(5 years, 5 months ago)
Commons ChamberThe hon. Gentleman is right to point to storm clouds over the global economy. We tend to focus on Brexit-related issues and the domestic agenda, but I have just come back from the G20 in Osaka, and looking more widely, we can see that global growth is slowing and that global trade growth is slowing even more dramatically. A great deal hinges on finding a solution to the disputes between China and the United States. It is hugely in our interests that that dispute is resolved and that normal trading relations are resumed between the world’s two economic superpowers. As a middle-sized open economy, we are bound to be adversely affected if global trade slows down.
(5 years, 7 months ago)
Commons ChamberI chair Labour’s Back-Bench environment, food and rural affairs committee.
The Chancellor always impresses me. He is thoughtful, and I like him a lot. He is thoughtful on Europe and on the environment, but can I take him back to what my hon. Friend the Member for Cambridge (Daniel Zeichner) said? Is it not about time we had a modern taxation system that encourages sustainable transport? We are killing kids and poisoning pregnant women. We know that air pollution is of the utmost importance. I appeal to the Chancellor’s radical instinct: let us have a new form of sustainable taxation.
I am bemused by the disappearance of Mr Angry, who I am quite used to dealing with at the Dispatch Box. As I said earlier, we have a good track record on decarbonisation and addressing air quality challenges. We provide substantial support for ultra low emission vehicles, we have a highly differentiated vehicle excise duty and company car tax regime, which encourages the purchase of the cleanest and most efficient vehicles, and we will go on seeking to change behaviour through a carefully constructed tax system.
(5 years, 9 months ago)
Commons ChamberI knew Chelmsford was going to get in there somewhere.
The additional £7 billion I mentioned earlier is focused on applied research and industry innovation and the commercialisation of the UK’s world-leading science base. Quantum technologies have the potential to be transformative, and the UK is a global leader, so last autumn I committed £315 million for a second phase of the UK’s landmark national quantum technology programme. This investment includes a £70 million industrial strategy challenge fund, which will help leading UK firms such as Teledyne accelerate getting their products to the market.
The Chancellor knows very well that Huddersfield in the Leeds city region is a hotspot for new technology and innovation and a tech centre, but many people in Huddersfield and Leeds are demoralised by the future and leaving the European Union. What can the Chancellor do to give them some hope that there is a future for their businesses and universities?
I am well aware that Huddersfield, like Chelmsford, is a leading centre of industry and technology development. Many of our towns and cities that have traditionally been centres of manufacturing are changing very fast in response to the changing nature of manufacturing industry. What I can say to the hon. Gentleman is that I will be making a spring statement to the House next week in the context of some very important decisions that the House will be making about our exit from the EU, and I will be setting out my vision for Britain’s future.
(5 years, 10 months ago)
Commons ChamberThe Government have made a cross-departmental assessment of the medium to long-term effects of different Brexit outcomes, which the Government have published. The Bank of England, because it is better equipped to do so, has made an assessment of the short-term impacts of leaving the EU under different scenarios, which it has published.
You’re the Chancellor of the Exchequer. You should have made it yourself.
The Labour party will have to get its act together, and organise a discussion between its Front Benchers and its Back Benchers.
Well, I know where the deep divisions lie. [Interruption.] We have heard many Opposition Members express concern about a lack of investment and the potential relocation of businesses, but now the hon. Member for Bootle (Peter Dowd) has popped up on the Front Bench suggesting that we hit business with an additional tax charge. Labour is the party that is proposing to increase corporation tax for businesses, including the smallest in our country. We will remain the party that is encouraging businesses, large and small, by ensuring that ours is an attractive jurisdiction for investment to take place.
The Department for Transport has complied with all the Treasury’s Green Book procedures in letting the contract in question, and the decision to go ahead will have been taken with the consent of the Department for Transport’s accounting officer.
On a point of order, Mr Speaker. I may have erroneously misled the House when I said that the Minister said that the Government were creating 75 businesses a minute. It has been pointed out to me that he actually said 75 businesses a second.
(5 years, 11 months ago)
Commons ChamberThe Chancellor does not like it when I use what he calls my “synthetic passion”, so, very quietly, may I beg him to take very seriously indeed where we are as a nation? It looks like we are heading for financial meltdown: people are losing their confidence in this country—[Interruption.] People are losing their confidence. My high street retailers—the big people and the small people—have their heads in their hands, and householders see a real likelihood of a 30% drop in their home value. Will he do something to stop this madness?
