Education and Local Services

Debate between Angus Brendan MacNeil and Justine Greening

Tuesday 27th June 2017 Commons Chamber

[Justine Greening]

I will come on to funding later, but suffice it to say that it is important we make sure that all our schools are fairly funded. That challenge is recognised across the House. Clearly there are difficulties in doing that.

[Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Does the right hon. Lady feel that education and local services in England would be helped in any way by the large part of £30 billion that would be the Barnett consequential of money for England as a result of the deal in Northern Ireland, given what the hon. Member for Stockton North (Alex Cunningham) just said about the North Shore Academy in his constituency?

[Justine Greening]

Our manifesto pledged to increase education funding. The challenge that the hon. Gentleman’s part of our United Kingdom faces is the real issue of its standards lagging significantly behind those of England in relation to scores on the programme for international student assessment.

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[Justine Greening]

I notice that the hon. Gentleman did not answer my question. [Interruption.] There will be plenty more time to dig into the Labour proposals for higher education and what they mean for the most disadvantaged children in the country.

[Angus Brendan MacNeil]

On a point of order, Mr Speaker.

Oral Answers to Questions

Debate between Angus Brendan MacNeil and Justine Greening

Wednesday 28th October 2015 Commons Chamber

[Justine Greening]

My hon. Friend will be pleased to hear that last week the Minister of State, my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), announced a brand-new programme that the UK will be heading called Energy Africa, which is supported by Kofi Annan. It will mean that we can get energy to the people who are least likely to be able to afford it, but— this is critical—we are doing that in a renewable way, which we think will have a huge impact in the coming years.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Is the right hon. Lady in any way concerned about the signals that the Department of Energy and Climate Chance might be sending out through its lack of support for renewable energy and the change in that regime, and what lessons other countries might draw from that?

[Justine Greening]

There are two aspects to tackling climate change. The first, of course, is mitigation, and many developed countries such as the UK have significant plans in place to transition to low carbon economies. The second is adaptation, which is the challenge for many developing countries. It is about how they can ensure that they not only adapt to climate change, which often hits them first, but grow sustainably and develop nevertheless.

Oral Answers to Questions

Debate between Angus Brendan MacNeil and Justine Greening

Wednesday 3rd June 2015 Commons Chamber

[Justine Greening]

The hon. Lady rightly points out that while we in Europe grapple with the challenges we face on migration, comparable challenges are being faced by other countries. It is absolutely right that Indonesia, Thailand and Malaysia are now working far more carefully together, and the UK will be playing its role to support them in doing that.

[Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)]

Can we see illegal migrants to Europe first and foremost as human beings and give them all the dignity, care and respect we can, especially by ensuring the availability of rescue facilities as they cross the Mediterranean?

[Justine Greening]

The hon. Gentleman is right to say that we need to see the people behind many of the statistics that we read in the paper. That is one reason why we sent HMS Bulwark and Merlin helicopters—so that this country can play our role in providing search and rescue services to help those people. They are literally putting their lives on the line to get a better life, and we should never forget the stories of the people behind those terrible numbers.

Cost of Living

Debate between Angus Brendan MacNeil and Justine Greening

Wednesday 16th May 2012 Commons Chamber

[Justine Greening]

Thank you very much, Madam Deputy Speaker. That was extremely helpful.

We have taken action to limit the rise in rail fares, but all in this House know that if we are really going to tackle the underlying reason why rail fares are pressured to go up year after year, we have to make the railway system that we inherited from Labour, which is costing us £3.5 billion a year more than it needs to, work more efficiently. That is the best way of bringing a long-term end to the era of inflation-busting increases in regulated fares.

I have to say that one of the most depressing things in this House is to hear Labour Members raise a whole load of problems but provide no solutions. Making the railway industry work more effectively together is another area where I have heard no solution from the hon. Member for Garston and Halewood (Maria Eagle). I recall that when I delivered my Command Paper oral statement she said, “I will be setting out our alternative shortly,” but she has never done so. I will not even talk about the response to the flex, because the Minister of State, Department for Transport, my right hon. Friend the Member for Chipping Barnet (Mrs Villiers), demolished the hon. Lady’s argument so comprehensively that there is no need to go over that, compounding injury with further insult. In addition, we are, of course, making huge investments in rail and road. Those things will not only tackle some of the challenges we face today, but will build our country for the future.

On fuel duty, my hon. Friend the Member for Rossendale and Darwen (Jake Berry) and my hon. and learned Friend the Member for Sleaford and North Hykeham (Stephen Phillips) made vital points about why it is important that we make sure that motoring remains affordable, and about some of the pressures on motorists arising from the high cost of fuel. We have all seen the oil price go up across the world and how that has fed into the price of petrol at the pumps. It is one of the reasons why, last April, we cut fuel duty, why we scrapped Labour’s automatic fuel duty escalator and why we have postponed the planned rise this January to August, as well as cancelling the next planned increase. As a result of that action from the Chancellor we have eased the burden on motorists by £2.5 billion this year. In fact, over the coming two years it will add up to £4.5 billion in motorists’ pockets that otherwise, under the previous Government’s plans, would have been in Treasury coffers.

