UK Economy

Christian Wakeford Excerpts

Monday 19th February 2024 Commons Chamber

[Bim Afolami]

To increase investment we brought in full expensing at the last fiscal event, which should represent an increase over the forecast period of £14 billion of investment and deal with the chronic weakness of our economy over generations. That is what we are doing to increase investment. In relation to green investment in particular, what we are not doing is having a huge unfunded £28 billion plan—or maybe now it is not Labour’s plan; maybe it is a secret plan or maybe the Labour Front Benchers have stopped their plan. We have a responsible costed plan to increase investment; the Opposition do not have one.

[Christian Wakeford (Bury South) (Lab)]

Let’s try this again. Public sector net debt is set to rise from 89% of GDP this year to 92.8% of GDP in 2028-29, according to the most recent Office for Budget Responsibility forecast. In case the Minister does not understand, that number is higher than today’s. The Prime Minister promised to reduce debt, but it is increasing. The plan isn’t working, is it?

[Bim Afolami]

The Prime Minister and the whole Government are committed to reducing debt as we get to the end of this economic forecast period, which is what we are doing.

Building Societies Act 1986 (Amendment) Bill

Christian Wakeford Excerpts

2nd reading
Friday 19th January 2024 Commons Chamber

[Julie Elliott (Sunderland Central) (Lab)]

I beg to move, That the Bill be now read a Second time.

It was a privilege to come out at the top of the private Member’s Bill ballot for this parliamentary Session. It is a ballot I have entered at every opportunity since I was first elected in 2010, so it was great to be drawn, but to be drawn first is a huge responsibility. I was on my way to get the train to my constituency in Sunderland, and when I got off the tube at King’s Cross, my phone had dozens of messages. My immediate reaction was that the Government must have called a general election, but no—that is something else we can look forward to in the year ahead. I had, in fact, been drawn at the top of the ballot.

I am delighted to be here in the Chamber to present a Bill that will make important and long-awaited amendments to the Building Societies Act 1986. It is a Bill that the sector wants; a Bill that is true to Labour and Co-operative values; and, importantly, a Bill that has received Government support. Although it will not solve all of the issues in the broken housing market, it could free up and make available more money to lend in mortgages, and because building societies lend more in percentage terms to first-time buyers, it should enable more first-time buyers to get on to the housing ladder. Clearly, there also needs to be wholesale reform of the rental market, in order to address the housing crisis that we have in this country today.

I must take this opportunity to thank everyone who contacted me about issues and with proposals for potential Bills. I would have happily taken many of them forward, but I could choose only one Bill. However, I feel that the Bill I have chosen can make a real difference to people’s lives, especially young people’s lives. I hope it will support first-time buyers and more community-based banking, in the interests of working people.

[Christian Wakeford (Bury South) (Lab)]

The entire point of building societies was to compete with banks on a truly level playing field—they were founded to enable working people to own their own home. That is why this Bill is so important. As my hon. Friend says, it will expand that ownership, particularly to young people and first-time buyers. Does she agree that not only should we absolutely be doing this, but it should already have been done?

Alcohol Duty

Christian Wakeford Excerpts

Monday 19th December 2022 Commons Chamber

[James Cartlidge]

Of course, my hon. Friend was an Exchequer Secretary to the Treasury, and I should put on record that he did much of the work that led to us being able to deliver these reforms in the first place. On his question about mergers and acquisitions, I am more than happy to meet him and share with him further detail from officials about the matter.

[Christian Wakeford (Bury South) (Lab)]

I speak as the chairman of the all-party parliamentary group on alcohol harm. I thank the Minister for recently meeting me and alcohol harm charities. I welcome the introduction of duty in regard to the strength of drinks, but my view is that it still does not go quite far enough, although I appreciate the differential duty. What assurances can he give me, alcohol harm charities and all those concerned about alcohol harm that he will continue to work cross-party and cross-Department to ensure that public health is fundamental in any alcohol duty changes?

