Oral Answers to Questions
Debate between Bill Esterson and Rishi Sunak(10 months, 2 weeks ago)
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The Prime Minister
I am pleased that through our new hospitals programme Hampshire Hospitals NHS foundation trust will receive significant investment that will ensure that excellent care is available for my right hon. Friend and all her constituents. I think the trust started its consultation last year and the results are due at the end of March. We look forward to making sure we can deliver the project as quickly as possible, as part of the record capital investment in the NHS to deliver faster, better care to patients everywhere.
Bill Esterson (Sefton Central) (Lab)
The Prime Minister
I take very seriously my responsibilities to register and declare all my relevant interests. All of them have been declared in accordance with the ministerial code and it is the role of the independent adviser to advise on what it is necessary to publish within that list, including in the case of Ministers’ family members. When specific questions are asked in sessions such as the Liaison Committee, as I have been in dialogue with the Committee, declarations are made on top of that, which I have made. As I have said from the Dispatch Box, my wife has been an investor in British companies over the past years, but that is now something that she has ceased to do going forward.
Economic Update
Debate between Bill Esterson and Rishi Sunak(3 years, 10 months ago)
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Rishi Sunak
My right hon. Friend is right that this cash should get to businesses as quickly as possible. I can confirm that the guidance will be published this week, and cash from central Government should be with local authorities by the end of this week, at which point it will be up to them to distribute it as quickly as possible. I know that they have been focused on this in the past several months, so hopefully this process can be as quick as we all need it to be.
Bill Esterson (Sefton Central) (Lab) [V]
Infection rates in Sefton have more than doubled in the last week, and hospital admissions are up by 50%. Those people who have been excluded from financial support so far want to reduce infection levels and hospital admissions by staying at home, protecting the NHS and saving lives—they want to play their part too, but they need the Chancellor’s help to do so. What is his objection to using the £2 billion that the large retailers have returned in unused business rate relief to enable the many freelancers, self-employed people, people who run small firms and people who changed jobs at the wrong time to play their part in the national interest while we wait for the vaccine to be rolled out?
Rishi Sunak
I think that the Opposition had called for that money—the £2 billion—to be used to support small businesses, particularly retail and hospitality businesses, which we have now supported to the tune of £4.5 billion; I know it would be nice to spend the same money twice. With regard to those who need supporting for self-isolation purposes, we have made available £500, on a means-tested basis, to those who need that help, and that money is being worked through with local councils and the Department of Health.
Spending Review 2020 and OBR Forecast
Debate between Bill Esterson and Rishi Sunak(4 years ago)
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Rishi Sunak
My hon. Friend is absolutely right. The Government are committed to spreading opportunity across the country, especially in places where people feel they have not had the same fair crack of the whip. Our levelling up fund is designed to correct that. Today, her local area will be benefiting from discounted funding from the Public Works Loan Board to help with local infrastructure projects. That is a symbol of our commitment to her area and her constituents.
Bill Esterson (Sefton Central) (Lab)
The Chancellor said that my hon. Friends were wrong about the number of working people excluded from financial support. It is the freelancers and the self-employed who have not had any support who think that he is wrong. In the Liverpool city region, the Mayor, Steve Rotheram, has found a package to support some of the people who have been excluded. When will the Chancellor step up, support Steve Rotheram, Andy Burnham and the other Labour leaders in local government, and put a support package together? He has to admit that these people have not qualified for furlough, self-employed support or business grants, and most of them are not eligible for universal credit. When is he going to end this burning injustice?
Rishi Sunak
Some £1 billion has been provided to local authorities across the country to support their businesses and local economies as they see fit. That funding has, of course, been made available to the hon. Gentleman’s local authority. If that is how it chooses to use the funding, that is up to the local authority. We have provided a range of different support, whether loans, access to our more generous welfare system or mortgage holidays that, in the end, one in six mortgage holders used. Those are all ways by which we have tried to do our best to provide support to the largest number of people possible.