[Mr MacNeil]

I am grateful to the right hon. Lady for giving way. Is there any news on the fair fuel stabiliser coming down the tracks at all?

[Justine Greening]

The hon. Gentleman will be pleased to know that we have done that. He knows that we introduced it in the Budget last year and that it was partly funded by the tax rise for oil companies. I know that he welcomed the rural fuel duty discount pilot and I was pleased to get that from him. It is an important pilot and we will see how it progresses over the coming months and years.

Let us make a comparison with what would have happened under Labour’s fuel duty plans. Labour would have had motorists paying £144 more and the average haulier would have been £4,400 worse off if we had not taken the action we have taken. When it comes to prices at the pumps, no one will forget Labour’s record: 12 increases in fuel duty while they were in office and a further six fuel duty hikes planned for after the election.

Let me address the very important issue of buses. I listened intently to the speech by the hon. Member for Darlington (Mrs Chapman) and I am happy to meet her to talk about her local issues. She asked whether we could have a Transport for London-type approach in the rest of the country, but local transport authorities have had the power to impose such a model locally since 2000 and the flexibility to do so should they want to do that. The Government think it is up to local authorities, rather than Whitehall, to take that decision, but I am very happy to talk to her about her particular local issues.

We have protected capital spending on transport but have also had to take difficult decisions regarding the bus service operators grant. Nevertheless, I am delighted that we continue to make improvements in bus services, not least through the £70 million for the better bus area fund, the £31 million for green bus funding to cut carbon emissions and support British jobs and, of course, the £560 million of local sustainable transport fund money that funded 35 successful bids in part, including for improvements to bus services. Some £200 million has been spent on local major bus schemes. There is £20 million going to community bus services and £15 million supporting the roll-out of smart ticketing technology across England’s bus fleets. There are lots of good things going on in buses and we are still taking the steps needed to tackle the fiscal deficit left by Labour.

To conclude, whether we are talking about an income tax cut for 24 million people, taking 2 million of the lowest-paid out of income tax altogether, freezing council tax, helping home owners with their energy bills or limiting increases in rail fares, the Government recognise the pressures on the cost of living. Wherever we can we will continue to take action to help further, but there is no getting away from the fact that we are operating in a financial straitjacket as a result of the deficit. As my hon. Friend the Member for Worcester (Mr Walker) pointed out, there is no magic wand we can wave; we have to work hard to sort out our public finances and get our economy back on track.

Perhaps the greatest tragedy of the Labour years in office was what we got for all the money that was wasted and all the debt that was racked up. Nothing. In addition, there was an infrastructure deficit that was as bad as the financial deficit. Long-term security of energy supplies? Nothing. Low-cost railway? No. Reform of the welfare system? Nothing. Sustainable pensions? Nothing.

The reality is that tackling the financial deficit is one of the problems the Government need to solve, but we will make sure that we help out on the cost of living wherever we can as we rebuild our country. It would be fundamentally wrong to continue with Labour’s failed policy—to spend more, borrow more and pass the buck for our debts to our children and the next generation.

Road Fuel Duties

Debate between Angus Brendan MacNeil and Justine Greening

Tuesday 13th September 2011 Westminster Hall

[Justine Greening]

Thank you, Mr Dobbin. I want to make some progress on fuel duty, because that is the key concern in our minds today. The issue of hauliers was raised. The package that we introduced has meant that hauliers have been able to benefit on average by about £1,700 a year.

[Mr MacNeil]

I know that time is getting on—we meandered down a funny road there. I want to pull the Minister back to two important points. First, when are we likely to see the rural fuel derogation in place? That is very important. Secondly, does the Minister have any sympathy with my point of view that I am tired of the red and the blue sheriff and I would like to see some of this controlled in Scotland?

[Justine Greening]

We will update the House very shortly on what is happening with the rural fuel duty discount. We have made progress with the European Union. That will be good news for the hon. Gentleman. It will mean that we can get on with our pilot. I am sure that he very much welcomes that. In terms of other issues raised by the hon. Member for Argyll and Bute (Mr Reid), he will be aware that of course his islands will be part of that pilot. As he pointed out, we have within the Treasury met stakeholders—petrol retail associations and of course regional owners and operators—to talk about how we can ensure that any rural fuel duty discount scheme works effectively. I think that we are making good progress with that. Clearly, whenever we bring in such a scheme, we must ensure that we understand that it will do what we want it to do and that it will work in the way that we want it to work. We want it to be of help. We were therefore keen to sit down and work through some of the issues that came up, for example, in relation to cash flow. It is also important to ensure that the scheme is not administratively over-burdensome. We are making good progress with those discussions. We have made good progress with the EU. Perhaps we will be able to give further details of that in coming days.