[James Cartlidge]

I enjoyed meeting the hon. Gentleman, other parliamentarians and alcohol harm stakeholders on, I think, 24 November in the Treasury. It was a good meeting, where I think there was acceptance that we are trying with the reform package to strike that balance. We want to have competitive duty rates and to look at levelling the playing field that exists between pubs and supermarkets, but, equally, alcohol harm and consideration of public health must be at the heart of this. That is why the reform package in August has one underlying principle: taxation on the basis of ABV. We think that that is the right way forward, balancing both those approaches.

Finance Bill

Christian Wakeford Excerpts

Committee stage
Wednesday 30th November 2022 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

Thank you for your flexibility in allowing me to speak this afternoon, Dame Rosie.

I rise to speak to amendment 2, tabled in my name and that of my hon. Friend the Member for Richmond Park (Sarah Olney), and to amendments 3, 4 and 5, tabled in her name. This Bill is an unfair stealth raid on millions of hard-working low and middle-income earners during a terrible cost of living crisis. Thanks to the Conservatives’ threshold freezes, 6 million people will be dragged into a higher tax band by the end of 2028. Those stealth tax rates are not particularly obvious in someone’s monthly payslip, but that does not mean they are not going to hurt people struggling with the cost of living.

Basic rate taxpayers will pay an additional £340 this year due to the freeze of the personal allowance, and higher rate taxpayers are estimated to pay an extra £1,700. Amendment 2 would require HMRC to write to all those affected by those income tax threshold freezes, to tell them whether they are paying more tax than they normally would and, crucially, whether they have been dragged into a higher tax band. It is vital that the British public have clarity on the Conservative increases to their tax liabilities from April and for that reason I wish to push amendment 2 to a vote.

The Conservatives promised not to raise taxes, as written in their own 2019 manifesto:

“This is a tax guarantee that will protect the incomes of hard-working families across the next Parliament.”

Three Prime Ministers and five Chancellors later, the Conservative Government have delivered an autumn statement with £24 billion in tax rises, all to fill a black hole—or indeed a blue hole—that they have created through their own incompetence. The Prime Minister and his Government are now breaking the Conservative manifesto pledge and the Prime Minister has no mandate for that. The Conservatives could at least make the British public aware that their promise to the country has changed by accepting amendment 2.

In 2019, the Conservatives promised voters a high-wage, high-skilled, low-tax economy. At a time when real-terms wages continue to fall, the tax burden has reached its highest level since the second world war and we have a chronic skills shortage, I would appreciate some clarity from the Prime Minister on the delivery of his party’s manifesto commitments.

I will also speak briefly to amendments 3 and 4. The Liberal Democrats were the first party to call for a windfall tax back in October 2021, when gas prices first began to soar. Through their delay in taking action, the Government allowed fossil fuel giants to get away with half a year’s-worth of untaxed super-profits. Amendment 3 would require the Government to produce an assessment of how much revenue has been lost through their delay. I am pleased that the Government are finally raising the rate of the windfall tax, but I am afraid it does not go far enough. If Shell paid nothing when the rate was 25%, it will still pay nothing when the rate is 35%.

Amendment 4 would require the Government to produce a quarterly assessment of how much revenue has been forgone through the investment allowance and publish the names of the companies that have benefited from the tax break. The lost revenue could have gone to supporting struggling households or protecting our public services, and the British people deserve to know how the money has been spent. I am also concerned about the environmental impact of the investment allowance. The Government state that they are committed to net zero, but at the same time the allowance promotes oil and gas exploration, while refusing renewable generators an equivalent tax relief.

Lastly, I draw attention to amendment 5. At a time when petrol and diesel prices are sky high, the Government should not be making it more expensive to own an electric vehicle. They have already scrapped the plug-in car grant and now they are extending vehicle excise duty to electric cars, which will only slow the road to electrification. I urge hon. Members to support these amendments to improve this Bill and to be honest about the impact it will have on British people.

