(7 years, 5 months ago)
Ministerial CorrectionsIn the short term, will the Treasury review the inflation-busting 6.3% rate, and in the longer term will the Government admit that feeble wage growth is at the bottom of this problem?
That is a slightly strange question from the hon. Lady, given we have just seen the highest real wage growth for 10 years coming through our economy.
[Official Report, 18 December 2018, Vol. 651, c. 652.]
Letter of correction from the Chief Secretary to the Treasury:
An error has been identified in the response I gave to the hon. Member for Hornsey and Wood Green (Catherine West).
The correct response should have been:
(7 years, 5 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
In the short term, will the Treasury review the inflation-busting 6.3% rate, and in the longer term will the Government admit that feeble wage growth is at the bottom of this problem?
That is a slightly strange question from the hon. Lady, given we have just seen the highest real wage growth for 10 years coming through our economy.[Official Report, 20 December 2018, Vol. 651, c. 6MC.]
(7 years, 7 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Speaker
Who is offering to do a short sentence? Ah, well done—Catherine West.
There seem to be a number of questions that the Minister is not able to answer. Is his boss available, or is he also in “the killing zone”?
(7 years, 9 months ago)
Commons ChamberMy hon. Friend is absolutely right. It was a privilege to meet David Hepburn at First Floors and see the value of new products. The Government are committed to stimulating more investment in FinTech, and it was a privilege to visit FinTech Scotland, which is doing a lot, too. We have invested a considerable amount to increase the numbers of people who are taking this step to innovate in finance, and with open banking we will see more.
Mr Philip Hammond
I imagine the reason is that the provision of these services is contracted out, but I will investigate and write to the hon. Lady.
(7 years, 11 months ago)
Commons Chamber
Mr Hammond
I can tell my right hon. Friend that under the last Labour Government, the number of people achieving home ownership fell by 61%. I think Labour’s position is clear. The Leader of the Opposition has described home ownership as a national obsession; for the Government it is a national priority. We are helping hundreds of thousands of people across the country to achieve the dream of owning their own home, and that is why I am proud that, under a Conservative Government, the number of first-time buyers is now at an 11-year high.
Will the Chancellor tell us what is being done for people who cannot afford their own home, in terms of lifting the borrowing requirement on councils so that they can build more social homes?
Mr Hammond
We have a £9 billion affordable homes programme, and we announced a £2 billion uplift in that programme last autumn. We have increased additional flexibilities to allow building for social rent and to relax the housing revenue account caps on local authorities in the highest demand areas. This Government’s programme to deliver the homes this country needs achieved 217,000 net additional dwellings last year and is on track to deliver 300,000 net additional dwellings a year by the middle of the 2020s.
(8 years, 1 month ago)
Commons ChamberI will focus my remarks on the work of the Business, Energy and Industrial Strategy Committee regarding our relationship with the European Union and the customs union, and on the impact that leaving them will have on British businesses.
A couple of weeks ago the Select Committee visited Norway, where we were looking at electric vehicles. Of course, while we were there, we discussed with the people we met the border between Norway and Sweden. Norway is not in the customs union, but Sweden is in the European Union and therefore part of the customs union. Trade is not frictionless along that border. There is physical infrastructure and there are sometimes queues. The goods trade between Norway and Sweden is worth £13 billion a year. Goods going through the port of Dover alone are worth about £120 billion a year, and trade between Northern Ireland and the Republic of Ireland is worth more than £5 billion a year. This is not straightforward. There are huge risks and costs of us coming out of the customs union.
My Committee has produced five specific reports about the effects of leaving the European Union, on the civil nuclear sector, aerospace, the automotive industry, pharmaceuticals, and the food and drink sector. We received almost 100 pieces of written evidence during our inquiry and took oral evidence from more than 30 witnesses. Pretty much every witness, apart from the chief executive of JD Wetherspoon, spoke of their fears and worries about leaving the European Union and specifically about leaving the customs union, which is why I am so pleased that we are having this debate.
The Committee heard time and again that any border delays would undermine just-in-time delivery systems; force companies to expand warehousing facilities massively, at a significant cost, as the right hon. Member for Broxtowe (Anna Soubry) said so eloquently; and put at risk time-sensitive imports and exports, particularly of food, medical radioisotopes and many pharmaceutical products.
Is my hon. Friend aware that the members of the International Trade Committee made a similar finding when we visited the border between Canada and the United States? We saw very long delays there, and that was between friendly countries. Transposing such a situation to Northern Ireland would be a nightmare, especially with all the rifles on the shoulders of border guards and so on.
Yes. Of course, this is most keenly felt and apparent along the border between Northern Ireland and the Republic of Ireland, as other Members have pointed out. But this is an issue not just in Northern Ireland, but at every port in the country. As an island and a trading nation, leaving the customs union will have a huge and devastating impact on us.
(8 years, 2 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
In a customs union, as I am sure the hon. Lady will know, a country would be bound by the external tariffs set by that customs union. A relationship with a customs union takes the form that I have described, which would be a frictionless interaction of our exports and imports with that customs union.
What special assessment has been made of the risk of medications perishing due to long delays at ports?
With regard to Euratom’s remit over the kinds of isotopes that the hon. Lady is referring to, nothing in our relationship with Euratom, or our lack of involvement with it going forward, will affect the ability of those isotopes to move between mainland Europe and the United Kingdom.
