Oral Answers to Questions Debate

Full Debate: Read Full Debate
Department: HM Treasury

Oral Answers to Questions

Danny Alexander Excerpts
Tuesday 9th December 2014

(10 years ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Mark Spencer Portrait Mr Mark Spencer (Sherwood) (Con)
- Hansard - - - Excerpts

12. What fiscal steps he is taking to encourage investment in infrastructure.

Danny Alexander Portrait The Chief Secretary to the Treasury (Danny Alexander)
- Hansard - -

Mr Speaker, the Chancellor of the Exchequer is at an ECOFIN council meeting today.

The Government have made huge progress in delivering the infrastructure that the UK needs, establishing the first ever national infrastructure plan, which now shows that more than 2,500 projects have been completed since 2010. West Yorkshire continues to benefit as part of this plan, which includes the M62 smart motorway westward extension—the first new trans-Pennine road capacity since 1971. As part of the city deal, a combined west Yorkshire authority is taking forward a package of investments in transport worth up to £1.6 billion over 15 years.

Jason McCartney Portrait Jason McCartney
- Hansard - - - Excerpts

I very much look forward to the northern powerhouse coming over the Pennines to west Yorkshire. Will my right hon. Friend confirm that the new bidders for the Northern Rail and TransPennine Express rail franchises will commit themselves to getting rid of the antiquated Pacer trains that plague commuters in my constituency on their daily commute?

Danny Alexander Portrait Danny Alexander
- Hansard - -

My hon. Friend is right to raise this issue, which is raised by Members of Parliament and constituents from across the Northern Rail and TransPennine Express franchise areas. I can confirm that in the autumn statement we set out some changes that we would make to those two franchises. The packages for the new franchises will include a substantial package of upgrades, including new services and modern trains in order to phase out the outdated Pacer trains, which have also been raised with us under the Deputy Prime Minister’s Northern Futures programme.

Mark Spencer Portrait Mr Spencer
- Hansard - - - Excerpts

If north Nottinghamshire’s coalfields are to feel the success of HS2, connectivity will be key. Will the Chief Secretary assure the House that once we have pulled together a bid for the Robin Hood extension to the villages of Ollerton and Edwinstowe, capital will be made available?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I am well aware of the importance of this connection to my hon. Friend and to other Members of Parliament in the area. As he will be aware, the east midlands has already benefited from investment of approximately £70 million to improve line speeds on the midland main line up to 125 miles per hour. Further electrification is due to be extended to Nottingham by 2019. A decision on the Robin Hood line is a matter for the local authority, but we would certainly look on the idea favourably.

Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
- Hansard - - - Excerpts

The importance of infrastructure is surely a sign of the importance of Government investment as a way of growing our economy. Does the Chief Secretary therefore agree that one further way that we could move forward on this is to build at least 200,000 new houses a year to help to build our economy?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I totally agree with the hon. Lady. It is incredibly important to improve the rate of house building. I would set the figure at closer to 300,000 houses a year across the UK, rather than the 200,000 that she mentioned. She will know that in the autumn statement we extended the affordable house building programme for a further two years in order to build 275,000 affordable homes in the next Parliament. We are taking forward the idea of Government commissioning of housing, which would be a radical departure for this country, at Northstowe, and looking at it as a solution for the whole country.

Greg Mulholland Portrait Greg Mulholland (Leeds North West) (LD)
- Hansard - - - Excerpts

I warmly welcome the infrastructure announcement, but does my right hon. Friend agree that we also need further devolution to allow the much-needed rail link to Leeds Bradford airport and the electrification of the Leeds-Harrogate-York line? Will he meet me and other interested colleagues who represent the area to discuss how we can take this forward?

Danny Alexander Portrait Danny Alexander
- Hansard - -

My hon. Friend is absolutely right to say that devolution, city deals and the growth plans we have put in place for every local enterprise partnership area are an incredibly important part of delivering infrastructure. He refers to two projects that are very important in the city he represents and I would, of course, be delighted to meet him and any other interested colleagues to discuss them.

Andrew Love Portrait Mr Andrew Love (Edmonton) (Lab/Co-op)
- Hansard - - - Excerpts

One hears the pious words of the Chief Secretary regarding house building, but has he not presided over the lowest level of house building since the 1920s?