[Christian Wakeford (Bury South) (Lab)]

It is a pleasure to serve under your chairship, Dame Rosie. I rise to support new clause 2, new clause 5 and amendment 1, which would remove clause 5, as set out by my hon. Friend the Member for Ealing North (James Murray) on the Front Bench.

During the autumn statement, we heard a lot about blaming global issues. While there are global issues, there are also political choices that have got us to where we are right now. We have had the best part of a year of political instability. We have also had the run on gilts caused by the mini-Budget and an increase in mortgage rates. That was not a global issue—it was very much created here in Parliament.

We were promised an autumn statement based on fairness. People are really struggling. Fran has bravely taken on and beaten breast cancer twice. She is now unfortunately terminally ill with bone cancer that has spread to her brain. Instead of making special memories with loved ones, she is spending her final moments worrying about money. She is unable to heat her home, surviving on her husband’s part-time wages, universal credit and her disability payments.

While there was some help with benefits increasing in line with inflation, we had been calling for that commitment for months in order to remove that worry and anxiety. Unfortunately, it took until the autumn statement for the Government to come out and reassure the public who were struggling. Leighane, a 27-year-old mother, was due in court over her unpaid bills. She owed £334 in electricity and £638 on the gas bill, and her rent arrears were £1,500. Sadly, because she thought she had no support and nowhere to turn, she stepped in front of a train with her three-year-old daughter. There was no support for anyone like her in the autumn statement.

John was described as a well-liked man, who was homeless and struggled with drugs—I reiterate my commitment in this place that no one chooses to be an addict and we need to do more to tackle addiction. There was nothing to tackle addiction and no talk about how we are going to fund that through the NHS at any point during this Finance Bill or in the autumn statement. Last week, he made a final bed for his trusted dog and died outside in freezing temperatures.

I will get on to the particular amendments now, Dame Rosie. We have heard about fairness, but the question is, fairness for who? We have a lot of measures about keeping the triple lock and increasing benefits with inflation. I welcome those—I really do—it is just a shame it has taken Opposition day debates, numerous questions on the Floor of this House and numerous written questions to get to that stage.

In new clause 5, we want to make sure that there are particular impact assessments and that the documents are provided. When we think that the autumn statement ultimately included £60 billion of spending cuts or tax rises, not to be able to share any of those documents just seems like ridiculously poor management. The mind boggles that we are not considering any of those elements.

There are also amendments on the Order Paper regarding the increase in tax allowances. Is it fair that the wealth of the top 1% of earners has gone up 185%? No. What are we doing to help low earners? We are freezing tax allowances. I listened quite earnestly to the hon. Member for South Cambridgeshire (Anthony Browne); I know him very well and I know his background in the field, so I will probably have a chat with him over a cup of coffee in the Tea Room about what we can do. However, the people of this country have been clobbered with £25 billion-worth of tax rises.

We have heard slogans before—I know a few things about those—saying “We are all in this together”, but are we really? We have seen no attack on non-dom tax status and no tax on private equity managers. We see a recession that will go on for longer than a year, and all the Government could talk about was softening the blow. Well, I am sorry, but I want to aspire to better than that for this nation. I want us to talk about growth, but I have seen nothing—on Second Reading, in any of the amendments or in the Minister’s speech—that goes in any way towards addressing growth.

We keep hearing a lot of talk and rhetoric about investment. I agree that we need investment, but that is why we have to focus on one of the loopholes and ensure, as the new clauses would, that a windfall tax actually delivers meaningful impact and that large oil generators and producers cannot just get away with investing money back into their own system. They get 90p of support for every £1 they are taxed, and that does not seem fair. It does not seem fair for the people whom I have just spoken about—the people of Bury South and the people of this country—and that is why the amendments are needed.

