Danny Alexander
Main Page: Danny Alexander (Liberal Democrat - Inverness, Nairn, Badenoch and Strathspey)Department Debates - View all Danny Alexander's debates with the HM Treasury
(9 years, 7 months ago)
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Jack Lopresti (Filton and Bradley Stoke) (Con)
3. What steps he is taking to invest in infrastructure.
The Chief Secretary to the Treasury (Danny Alexander)
This Government have revolutionised the approach to infrastructure through long-term planning via the national infrastructure plan, which we conceived and published, that sets out an infrastructure pipeline worth more than £460 billion of public and private investment. In the 2013 spending round, I committed over £100 billion to support infrastructure investment across the United Kingdom.
Jack Lopresti
I am delighted that the Government have made significant commitments to the south-west region, such as the fantastic £50 million-worth of investment for a new junction on the M49 in my constituency. Will the Minister confirm what further investments he is making for improvements to transport across the south-west region as a whole?
Danny Alexander
Investment in the transport infrastructure of the south-west has been a much higher priority for this Government than, I think, for any previous Government. We have committed £7.2 billion-worth of investment in the transport infrastructure of the south-west, including £2 billion in roads—for example, dualling the A303 and the new tunnel at Stonehenge, sorting out the A30 all the way to Camborne and the electrification of the Great Western main line with new inter-city express trains. I have recently asked the south-west peninsula rail task force to bring forward more proposals for investment in strategic rail schemes for the region.
John Healey (Wentworth and Dearne) (Lab)
Last month, a couple of hundred senior business figures gave a very warm welcome to the second stage of the review that Sir John Armitt has done on infrastructure for the Labour party, including plans for a new independent national infrastructure commission to identify the country’s long-term needs and monitor Governments’ plans to meet them. Business backs Labour plans; business organisations back Labour’s plans; will the right hon. Gentleman back them?
Danny Alexander
Of course, the Labour party’s belated conversion to long-term planning for infrastructure is welcome, although it was not the practice during its 13 years in office. I think that the national infrastructure plan and the architecture around it provides the right framework for delivering that long-term planning. I am not convinced that a new quango is the best way to solve the problem.
Mrs Caroline Spelman (Meriden) (Con)
Last week, the HS2 Select Committee wrote to the Treasury asking for more flexibility on big infrastructure projects where farmers have difficulty finding suitable replacement land within the statutory time limits for capital gains tax relief, leaving the businesses not knowing whether or not a discretionary power could be granted. Can the Chief Secretary give some comfort to my constituents who are affected by this?
Danny Alexander
I do take seriously my right hon. Friend’s point. The Department for Transport is working on the plans to flesh out how these things will work in respect of HS2. I would add that HMRC can provide extra flexibility where there are particular impacts on particular farmers or other businesses. I would certainly want to maintain an open mind on the points that my right hon. Friend is raising.
Mr Dennis Skinner (Bolsover) (Lab)
I could not help but notice that when my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) was asking the Chief Secretary’s sidekick to answer a question about Lord Green, the Chief Secretary was constantly having a laugh at his expense. I am going to give him a chance: will he now answer the question about meeting Lord Green. Now is the opportunity to make a name for himself. Come on.
Mr Speaker
I am trying to use such powers of anticipation as I have, but let us hear the Chief Secretary respond.
Danny Alexander
I do not recall ever having had any conversations about investment in infrastructure with Lord Green. Matters relating to ministerial appointments are, of course, a matter for the Prime Minister. What matters is making sure that in this country we have a zero-tolerance approach to tax evasion and tax avoidance, and that where organisations are facilitating or encouraging tax evasion, we put in place the proper penalties.
Dr Julian Lewis (New Forest East) (Con)
Does the Chief Secretary agree that no British Government should fail to invest in the infrastructure, the personnel and the equipment of the armed forces at a rate less than the NATO-recommended minimum? Will he have a word with his leader and with mine to make sure that the necessary commitment is given before the general election?
Danny Alexander
We have met that commitment in the present Parliament, and we will do so in 2015-16 as well. Spending on defence will, of course. be a matter for the next spending round. However, I suggest that the hon. Gentleman should have regard not just to the total amount spent, but to the efficiency of the expenditure. We have made great progress during this Parliament in securing better value, in terms of defence equipment and output, for the limited money that we have to spend as a country.
