Oral Answers to Questions

David Gauke Excerpts

Tuesday 19th January 2016 Commons Chamber

[Emma Reynolds (Wolverhampton North East) (Lab)]

5. What assessment his Department has made of the potential effect of leaving the EU on UK GDP.

[The Financial Secretary to the Treasury (Mr David Gauke)]

The Government are fighting hard to fix aspects of our EU membership that cause so much frustration in the United Kingdom, so that we get a better deal for our country and secure our future. We are confident that the right agreement can be reached.

[Emma Reynolds]

Jaguar Land Rover recently announced that it will double investment in the brand-new engine plant on the outskirts of my constituency, creating hundreds and hundreds of additional jobs on top of the 1,400 already announced. Does the Minister agree that unfettered access to the single market drives this sort of investment and that if we were to walk away or sacrifice that access, those jobs and that investment could well be put at risk?

[Mr Gauke]

I too welcome the new jobs being created in and near the hon. Lady’s constituency by Jaguar Land Rover. Indeed, my right hon. Friend the Chancellor visited that site recently. On our relationship with the European Union, the Government’s position is very clear: we want the benefits of access to the single market, but there are aspects of our relationship with the EU that can be improved. That is what we are seeking to do in our renegotiation.

[Philip Davies (Shipley) (Con)]

Given that we had a £62 billion trade deficit with the European Union last year, and given that if we left the EU the UK would be the EU’s single biggest export market, does the Minister think we could have a free trade agreement with the EU from outside it, without handing over £19 billion a year in membership fees?

[Mr Gauke]

I am sure that will be one of the issues discussed at length during the referendum debate. The point is that under this Government the British people will have an opportunity to express their views on where our future lies.

[Kelvin Hopkins (Luton North) (Lab)]

Britain has been a significant and, in recent years, a substantial net contributor to the EU budget. For over 40 years, this has had a negative impact on UK economic growth and GDP, the cumulative effect of which has been very large. Would leaving the EU not take that particular brake off UK GDP growth?

[Mr Gauke]

One point I would make is that thanks to Margaret Thatcher’s renegotiation of the rebate and thanks to the current Prime Minister’s negotiation of the EU budget resulting in a real-terms cut, we are paying less than we otherwise would have done.

[Alison Thewliss (Glasgow Central) (SNP)]

6. How many staff in his Department earn less than £7.85 per hour.

--- Later in debate ---

[Sir David Amess (Southend West) (Con)]

12. What recent representations he has received on proposed changes to Her Majesty’s Revenue and Customs’ regional centres.

[The Financial Secretary to the Treasury (Mr David Gauke)]

HMRC announced its future location strategy on 12 November. As I have previously stated, delivering that strategy will help HMRC to deliver more for less and reduce its estate costs by £100 million per year by 2025. Both HMRC and I have received a number of representations from interested parties, most recently from my hon. Friends the Members for Rochford and Southend East (James Duddridge) and for Southend West (Sir David Amess).

[Sir David Amess]

Following my hon. Friend’s meeting with me and my hon. Friend the Member for Rochford and Southend East (James Duddridge), will he reflect further on the points made about Southend becoming a regional centre? Whatever changes are made in the future, will he ensure that the hard-working, dedicated and loyal staff of Alexander House are treated well?

[Mr Gauke]

Of course, my hon. Friend made his representations in a robust and forthright way in our meeting yesterday. I am sure that HMRC will be reflecting on that. Assuming that staff are relocated from Southend to Stratford, they will be compensated for their additional transport costs for up to three years and will benefit from London weighting, given that they will have moved to Stratford.

[John Pugh (Southport) (LD)]

How exactly is any of this reorganisation going to do anything about the depressing call handling statistics of HMRC? Will the Minister guarantee an improvement?

[Mr Gauke]

At the moment, call handling is at a higher level than it has been for many years. It was certainly the case that in spring of last year call handling standards were not at an acceptable level, but HMRC has made significant improvements and I hope it will continue to make progress.

[Nick Smith (Blaenau Gwent) (Lab)]

14. What his plans are for future funding of illegal money lending teams.

--- Later in debate ---

[Kelly Tolhurst (Rochester and Strood) (Con)]

T4. Although I welcome the Government’s move towards digitisation of tax, a number of self-employed people and small businesses across my constituency, approximately 74% of which employ fewer than four people, have voiced concern about how quarterly tax reporting might have a negative effect on their human and financial resources, depending on their reliance on an accountant. What support will be provided to our small businesses to help them to adapt to the proposed changes?

[The Financial Secretary to the Treasury (Mr David Gauke)]

First, may I reassure the House that there are no plans for quarterly tax returns, as has been reported? What HMRC is considering is making greater use of digital technology and ensuring that information is provided to HMRC more frequently. My hon. Friend raises an important point about ensuring that businesses are supported as they adapt to new ways of record keeping, and HMRC is determined to do that.

[Amanda Milling (Cannock Chase) (Con)]

T9. The midlands engine has been turbo-charged, with recent figures showing four Staffordshire constituencies in the top seven ranked by the extent of the fall in the claimant count between May 2010 and November 2015, with Cannock Chase ranked fourth. What measures is my right hon. Friend taking to make sure that we maintain the positive momentum?