Employer Supported Childcare

Elizabeth Truss Excerpts

Thursday 29th March 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

This Government are providing more help with the cost of childcare to working parents than ever before. As well as introducing Tax-Free Childcare in April 2017, they have doubled the free childcare available to working parents of 3 and 4 year olds in England to 30 hours a week, and increased the support available through universal credit to cover up to 85% of childcare costs. In 2019-20 the government will spend around £6 billion on childcare support—a record amount.

Since opening the childcare choices service through which parents apply for 30 hours free childcare and Tax-Free Childcare more than 370,000 customers have successfully applied and are now using the service. Of these, more than 335,000 parents are eligible for 30 hours free childcare. Over 210,000 have a Tax-Free Childcare account. The Government will encourage more parents to take up the offer they are entitled to.

Parents can apply via the childcare choices service for both 30 hours free childcare and Tax- Free Childcare. The application is straightforward and can be accessed via: https://www.childcarechoices.gov.uk



Tax-Free Childcare is a fairer and better targeted system than childcare vouchers. Through Tax-Free Childcare all families who are eligible can get support regardless of who their employer is, or whether they are self-employed, and support is based on the number of children in a family, rather than the number of parents. Tax-Free Childcare is targeted at a similar income population as childcare vouchers but will provide support to nearly 1 million more families compared to the number currently using vouchers.

The decision to phase out childcare vouchers and directly contracted childcare, and replace this support with Tax-Free Childcare was made in 2013, and received parliamentary approval through the Childcare Payments Act 2014.

Today the Government have made The Income Tax (Limited Exemptions for Qualifying Childcare Vouchers and other Childcare) (Relevant Day) Regulations 2018 (SI 2018/450). These Regulations set 4 October 2018 as the date when childcare vouchers and directly contracted childcare, part of employer supported childcare, will close to new entrants. After that date, parents who are already using vouchers can continue to do so for as long as they remain with their employer, and their employer continues to offer the scheme.

To reflect concerns about the timing of the closure of childcare vouchers and the transition to Tax-Free Childcare, the Government have decided to keep childcare vouchers open for a further six months until October. This will allow more time for Tax-Free Childcare to bed in, for awareness to increase and for families to understand the support they can receive under the scheme. Now that Tax-Free Childcare is fully rolled out, the Government will keep it under review to ensure it is delivering the support needed for working families.

[HCWS616]

Convergence Programme

Elizabeth Truss Excerpts

Thursday 29th March 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

Article 121 of the treaty on the functioning of the European Union (TFEU) requires the UK to send an annual convergence programme to the European Commission reporting upon its fiscal situation and policies. The UK’s convergence programme will be sent to the European Commission by 30 April. This deadline was set in accordance with the European semester timetable for both convergence and national reform programmes. The UK will continue to have all of the rights, obligations and benefits that membership brings up until the point we leave the EU, and as such the Government will continue to submit the UK’s convergence programme until that time.

Section 5 of the European communities (Amendment) Act 1993 requires that the content of the convergence programme must be drawn from an assessment of the UK’s economic and budgetary position which has been presented to Parliament by the Government for its approval. This assessment is based on the Autumn Budget 2017 report and the most recent Office for Budget Responsibility’s “Economic and Fiscal Outlook” and it is this content, not the convergence programme itself, which requires the approval of the House for the purposes of the Act.

Article 121, along with Article 126 of the TFEU, is the legal basis for the stability and growth pact, which is the co-ordination mechanism for EU fiscal policies and requires member states to avoid excessive government deficits. Although the UK participates in the stability and growth pact, by virtue of its protocol to the treaty opting out of the euro, it is only required to "endeavour to avoid" excessive deficits. Unlike the euro area member states, the UK is not subject to sanctions at any stage of the European semester process.

Subject to the progress of parliamentary business, debates will be held soon in both the House of Commons and the House of Lords, in order for both Houses to approve this assessment before the convergence programme is sent to the Commission. While the convergence programme itself is not subject to Parliamentary approval or amendment, I will deposit a copy of the document in the Libraries of both Houses and copies will be available through the Vote Office and Printed Paper Office in advance of the debates.

The UK's convergence programme will be available electronically via HM Treasury’s website prior to it being sent to the European Commission.