Ms Margaret Ritchie (South Down) (SDLP)
The Treasury has had meetings with the European Commission to discuss the reinstatement of the aggregate credit levy scheme for Northern Ireland, which could serve as a further tool of investment in infrastructure. What further discussions have taken place?
Danny Alexander
I know that discussions have been ongoing, and that the issue has been the subject of a protracted dispute. I have no further updates, but I will ensure that my ministerial colleague who is responsible for the scheme writes to the hon. Lady.
Andrew Gwynne (Denton and Reddish) (Lab)
5. What recent representations he has received on fiscal steps to address funding pressures in the NHS.
Danny Alexander
The Government have protected the health budget in real terms throughout the current Parliament. Of course a strong national health service needs a strong economy, and the Government plan to deliver that strong economy, along with a fairer society. The NHS budget has already increased by £12.7 billion during this Parliament, and in the autumn statement we announced an additional £2 billion for front-line NHS services. That money is intended to meet demand pressures in the next financial year, and also to help to start the process of transformation that was outlined in the “Five Year Forward View”, which is probably the most important representation that I have received on NHS funding in the last year or so.
Andrew Gwynne
Hospitals have struggled to cope with the pressures during the winter. Labour has made a fully funded commitment to provide the extra doctors, nurses, home care workers and midwives who are needed through a “time to care” fund. Analysis of Conservative party spending plans shows that more than 260,000 elderly people risk losing their social care packages during the next Parliament. Is it not time for the Government to commit themselves to taxing hedge funds and tobacco companies in order to raise the extra resources that our NHS so desperately needs?
Danny Alexander
Let me gently say to the hon. Gentleman that he ought to be a wee bit cautious about believing too many of his Front Benchers’ spending plans. They say that they want to deal with the deficit but have set out no plans to do so, and they have made multiple spending commitments without any sense of how those commitments will accord with their fiscal strategy.
The hon. Gentleman is, of course, right to suggest that going too far and reducing the deficit reduction by more than is necessary in the next Parliament would have a damaging effect on public services. I would say that his party has got it wrong and the Conservative party has got it wrong, but the Liberal Democrats have got it right.
David T. C. Davies (Monmouth) (Con)
23. Despite the economic chaos that was inherited by the coalition Government, spending on the NHS in England has been protected and increased. Does that not compare very favourably with the position in Wales, where a Labour Government have slashed NHS spending by 8%? Should we not judge these people by their deeds rather than their words?
Danny Alexander
My hon. Friend has made a very fair point. Comparing the NHS performance of different Administrations is an important activity, in which I am sure he will engage very fruitfully over the next few weeks. Let me add that if we are to judge a Labour Government by their actions, we should look at the mess that the Labour party made of the economy when it was last in power. If we found ourselves with problems of that kind again, money for our NHS would be one of the resources that would suffer.
Chris Leslie (Nottingham East) (Lab/Co-op)
As we heard from my hon. Friend the Member for Denton and Reddish (Andrew Gwynne), the pressures on the NHS are already putting care services in crisis. Why has the Chief Secretary colluded in Tory plans to shrink public investment and take an additional £70 billion from public services in the next Parliament, thus posing an even bigger risk to health and social care? He has dodged the question in the past; will he give us a straight answer now? Why did he sign off those Tory plans in the autumn statement?
Danny Alexander
The hon. Gentleman would do better to begin any question about the NHS with an acknowledgement of his own party’s failures I have made it clear that the figures published by the Office for Budget Responsibility represent a neutral assumption. I think the hon. Gentleman’s party would borrow too much and the Conservatives would cut too much, and that what we need is a balanced approach in the middle.
Chris Leslie
I do not know whether the Chief Secretary knows what he is doing. The letter from the OBR’s Robert Chote explicitly says—I have it in front of me—that the forecast for that £23 billion of surplus in 2019-20 was
“signed off by the ‘quad’”,
of which I think the Chief Secretary is a member. Is Robert Chote wrong, or did the Chief Secretary not realise what he was signing up to? Will he at least assure us that, if that was a mistake or he did not spot it in the past, he will be opposing a repeat of those Tory plans in next week’s Budget Red Book?
Danny Alexander
Matters relating to the Budget will be revealed by the Chancellor in his Budget statement next Wednesday and not before, as I am sure you would expect, Mr Speaker. I have listened to the hon. Gentleman today, as I listened to him on the “Today” programme yesterday, and there was not a single answer about how Labour would balance the books, and not a single answer about how Labour would invest in public services. I heard yesterday about Labour’s zero-based review, which seems to mean zero savings, zero ideas, zero economic credibility.