(8 years, 5 months ago)
Commons ChamberI thank my hon. Friend for his intervention, but I do not want to be tempted too far into the negotiations that pertain to matters between the United Kingdom and the Republic of Ireland. However, I will pick up on the point that he and other right hon. and hon. Members have made about readiness. The customs declaration services system that will need to be in place to handle around 300 million import and export transactions and declarations is well on target. It will start to go into use by this autumn and we firmly believe that it will be up and running by next January—well in time for the 29 March deadline.
The Minister is being very generous in taking interventions. Will he tell the House the estimated impact on the beef and dairy sectors in Northern Ireland, following today’s article in the Financial Times that flags up the massive cost to the industry that a completely new customs union system would entail?
Any issues around impacts on the flow of goods or trade necessarily require an assessment of where exactly the deal with the EU and—specifically in the case of the hon. Lady’s question—the Republic of Ireland lands. Until we know exactly where that lands, it is not possible to start opining on those impacts. I come back to my central point: we are negotiating hard, and it is in our interests, and of course those of the EU, to make sure that we have the lowest duties possible between our trading blocs, and that trade flows as freely and effectively as possible.
(8 years, 6 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I have given way already to the hon. Gentleman, so I will give way to the hon. Lady.
Does the Minister accept that there is a link between the current crisis in numbers of nurses in the NHS and the pay on offer, particularly given the huge student debts that many nursing graduates have? It is up to £54,000 for those at London Metropolitan University. Does he believe that there is any link between a starting salary of £21,500 and a huge student debt of £54,000 for nurses?
I remind hon. Members who wish to intervene on the Minister that there are 10 minutes left. I am sure that people would like to hear from the Chair of the Petitions Committee after the Minister. Time is now beginning to get tight.
(8 years, 6 months ago)
Commons ChamberIt is a real pleasure to follow my hon. Friend the Member for Bristol South (Karin Smyth) and to speak in this Budget debate.
The outlook for the economy is bleak, with the worst five-year forecast of GDP since the Office for Budget Responsibility was set up, against the backdrop of the drop in sterling and the increase in inflation. As the Chancellor stood up to speak, the cost of Brexit was clear—in excess of £3 billion. Let’s put that on the side of a bus!
Hornsey and Wood Green has been starved of funding over the past seven years. The capacity of our community to educate, house and care for our citizens, as well as keep them safe, has deteriorated and is set to decline further. While London remains, seemingly, a vibrant economy, there is a yawning gap between the haves and have-nots. My hon. Friend the Member for Wrexham (Ian C. Lucas) spoke of his concerns about his region, but there can be inequality within a region as well: in London, we often walk the same streets but inhabit different worlds. Wages are flat, household debt is up, and transport and infrastructure continue to stall, with negative effects on industry and workers alike.
People in three particular housing tenures—those who hope to buy, private sector renters and those who are languishing on social housing lists—are in desperate housing need. Disappointingly, the rough sleeping initiative in the Chancellor’s speech did not include tackling rough sleeping in the capital. I think we all noticed this morning, as we charged in for our meetings and the Budget debate, that there were two homeless men asleep outside the door of the House of Commons. That is what Labour Members want to tackle, but I fear that when we come to the Budget debate next year, there may even be more homeless people lying in sleeping bags outside the doors of the House of Commons.
While London remains one of the top destinations for business and international talent, transport and infrastructure continue to stall, and it is time we all woke up to that. The Borough of Haringey has seen a 40% real-terms reduction in funding since 2010, resulting in £160 million of savings, which have affected disabled people, basic municipal services and children with special educational needs, and have generally had a depressing effect on the local economy. That worrying trend is set to continue, with another £20 million of savings to be found in the finances of one London borough.
A dangerous cocktail of growing demand, cost and inflation combined with funding cuts is putting unsustainable pressure on local government finances. Core funding from central Government is set to have fallen 63% in real terms over the decade to 2019-20. I tell children when I go into schools, “It’s like your mum gives you £1 one day, but only 30p the next. That’s how it is to manage a council these days.” People in Hornsey and Wood Green know the situation well. We have a desperate shortage of housing, but we are also concerned about health.
I am sure the hon. Lady will want to introduce some balance into her speech, because she is very fair-minded. Which does she welcome more: the substantial extra money for the NHS, the substantial investment in transport infrastructure or the cut in stamp duty for millions? Which of those does she think is the most important?
Instead of wasting all these billions on the whole Brexit shambles, I would rather we had more than £1 billion for the NHS. I am afraid that £1 billion is less than what Simon Stevens says we need.
In my constituency, 37 out of 37 schools will have experienced a 6% fall in funding per pupil between 2015-16 and 2019-20. Headteachers, classroom teachers and teaching assistants are all calling for desperately needed change. Police funding cuts barely got a mention, but it looks as though the Home Office will have to swallow a £400 million cut to the police. I was out in the affluent suburb of Highgate on Monday morning, speaking to terrified mothers who had had things stolen from them by youngsters who had ridden up on mopeds and used hammers to smash the windows of the café in which they were sitting; that has happened four times since the café moved into the high street. We are facing a crime wave in London, and it needs to be addressed.
I want briefly to mention the cut of £797 million, or £510 per person, in health funding in the north central London area. Many Members will be aware that there are huge pressures, particularly in mental health, and cuts on that scale will have a huge effect on very vulnerable people with serious mental health problems.
Finally, I welcome elements of the change in approach to small business taxation, but we must go further. As our population continues to grow and people work in different ways, including in small business, we need to be ever mindful of supporting them.