There are a couple of points there. First, I should just say to the hon. Gentleman that I was actually congratulating him the other day on his display of synthetic anger, which is one of the best in the House. On the wider point, the high street is facing challenges because of the uptake of online retailing across the UK at a faster rate than in any other large economy. That means that our high streets will have to adapt. The Government cannot save the high street from the need to change. What they can do is support it as it goes through that process of change.
(6 years ago)
Commons ChamberMy hon. Friend is absolutely right. As I said in my Budget speech, after considering representations to scrap entrepreneur’s relief, I reached the conclusion that, unless we support entrepreneurs, we will not have a dynamic and vibrant economy that can support our first-class public services. Those two things go hand in hand.
Is the Chancellor aware that the businesses and entrepreneurs I speak to look back fondly to the time of the global economic collapse—not a Labour recession, but a world economic collapse—when a man called Alistair Darling, who was a real Chancellor, led us through that crisis? [Interruption.] At a time when everyone is totally depressed about Brexit, our businesses and entrepreneurs want a real statesman and a real Chancellor to lead this country.
The hon. Gentleman’s synthetic anger, which I have been enjoying for the best part of 20 years, is always a spectacle worth observing. I thank him for another episode. If he really thinks that businesses look back fondly to the financial crisis, he needs to get out a bit more.
(6 years, 5 months ago)
Commons ChamberOn his way to Chequers, will the Chancellor give a thought to health trusts such as Calderdale and Huddersfield NHS Foundation Trust? It still cannot deliver the healthcare that my constituents and people in the rest of west Yorkshire want because of the PFI hanging around their necks. Will he do something about PFIs?
I am afraid that I have to remind the hon. Gentleman that 86% of all PFI contracts currently in place in the NHS, draining money out of NHS trusts, were put in place by the previous Labour Government.
(6 years, 6 months ago)
Commons ChamberThe national productivity investment fund is investing in all those areas. We have the biggest rail investment programme since Victorian times and the biggest road building programme since the 1970s, and we are investing in superfast broadband, which is critical to this country’s future. As my hon. Friend will know, in his area we are investing in the A21, and we are working with Network Rail on exploring options for connecting HS1 services to Hastings via Ashford International.
Surely the Chancellor knows that the thing holding back most businesses—small, medium-sized and large—is the lack of good skilled people to work for them. When is he going to give the Secretary of State for Education a good shaking and make him do something about the apprenticeship levy, apprenticeship schemes and the higher education graduate apprenticeship scheme?
The hon. Gentleman is right that skills are a critical factor for business in an economy with such high levels of employment and low levels of unemployment as we have achieved. We are investing in apprenticeships with the new apprenticeship levy, providing funding for more and better apprenticeships; we are investing in T-levels, improving substantially the level of technical training for 16 to 19-year-olds; and we are reviewing the operation of tertiary education funding.
(7 years, 1 month ago)
Commons ChamberYes, British business has made it clear that it wants the earliest possible certainty about the implementation of interim arrangements. It has also made it very clear that it does not want any Marxist mayhem.
(7 years, 7 months ago)
Commons ChamberThe Government’s clear intention is to incentivise investment in fibre broadband networks. The Department for Communities and Local Government will shortly publish a consultation on the implementation of this relief, which will set out more detail on how new fibre will be defined, and we look forward to the responses to that consultation.
Why does the Chancellor not shake up some of his colleagues, and start investing in the digital infrastructure in the north of England, in Yorkshire in particular? Will he also look at other infrastructure, such as railways? When are we going to get the electrification of the TransPennine Express route?
At autumn statement, we announced £23 billion of additional investment in our infrastructure, and key priority areas such as research and development, specifically designed to address the UK’s productivity problem. This investment has to be spread across the whole of the UK economy to make sure that we deliver improved productivity and improved economic growth across the economy as a whole. Such investment is going in: public capital investment will be at a higher level in this Parliament following the announcement of this decision than it was before the financial crisis.
(8 years, 1 month ago)
Commons ChamberThe Chancellor will know that West Yorkshire is the beating heart of the manufacturing economy in this country, but my manufacturing leaders, and the EEF, feel left out of the loop in relation to their future after Brexit. Can he reassure them, because they are very disturbed about the future?