Stephen Mosley (City of Chester) (Con)
Health services in Chester and west Cheshire are facing increased pressures because of thousands of people fleeing from the Welsh NHS and seeking treatment in England. Will my right hon. Friend guarantee to provide more money for hospitals on the English side of the border, to protect them from the failure of the Labour party in Wales?
Danny Alexander
Clearly, there are issues in the NHS in Wales, but I would caution my hon. Friend about the tone of his question, because health workers in England and in Wales are working as hard as they can to provide the best treatment they can for people on either side of the border. Of course there are failures in terms of funding in Wales and issues that need to be dealt with, but everyone on this side of the House should unite in respect and admiration for our nurses and doctors and the work they do to keep us healthy in this country.
Tim Loughton (East Worthing and Shoreham) (Con)
6. If he will make a comparative assessment of the level of duty on wine paid in the UK and in other EU member states.
Charlie Elphicke (Dover) (Con)
8. What plans he has to introduce penalties for financial advisers who promote aggressive tax avoidance and tax evasion schemes.
The Chief Secretary to the Treasury (Danny Alexander)
This Government have been relentless in cracking down on tax avoidance and evasion. We have introduced a tougher monitoring regime and penalties for high-risk promoters of tax avoidance schemes, and the unprecedented common reporting standard will mean that by 2018 more than 90 countries will be exchanging information on offshore accounts automatically, helping Her Majesty’s Revenue and Customs to find and pursue offshore evaders successfully.
Charlie Elphicke
I thank the Chief Secretary for that answer. Does he agree that more has been done on tax avoidance in the past five years than was done in the previous 13, so craven were the previous Government before big business and big tax avoidance? Will he welcome the Financial Secretary’s announcement yesterday of further action on tax avoidance-promoting schemes?
Danny Alexander
The hon. Gentleman is absolutely right in both things that he says. The Financial Secretary’s announcement represented very important further progress, but if we look back over the past five years, we see that the relentlessness of our pursuit of measures to crack down on avoidance, be it the general anti-abuse rule in the tax system, the disclosure of tax avoidance schemes regime, the monitoring regime that we are putting in place or the measures to increase prosecutions for tax evasion, has made it clear that there is absolutely no tolerance for aggressive tax avoidance and tax evasion in this country.
Geraint Davies (Swansea West) (Lab/Co-op)
The Chief Secretary will know that 10% of UK wealth is held in offshore bank accounts, which is a much higher proportion than in the United States, so why is he not focusing on that tax avoidance and evasion, at a time when 65% of people on jobseeker’s allowance in Swansea have been sanctioned and are living on a pittance? It is a disgrace.
Danny Alexander
The hon. Gentleman clearly was not listening to my first answer, because we have put in place something unprecedented: working with our colleagues in other countries, the common reporting standard will mean that more than 90 countries will be automatically exchanging information on offshore accounts, so that HMRC has the information it needs to find and pursue offshore tax evaders successfully. We need to make further progress on how we deal with organisations that encourage, promote or facilitate tax evasion. I have said I want to see further work done on that, and I am sure we will be hearing more about it soon.
Ian Swales (Redcar) (LD)
In 2006-07, a hedge fund manager avoided millions in tax through a film scheme later judged unlawful. HSBC received £438,000 for acting as an intermediary, so does the Chief Secretary agree that there should have been a penalty on HSBC for its role in this scam?
Danny Alexander
I do not know the details of the specific instance to which my hon. Friend refers, but I do think that in cases where an organisation is facilitating or promoting tax evasion and a penalty is then paid and tax is paid, as it should have been in the first place, the organisation facilitating the tax evasion should be liable for exactly the same amount of money, to be paid to the Exchequer. In that way, there would be a strong financial as well as legal incentive for people not to get involved in this practice in the first place.
Sarah Newton (Truro and Falmouth) (Con)
9. What recent representations he has received on caps on local authority borrowing for building homes.
The Chief Secretary to the Treasury (Danny Alexander)
I have received many representations on local authority borrowing caps, but I would refer the House to the recent excellent review of the local authority role in housing supply carried out by Natalie Elphicke and Councillor Keith House. They made many suggestions as to how the local authority role in house building could be improved, but one of their conclusions was that the problem was not a lack of money but the way in which resources are deployed and organised in the local government sector.
