David Davis
Main Page: David Davis (Conservative - Goole and Pocklington)Department Debates - View all David Davis's debates with the HM Treasury
(2 years, 6 months ago)
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Rishi Sunak
No, that is not how the household support fund works. It has always been the request of colleagues in this House and indeed councils for that to be discretionary. What we generally tend to do is provide guidance on the types of people that we expect to have support, but leave the ultimate decision to those in local authorities. In this instance, for example, the particular priority ought to be those who receive only housing benefit. The fund is more than sized to deal not just with those, but with others. Ultimately, though, we leave the discretion to local authorities, with guidance provided by my colleagues at the Departments for Work and Pensions and for Levelling Up, Housing and Communities.
Mr David Davis (Haltemprice and Howden) (Con)
May I give the Chancellor an unreserved welcome for the help for ordinary citizens? I think now, cumulatively, it is worth north of £35 billion all told. However, may I raise two concerns? First, he talked about the risk of excessive fiscal stimulus. How does he reconcile that with the fact that the latest figures show that we are taking more money out of the economy than we ever have in history? Secondly, on the windfall tax, it will raise a small amount of money. Stability of tax and low tax both encourage investment and growth. Is there not a risk that the Exchequer will lose more in growth than it will gain in the windfall tax?
Rishi Sunak
I thank my right hon. Friend for his question. With regard to the figures on borrowing and stimulus, we are still running a relatively significant budget deficit this year—forecast to be 4% back in spring—so I would not regard that as a particularly tight policy on the fiscal side, and we will add further support today. With regard to tax, it is important to continue to support investment. The way we have designed the energy profits levy, with a doubling of the investment relief, will mean that companies still have a very strong incentive to invest in the North sea.