I can certainly reassure the hon. Gentleman that manufacturing industry is very much in the forefront of our thinking as we approach these negotiations. I am sorry that I have not had a chance to go to West Yorkshire, but I have been engaging with businesses in all sectors of the economy, including many businesses from the north that have attended round-tables in Downing Street over the past few weeks to set out their concerns so that we can take them properly into account.
(8 years, 6 months ago)
Commons ChamberThere is definitely a Russian strategy to try to fragment European resolve. It is probably a step too far to suggest that Russia’s engagement in Syria is designed only to apply pressure over Ukraine. Russia has important and historical equities in Syria and is seeking to defend its interests there. But, overall, Russia’s behaviour in Syria and Ukraine gives us deep cause for concern about the established security settlement that we have been used to living with for the last 25 years.
Did the Secretary of State read the Max Hastings article in The Sunday Times this Sunday, in which he expresses deep concern about the threat from Russia and about the way Russia is now preparing to use cyber-methods against Europe and our allies? Will he take action to make sure that this country of ours is prepared to match up to those threats, and will he seek succour from the European Union in doing that?
I did not read the article in The Sunday Times that the hon. Gentleman refers to, but I am very familiar with that author’s views on this subject and very familiar with the problem. We are taking action to strengthen our cyber-defence and, as I announced three years ago when I was Defence Secretary, to create an avowed UK offensive cyber-capability. We are still the only nation that has publicly declared the fact that we are developing an offensive cyber-capability for retaliatory purposes if we are attacked.
(9 years, 9 months ago)
Commons ChamberThe Ukrainian Government are facing significant financial constraints. As the hon. Gentleman will know, they entered a Government-to-Government agreement on the supply of gas from Russia that required them to prepay and clear some old gas debts. That is why we are focused, alongside the strategic channel, on facilitating the $15 billion facility from the IMF, to which the EU will contribute $2.3 billion. That will give the Ukrainians some breathing space. They have to get their economy in order, deal with the corruption issues and make essential reforms, and if they do so, $15 billion will not be the last of it; it will be the first instalment of an ongoing support programme for the country.
Does the Foreign Secretary agree that the guarantee of peace in Europe and the world has been largely based on a strong EU and NATO and the strong defence capacity of this country? Does he believe that the reason some people say we are peripheral to the main foreign policy discussions in Ukraine at the moment has been the weakness of our support for the EU and NATO and the fact that we have had to be begged by President Obama not to run down our military forces any further?
I shall take that question in two parts. I agree with the first part. It is important that we have a strong EU response. We have already demonstrated, in relation to Iran, that the economic weapon can be a hugely important strategic tool. The EU and the US together represent about 46% of the world’s GDP, so if they align to impose economic sanctions on a third party, they will have an impact. We have shown that that is an important strategic weapon. NATO, of course, remains the cornerstone of our hard defence, and we must maintain the strength of that organisation, including by maintaining European NATO members’ level of defence spending in order to make a fair contribution and balance that of the US.
It is simply not true, however, that we are peripheral in this debate. It is true that we are not leading the discussions with Mr Putin. Mrs Merkel talks to him in Russian, and he talks to her in German; they have common languages and communicate with each other. We should use the best channel available, and that communication channel is the best available for that part of the task. We, on the other hand, are focusing on maintaining the backbone of the EU. Any of my EU colleagues who have been present in the Foreign Affairs Council meetings will confirm that we have been boringly insistent on the need to maintain these sanctions, however long the discussions take. We cannot afford casually to reduce our stance, because the Russians will take any sign of weakness or division, and open it out in a way that will be fatal to our position.
(9 years, 12 months ago)
Commons ChamberI have had a couple of meetings with my new Polish counterpart and had more extensive meetings with the former Polish Foreign Minister Sikorski. I will be going to Brussels later on this afternoon and will have the opportunity to meet my Polish counterpart again. What the hon. Lady says is absolutely right. An essential emerging feature of the new EU architecture is the fact of the eurozone and the non-eurozone. If those countries in the eurozone wish to pursue closer political integration, they will be able to do so. Those countries that are outside the eurozone must be assured of the integrity of the single market, even though they will not take part in that process.