[HCWS615]

The Economy

Elizabeth Truss Excerpts

Thursday 22nd March 2018 Commons Chamber

[The Chief Secretary to the Treasury (Elizabeth Truss)]

I beg to move,

That this House has considered the economy.

Today is a good opportunity to reflect on the economic news we have seen this week—the best deficit numbers in 10 years and record employment—and on the Government’s economic strategy over the past eight years and why it has succeeded. It is incredible to think that 10 years ago, we were witnessing the collapse of Northern Rock, and we were in crisis. We saw bankers leaving their buildings, such as that of Lehman Brothers, with boxes, and we were worried about the safety of our bank accounts and our personal finances. We were worried about whether we would have jobs, but here we are 10 years later seeing the positive signs of an economy that has recovered. As Amy Winehouse sang, we are now getting “back to black”.

We are seeing positive news across the board—so positive that even the Chancellor is Tiggerish, although there are still some Eeyores on the Opposition Benches. GDP has grown for five years straight. Employment is at record levels. Manufacturing has seen the longest consecutive period of growth for 50 years. We have had the two strongest quarters of productivity growth since before the financial crisis. When I travel around the country to see what is happening around the UK, there is excitement. In Liverpool, we have the new Superport. More goods are being traded through that great trading city than at any time in its history. In Cardiff, we have one of the fastest-growing economies in the UK. In Bristol, investment is being attracted from Silicon Valley into tech start-ups. In East Anglia, the food capital of Britain, we have seen exports go up by 10% in the past year alone.

We should not take this progress for granted, however, because we did not get here by accident. We have reached this turning point only because the Government have had a sound economic policy—a policy that the Opposition have opposed at every turn. I want today to lay out the elements of our approach: first, the supply side reforms that have unleashed business and people to succeed; secondly, our fiscal policies that are getting our country back in shape; and thirdly, our macro-prudential and monetary policies that have made sure that people can rely on their finances and have vital financial security.

We know that successful economies are ones that give businesses and people the freedom to succeed—to enable them to reach their potential and to offer what they have to the country. We have reformed our benefits system, our education system and our employment laws, so that people can have those opportunities. We now have record numbers of young people studying maths and science and going on to university. We are getting more people into apprenticeships and are seeing more young people in employment, whereas under Labour, 1.4 million people were left on the scrapheap. It left government with youth unemployment rising. We have one of the best records on youth unemployment in Europe, and we are giving young people opportunities. We have helped companies by lowering corporate taxes and keeping them low, and we have made it easier for them to take on staff, because we know that the risk takers and ideas makers drive forward Britain’s economy in the robust discipline of the free market. That philosophy is encapsulated in our industrial strategy.

Labour has no idea what makes Britain successful. Its approach is to try to close down the new economy. The hon. Member for Westminster North (Ms Buck) wants to restrict Airbnb. Labour authorities are trying to close down Uber, but all these opportunities help the most marginalised in our economy. Two thirds of all those renting out Airbnb apartments are women, helping them to earn vital income for their budgets.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I thank the Cabinet Secretary for giving way. The point about Airbnb is certainly well made. Airbnb does help to underpin the economy of the remote parts of the highlands—there is no two ways about it. This is not an anti-Government or an anti-Labour party point, but the Cabinet Secretary will realise that there are structural issues in constituencies such as mine. We have the long-term rundown of Dounreay, which is a nuclear site. How do we secure replacement employment for that? Of course, the depressed price of oil speaks for itself, and I see the number of drill platforms that are parked up in the Cromarty Firth. I do not want to appear an Eeyore—I try to look at myself as more of a Tigger than an Eeyore—but some deeper problems cross the divide in the colour of Governments, and those are the sorts of things we need to tackle.

[Elizabeth Truss]

I am very grateful to the hon. Gentleman for referring to me as the Cabinet Secretary. I have to tell him that I am not that powerful.

I appreciate that there are Tiggers on both sides of the House who are trying to see the good in what is happening in Britain. I think that there are opportunities to open up all parts of our country to new enterprise. We are, of course, doing what we can to help the oil and gas industry, but we also need to look for new sources of ideas and income.

At the same time as trying to close down the new economy around our country, Labour is trying to take over the old economy. Labour Members believe that it would be better for companies to be run by the Government rather than being allowed to run themselves. Even for companies that they think should remain in the private sector, they want to set up a £350 billion strategic investment board to decide where those companies’ investments should be. That would constitute an unprecedented encroachment by a Government into the business of enterprise and freedom. I find it hard to believe that Labour Members could run anything, given their inability to run their own party.