Covid-19: Economy Update
Debate between Bill Esterson and Rishi Sunak(4 years, 1 month ago)
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Rishi Sunak
My hon. Friend is absolutely right. I am always grateful to hear from Mayor Andy Street. Andy has rightly put on the agenda the situation for businesses, especially hospitality businesses, in tier 2 areas, which my hon. Friend represents, and wanted me to be aware of what was happening. I am glad that today’s set of measures will make a difference to both my hon. Friend and Andy’s wider set of businesses and, I know, to many other businesses across the country.
Bill Esterson (Sefton Central) (Lab) [V]
The Chancellor says that he will support only viable businesses. Kim runs a wedding photography business. She is self-employed and works from home and, like millions of people, she has not qualified for any of the measures that the Chancellor has announced. Weddings will need photographers again, and Kim already has 71 bookings for next year. Why is the Chancellor’s message to Kim, and millions like her, that he thinks her business is not viable?
Rishi Sunak
If the hon. Member wants to write to me with Kim’s particular circumstances, I would be happy to see what various things we have done that may be of benefit to her and her business.
Oral Answers to Questions
Debate between Bill Esterson and Rishi Sunak(4 years, 8 months ago)
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Rishi Sunak
I thank my right hon. Friend for his comments. It is certainly possible to use those historical returns. They are a year and a half out of date, so they will be necessarily imperfect. They also do not provide an easy way to distinguish between those who are deserving of support and whose incomes are being affected by what is happening, and those who are much wealthier and whose incomes are potentially increasing currently, but they do provide a basis and a universe to look at.
Bill Esterson (Sefton Central) (Lab)
When I mentioned earlier that the universal credit system was overwhelmed, the Minister may not quite have taken on board the point I was raising. A self-employed worker sent me a screenshot of their attempts to use the system yesterday; 33,383 people were ahead of them in the queue to use the claims section of the website. Unless this is resolved, people who need money right now—limited though that money is under universal credit—simply will not be able to get hold of it through the system.
Economic Update
Debate between Bill Esterson and Rishi Sunak(4 years, 8 months ago)
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Rishi Sunak
My hon. Friend is right that speed is of the essence. The loan programme will be available from early next week. My right hon. Friend the Chief Secretary to the Treasury is doing an excellent job working with the banks to make sure that those applications will be processed at speed, so businesses that need that support will get it quickly.
Bill Esterson (Sefton Central) (Lab)
The amount of money announced for the loan guarantee scheme is a massive sum, but will businesses want to be saddled with debt when they have no income and no means of paying it back? Previous loan schemes were poorly taken up because the banks ignored the guarantee part of the scheme, so how will the Chancellor make sure that the loan guarantee scheme is delivered by the banks at the scale and speed needed?
Rishi Sunak
I thank the hon. Member for the thoughtful question. He is right to ask about that particular point. He will be pleased to know that, compared with previous loan guarantee schemes, the generosity of the Government guarantees is significantly increased to provide a strong incentive for the banks to provide that lending. We have spoken to all the banks individually specifically on this measure and have their assurance that they will work at pace to deliver it. As a result of our entreaties, they have also unilaterally unlocked £21 billion of their own extra lending capacity to provide to the sector, so I am confident that they will deliver as required.
Foreign Direct Investment 2016-17
Debate between Bill Esterson and Rishi Sunak(7 years, 2 months ago)
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Bill Esterson (Sefton Central) (Lab)
It is a pleasure to serve under your chairmanship, Mr Gray.
We should celebrate the United Kingdom’s long-standing success as the premier destination for EU inbound investment, but we should also be under no illusions about the scale of the challenge facing the UK in retaining current investment, let alone building on it. As research from Michail Karoglou, David Bailey and Nigel Driffield of Warwick Business School shows, of all relevant recent events only two positively affected the long-term trend for FDI: entry to the European Economic Community and entry to the single market in 1992. Only two events caused a reduction in the long-run level of inward investment flows: Britain leaving the exchange range mechanism under John Major, and Harold Wilson’s devaluation of sterling. After both those events, it took an average of four years for the level of FDI to recover. If anyone in this room or elsewhere thinks that there might be just a short-term blip or no blip at all, the evidence from history suggests that we need to think very carefully. The uncertainty caused by Brexit is cause for concern.