Finally, I want to point out once and for all why it is simply not possible to go down the route of creating a separate VAT rate for petrol. I am surprised that I still hear the Labour party talking about that. We rejected that proposal for a number of reasons. One was that it would take six years—possibly more—to come into effect. The other was that it is illegal, because fuel is standard-rated in terms of VAT, as part of EU rules. If we want to reduce the rate of VAT on fuel, we need a revision of the VAT directive. In fact, we would have to have unanimous agreement from all member states, and the European Commission would have to approve. As I said, it could take six years or more. I say that because that is what the French found when they sought a reduced VAT rate. Just in case that is not enough of a problem, the EU has also agreed a moratorium on revising the VAT directive. That was agreed under the previous Chancellor of the Exchequer. That route is not the route to help motorists, whereas the route that we took of a £1.9 billion package to support motorists was.

Motoring Fuel Costs

Debate between Angus Brendan MacNeil and Justine Greening

Tuesday 14th June 2011 Westminster Hall

[The Economic Secretary to the Treasury (Justine Greening)]

It is a pleasure to serve under your chairmanship, Mrs Brooke, and I congratulate my hon. Friend the Member for Harlow (Robert Halfon) on securing this important debate—Harlow is a place I know well as I used to work there many years ago. He is one of a number of MPs who represent their constituents well by talking to the Government and Ministers about the concerning cost of fuel, and about how that is impacting on the ability of businesses across Britain to employ people, and on families and household finances.

In the short amount of time available, I would like to say why the Government agree that the cost of fuel is a concern, and mention some of the actions that we have taken to try to address that. I will then say a little about some of the things that we think need to happen during the rest of this Parliament.

[Mr MacNeil]

Does the Minister, or her Department, have any suspicion that high oil prices are the revenge of oil companies for the £2 billion that the Chancellor raised in the Budget through the North sea tax, which also threatens perhaps 15,000 jobs? Oil companies are losing money to the Government in one way, and are penalising consumers and people up and down the country.

[Justine Greening]

The hon. Gentleman raises an interesting point, but the price of oil is a spot price driven by commodity markets. We are talking about a part of the industry that is different from the area in which we chose to raise tax. We are working with industry to ensure that we mitigate any risk of a lessening of investment in the North sea as a result of that tax. As my hon. Friend the Member for Harlow pointed out, we needed to strike a balance to take into account the overall effect of high oil prices as they fed through into the broader economy in petrol prices and energy prices more generally.

The hon. Gentleman will be aware of the report from the Office for Budget Responsibility. It showed clearly that, although the Exchequer has some growing tax receipts, the dampening effect of the rest of the economy is also significant. We felt that although there was an overall impact on the economy, one sector—the oil companies—was doing much better from a high oil price. It seemed fair and sensible to look at how we could balance some of the value that was being generated by the high oil price, and to create a fairer split between oil companies and those motorists and businesses that bear the brunt of the prices at the pump. We are working hard with industry to mitigate the impact of our policy on investment—the impact was analysed as being small by industry observers such as Wood Mackenzie. This is an important debate, and the Government recognise that motoring is an essential part of life for households and businesses. Fuel costs affect us all, and as the price of petrol continues to rise, those costs have become an evermore significant part of everyday life for people and companies. We were keen to look at what could be done.

The previous Government left us facing the introduction of a fuel escalator from the 2009 Budget that would have involved seven fuel duty increases. I realise that in this half-hour debate, only a Government Minister gets the chance to respond to the Member who secured it, but I am disappointed that a shadow Minister is not present to listen to some of the concerns raised. One of our biggest challenges concerned how to deal with the proposed above-inflation increase in fuel duty. That increase could have resulted in average prices at the pump being 6p per litre higher than they are currently. We would have seen above-inflation rises in 2012, 2013 and 2014. When we took office, no plan was in place to support motorists, and within the huge financial constraints in which we found ourselves, and with little room for manoeuvre, we had to see what we could do to address such an important issue.

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[Justine Greening]

My hon. Friend is right to raise that point. In a sense, the most extreme examples of that problem are the reason why we are bringing in a pilot scheme for the rural fuel rebate. We are making progress on that.

[Mr MacNeil]

When might we see that welcome rural fuel rebate and rural fuel derogation? We have been calling for such a measure for years, and although we welcome the progress made, we would like to have a date fairly soon.

