of covid-19 and the Russian invasion of Ukraine. It is entirely appropriate in both those circumstances to have a looser fiscal policy to steer our path through those shocks. There is an entire logic to those positions.
Dame Angela Eagle (Wallasey) (Lab)
The Chancellor, without giving us any sign of the figures, has announced what is, in effect, a Budget with massive tax cuts, most of which go to those who are already well off. He has asserted that this will lead to growth, but he must now admit that there is no evidence whatsoever to suggest that large tax cuts for the already well-off lead to growth—in fact, the International Monetary Fund has said the opposite.
Kwasi Kwarteng
In response to that, I would say that there is plenty of evidence that high-tax, high-regulation socialism leads to a complete disaster as far as economic outcomes are concerned, and we are doing the opposite.
UK Steel Production: Greensill Capital
Debate between Angela Eagle and Kwasi Kwarteng(3 years, 8 months ago)
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Kwasi Kwarteng
I commend my hon. Friend’s work in representing COP26 and doing a great job in engaging with businesses on COP26. I assure him that green steel is very much at the front of our minds. It is something that I am very focused on. We have mentioned the Steel Council, and I have also mentioned a number of times the industrial decarbonisation strategy. Green steel is absolutely the way forward, and I look forward to working with him to see how we can make progress in this vitally important area.
Dame Angela Eagle (Wallasey) (Lab) [V]
Can the Secretary of State explain why Greensill—an unregulated shadow bank with close links to the Conservative party—was given access to the coronavirus large business interruption loan scheme, which is backed by 80% taxpayer guarantees? Following its collapse, which puts the future of Liberty Steel and thousands of jobs at risk, will the Minister practise the transparency he has just been talking about and tell the House how many millions of pounds of losses incurred will end up being dumped on the UK taxpayer?
Kwasi Kwarteng
The right hon. Lady will know that I cannot possibly comment on that, because it is part of an ongoing series of discussions. We do not really know the full extent of the impact of Greensill’s collapse on the British economy. We are looking into it very closely and looking at which companies have been affected, but until that further investigation we cannot possibly comment on the extent of the liability.