Danny Alexander Portrait Danny Alexander
- Hansard - -

In case the hon. Gentleman does not remember, he was present in the last Parliament when his party was in government and caused the most severe economic crash that this country had experienced for very many decades. The housing market, of course, gets affected by the economic cycle, which is precisely why this Government have presided over the highest level of affordable house building in this country for 20 years. Under the hon. Gentleman’s party, the number of affordable houses in this country fell by 421,000; under this Government, it has risen by hundreds of thousands.

Andrew Percy Portrait Andrew Percy (Brigg and Goole) (Con)
- Hansard - - - Excerpts

2. What steps the Government are taking to support economic growth in the Humber.

Danny Alexander Portrait The Chief Secretary to the Treasury (Danny Alexander)
- Hansard - -

The Government have taken many steps to rebalance the economy and strengthen every part of the United Kingdom. In the case of the Humber, the growth deal was announced in July, building on the success of the city deal, which was announced in 2013. We have also just announced £80 million for flood defences for the Humber estuary. I am pleased to see that our investment in that part of the country is working. Employment in Yorkshire and the Humber is now at the highest level on record at 2.51 million.

Andrew Percy Portrait Andrew Percy
- Hansard - - - Excerpts

Key to economic development in east Yorkshire and north Lincolnshire are, of course, our tidal flood defences, which are so important. Last week the Government announced that the Environment Agency would undertake a review of the package proposed by myself, other local MPs and local authorities. Will the Chief Secretary ensure that Treasury and, if possible, Cabinet officials will also be involved in that process? It needs to be Treasury-led, rather than EA-led, to give us the result we require.

Danny Alexander Portrait Danny Alexander
- Hansard - -

My hon. Friend makes a good point. The proposal by the local enterprise partnership is incredibly important and it needs to be assessed in detail by experts at the EA. The National Audit Office recently commended the EA on the way in which it carries out such appraisals. None the less, given the significance of the issue and the fact that it was announced as part of the national infrastructure plan, I shall make sure that Treasury officials are also involved in the process.

Martin Vickers Portrait Martin Vickers (Cleethorpes) (Con)
- Hansard - - - Excerpts

23. Although I welcome the announcements in the autumn statement and the northern powerhouse initiative, too often in northern Lincolnshire in the Humber region we feel somewhat remote from the northern powerhouse. Will my right hon. Friend assure me that further initiatives will link the north-western part of the northern powerhouse to the Yorkshire and the Humber region?

Danny Alexander Portrait Danny Alexander
- Hansard - -

Under this Government, there have been a number of initiatives in the Humber area that have helped to grow the economy, not the least of which is the enormous effort that Ministers in several Departments made in attracting the Siemens investment to Hull, which is an incredibly important part both of creating jobs in that area and of delivering our ambitions for renewable energy.

Iain McKenzie Portrait Mr Iain McKenzie (Inverclyde) (Lab)
- Hansard - - - Excerpts

3. What recent estimate he has made of how much the reduction in the additional rate of income tax to 45% is worth for a person earning £1 million a year.

--- Later in debate ---
Jackie Doyle-Price Portrait Jackie Doyle-Price (Thurrock) (Con)
- Hansard - - - Excerpts

7. What recent estimate he has made of the level of employment.

Danny Alexander Portrait The Chief Secretary to the Treasury (Danny Alexander)
- Hansard - -

I am pleased to tell the House that employment is at its highest-ever level in this country with 30.8 million people in work. Since the coalition came to power, employment has increased by more than 1.7 million, meaning that on average an extra person has become employed every 80 seconds since the Government were formed in 2010. Last week the Office for Budget Responsibility published its latest forecast, estimating that an extra million people will be in work by 2019.

Jackie Doyle-Price Portrait Jackie Doyle-Price
- Hansard - - - Excerpts

The Government can be proud of creating on average 1,000 jobs a day. That is not just a number; it is more people with the security of a job and a regular pay packet. Will my right hon. Friend reassure my constituents in Thurrock that we will stick to the policies that are creating record numbers of people in work?