[Justine Greening]

I say, “Me too” to that. We are working with the European Commission, and once we have clearance, we will get on with the pilots as soon as possible. We are keen to make progress on the issue, and I assure the hon. Gentleman that we are working and making our case in Europe. We must get agreement from the Commission, and unanimous agreement from European Finance Ministers. Once we have that agreement, we will be pushing on with the pilot schemes.

Fuel Costs

Debate between Angus Brendan MacNeil and Justine Greening

Monday 7th February 2011 Commons Chamber

[Justine Greening]

I can assure the hon. Gentleman that I shall set out our approach to policy in this regard in the run-up to the Budget in my further comments, but we need to recognise that the fuel duty escalator was put in place by the last Government. They have, I believe, a blank piece of paper that is called their economic policy, and they owe the House the honesty of being transparent about whether they believe that putting that policy in place was the right or the wrong thing to do.

[Mr MacNeil]

Far be it for me to draw it to the hon. Lady’s attention, but since last May she has been in government. We want to know—in Lewis, in Harris, in North Uist, Benbecula, South Uist and Barra—what she is going to do about the price of fuel.

[Justine Greening]

The hon. Gentleman will be pleased, as I have looked at the Scottish National party website today and seen the letter he wrote to voters last April, in which he said that it was the SNP who first called for this “derogation” for fuel areas. I can assure him that I am getting on with that very policy.

[Mr MacNeil]

rose—

[Justine Greening]

Presumably, the hon. Gentleman wants to intervene again to welcome the efforts of the coalition Government.

[Mr MacNeil]

I will welcome those efforts when they bear some fruit. We had four years of shilly-shallying from Labour—and I do not want to hear any more shilly-shallying from any Government from the Treasury Dispatch Box.

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[Justine Greening]

The hon. Gentleman will be aware that the derogation will come about as the outcome of a process. He seems to be asking me whether we are getting on with that process, and how much progress we have made. I trust that if I explain what the process is, what we have done so far and what will happen next, he will have been given so much information that he will find it necessary to take a more considered approach.

Let me explain the timing involved in the process leading to European Union and Commission clearance. We must begin by undertaking informal talks with the Commission abut the implementation of the scheme. That will give us a better chance of presenting a proposal that it will agree is, as it were, right first time. As Members have pointed out, similar schemes exist in other countries. It is sensible for the Government to engage in a process that includes talking informally to the European Commission about those schemes, and about the ways in which our scheme may resemble or differ from them.

[Mr MacNeil]

Will the Minister tell us how long it has taken other Governments to proceed from the informal talks stage to implementation of a rural fuel derogation, and how long she thinks it will take this Government to do so? Time is of the essence.

[Justine Greening]

Obviously it will not be a short process involving a few weeks, but I think that the hon. Gentleman and his party know from their experience of the process involved in calling for the derogation that the route that we are taking can provide real support for motorists in rural areas.

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[Justine Greening]

The hon. Gentleman will know that alongside those measures to support companies, particularly small ones, I could have mentioned the regional growth fund and the regional reduction in national insurance for new start-up companies creating new jobs. He will also be aware of the rise in the personal allowance, which has removed about 880,000 people from paying income tax altogether. We have also raised the threshold for national insurance, which means that employers no longer have to pay employer national insurance for thousands of employees. Across the board we are doing what we can, despite the challenging financial deficit left to us. We are doing what we can to make sure that we tackle the overriding priority of sorting out the deficit—that is what we have to do. For motorists, companies, families and unemployed people wanting to get back into the employment market and get a job, we have to get the economy back on its feet and public finances back on a sustainable footing. At the same time, we understand the pressures and challenges for motorists.

As things stand, there are alternatives for the devolved Administrations. I have to challenge hon. Members representing the Scottish National party in Scottish constituencies on whether they have considered using some of the devolved Administration budget to fund their own grant scheme to support motorists in their areas. They have taken different decisions on tuition fees to those taken in England and there is now additional scope for them to see this issue as a priority for their spending, as well as for the national Government to consider how we might be able to help in terms of tax policy.

[Mr MacNeil]

I want to ensure that the hon. Lady is aware of the importance of what the devolved Scottish Government—in what is an independent Parliament without the powers of independence—have done for the Outer Hebrides. We have introduced road equivalent tariff pilots, which have substantially reduced transportation costs, but the difficulty is that when the Scottish Government produce schemes that stimulate and grow the economy, the tax revenue goes not to our Government but down to Westminster. We are doing good work, but there is a double whammy: as we stimulate the economy, Westminster benefits, and then it comes and sticks on a fuel tax—thank you!

[Justine Greening]

I think the hon. Gentleman is taking the debate slightly wider than the wording in the motion. However, I will say to him that the measures we are taking are designed to get our economies in his part of the United Kingdom and the rest of it back on their feet. I hope that he welcomes the tax reductions we are bringing forward.