Sarah Newton
I very much welcome the answer to my question and the other comprehensive measures the Government have taken to enable people to buy their own homes, such as First Buy. Will the Chief Secretary explain a little more about some of those findings and what more we can do to ensure that hard-working people who need social housing can get it?
Danny Alexander
The hon. Lady raises an important question. In this Parliament we are building more affordable homes than has been the case at any point in the past 20 years, and in the next Parliament we will be building even more. However, I do not think any of us should be complacent; we need to raise substantially the level of house building in this country. That is why I welcome the recommendation of Keith House and Natalie Elphicke on a housing finance institute. It is also why I set out around the autumn statement last year moves towards Government taking a direct commissioning role to ensure that we meet a 300,000 homes a year target. That will be piloted at the Northstowe development, which I encourage the hon. Lady to find out more about.
Alison Seabeck (Plymouth, Moor View) (Lab)
I declare an indirect interest, which is on record. Local authorities are at the sharp end of this Government’s failure to deliver the housing that the country needs, particularly affordable rented housing. Labour Plymouth is proactively doing what the Minister has just said—bringing forward land and building 1,000 homes. It has a view on the cap and about meeting the need. Greater concerns, however, surround the announcement of the starter home scheme, which will lead to a massive loss of affordable home building— developers get out of any requirement to do it and the local authority has no say. Can the Chief Secretary please tell the House what the impact assessment of that policy was and the impact on affordable rented homes?
Danny Alexander
The idea behind the starter homes scheme is precisely to offer homes at a discount to young people who want to get on the housing ladder. I would have thought that was an objective that everyone in the House would welcome. If the hon. Lady wants to look at social rented housing, in this Parliament—and continuing in the next Parliament—we have the highest annual rate of social house building than under the previous Government or for the past 20 years. During Labour’s 13 years in office, the number of social homes fell by 421,000; we have increased it by over 300,000.
Michael Connarty (Linlithgow and East Falkirk) (Lab)
10. What recent discussions he has had with the Finance Secretary of the Scottish Government on devolution of taxes.
The Chief Secretary to the Treasury (Danny Alexander)
I have had frequent and largely constructive discussions with the Scottish Cabinet Secretary for Finance, Employment and Sustainable Growth, including on the matter of devolution of taxes, as have my ministerial colleagues. The Scottish Minister recently met the Chancellor of the Exchequer. We have made huge progress in the area of tax devolution.
Michael Connarty
From reading the text of the Smith agreement, it seems to me that we have handed over income tax in particular to the Scottish Government, whereby allowances and bands can be varied. In fact, we have created the possibility of an independent tax system, apart from hanging on to the 20p tax as a kind of fulcrum around which it must work. Has the Treasury looked at the impact on the UK if there were an entirely independent tax system in the north of the United Kingdom?
Danny Alexander
Yes, we have. The hon. Gentleman is right. The Smith commission—rightly, I believe—devolves power over rates and bands in the income tax system. It does not devolve control of the tax base or the personal allowance. One of the bits of work that remains to be done is to ensure that we have a fiscal framework in place around that which means that the fact of devolution does not offer a financial advantage in and of itself either to Scotland or to the rest of the United Kingdom. I have had constructive discussions with John Swinney on that point and on many others. It is, of course, a matter for the Scottish Government to make sure that they have competent administrative machinery in place, which they will need next month when the process of the first wave of income tax devolution starts.
Mike Crockart (Edinburgh West) (LD)
Is my right hon. Friend, like me, waiting with bated breath for the latest Government Expenditure and Revenue Scotland figures to be published? Does he expect that they will bolster or demolish the Scottish National party’s case for full fiscal autonomy?
Danny Alexander
Bated breath might be overstating it, but I expect the new GERS figures very soon. In recent days we have seen evidence of the damage that the Scottish National party’s ideas would do to the UK economy—higher debt for the whole of the UK at the end of this Parliament than at the beginning of it, and an extra £5 billion a year being spent on interest payments. Having been defeated on its proposals for independence, which would have undermined and damaged the Scottish economy, the SNP seems inclined to offer the same damage to the UK economy as a whole.
Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
Under the Scotland Act 2012, from April 2016 Scotland will indeed have significant new tax-raising powers. HMRC’s own risk register shows that the risk that Scottish taxpayers will not be identified by April 2016 has risen from amber to red, so can the Chief Secretary tell the House why, despite these being the biggest changes to Scottish tax ever, only 11 full-time equivalent HMRC staff are working on them and, according to Audit Scotland, they rely on a single official in the Scottish Government?