Danny Alexander Portrait Danny Alexander
- Hansard - -

My hon. Friend is right. It is incredibly important that we create jobs in this country as that is providing opportunities and incomes for people who did not have one previously. The Government should be proud of that. Today the 2 millionth apprentice has been recruited under this Government, and the young lady, Paige McConville of Oxford, will meet the Business Secretary to highlight that achievement.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
- Hansard - - - Excerpts

Many people in my constituency who are in work are trapped in low-paid minimum wage jobs. Often they are not able to add to the hours that they work in order to earn more, and they rely on the state for prop-ups with housing benefit and tax credits. When will the Chief Secretary to the Treasury understand the cost of living crisis in the country, and what will the Government do about it?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I recognise that some people find themselves in the situation the hon. Lady describes, and that is precisely why we need a growing economy that creates more jobs, as it does in her constituency. The economy is creating more employment opportunities and allowing people to progress in work. The most recent figures showed that people who have been in full-time work for more than a year—85% of the jobs created in the past year are full time—have seen their wages increase by 4%.

Chloe Smith Portrait Chloe Smith (Norwich North) (Con)
- Hansard - - - Excerpts

The UK has seen more net employment growth in the past four years than the rest of the EU put together. Has the Chief Secretary also noted that, according to the same figures, more of our young people are in work than in Germany, Ireland and France, and the position is far better than in Greece, where only one in four young people are in work? Does that not show that we need to stay the course and help more of our young people into work?

Danny Alexander Portrait Danny Alexander
- Hansard - -

My hon. Friend is right. It is a fact that the United Kingdom has created more jobs than all the other countries in the European Union put together. That shows the success we have had in delivering economic growth by working through the balanced careful plan that we put in place at the start of this Parliament. She could also have mentioned the fact that female employment, at 73%, is at its highest-ever level.

Geraint Davies Portrait Geraint Davies (Swansea West) (Lab/Co-op)
- Hansard - - - Excerpts

A couple with two children who are both working—the woman in part-time work on £10,000 and the man on £25,000—will have lost £9,417 in withdrawn tax credits in the autumn statement. The Chief Secretary talks about putting up the threshold, but he gets much more back from the poorest. When will he pursue a progressive policy that makes work pay for the poorest?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I beg to differ with the hon. Gentleman. The policy of increasing the income tax threshold to £10,600, which was put on the table by my party the Liberal Democrats back in 2010, is putting £825 back into the pockets of 26 million working people on low and middle incomes. Improving work incentives and earnings for people in work is something he should celebrate and everyone in the House should welcome.

Guy Opperman Portrait Guy Opperman (Hexham) (Con)
- Hansard - - - Excerpts

Is the Chief Secretary aware that in the north-east of England we have the fastest rate of growth in private sector businesses in the autumn quarter and the most tech start-ups outside of London? Does that not show that the long-term economic plan is beginning to work?

Danny Alexander Portrait Danny Alexander
- Hansard - -

Actually, I was not aware of either of those facts, but they do not surprise me because of the entrepreneurial spirit and the brilliant businesses we have in the north-east of England. I believe it is the only region of this country that is a net exporter to the rest of the world. Through the measures we are putting in place, including the investment in infrastructure, we need to continue to support that part of the country.

Rushanara Ali Portrait Rushanara Ali (Bethnal Green and Bow) (Lab)
- Hansard - - - Excerpts

Does the Chief Secretary agree that we need to redouble our efforts to reduce the unemployment level for young people from 730,000, and that some 1 million young people are still not in training or education? Does he think that his Government could do much more to get them back to work?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I agree with the hon. Lady that we need to do more to reduce the level of unemployment among our young people, but I point out to her, and it would have been fair for her to point it out, that we have seen a very sharp fall in the level of youth unemployment and a very sharp increase in the level of employment of young people in the past 12 months. That suggests to me that the policy mix the coalition has put in place is precisely the right one to achieve those objectives.

Lord Bellingham Portrait Mr Henry Bellingham (North West Norfolk) (Con)
- Hansard - - - Excerpts

8. When he next plans to meet representatives of high street retailers to discuss levels of tax; and if he will make a statement.

