Budget: Pre-announcement of Provisions

Debate between Catherine West and Simon Clarke

Tuesday 26th October 2021 Commons Chamber

[Mr Clarke]

The hon. Gentleman will be aware that the £500 million household support fund is being put in place precisely to ensure that we protect families through the winter that lies ahead. That comes on top of all the measures that we have put in place to ensure that we adjust for the cost of living. This Government tax people very fairly. The richest 1% and 5% are paying more tax than they did under the last Labour Government. That includes the banks, which pay their fair share as part of a wider economic settlement.

[Catherine West (Hornsey and Wood Green) (Lab)]

VAT receipts have been climbing, which is a good thing. Will the Treasury look at helping those with very high fuel bills—for example, those with many children, those who have to keep their heating on during the day, those who are ill and pensioners—over the coming winter? Will the Minister consider that as part of tomorrow’s package—which, of course, will be announced tomorrow?

[Mr Clarke]

The household support fund is specifically targeted in order to help with the cost of living. Indeed, much of it is ringfenced for families with children, reflecting the sense of what the hon. Lady is saying. The energy price cap works with that, as does the warm home discount. The warm home discount is becoming more generous next year, as the number of people who benefit from it rises from 2.2 million to 3 million, and its value rises from £140 to £150. Those are the kinds of measures that we will continue to look at. The Chancellor will speak about VAT as part of the wider Budget settlement tomorrow.

Working People’s Finances: Government Policy

Debate between Catherine West and Simon Clarke

Tuesday 21st September 2021 Commons Chamber

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“welcomes the £400 billion package of support the Government has put in place to protect jobs, incomes and livelihoods throughout this covid-19 pandemic, including a temporary cut to VAT, generous cash grants for businesses, a business rates holiday, and the furlough scheme which protected 11 million people at its peak; notes the launching of the Plan For Jobs to help people back into work and gain the right skills to succeed in the jobs of tomorrow through schemes such as Kickstart for young people, Restart for the long-term unemployed, the Lifetime Skills Guarantee and additional funding for apprenticeships, traineeships and work coaches; further notes the measures taken by the Government to keep costs down for working people, such as introducing and increasing the National Living Wage in 2016 so that a full-time worker is £4,000 a year better off than before, doubling personal tax thresholds giving individuals an extra £1,200 per year, protecting local taxpayers from excessive council tax increases, introducing an energy price cap which protects 15 million households by around £100 a year, and freezing fuel duty for 11 consecutive years which has saved drivers £1,600 compared to 2010; and believes that this plan is working, as evidenced by unemployment forecast to be 2 million lower than previously expected, job vacancies at record highs, household incomes protected, consumer confidence back to pre-covid-19 pandemic levels, and GDP recovering rapidly, with the IMF forecasting the UK to have the highest growth in the G7 this year.”.

It is a pleasure to be back at the Dispatch Box and to have the opportunity to respond to the hon. Member for Houghton and Sunderland South (Bridget Phillipson). I thank her for her kind words on my appointment. It is great that the north-east has two representatives in the debate, and I am delighted that the north-east economy is in robust shape, contrary to what we just heard.

In the last 18 months, safeguarding working people’s finances has been the Government’s defining mission, and we have succeeded in that task. Just today, the OECD economic outlook says that it expects the UK to see the fastest growth in the G7 both this year and next. The IMF has described the UK’s policy response as “aggressive” and as one of the

“best examples of co-ordinated action globally”,

helping to mitigate the damage wreaked by the pandemic, and

“holding down unemployment and insolvencies.”

[Catherine West (Hornsey and Wood Green) (Lab)]

The Chief Secretary begins his speech by talking about growth, which everyone in the Chamber would like to see, but what impact is there on struggling businesses from the clobbering increase in national insurance? That will have an impact on not just individuals but employers and the workplace.

[Mr Clarke]

We are clear that the right thing to do as we emerge from the pandemic, in which we have spent £400 billion on providing a comprehensive response, is ensure that our NHS is ready to deal with the backlog of cases that has inevitably arisen as well as providing a long-term fix for social care in a broad-based solution, bringing together a progressive tax rise in which the wealthiest pay more and business plays a fair role. I am confident that that is the right thing to do at this time.

Let me remind the House once more of the sheer scale of what this Government have been doing and of our support for the economy. The £400 billion I referenced a moment ago is spending that has been devoted to safeguarding jobs and incomes the length and breadth of the UK. It is spending that has given millions of people financial certainty through a very difficult 18 months.

The furlough scheme has protected 11.6 million jobs—that is equivalent to a third of the entire workforce—and it has paid out £68.5 billion to employers. The self-employment income support scheme has provided £27 billion to almost 3 million people. Businesses have been kept afloat thanks to loan schemes worth £79 billion, in addition to cash grants, VAT cuts and business rates relief, while the most vulnerable have been supported by a temporary uplift to welfare payments. HM Treasury’s own distributional analysis shows that our interventions have supported the poorest working households most as a proportion of income. That list is far from exhaustive, but it shows how the Government have met an extraordinary crisis with an extraordinary package of measures.

No-deal Brexit: Short Positions against the Pound

Debate between Catherine West and Simon Clarke

Monday 30th September 2019 Commons Chamber

[Mr Clarke]

Tempting as it is to follow the trail laid down by my hon. Friend, I will content myself with saying that, just as I would not comment on the actions of individuals in my reply to an Opposition Member, I will not comment on the actions of individuals now. However, the idea that there are vested interests on only one side of the debate could clearly be contested.

[Catherine West (Hornsey and Wood Green) (Lab)]

One of the areas of the economy that the casino-style hedge funds will be betting against is the housing market. What assessment has the Treasury made of how many fewer homes will be built, and which section of the house building economy will be worst affected: renters, first-time buyers or pensioners?

[Mr Clarke]

To the best of my knowledge, we have not commissioned specialist advice on the housing market. If I am incorrect, I will ensure that that is set out in writing to the hon. Lady. It is very clear that the UK housing market is in its most robust condition for many years. Indeed, we are now building many multiples of the situation we inherited in 2009, when house building had well nigh stagnated. Of course, many of the problems faced in our housing market stem from the disastrous failure of the last Labour Government to build enough homes in the first place.