When the Secretary of State is meeting all his important European Union people, will he tell them that there are many people in this country and in this House who value the peace and prosperity that the European Union has brought to this country? Given the threatening world in which we live with President Putin and all the other things that are happening, we value that relationship and want to build on it.
Of course we value the benefits that being in the European Union brings us, principally through the single market but also with security, as we have seen in the confrontation with Russia over Ukraine. What we now need to do is address the bits of the European Union that are not working effectively, that are holding Europe back so that it is no longer competitive in the world and that represent a failure of democratic accountability so that we get a European Union that is acceptable to the British people. We as a Conservative Government will allow the British people to have the final say on that.
(10 years, 8 months ago)
Commons ChamberAs the Under-Secretary of State for Defence, my hon. Friend the Member for South West Wiltshire (Dr Murrison), has already said, the status of Ukraine is quite different from the status of NATO countries—NATO countries enjoy the article 5 guarantee, which protects and assures their security—but we are doing everything we can to reassure our NATO allies about the protection that we offer. I am able to advise the House this afternoon that we have taken the decision this morning to offer NATO UK Typhoon aircraft from late April to augment the Polish contribution to the NATO Baltic air policing mission. I hope that will provide reassurance to our NATO allies in the east.
T6. In thinking about the importance of learning from the past, has the Secretary of State read “Why England Slept”, a little book by John Fitzgerald Kennedy? It is about Britain not being prepared in the 1930s for what was going to happen in Germany. Does he think that England, or Britain, is sleeping now, with an uncertain and unpredictable presence in the east of Europe?
I have not read the book, but I have said consistently in this House and elsewhere since I came into this post that we should not forget Russia’s very significant rearmament programme. Russia remains a major military force on the continent of Europe, and its interests are not always aligned with ours, as we have seen only too clearly over the past few weeks.
(10 years, 10 months ago)
Commons ChamberThe hon. Gentleman mentioned the Prime Minister. I wonder whether he remembered the previous Prime Minister’s attitude to defence when he made that sweeping assertion. I have a great deal of respect for former Secretary Gates, but he has been out of office for a couple of years now. I also noted that, in the interview in question, he seemed distinctly vague about some of the details of our defence policy. He could not even quite remember what our position was on aircraft carriers, and it seemed to have completely passed him by that we were building the two largest ships in the Royal Navy’s history right now, not only to replace the carrier capability but hugely to enhance it. I absolutely reject his suggestion that we will not be able to be a worthy and preferred partner for the United States in the future. Just last week, I met the commander of the United States fifth fleet, who told me specifically that the Royal Navy was, and will remain, the fifth fleet’s partner of preference and that, in their joint operations in the Gulf, the dividing line between the Royal Navy and the fifth fleet was invisible. That is the way we want it to be, and that is the way we will ensure it remains.
Does the Secretary of State agree—he will not like this—that the great British public are not stupid and cannot be fooled and that we know, our allies know, our enemies know, our admirals know and our generals know that, today at the Dispatch Box, he has run up a flag that tells the world that we are no longer a serious world power? [Interruption.] That is the truth, and he cannot disguise that fact.
Well, I have heard some rubbish in my time. Although we might disagree, the hon. Gentleman could have tackled me on a range of issues about the impact of the changes that we have made in the structure and funding of our armed forces, but this final tranche of redundancy today—about 1,500 people across the armed forces—is not a big structural change and certainly does not warrant the accusation he has made.
(11 years, 3 months ago)
Commons ChamberWhat is the strategy in Syria? Listening to the speeches in last Thursday’s debate, it became very clear that no one had spoken to the new leadership in Iran or to the new leadership in China about their position on the Security Council. What is the strategy or are the Government just giving up on defence and foreign affairs?
We will take no lectures from the hon. Gentleman on the last point. As I have said several times today, notwithstanding the vote last Thursday, which made it clear that we will not engage militarily in a response to the shocking use of chemical weapons, we will continue to explore every avenue to influence the outcome through diplomatic and political means. I suggest to the hon. Gentleman that if he makes himself available here tomorrow, he will have the opportunity to ask the Foreign Secretary that question at Foreign Office questions and to receive a full answer about the level of engagement with the leaderships of Iran, Russia, China and the many other countries that are involved.
(11 years, 5 months ago)
Commons ChamberT6. Given that so many experts, leading generals and admirals think that we no longer have defence forces that are capable of defending this country, will the Secretary of State look at his Department’s spending over the last five years of £34 million on G4S, which did such a good job on the Olympics?