Danny Alexander Portrait The Chief Secretary to the Treasury (Danny Alexander)
- Hansard - -

I met small business representatives in Inverness on Saturday as part of small business Saturday. In response to concerns expressed by small businesses, the Government have taken decisive action that has reduced employment and property taxes paid by high street retailers. As of April this year, businesses can claim a deduction of up to £2,000 in their national insurance contributions, and next year 300,000 shops, pubs and cafes will receive a business rates discount of up to £1,500.

Lord Bellingham Portrait Mr Bellingham
- Hansard - - - Excerpts

The Minister is probably not aware—there is no reason why he should be—that I have recently been visiting shops in the high streets of both King’s Lynn and Hunstanton. Is he aware that they are delighted—absolutely thrilled—with the business rate discount that is now being raised to £1,500? Can he give me an estimate of how many shops in my constituency will benefit from that?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I was not aware of my hon. Friend’s shopping habits, but I am very glad to hear that he has been spending time with small businesses in his constituency.I can tell him that in the King’s Lynn and west Norfolk area there are 1,280 small businesses that will benefit from the £1,500 discount. That is something worth celebrating in his constituency, as it is across the country.

Ian C. Lucas Portrait Ian Lucas (Wrexham) (Lab)
- Hansard - - - Excerpts

Does the Chief Secretary agree that a further rise in VAT would be a hammer blow to small businesses in Wrexham and across the country? Does he also know that a Labour Government have never increased VAT?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I am not sure that last fact is absolutely correct. The level of VAT we have at the moment I think is the right one for the country and I certainly would not advocate any further increases. The right measures for small businesses are the reductions in business rates that we have put in place, which I would hope the hon. Gentleman would welcome. The fundamental review of business rates that we are now undertaking is an opportunity for every Member of this House, and small business across the country, to make the argument on how they want this outdated and outmoded system to be reformed.

Stephen McPartland Portrait Stephen McPartland (Stevenage) (Con)
- Hansard - - - Excerpts

9. What recent steps he has taken to reduce tax avoidance.

--- Later in debate ---
Fiona O'Donnell Portrait Fiona O'Donnell (East Lothian) (Lab)
- Hansard - - - Excerpts

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

Danny Alexander Portrait The Chief Secretary to the Treasury (Danny Alexander)
- Hansard - -

The core purpose of the Treasury is to ensure economic stability, promote growth and employment, reform the banking system and restore sanity to the public finances.

Fiona O'Donnell Portrait Fiona O'Donnell
- Hansard - - - Excerpts

On Wednesday I asked the Chancellor about public registers of beneficial ownership in the Crown dependencies and overseas territories. He replied that

“they are all consulting, right now, on the creation of these registries.”—[Official Report, 3 December 2014; Vol. 589, c. 328.]

The fact is that two are not consulting and the others have all finished their consultations, although none has published its submissions or its policies. Will the Chief Secretary now set the record straight?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I will set the record straight. The record shows that under the previous Labour Government the Crown dependencies and these bodies did not make any progress on registers of beneficial ownership. Progress is being substantially made now because of the lead this Government showed at the G8. By the way, these same places have also now agreed to the automatic exchange of tax information, to make sure that for the first time—this is something the Government of the hon. Lady’s party never did—we can get tax from people who are trying to hide it in these jurisdictions.

Lord Jackson of Peterborough Portrait Mr Stewart Jackson (Peterborough) (Con)
- Hansard - - - Excerpts

T2. My constituents in Peterborough who work at Thomas Cook and many families with young children will have been delighted by the announcement on children’s air passenger duty in last week’s autumn statement. Will the Exchequer Secretary give an undertaking that she will continue to monitor the impact of air passenger duty on tourism and the family budget and not rule out further cuts in the near future?

Chris Leslie Portrait Chris Leslie (Nottingham East) (Lab/Co-op)
- Hansard - - - Excerpts

Will the Chief Secretary confirm that table 2.3 on page 67 of the autumn statement shows that total managed expenditure will fall to 35% of GDP by 2020? According to the Office for Budget Responsibility, that is a level not seen since the late 1930s. Does he stand by the autumn statement or not?