Danny Alexander
I am confident that the resource being applied at the HMRC end of the spectrum is sufficient to ensure that we can deliver the devolution that is planned. That process is going on at present. Stamp duty devolution starts in April this year and income tax devolution the following April. Whether or not the Scottish Government are applying sufficient resource, effort or people to make sure that the tax system will be competently administered is a question for them to answer. I recently signed off the orders to devolve stamp duty, and they will now need to make sure that that is done properly.
Cathy Jamieson
I thank the Chief Secretary for that response, although it does not entirely fill me with reassurance. Is it not the case that this whole process risks descending into absolute chaos, and is it not time that both the UK and the Scottish Governments got a grip? How many HMRC and Treasury officials have been seconded to the Scottish Government to help clear up the mess? If people have not been seconded, will he now have urgent discussions to see whether that would help?
Danny Alexander
I am afraid that it is a feature of devolution, which the hon. Lady and I both support, that devolved Administrations have to take responsibility for matters that are in their purview. Frankly speaking, it is not for the Treasury to send officials to bail out Revenue Scotland. If it approaches us and says that it does not have enough people, it cannot do it and it is not ready, that is fine. But having discussed the matter with John Swinney and received assurances that he believes that it is in a good position to carry on taking on those functions and to do so properly, that is sufficient for me to sign the orders to hand over the powers.
Mary Macleod (Brentford and Isleworth) (Con)
11. What fiscal steps he has taken to support businesses.
Sir Robert Smith (West Aberdeenshire and Kincardine) (LD)
14. What steps he is taking to support jobs in the north-east of Scotland by maximising the economic recovery of North sea oil and gas. [R]
The Chief Secretary to the Treasury (Danny Alexander)
The Government have made significant progress on supporting the North sea oil and gas sector, including the announcements I made in December about an investment allowance and other changes, although I recognise that there are very serious ongoing problems at the moment.
Sir Robert Smith
I thank the Chief Secretary to the Treasury for recognising the problems in the North sea. Does he also recognise that the job losses that have been announced predate the fall in the oil price, and that it is crucial that in the Budget we see long-term structural change for the maturity of the province?
Danny Alexander
I wholeheartedly agree with my hon. Friend. I have had a number of meetings with Oil & Gas UK and representatives of the oil industry. Having set out in December the fact that the tax regime for the North sea is going to be on a declining path, recognising precisely the issues that he mentions, we have set a clear direction of travel, and the Chancellor will set out our decisions in the Budget next Wednesday. Let me reassure my hon. Friend that this Government take incredibly seriously the need to make sure that we have a fiscal regime that supports maximum economic recovery of the resources of North sea oil and gas.
Stewart Hosie (Dundee East) (SNP)
The Chief Secretary knows that the fundamental issue is the cost of doing business in the North sea basin. The up to 81% marginal tax rate on production is something that the Government could do something about. Given that this Chief Secretary boasted that putting up the supplementary charge was his decision, will he now apologise for that and make sure that the charge begins to be reduced in the Budget next week?
Danny Alexander
In fact, we made sure that the supplementary charge began to be reduced in the autumn statement in December, so the hon. Gentleman should catch up on his facts. The fact remains that the measures we are taking to support the industry—through the Wood review, the establishment of the Oil and Gas Authority, and decommissioning deeds and field allowances —have already created an environment that has seen very substantial investment in the North sea in the past few years. The point that my hon. Friend the Member for West Aberdeenshire and Kincardine (Sir Robert Smith) made is right. Making sure that we have a climate for long-term investment is precisely what we are trying to do, and the hon. Gentleman will have to wait for the Budget for our decisions.
Dame Anne Begg (Aberdeen South) (Lab)
What are the Government doing to encourage the offshore sector to co-operate and to have common standards as a better way of reducing costs in the supply chain than laying off the very people we will need when, I hope, things in the North sea begin to pick up again?
Danny Alexander
The hon. Lady makes an important point about co-operation in the industry. It is precisely such co-operation that has led the Wood review to recommend and the Government to create the Oil and Gas Authority. We find that particularly in respect of the sensible and low-cost use of infrastructure in the North sea, where greater co-operation between fields and so on will help to reduce costs. That is one of the early challenges that Andy Samuel is getting to grips with at the Oil and Gas Authority, and I think he has the support of the whole House in doing so.
