Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Anneliese Dodds Excerpts
Tuesday 15th September 2020

(3 years, 7 months ago)

Commons Chamber
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Rishi Sunak Portrait Rishi Sunak
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My hon. Friend is absolutely right. Manufacturing and exports, especially from the west midlands and the Black Country, will play a key part in driving our recovery. I am pleased to tell him that the Exchequer Secretary is shortly meeting with the Mayor, Andy Street. That comes on top of our plans to provide £1 billion to develop the UK supply chain for electric automotive vehicles over the next five years, and £850 million of allocations from the local growth fund for his region.

Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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The Chancellor will be aware of concerns that the UK risks a slower recovery than comparable economies for self-inflicted reasons. Despite the devastating impact on jobs, the Treasury Front Benchers have yet again today—six times—rejected targeted wage support. Economists are concerned about this Government’s inability to get a grip on the public health crisis, which evidence from the Scientific Advisory Group for Emergencies suggests stems in part from a failure to adequately support people who have to self-isolate. Rumour has it that the Chancellor is blocking attempts to improve sick pay, so I put it to him: can he put himself in the shoes of those low-paid workers who often have to choose between paying their rent and bills, and putting food on the table for their kids? If these workers are advised to self-isolate, they get £95.85 a week—and that is if they are even eligible for statutory sick pay. Surely the Chancellor must agree with the Secretary of State for Health that statutory sick pay is not enough to live on.

Rishi Sunak Portrait Rishi Sunak
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From the beginning of this pandemic, we have made changes to the operation of statutory sick pay and our welfare system to ensure that those who are isolating in any circumstance receive support from day one, and that we improve flexibility, particularly for the self-employed, through the removal of the minimum income floor. As the hon. Lady knows, we are also trialling incentive payments in local lockdown areas.

Anneliese Dodds Portrait Anneliese Dodds
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I did not ask the Chancellor about the precise details of delivery and I did not ask about the scope; I asked him about the value of statutory sick pay. He needs to get a grip on this issue. If he fails to do so—and the blockage appears to be his responsibility—then we will see additional localised re-impositions of lockdown, with all the implications that has for jobs and businesses. Please, Chancellor, get a grip on this issue.

There are two other reasons why economists are worried about the UK’s recovery. First, of course, there is concern about our future as a trading nation. Both of the Chancellor’s predecessors warn that the threat to override the withdrawal agreement could damage our country’s reputation and prosperity. Why do those former Chancellors appear to be more concerned about our country’s economic prospects than the current one? The second reason for concern stems from the prospect of premature spending cuts or tax rises. According to the Financial Times, it is politics that could drive the Chancellor towards early tax rises, so will he rule them out for the rest of this year?

Lindsay Hoyle Portrait Mr Speaker
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Order. I do want the Chancellor to answer, but we will have to shorten the questions.