We are looking at all areas of spending other than those that support military personnel numbers. Some of the hon. Gentleman’s examples and many others that people have quoted at me are, in fact, examples of the Department having historically made efficiencies by civilianising or contractorising parts of the service. We will continue to do that where it makes sense to do so.
(11 years, 7 months ago)
Commons ChamberDoes the Secretary of State realise that if he wants a defence manufacturing sector to remain in our country—I have David Brown Gear Systems, an important defence contractor, in my constituency—and if he wants it to survive and thrive as a sector, it is absolutely vital that we have procurement over a long period to enable the necessary investment? Is he aware that there is uncertainty in the industry about these defence cuts?
Of course, cuts in defence budgets, not only in the UK but in the United States and, in fact, in nearly all developed countries, have presented huge challenges to defence industries. At the same time, many of their traditional export customers have developed their own defence manufacturing and even design and development capabilities. We are trying to work with the defence industry to give it greater visibility of our forward intentions, and to work with it to design greater export ability into its projects.
(13 years, 6 months ago)
Commons ChamberYes, I can give my hon. Friend that assurance. The proposal that we have put forward—as he will see when he has a chance to look at the invitation to tender—is that the train operators should be granted a peppercorn rent lease of the station for the duration of the franchise. We also propose a revised residual value mechanism, so that train operators have an incentive to invest capital in station infrastructure throughout their franchises with the confidence that they will be reimbursed a fair value for that investment at the end of the franchise.
Does Sir Roy’s report which, from what the Secretary of State has said, is very stimulating and interesting, mention the possibility of mutualisation or a co-operative form for Network Rail? We want a profitable, safe and effective service but if, as MP for Huddersfield, I look at the rolling stock that gets my constituents to Wakefield, Leeds and Manchester, I see that it leaves a great deal to be desired. Could we also see some changes on that front?
I am sure that the hon. Gentleman will have been pleased by the announcement that we made recently about additional rolling stock for the commuter services into Leeds. Sir Roy did not specifically address the question of any form of mutual structure. Network Rail is of course an independent company, and as Secretary of State I do not have any power to direct it. There are issues of the governance of Network Rail that need to be addressed, and I accept that, but I suggest that the urgent need is to look at its operational structure. The issues of governance and the rather theoretical question of ownership can be looked at on a longer time horizon. Right now we need to drive out cost.
(13 years, 8 months ago)
Commons ChamberBoth Birmingham airport and the national exhibition centre are extremely supportive of the High Speed 2 proposals. The consultation is predicated on the entire line being built with public money, but it also says that we think there will be opportunities for private sector development-led funding of some of the station infrastructure, and that is what we will discuss with private sector partners such as the NEC and Birmingham airport.
May I urge the Secretary of State to keep his nerve on this matter? I welcome the consultation, and our cities need high-speed links—certainly in Yorkshire and in the northern regions. May I urge him in addition to ignore some of the deniers—they are also climate change deniers—who have had letters published in the newspapers this morning?
I am grateful to the hon. Gentleman for that comment. Those who oppose the building of the line have clearly identified themselves and their direct interests in this matter. It is now for those who will stand to benefit the most, particularly in our great northern cities, to voice their support during the consultation period.
(13 years, 12 months ago)
Commons ChamberAs my hon. Friend will know, 176 additional carriages are due to be delivered to the Greater Anglia franchise next year. That will assist with overcrowding overall. In regard to the upgrading of the line, I have said in response to other questions today that we are prepared to look at proposals for further network enhancements as possible investments for control period 5, which begins in 2014.
Is the Secretary of State aware that the answer given just a few minutes ago by the road safety Minister is probably the worst answer I have heard in this House in 31 years? Professor Richard Allsop, an acknowledged world expert on transport safety, says that 800 people will die because of the Government’s policy on speed cameras. Is the Secretary of State going to just sit there and let that happen?
No, and I completely reject the analysis. As the Under-Secretary of State for Transport, my hon. Friend the Member for Hemel Hempstead (Mike Penning), has said, speed cameras are useful additions to the road safety armoury in some locations. It is for local authorities to decide whether they wish to continue with speed camera operation. I hope that they will act responsibly and carefully in making those decisions.