Ian Lavery (Wansbeck) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Chief Secretary to the Treasury (Danny Alexander)
Mr Speaker, I should say that the Chancellor of the Exchequer is at ECOFIN, making sure that Britain’s voice is heard in the European Union, and the Exchequer Secretary is unwell. I am sure that the whole House wishes her a speedy recovery.
The core purpose of the Treasury is to ensure the stability and prosperity of the economy.
Ian Lavery
Will the Chief Secretary confirm that the Treasury has had discussions with the Department for Business, Innovation and Skills and the Department of Energy and Climate Change with regard to UK Coal’s application for state aid for the British coal industry? What stage are the discussions actually at?
Danny Alexander
It would be wrong for me to go into the ongoing discussions between BIS and other Departments and the industry. However, I can certainly say that I am aware of the issues that the industry is experiencing, and a discussion on that subject is going on with the Government.
Andrew Griffiths (Burton) (Con)
T2. Under the previous Labour Government, thousands of pubs closed and the brewing industry was taxed to the point of extinction. The Campaign for Real Ale now says that the Chancellor has saved 1,050 pubs, sold 75 million extra pints and has been the saviour of Britain’s brewing industry. Does the Chief Secretary agree that this Government have been positive for beer and pubs, and will he urge the Chancellor to keep on supporting our breweries?
Danny Alexander
This Government have undoubtedly been positive for beer and pubs. Many hon. Members, including my hon. Friend the Member for Leeds North West (Greg Mulholland), have campaigned on this issue. It is of course for the Chancellor to announce the Government’s decisions in this respect—I am sure that he has not pulled all those pints himself—but it is certainly the case that the beer and pub industry is stronger in this country, as part of a stronger economy, because of the decisions that this coalition Government have so far made.
Mrs Mary Glindon (North Tyneside) (Lab)
T3. Do the Government expect operating oil companies in receipt of tax concessions to develop contract strategies to enable UK fabricating yards to participate in large contracts with the potential to support thousands of jobs across the whole country?
Danny Alexander
If the hon. Lady has specific issues in mind, I would gladly engage in further discussion with her, but the steps this Government have taken—including the establishment of enterprise zones in many areas where there are fabrication yards, and measures such as electricity market reform to get offshore wind and other such production going in the UK—all support the objective that she describes and which I share. If she has further ideas on how we can pursue that, I would gladly hear them.
Martin Vickers (Cleethorpes) (Con)
T4. The Chancellor recently highlighted the major part that my Cleethorpes constituency and the Humber estuary will play in the growing northern economy. However, much depends on continued investment in transport infrastructure. Will the Minister assure me and my constituents that that will continue as a high priority?
Danny Alexander
I certainly can. In the final Treasury questions of this Parliament it is worth reflecting on the fact that, despite the tough economic decisions we have had to make, this country is making the largest investment in our rail network since Victorian times and the largest investment in our road network since the 1970s, and we have a programme to roll out superfast broadband across the entire country. Those things will leave our economy with a stronger long-term growth potential, as well as having given us the best growth rates in the European Union at the moment.
Andy McDonald (Middlesbrough) (Lab)
T5. Is it not the case that those earning more than £1 million a year have benefited from an average tax cut of up to £100,000 a year in this Parliament? Does that not illustrate that, as ever under the Tories, the mega-rich get richer and the poor get poorer—and that this time they have been aided and abetted by the Liberal Democrats?
Mr William Bain (Glasgow North East) (Lab)
For hard-pressed taxpayers, the real test of whether the Government are committed to cracking down on tax evasion and avoidance will be whether this month’s Finance Bill contains legal penalties for breach of the general anti-abuse rule. Will the Financial Secretary tell us whether those will feature in the Finance Bill—yes or no?
Danny Alexander
The hon. Gentleman will have to wait for the Finance Bill to be published and to hear the Budget statement next week. He should reflect on his party’s record in office on these matters. Frankly, when the coalition Government came to office, we inherited a tax system like a Swiss cheese: it was so full of holes that tax was leaking all over the place. We have plugged a lot of those holes and there is more work to be done, but I do not think that he should give us any lectures.
Greg Mulholland (Leeds North West) (LD)
I am sure my right hon. Friend will welcome the report by the Electrification Task Force, which is chaired by the hon. Member for Harrogate and Knaresborough (Andrew Jones), and praise its work. The report said that in tier 1 the Harrogate-Leeds-York line should be prioritised, but does the Minister agree that we must also put in the 1.1 mile of track to connect Yorkshire’s Leeds Bradford airport?