Let us look at some of the figures behind our FDI position. In 2016, the UK remained the premier preferred destination for inward investment projects, but despite a rise in the number of projects, the UK’s market share in Europe fell from 21% to 19%. Meanwhile, we are losing ground in emerging growth industries, high-growth markets and in the attraction of investment from emerging powerhouse economies such as China. Celebrating the number of investment projects is all well and good, but what really matters is the value of those projects and their wider contribution to the economy.
Figures from fDi Markets investment monitor suggest that in the 10 months before the referendum, investment flows were $42.7 billion, and in the 10 months after, the figure dropped dramatically to $28 billion. If we are to evaluate fully the vital work that the Department for International Trade undertakes, we need to see the economic value—really drill down into those figures and look at the value of the projects for each financial year, notwithstanding commercial sensitivities that might prevent the release of information on a case-by-case basis. It might be an idea to see exactly how the Department allocates investment projects to specific annual statistics, so we can avoid what happened in January this year, when the Secretary of State was widely ridiculed for including projects unveiled years ago.
The Government will concentrate on the success stories, but it is important to learn from the failures as well. The recent decision by Nestlé to relocate some 300 jobs making Blue Riband biscuits to Poland is a case in point—I have pointed out elsewhere that failure to find £1 million to save 300 jobs. The fall in the value of sterling has of course made it cheaper to invest here, but as Nigel Driffield and his colleagues point out, the benefits of a favourable exchange rate are set against the uncertainties of changes in our access to the EU. Their research also shows that investors like to return profits to their home countries, so a low-cost investment may be of less interest than might appear at first glance.
The UK has traditionally been seen as a relatively easy place to do business, ranking seventh in the latest World Bank Doing Business ranking. That is in part due to a skilled and educated workforce, the dominance of English as the global business language, a robust regulatory framework, a strong legal system and a wide array of supporting service industries, but the main reason in recent decades has been our access to the largest free-trading area in the world. The big challenge, therefore, is to maintain our attractiveness as we leave the EU—hence the need for strong transitional arrangements, the avoidance of a cliff edge and a seamless move to post-transitional arrangements. A link with trade policy and a robust industrial strategy are also essential.
Rishi Sunak
The hon. Gentleman talks about maintaining our attractiveness to international investors after we leave the EU. Does he think that Labour’s proposed 50% increase in our corporation tax rate to 26% would make it more or less likely that international investors would want to invest here in the UK?
Bill Esterson
The evidence is mixed on whether the fall in corporation tax since 2010 has had benefits in attracting inward investment. Under our proposals, we would still have the lowest corporation tax in the G7. Although investors like the idea of a low-tax economy, they equally dislike the consequences. Recent research by the London School of Economics shows that the downside implied by a low-tax economy of poor public services is profoundly unattractive. The approach that the Prime Minister set out at Lancaster House may be the preferred route for many Conservative MPs who want to shrink the state, but as well as continuing to damage our NHS, schools and pensions, such a policy will restrict the Government’s ability to deliver the very infrastructure and skills that foreign investors want and need.
The view of our investors is set out starkly in EY’s UK attractiveness survey. EY said that it has been a “mixed year” and that it is
“difficult to make a clear assessment of the UK’s performance attracting foreign direct investment and maintaining its appeal to investors since our 2016 attractiveness reports, because every positive indicator is offset by an equivalent negative development.”
It added that,
“the UK’s share of European R&D projects slumped from 26% to 16%, its lowest since 2011. With software projects also slipping despite a Europe-wide increase, these results raise concerns over the UK’s future performance in key growth sectors.
Europe was the leading origin for projects into the UK…Cross-border investments in Europe grew in 2016, with Central and Eastern Europe becoming an important area for higher value-added FDI such as R&D. As European value chains become increasingly integrated, investors appear concerned about the UK’s future access to these value chains.”
The EY 2017 global survey of investors’ perceptions
“reveals a split between current plans and future expectations…Some 31% of investors expect the UK’s FDI attractiveness to decline over the next three years, while 33% expect it to improve.”
Before we get too excited about the net positive figure, EY states that those figures are
“significantly worse than the long-term average, and 50% of investors based in Western Europe expect the UK to become less attractive.”