At the same time, real household disposable income is likely to be at its lowest level, with an estimated fall of 4.3% next year alone. We hear that the Conservatives are the party of sound money, but I just do not see that at the moment. Only Labour can provide the real growth and change that the country needs. Business believes it and the public believe it, and my God, we need it. That is why we should back new clauses 2, 3 and 5, and the plethora of other new clauses tabled by the Labour Front-Bench team, and I urge all colleagues to do so.

The Growth Plan

Christian Wakeford Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

Not at all. The whole principle behind the investment zone is mutual consent. No investment zones will be imposed in any areas, and it will be up to local councils to work out which are appropriate sites for the investment zones. It is a co-operative exercise that will not be the developer’s charter the hon. Lady describes.

[Christian Wakeford (Bury South) (Lab)]

We were promised a “Big Bang” by the Chancellor; instead, we barely got snap, crackle and pop. We have tax breaks for the rich while he tells the next generation to pay off a debt he is piling up—truly the Chancellor of sound money! The Resolution Foundation says that the poorest 10% of households will gain all of £11 from this Budget—which is, of course, not a Budget. He is also raising the cap on bankers’ bonuses while threatening to cut benefits for 120,000 people on universal credit. Why is he not looking out for those who are struggling the most, instead of acting as the Chancellor for fracking donors and bankers?

[Kwasi Kwarteng]

It is nice to see the hon. Gentleman in his place on the Opposition Benches, in splendid isolation. I remind him that the measures relating to national insurance and the basic rate help the vast number of constituents of Members on both sides of the House.

Oral Answers to Questions

Christian Wakeford Excerpts

Tuesday 28th June 2022 Commons Chamber

[Mary Glindon (North Tyneside) (Lab)]

17. What fiscal steps he is taking to help reduce the impact of inflation on households' cost of living.

[Christian Wakeford (Bury South) (Lab)]

19. What fiscal steps he is taking to help reduce the impact of inflation on households' cost of living.

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

22. What fiscal steps he is taking to help reduce the impact of inflation on households' cost of living.

--- Later in debate ---

[Rishi Sunak]

As I said, we are providing an enormous amount of support—around £1,200—which is targeted at those who most need help. Of course, no Government can make the challenges go away completely, given the scale of the problem that we are facing, but I am confident that the support we have put in place is significant and will make a meaningful difference to those who most need it. The hon. Lady talks of the practical steps that we can all take to help with the cost of living. Perhaps her party could start by opposing the crippling rail strikes of the past week or two, which are doing nothing to ease the burdens of the cost of living on public sector workers.

[Christian Wakeford]

My constituents in Bury South have had inflicted on them tax and national insurance rises—the inadequate 5p cut to fuel duty barely touched the sides—by a Chancellor who has clearly run out of ideas, as we have just heard. With energy costs at record highs, and an expected further rise of up to 50% in the autumn that will mean the cap has almost trebled in under a year, what further assistance can be given to my constituents to ensure that nobody is cut off?

[Rishi Sunak]

I gently say to the hon. Gentleman that £37 billion of support is being targeted at the most vulnerable and will come over the next few months, from the summer through the autumn and winter, to help with the price cap. As we said, we do expect the cap to increase significantly in the autumn, which is why we have put the support in place. He talked about taxes, so he will be pleased to tell his constituents that in just a couple of weeks’ time, they will have their taxes cut when the national insurance threshold rises to £12,500, which will deliver a £330 tax cut to around 30 million people in work. That will start to put more money in people’s pay packets in July.

Tackling Short-term and Long-term Cost of Living Increases

Christian Wakeford Excerpts

Tuesday 17th May 2022 Commons Chamber

[Christian Wakeford (Bury South) (Lab)]

I listened with great interest to the Gracious Speech last week and was left bitterly disappointed. It will go down as a speech of missed opportunities, all through the choice of the Prime Minister. Under this Government, we are heading back to a time that was simply about the haves and have nots. People can either afford the basics or they suffer.

