Oral Answers to Questions

Damian Green Excerpts

Wednesday 5th July 2017 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP)]

1. If he will hold discussions with the Chancellor of the Exchequer on bringing forward proposals to review public sector pay.

[The First Secretary of State and Minister for the Cabinet Office (Damian Green)]

Public sector pay policy has always been designed to strike the right balance between being fair to our public servants and fair to those who pay for them. The Government will continue to assess that balance.

[Neil Gray]

I thank the Minister for that answer, and I ask the House to note that my wife is a primary school teacher in Scotland. According to an academic report published this week by the UK Government, average public sector earnings have fallen in the last decade by 6%, or up to £3 per hour for some people. With that in mind, will the Minister advise us on whether he supports, and wishes this Government to follow, the lead that the Scottish Government have taken in ending the 1% cap for public sector workers? Or does he support what the former Prime Minister David Cameron said yesterday: that it is “selfish” to campaign for an end to the cap?

[Damian Green]

It is interesting that the hon. Gentleman brings up Scottish education, which is, as he knows, the responsibility of the Scottish Government. I point out that in England, where this Government have responsibility for education, there are 15,500 more teachers than there were in 2010. As he knows, the Government have asked independent public sector pay review bodies to recommend what should happen in their respective professions each year, and the House may be interested to know that the Government have accepted every recommendation made by a public sector pay review body since 2014.

[James Gray (North Wiltshire) (Con)]

The Gray family have a monopoly on Question 1. Of course, we all have every sympathy with public sector pay bodies, and it is right that we listen to what they say. Nevertheless, does my right hon. Friend agree that if we are to accede to every request, we will have to pay for it by either decreasing spending or increasing taxation? Which would he prefer?

[Damian Green]

My hon. Friend makes a perfectly valid point. Everyone in this House wants to be fair to public sector workers, but Conservative Members also want to be fair to taxpayers. It is very important that we strike the right balance. If we do not strike that balance, we will wreck the economy, which is what would happen with the Labour party’s ridiculous uncosted policy proposals.

[Jon Trickett (Hemsworth) (Lab)]

While cutting the real-terms pay of nurses, the police, fire officers and others, the Prime Minister has broken her own £72,000 cap that she advocated for the salaries of political appointees. A third of all her special advisers earn more than that, and her two ill-fated chiefs of staff earned almost double that amount. How can the Minister justify pay restraint for nurses when there is no restraint in No. 10? Will he put an end to the pay cap in the public sector by changing the guidelines that the Government give to the pay review bodies? Finally, will he reject the former Prime Minister’s disgraceful slur that wanting to earn a decent income in the public sector is somehow selfish?

[Damian Green]

Let me answer some of the hon. Gentleman’s questions. I hope he recognises that, as I have just said, the Government have accepted every recommendation made by a public sector pay review body since 2014. Striking the right balance between being fair to public sector workers and being fair to taxpayers must be the right way forward. The suggestions that were made during the election campaign, and clearly continue to be made, by the Labour party would lead to the situation that the Greek people have had to suffer: precisely because of irresponsible commitments made by their Government, they have had to slash their public services. Public services get worse under the sort of economic policy advised by the Labour party.

[Neil Parish (Tiverton and Honiton) (Con)]

2. What progress the Government are making on the delivery of the prompt payment code.

--- Later in debate ---

[Chris Davies (Brecon and Radnorshire) (Con)]

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

[The First Secretary of State and Minister for the Cabinet Office (Damian Green)]

In their 2015 manifesto, the Government committed to sign up their major suppliers to the prompt payment code. This voluntary code commits signatories to fair payment terms across all UK transactions. Prompt payment can make a real difference to small businesses, boosting their cash flow and allowing them to invest in growth. Since 2015, we have worked closely with the Government’s strategic suppliers to encourage them to sign up. I am pleased to confirm that all the suppliers we targeted in 2015 have now signed up to the code.

[Chris Davies]

Does my right hon. Friend agree that transparency is an effective way of changing the culture around prompt payments? What are the Government doing to ensure that businesses that regularly pay their suppliers late can be identified?

[Damian Green]

My hon. Friend makes a valid point. We recently introduced a new statutory duty for large companies to report on a six-monthly basis on their payment performance and practices. It is important that this protects small and medium-sized enterprises. We encourage businesses to report any instances of poor payment practice in public sector contracts to our mystery shopper service.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

The House will be aware that we are currently having the first parliamentary by-election of this Session. It is happening over in the other place; it is the hereditary peers by-election, with just 31 electors. Does the Minister agree that that is a farce in a modern-day democracy?

--- Later in debate ---

[Heidi Allen (South Cambridgeshire) (Con)]

Now that the Local Government Finance Bill has been suspended, will the Minister tell me what additional revenue-raising powers mayors such as mine in devolved areas like Cambridgeshire will have?

[Damian Green]

I know my hon. Friend will welcome the fact that, through the devolution deal with Cambridgeshire and Peterborough, the Government have pledged up to £770 million of new funding to support local economic growth. I look forward to working with the excellent James Palmer, the new mayor, to support growth in Cambridgeshire.