Danny Alexander Portrait Danny Alexander
- Hansard - -

The way in which the autumn statement is constructed is that the OBR is given an assumption about the path of the public finances over the course of the whole of the next Parliament. As I explained yesterday to readers of The Daily Telegraph—perhaps the hon. Gentleman does not count himself as one of them—a neutral assumption is built into the public finances post 2017-18 which assumes that spending will stay flat in real terms. That enables the OBR to construct its forecast. In my view, when we have finished dealing with the structural deficit post 2017-18, public expenditure will be able to grow faster than that.

Chris Leslie Portrait Chris Leslie
- Hansard - - - Excerpts

It does not sound as though the right hon. Gentleman stands by the autumn statement much, Mr Speaker. On Wednesday, the chairman of the Office for Budget Responsibility wrote to the Business Secretary confirming that the autumn statement and all the policy assumptions leading to this figure of 35% were

“signed off by the ‘quad’”.

Is the Chief Secretary still a member of the “quad”, and is that actually true? Why is he now pretending to distance himself from his consistent record of Tory collaboration when he has been as thick as thieves with them in vote after vote, year after year, time and time again?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I guess it is a tough job being shadow Chief Secretary: he has to deal with the shadow Chancellor. I saw a quote from the previous Chancellor just this weekend, in Alan Cochrane’s diaries. It said, “I don’t think Miliband gets much of a look-in on the economy now. He’s a difficult man, is Balls.” I guess that is what they mean by a zero-zero economy: one Ed has zero influence; the other has zero credibility. Let me say this to the Labour party and to the Conservative party: both of them, in different ways, are advocating relentless austerity for the whole of the next Parliament, and it is only the Liberal Democrats turning around the public finances after 2017-18 who offer any hope of a change in the future.

John Glen Portrait John Glen (Salisbury) (Con)
- Hansard - - - Excerpts

T3. Public Health England at Porton Down in my constituency is at the centre of the global life sciences industry and works with 250 partnerships across the globe. The outline business case is currently before a number of Government Departments. Will the Minister assure me that the fullest range of options will be considered, including a proposal to set up a UK centre for a global response to infectious diseases, which I believe would reduce the call on the British taxpayer?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I can assure the hon. Gentleman that this is an important and, I understand, sensitive decision, which Public Health England is considering in all its aspects. The outline business case is currently with Treasury officials for scrutiny. I know that this work is incredibly important, not least given the recent Ebola outbreak in west Africa, but it would be inappropriate for me to give any further details on the business case until the review has been completed.

Jim McGovern Portrait Jim McGovern (Dundee West) (Lab)
- Hansard - - - Excerpts

T4. I am sure that those on the Government Front Bench will be aware of just how important the video games industry is to Dundee and to my constituency. The Chancellor said last week that he would support exports. Businesses in the video games industry are often started by university graduates with little or no financial support, yet they end up employing people. What will the autumn statement mean for the video games businesses in Dundee?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I absolutely recognise the importance of the video games industry to Dundee and other parts of the country, and indeed to many hon. Members. I do not know whether Candy Crush was developed in the hon. Gentleman’s constituency, but it is clearly very popular in the House. The package of measures in the autumn statement to support exporters will benefit the video games industry, as will the improvements to tax relief for research and development, which will particularly benefit small and medium-sized enterprises. If he has further ideas for measures that might benefit that industry in his area, I would be glad to hear them.

John Bercow Portrait Mr Speaker
- Hansard - - - Excerpts

I know that the Chief Secretary to the Treasury will not want to talk out opportunities for his own hon. and right hon. Friends. I call Mr Roger Williams.

Roger Williams Portrait Roger Williams (Brecon and Radnorshire) (LD)
- Hansard - - - Excerpts

T6. On small business Saturday I visited retail businesses in Brecon, Llanwrtydwells and Talgarth. They told me how pleased they were with the employment allowance, which gave them a reduction of up to £2,000 in their employer national insurance contributions. More than 1,000 businesses benefit from that in my constituency, but up to 500 that are eligible have not applied. What can we do to encourage them to take up this important measure?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I am grateful to my hon. Friend for giving me the opportunity to highlight the importance of these changes. As a local Member of Parliament, he has a particularly important role to play in promoting them, as he has done for the businesses already taking them up. I encourage him to continue to do that and to talk to the Department for Business, Innovation and Skills about whether there is more we can do to get that message across.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