Danny Alexander
I congratulate the hon. Member for Harrogate and Knaresborough (Andrew Jones) and my hon. Friend on the their work, and I met them recently to discuss it. There is a strong case for investment in the Harrogate-Leeds-York line and in the rail link to the airport that my hon. Friend describes. Ensuring that degree of connectivity for one of the fastest growing airports in the country, which has huge potential for growth, could also take off the roads the traffic caused by people travelling to other airports in the country. We shall be considering the matter carefully.
Kelvin Hopkins (Luton North) (Lab)
The Minister will have noticed the substantial depreciation of the euro in recent times, which is bound to cause damage to the British economy. When will the Government take the exchange rate seriously and seek to secure an appropriate exchange rate for sterling?
Danny Alexander
We take seriously the need for this country to have a set of policies that ensure the long-term health and growth of the UK economy, and the appropriate mix of fiscal policy, monetary policy and long-term investment. That is why we have the fastest growth in the United Kingdom of any advanced economy, and why there are now more than 2 million more people in work in the private sector than there were in 2010. That is a record I am proud of, and the hon. Gentleman should congratulate the Government on it.
John Glen (Salisbury) (Con)
When considering the allocation of LIBOR fines, will Treasury Ministers consider carefully the submission of Alabaré Christian Care in my constituency? It is seeking to construct a new veterans village in Wilton that will be transformational for veterans across Wiltshire.
John Cryer (Leyton and Wanstead) (Lab)
Further to Question 8, what measures is the Chief Secretary taking to tackle the activities of payroll and umbrella companies that promote bogus self-employment which in turn fuels widespread tax evasion?
Danny Alexander
We have already announced measures to deal with intermediaries, both offshore and onshore. As the hon. Gentleman will know, a consultation on the issue is taking place at the moment, and it is important to ensure that companies cannot put in place artificial arrangements that are designed to reduce their tax bill and often have the consequence of removing important employment rights from workers. We continue to take that matter incredibly seriously.
Neil Carmichael (Stroud) (Con)
Does the Chief Secretary agree that one key aspect of the long-term economic plan is investment in skills, and will he reassure the House that the Government will carry on doing that?
Danny Alexander
Yes I can. As this is national apprenticeship week it is worth reflecting on the fact that in this Parliament we have created more than 2 million more apprenticeships. That is a great achievement of this Government and has helped to ensure that young people have the skills they need to succeed in today’s economy. From my perspective that will continue to be a priority in the next Parliament.
Mrs Emma Lewell-Buck (South Shields) (Lab)
To follow up the question from my hon. Friend the Member for Leyton and Wanstead (John Cryer), it appeared from recent written answers that the Government are leaving open loopholes that see workers lose hundreds of pounds a month from rip-off umbrella companies. Why is that?
Danny Alexander
As I said, we are consulting on that matter and have already taken considerable action to deal with intermediaries. I am sure that more will be said about the issue in due course.
Duncan Hames (Chippenham) (LD)
Youth unemployment in my constituency has halved under this Government, and the Chief Secretary met some of the young people in new jobs at Anthony Best Dynamics in Bradford on Avon last year. Will he or the Chancellor accept an invitation to accompany me to one of the advanced manufacturing businesses in Chippenham which, with the support of the relevant Government programmes, can extend many more opportunities by creating jobs in 21st-century products in Chippenham?
Danny Alexander
I gladly accept the invitation, although time is limited. As my hon. Friend said, through visiting Anthony Best Dynamics I have seen precisely the benefits that apprenticeships can provide for young people wanting to get highly skilled jobs in the technology companies that are creating very high value added for the UK economy. The work that he has done in his constituency to promote businesses taking on apprentices is an example to the entire House.
Mr Dennis Skinner (Bolsover) (Lab)
Why was the Chief Secretary to the Treasury so discreet about the application for state aid for the three remaining deep mine pits in Britain? Is he aware that in February 2014 the Government took £700 million out of the mineworkers’ pension fund for themselves? That kind of money in state aid could save those three pits so that they could exhaust their reserves. Now come on—tell us what’s happening!
Danny Alexander
I am not going to change the answer I gave to the earlier question. I appreciate the sensitivity of these matters, and I would say that this Government have taken steps, wherever we can, to support that particular industry. I am not sure that it would be appropriate for me to comment further.