Oral Answers to Questions

Chloe Smith Excerpts

Tuesday 1st November 2011 Commons Chamber

[Fiona Mactaggart (Slough) (Lab)]

4. What assessment he has made of the effects of the 2011 Budget on unemployment amongst women.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The Office for Budget Responsibility published its unemployment forecasts in March 2011, taking full account of announcements at Budget 2011, but it does not publish forecasts by gender. The Government are committed to tackling unemployment and helping support women into work. The hon. Lady will be aware that female employment has remained broadly steady since the start of 2008. Employment among women aged 25 to 64 is up more than 100,000 since the start of 2008, and has risen by 15,000 in the last three months.

[Fiona Mactaggart]

But with both women’s unemployment and the retail prices index at a higher level than at any time since the Chancellor left university—which was probably when the hon. Lady left primary school— [Interruption.] I do not—[Interruption.]

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[Mr Speaker]

Order. We have got the point.

[Miss Smith]

I have a number of things to say to the hon. Lady, none of which would include any personal questions, of course.

I can assure the hon. Lady that the Government are reducing the deficit fairly, and I would point out in particular that we are taking 1.1 million of the lowest-paid workers out of tax entirely, and the majority of them are women. She will welcome that as much as I do. Furthermore, she should know that unemployment rose to its level of 30% under her party’s Government.[Official Report, 3 November 2011, Vol. 534, c. 6MC.]

[Claire Perry (Devizes) (Con)]

Does my hon. Friend also agree that one of the most important steps this Government have taken is to exempt from the pay freeze the lowest-paid workers in the public sector, 80% of whom are women?

[Miss Smith]

I certainly do welcome that, and it is important to combine that with taking women out of income tax, as I have already mentioned.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

May I genuinely welcome the hon. Lady to her new post? I have no doubt that we will have many exchanges across the Chamber, and I hope we will focus on policy.

Back in May, the Minister claimed that the Government’s approach to the economy was working because there were 14 fewer unemployed claimants in her constituency. What is she saying now that women’s unemployment in the UK has risen to its highest rate since 1988, and, more importantly, what is she going to do about it?

[Miss Smith]

I will tell the hon. Lady what I am certainly going to do about it, which is join the rest of this Government in working on welfare reform, tax reform, child care reform and many other measures that will take women’s unemployment down from its record level, where her Government left it.

[Damian Hinds (East Hampshire) (Con)]

5. What recent estimate he has made of the size of the structural deficit.

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[Andrew George (St Ives) (LD)]

8. What plans he has to bring forward fiscal measures to support green growth.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The Government are committed to supporting green growth, as is demonstrated by the green investment bank, which was allocated £3 billion in the spending review, by the carbon price floor, which is designed to drive investment in low-carbon power generation, and by the green deal, which supports households and businesses in increasing their energy efficiency at no up-front cost.

[Andrew George]

May I, too, extend a very warm welcome to my hon. Friend the Economic Secretary?

In the Budget, the Chancellor pledged to consider incentives to encourage take-up of the green deal. One idea is to have a stamp duty particularly for the least energy-efficient homes. How does my hon. Friend intend to advance those incentives and is she prepared to meet me and industry representatives to find a way forward with the Chancellor’s incentives?

[Miss Smith]

May I take this opportunity to thank my hon. Friend and others for their kind words regarding my role?

As I have mentioned, the green deal is a key part of supporting such green growth and the Government are taking a range of actions to help people to gain control of their household energy bills. I certainly note my hon. Friend’s suggestion and I am happy to meet him to discuss options within public finance constraints.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

May I also welcome the new Minister to her post? She will be aware of the importance to the UK economy of energy-intensive industries such as the steel, chemicals and ceramics industries. German competitors in such industries are benefiting from rebates worth more than €5 billion a year; will she consult the Chancellor and make sure that the pre-Budget report includes a special package of measures for those industries so that rising energy costs do not simply result in jobs being exported abroad?

[Miss Smith]

I know that my right hon. Friend the Chancellor is looking into exactly this and we shall be reporting back on it.

[Rosie Cooper (West Lancashire) (Lab)]

9. How many firms have participated in the national insurance holiday for new businesses.

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[Laura Sandys (South Thanet) (Con)]

15. What fiscal measures he is taking to encourage job creation in the private sector.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

In Budget 2011 the Government put in place a wide range of measures to support job creation, including supporting business growth by aiming to create the most competitive tax system in the G20, and helping to ensure that it always pays to work, by increasing the personal allowance.

[Laura Sandys]

I would like to add my welcome to my hon. Friend at the Dispatch Box.

Having run two small businesses, I understand the pressures that small businesses in South Thanet face. How much less will we tax small businesses in the coming years as a result of our tax cuts and the national insurance freeze?

[Miss Smith]

My understanding is that, compared with the plans of the previous Government, businesses will pay £3 billion less in employer national insurance contributions and more than £1 billion less in corporation tax, as a result of changes announced in Budget 2010.

[Alison McGovern (Wirral South) (Lab)]

Small businesses have been frequent attenders at my regular Friday surgeries, and they tell me that business is hard. Now that the hon. Lady’s party’s Chancellor has presided over the slowest economic recovery since the first world war, will she explain to small businesses in Wirral how they are supposed to get out of this mess?

[Miss Smith]

This has been one of the deepest recessions on record, and it is no wonder that times are very hard for people. The hon. Lady must take note of the fact that overall, more than two jobs have been created in the private sector for every one lost in the public sector, which is very clear progress on what her Government left behind.

[Lorely Burt (Solihull) (LD)]

I know that VAT is a somewhat sensitive subject in this place, but has the Minister made an analysis of the costs and benefits and the jobs that would be created by reducing VAT on building refurbishment materials?

[Chris Leslie (Nottingham East) (Lab/Co-op)]

A very good question!

[Miss Smith]

It is indeed a very good question. I am, sadly, aware that many costs are associated with such a policy, but I would be very happy to discuss such things with the hon. Lady.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

16. What recent discussions he has had with the Secretary of State for Business, Innovation and Skills on funding for the regional growth fund.

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[Oliver Colvile (Plymouth, Sutton and Devonport) (Con)]

17. What recent assessment he has made of the potential effect on household spending of an increase in interest rates.

[The Economic Secretary to the Treasury (Miss Chloe Smith)]

The Bank of England is responsible for monetary policy, as my hon. Friend knows, and setting the bank rate to meet its inflation target. Action by this Government in the comprehensive spending review and the Budget put the public finances on a sustainable footing and has supported low and stable interest rates. The higher interest rates seen in other countries highlight the risks when financial markets lose confidence in a Government.

[Oliver Colvile]

Home owners clearly benefit from having low interest rates, but inflation damages savers and consumers. Will my hon. Friend explain how the Government’s inflation target is set, and the criteria used to review it?

[Miss Smith]

I shall, by reference to correspondence, that my hon. Friend will be well able to delve into, between the Chancellor and the Governor of the Bank of England, but I note at this point that the Government believe that low and stable medium-term inflation is a prerequisite for economic growth, and that is what drives our policy.

[Tony Lloyd (Manchester Central) (Lab)]

T1. If he will make a statement on his departmental responsibilities.