T5. Last week, the Chancellor said: “What I reject is the totally hyperbolic BBC coverage on spending cuts. I had all that…four years ago and has the world fallen in? No”.At my surgeries, I meet mothers dependent on food banks to feed their families, fathers desperate at lost Sure Start services, and disabled pensioners choosing between heating and eating. They tell me that their world has fallen in. Does the Chief Secretary agree with the Chancellor that they are being “hyperbolic”?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I am sure the hon. Lady explained to those constituents that the severe economic problems this country is experiencing and recovering from were caused on her party’s watch when it was in office. Although I share the view that these are difficult issues, I hope she would also highlight the fact that her constituency has seen 5,200 jobs created in the past 12 months.

Maria Miller Portrait Maria Miller (Basingstoke) (Con)
- Hansard - - - Excerpts

The confidence to create a new business is a true barometer of the progress this Government are making on the long-term economic plan. Will the Chief Secretary join me in welcoming the 1,000 new businesses that have been created in my constituency in the past 12 months? What is he doing to encourage more people to find their entrepreneurial spirit?

Danny Alexander Portrait Danny Alexander
- Hansard - -

The right hon. Lady is right about that, and I join her in congratulating all 1,000 of those businesses in her constituency and millions more nationwide. We are talking about people who have set up their own businesses and are working hard to create wealth, jobs and growth for this country. That is why a range of the tax and regulatory changes we have put in place have been designed precisely to make the UK the best place in the world to start and grow a business.

Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
- Hansard - - - Excerpts

T7. A few weeks ago, the Chancellor rushed off to Europe to try to get the cap on bankers’ pay lifted. Will he do the same for public sector workers, and, in particular, nurses?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I am not sure that that is a matter for discussion at a European Union level.

Gordon Birtwistle Portrait Gordon Birtwistle (Burnley) (LD)
- Hansard - - - Excerpts

Rebalancing the economy has been crucial in delivering the coalition Government’s economic plan. Delivering skills for the future is vital. Does my right hon. Friend agree that the funding of professional careers advice must be part of the plan, to ensure that the growth in manufacturing is secured for the future?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I wholeheartedly agree with my hon. Friend on that. He has done more than most Members of this House to promote apprenticeships, the creation of skills and the manufacturing industry, and I pay tribute to him for his work. I ask him to look at what we have said about this in the autumn statement, which contains particular measures to promote the provision of better careers advice in schools.

Kelvin Hopkins Portrait Kelvin Hopkins (Luton North) (Lab)
- Hansard - - - Excerpts

T8. This week, growth forecasts for the eurozone economies have again been downgraded, but the European Central Bank is refusing to adopt counteracting measures of quantitative easing. What plans do the Government have for protecting Britain’s economy in the event of a full-blown euro crisis?

Danny Alexander Portrait Danny Alexander
- Hansard - -

The best protection for the UK is to stick to the economic plan that is creating jobs and growth up and down this country. That is what the coalition has done and will continue to do. The OBR’s forecast, published last week, showed that it expects the UK, despite the difficulties to which the hon. Gentleman refers, to continue to have economic momentum over the next few years.

Baroness McIntosh of Pickering Portrait Miss Anne McIntosh (Thirsk and Malton) (Con)
- Hansard - - - Excerpts

Rural communities are clearly not part of the city regions and possibly will not form part of the northern powerhouse. What assurances can the Chief Secretary give us that rural communities will benefit from the increased prosperity from the long-term economic plan?

Danny Alexander Portrait Danny Alexander
- Hansard - -

My hon. Friend makes an important point, although I would say to her that rural communities are part of local enterprise partnership areas that benefit from the growth deals announced last year. The city deals and the devolution process we are engaged in benefit all parts of the UK. I highlight to her the investment this Government are making in transport and in broadband as particularly important in driving growth in rural communities.

Yvonne Fovargue Portrait Yvonne Fovargue (Makerfield) (Lab)
- Hansard - - - Excerpts

T9. The Office for Budget Responsibility has forecast that individual unsecured debt will rise over the next five years by a staggering £360 billion, which is a record 55% of total household income. More people will be thrust into poverty and forced to go to food banks, and that will not be because more of them know about them or that poor people cannot cook. Does the Chief Secretary agree with the Chancellor that the best way to reduce his borrowing is to increase everyone else’s debts?