Workers are seeing a decline in their living standards not seen since the Victorian era and the Poor Law of 1834. We are seeing a return to that miserable time, when volunteers pulled together to plug so many holes left by the purposeful underfunding of the state. Eighty years ago, Beveridge spoke of the five giant evils that plagued society, and I am afraid that Conservative Members are propping up and presiding over a return to those evils—or they would be if they were here today.

Beveridge spoke of want, and this could have been a Queen’s Speech that addressed the concerns about the cost of living crisis that is currently gripping the nation through an emergency Budget or a Bill to propose a windfall tax on large energy companies. Instead, food banks boom while people make the choice between heating their home and feeding themselves and their children. Imagine a world in 2022 in which one in four parents are skipping meals because they cannot afford it. What solutions have Conservative Members come up with? Learn to cook. Work harder. Work longer. It is absolutely shameful.

Beveridge spoke of disease. This was a Queen’s Speech that showed that there is no plan for our creaking health service and NHS waiting times. There is no plan to deal with access to NHS dentistry. There is no plan to increase the number of GPs. There is no plan to tackle either the stigma or the problem of addiction, which is a matter close to my heart, as Members will know, because no one chooses to be an addict.

Beveridge spoke of ignorance—not the kind of ignorance shown by the Prime Minister and Chancellor while they put their heads in the sand; he was speaking about the education of our children. The attainment gap is widening further still and, yet again, there is no plan in sight. Our children cannot learn properly if they are hungry, and our teachers cannot teach properly if they are not supported, yet nearly 18,000 schools are facing brutal cuts to their funding. These children are the future of our country, yet they are treated like collateral damage by this Government.

Beveridge spoke of squalor. We have people across the country trapped in their own homes, which are covered in flammable cladding, a full five years on from the tragedy of Grenfell. This was a Queen’s Speech where housing and planning policies were not even mentioned once. Social housing waiting lists are spiralling into the decades, yet we had merely rumours of a rehash of right to buy from a Prime Minister totally bereft of ideas and increasingly out of touch. We have properties riddled with damp and mould making people ill, here in the sixth richest economy in the world.

Beveridge spoke of idleness. This could have been a Queen’s Speech where employment rights were boosted and the shocking practice of fire and rehire was finally brought to an end. Instead, the Government issue further flimsy guidelines that allow bosses to ride roughshod over the workers. More than 20 times we were promised an employment Bill, but this was yet another empty promise for the people of this country and another win for rogue employers. This was a Queen’s Speech that will not help those in need as our country lurches from crisis to crisis. It was a Queen’s Speech where this Government are increasingly out of touch with their own people, and I predict that it is one that will unravel before the year is out. I will be voting against the Queen’s Speech for those reasons.

Public Service Pensions and Judicial Offices Bill [Lords]

Christian Wakeford Excerpts

Report stage
Tuesday 22nd February 2022 Commons Chamber

[Christian Wakeford (Bury South) (Lab)]

Will the right hon. Gentleman give way on that point?

[Robert Jenrick]

I will come back to the hon. Gentleman. I appreciate his interest.

The latest example of the politicisation of public pension schemes is by Wirral Council, which is currently considering realising almost £5 million-worth of investments in seven companies. This pet project of a small minority who seek to hijack the money of hard-working taxpayers for their own political ends is of no interest to the public pension scheme holders of the Wirral, or indeed, I suggest, to the public pension scheme holders and rate payers of Hertfordshire.

The politicisation of public sector pension schemes, such as that seen by Wirral Council, is also to the detriment of the UK Government’s relations with states abroad. Supreme Court Justices Lord Arden and Lord Sales established in their judgments that, because the schemes are managed by councils that are part of the machinery of the state, receive taxpayer funding and are underwritten by state regulation outlined in the 2013 Act, they are liable to be identified with the British state. It is perfectly reasonable for an individual, an organisation or a nation abroad to look to these decisions and believe that they are the British state’s intentions. It would be wrong that, owing to a minority of an extreme and well-organised clique, the UK Government’s relationship with an ally has the potential to be undermined. Ultimately, central Government must reclaim their constitutional responsibility for the conduct of the UK’s international affairs. It is for this House to be the place in which those decisions are debated, as I am sure we will see later today. Public service pension scheme trustees must return to their primary duty of achieving maximum returns for scheme members.

[Robert Jenrick]

The hon. Gentleman makes an important point. The Supreme Court raised two central arguments. One was whether the 2013 Act explicitly gave the Secretary of State the power to issue guidance with respect to investment decisions that conflicted with UK foreign and defence policy. The second point that some Supreme Court Justices raised was whether it was within the remit of the Secretary of State to speak to all public service pension schemes, including those that are funded and unfunded, particularly the Local Government Pension Scheme.

This new clause explicitly provides the Secretary of State with the power to issue that guidance. Were it to pass, and were this ever to be litigated and reach that court, I expect that the Supreme Court Justices would see clearly the intention of this House, which is that the Secretary of State should be able to issue guidance and that that guidance should be applicable to all public service pension schemes. I hope that answers the hon. Gentleman’s point, which is an important one for us all to be clear on if the new clause is passed.

The new clause does nothing to stop private individuals making individual choices about their consumer habits. They remain at liberty to invest in or divest from, purchase from or boycott whichever companies they wish and for whatever reason they so choose. It does, however, make a distinction between the liberties of the private individual and the obligations of public bodies in receipt of public money, and it is grounded in the principle that public money should be spent in accordance with the wishes of the UK Government as expressed by this House.

[Christian Wakeford]

I am one of those fortunate Members who sit on a local pension board. One of the issues that is often feared, particularly by smaller Jewish communities, is that, rather than focusing on community cohesion, it is about bringing in foreign policy matters that often bring division, when they really want to be settled and to be able to progress and thrive within their local community. Does the right hon. Gentleman agree that the worst thing that could happen would be for the BDS movement to have a say within pension boards and pension funds, and that the best thing we could do is to accept this new clause and bring stability to Jewish communities across the country?

[Robert Jenrick]

I am grateful to the hon. Gentleman for his support for this new clause, as I am to all those hon. Members across the House who have indicated theirs, and for his long-standing interest in the issue. He makes an extremely important point.

Let me be clear: it should not be assumed that someone expressing their support for Palestine is antisemitic. Of course that is not the case. Many are genuinely moved by the cause of Palestinian statehood and are concerned at Israeli settlements and the actions of the Israeli Government. It is the policy of this Government to pursue a two-state solution. However, one does not have to look very hard to find a pattern of antisemitic behaviour in connection with campaigns promoting a boycott of Israel.

Successive studies have shown that the single best statistical predictor of anti- Jewish hostility is the amount of BDS activity, which comes as no surprise when one inspects the ethical inconsistency within the movement. Why does its concern for humanity, and for the welfare of Muslims in particular, expire at the Jordan river? The BDS movement is mute on neighbouring Jordan or Lebanon, where the Palestinian minority really are second-class citizens, and fell silent when thousands of Palestinians were killed at the hands of the murderous Assad regime.

There has been no call for a boycott of ICICI Bank in response to the egregious human rights abuses being committed against Muslims in India, or for divestments from Huawei following the verdict by an independent tribunal in London that a genocide is being committed against the Uyghur Muslims. That selective concern for humanity, and specifically for the welfare of Palestinians, poses some alarming questions. Why is Israel held to a higher standard than every other country in the world?

Oral Answers to Questions

Christian Wakeford Excerpts

Tuesday 2nd November 2021 Commons Chamber

[Henry Smith (Crawley) (Con)]

13. What progress his Department has made in levelling up all regions of the UK.

[Christian Wakeford (Bury South) (Con)]

20. What progress his Department has made in levelling up all regions of the UK.

[The Exchequer Secretary to the Treasury (Helen Whately)]

Levelling up is this Government’s defining mission; it is a golden thread running through this Budget and spending review. We are creating the right conditions for businesses to grow and giving people the right skills to succeed. We believe that the place where someone grows up should never limit their prospects.