Danny Alexander Portrait Danny Alexander
- Hansard - -

That same economic forecast suggests that an extra 1 million people will be in work from the record levels that we have at the moment; that there will be a consistent rise in real incomes over the next five years; and that the United Kingdom has the strongest economic growth of any developed country in the world and the strongest job creation. Those are the facts about the United Kingdom and the hon. Lady should welcome them.

Mark Menzies Portrait Mark Menzies (Fylde) (Con)
- Hansard - - - Excerpts

May I put it on the record that I support the Government’s drive to create a northern powerhouse? What assurances can the Chief Secretary give me that constituencies such as my own in Fylde will benefit from such a move?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I can honestly say to my hon. Friend that his constituency will benefit. It has already benefited from the growth deals, and it is benefiting from investment in energy infrastructure, which is a particular interest there. It is also benefiting from the transport investment, and as we take forward this agenda to improve the economy in the north of England, we will ensure that every part of the north of England, including his constituency, benefits from that process.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
- Hansard - - - Excerpts

Was the Chief Secretary as alarmed as I was by this morning’s comments by the Northern Ireland Attorney-General that the Royal Bank of Scotland has been involved in “criminal fraud” with regard to its banking treatment of those who fell behind in their mortgages? If that is the case, will he make a statement to the House, telling us how he intends to deal with the matter so that we can bring back certainty to customers?

--- Later in debate ---
Jenny Willott Portrait Jenny Willott (Cardiff Central) (LD)
- Hansard - - - Excerpts

Thank you, Mr Speaker, and my apologies. I wanted to ask about tax avoidance. At a time of falling incomes when many people are finding it difficult to make ends meet, does the Minister agree that those on high incomes should avoid using expensive lawyers—if they can afford to use them—to assist with tax avoidance? Does he share my hope that tax avoidance, like drink-driving, will become a moral taboo?

Danny Alexander Portrait Danny Alexander
- Hansard - -

I agree with my hon. Friend. This Government have taken consistent action to tackle tax avoidance and to reduce tax evasion, raising billions of pounds to help avoid some of the pressures to which she refers. Dodging taxes is as morally reprehensible as claiming the wrong benefits or doing what she described. Those are all things that we, as a society, want to see stopped, and the Government are taking action to see that they are.

Huw Irranca-Davies Portrait Huw Irranca-Davies (Ogmore) (Lab)
- Hansard - - - Excerpts

On infrastructure spending, the Government’s claims earlier this year that flood defence spending had increased were rubbished not by insignificant people but by Sir Andrew Dilnot, chair of the UK Statistics Authority, the Channel 4 “FactCheck” programme and many others. On that basis, what confidence can we have that spending on flood defence will increase, when it went down £200 million in the first four years of this Government?

Danny Alexander Portrait Danny Alexander
- Hansard - -

This Government’s investment in flood-risk management has increased in real terms by 5% compared with spending in the previous five years. We will be spending more than £5.2 billion over the course of this Parliament on flood and erosion risk management compared with £2.7 billion in the previous five years. That is a record of which I am proud.

None Portrait Several hon. Members
- Hansard -

rose

Stuart Andrew Portrait Stuart Andrew (Pudsey) (Con)
- Hansard - - - Excerpts

As my right hon. Friend heard earlier, there is currently a connectivity study on Leeds Bradford International airport. As someone who has been campaigning for that rail link, because the road network is always so congested, may I urge him to look at that study in great detail, as it will help us to contribute to that great economic powerhouse in the north?

Danny Alexander Portrait Danny Alexander
- Hansard - -

The hon. Gentleman is right to highlight the importance of the study. We noted it in the national infrastructure plan as something that has produced some new arguments about that link. Clearly, the case must be developed locally, given the more devolved framework in which we are now operating. If he wants to join my hon. Friend the Member for Leeds North West (Greg Mulholland) in the meeting that my hon. Friend suggested, I would be delighted to talk to him about how we can take this important project forward.