--- Later in debate ---

[Helen Whately]

I know my hon. Friend’s Crawley constituency well and I recognise the importance of aviation to livelihoods there. I am sure that he will welcome the extension of the airport and ground operations support scheme that the Chancellor announced to help airports such as Gatwick to recover from covid. We have also provided £180 million in covid loan schemes to support businesses in Crawley and, as he knows, Crawley has already received £21 million through the towns fund.

[Christian Wakeford]

First, may I put on record my thanks to the Chancellor for announcing that Radcliffe will receive £20 million from the levelling-up fund to regenerate the town centre, with new leisure facilities and a space for adult learning and new business? Following that extra funding and the previously announced new high school for Radcliffe, does the Minister agree that the Government are committed to creating new opportunities for young people so that they have the best chance to get on in life and fulfil their potential?

[Helen Whately]

I congratulate my hon. Friend, because his constituency is indeed receiving £20 million from the levelling-up fund to deliver a new civic hub in Radcliffe, which will improve access to adult education while freeing up vital space for a new secondary school. As I am sure he saw in the Budget and spending review last week, we are fully committed to providing people with the skills that they need to succeed in life.

--- Later in debate ---

[Rishi Sunak]

I commend those at the hon. Lady’s business for what they have done through the pandemic and beyond with the manufacture of masks. We have moved out of crisis phase now, so our interventions to support the economy are broader in scale, but I am confident that the measures we are taking to invest in infrastructure, innovation and skills will lead to economic growth and benefit her businesses, not just the one she mentioned.

[Christian Wakeford (Bury South) (Con)]

T9. I commend the Chancellor for his announcement in the Budget introducing a simplified system of duty that taxes alcoholic drinks according to their strength. Although this change will not come into force until 2023, it represents a welcome improvement, geared toward promoting public health. Does he agree that the proposed changes to our alcohol duty system will encourage manufacturers to innovate and promote lower strength drinks, which will help to reduce health harm associated with alcohol? Will he meet me to discuss alcohol harm?

[Helen Whately]

I sincerely agree with my hon. Friend and thank him for his support. We are overhauling the UK’s outdated alcohol duty rules—the biggest simplification for 140 years—and taking a common-sense approach. Drinks will be taxed in accordance with their strength, encouraging responsible drinking, tackling the problems caused by cheap high-strength drinks, and supporting our pubs and our hospitality sector.

Economy Update

Christian Wakeford Excerpts

Wednesday 16th June 2021 Commons Chamber

[Steve Barclay]

The support package announced by my right hon. Friend the Chancellor was designed to anticipate any potential slippage in the covid road map. The hon. Gentleman specifically mentions VAT, which has not been raised so far. The package of support in terms of reducing VAT totals £7 billion so far, with the 5% rate being extended to 30 September. Then there is a further transitional period for six months at 12.5%. Again, the narrative that VAT reductions are coming to an end, and that that is out of step with the covid road map, is not the case: the VAT reduction has already been extended to 30 September and then there is a transitional period at the lower level of 12.5%, in anticipation of the situation we face.

[Christian Wakeford (Bury South) (Con)]

The business rates holiday last year delivered a tax cut worth £10 billion for businesses in the retail, hospitality and leisure sectors—businesses such as the Goat’s Gate in Whitefield in my constituency, which won my best pub competition. Will my right hon. Friend confirm that 90% of the businesses that benefited last year will also receive a 75% cut to their business rates bill for the full year to March 2022, thus continuing to support vital businesses in Prestwich, Whitefield and Radcliffe?

[Steve Barclay]

My hon. Friend is absolutely right that businesses will continue to benefit from support. It is about getting the balance right between support for businesses and the cost to the Exchequer. There was 100% support for those businesses last year, and this year it equates to a 75% reduction in their business rates bill across the financial year.