[Bambos Charalambous (Enfield, Southgate) (Lab)]

For many years, the UK has been seen as a desirable place in which to hide suspicious wealth. Can the Minister explain why the Government have so far done relatively little to discourage that activity?

[Elizabeth Truss]

We have introduced more than 100 measures to improve transparency. I agree with the hon. Gentleman that it is important that our finances are transparent and that private as well as public enterprise runs in a transparent fashion.

I want to draw Labour Members’ attention to the huge strides that we have seen in terms of better prices and better customer services, thanks to the privatisation programmes of the 1980s and 1990s.

[John Redwood (Wokingham) (Con)]

Does the Chief Secretary share my pleasure at the way in which the economy has confounded the excessively pessimistic forecasts of the last Chancellor for the short-term impact of the Brexit vote? Will she and her ministerial colleagues ensure that the standard of Treasury forecasting is lifted, so that in future we do not see excessive and unrealistic pessimism?

[Elizabeth Truss]

Like my right hon. Friend, I am delighted by how well our economy is doing and how resilient it has been to all kinds of events. As for forecasts, they are simply forecasts. We believe that with the right approach, by liberating businesses and people, we can outperform our forecasts, and that is what we must seek to do.

I was talking about the privatisations of the 1980s and 1990s. What we saw then was more competition, more investment and better management of money and our utilities. Water customers, for example, are now five times less likely to suffer from supply interruptions, eight times less likely to suffer from sewer flooding and 100 times less likely to be affected by low water pressure than they were when the industry was publicly owned. Investment has almost doubled following privatisation, and the average household bill is down by £130. In energy, the number and length of power cuts on local electricity networks has almost halved since 2002, and network costs are 17% lower than they were at the time of privatisation. There are now 66 players in the retail energy market, and the market share of the big six has fallen by 20%.

In the rail sector, the number of passenger journeys has doubled to 1.7 billion since privatisation.

[Thelma Walker (Colne Valley) (Lab)]

Spending on transport is 12 times greater in London than in Yorkshire, and that is having a negative impact on the growth of the economy in the north. Does the Chief Secretary think that is fair?

[Elizabeth Truss]

The figure that the hon. Lady has given is not correct. During the current spending review period, we are spending more per head on infrastructure in the north of England than in the south. In the longer term, there will be decisions to be made about which projects we fund in the north, but we are absolutely committed to ensuring that the north has its fair share of transport and infrastructure funding.

Since rail privatisation, the number of complaints has fallen by 75%, satisfaction has risen from 76% to 81%, and the days of waiting hours for a train and a stale sandwich from British Rail are long over.

Royal Mail was loss-making when it was in public ownership, sucking up resources that could have been spent on services such as the NHS. By contrast, it has been financially healthy in every year since privatisation. If Labour Members think that they could do a better job of running those services, they need to demonstrate how. On current form, I believe that their proposals would mean chaos and confusion, and if we include the £350 billion for the strategic investment board, they would also mean the addition of an eye-watering half a trillion pounds of debt to the UK balance sheet.

[Bim Afolami (Hitchin and Harpenden) (Con)]

My right hon. Friend is making a very powerful speech. Does she agree that the Government’s approach is about practically achieving the best outcomes for people, whereas Labour’s approach is ideologically driven and will lead the country into more debt and more borrowing?

[Elizabeth Truss]

My hon. Friend is absolutely right. Rather than giving people and businesses the ability to shape their own futures, Labour Members want to put power in the hands of vested interests such as the unions and big companies. They say that they want to get rid of the state aid rules. That would prevent competition from taking place properly, and the end result would be taxpayers, including small businesses and families, picking up the tab through higher taxes. Labour’s plan would mean less money for schools and hospitals, and more money diverted to loss-making businesses.

The reality is that Labour still has not learnt the lessons of its failings in 2010. It has not learnt that a Government with no control over public finances will damage the economy and damage public services. When Labour left office, we were devoting 45% of our national income to public spending, and we have seen the longest increase in debt since the Napoleonic wars. Labour just does not understand that allowing the state to get too big cuts out individual enterprise. It cuts out people’s incentive to take on risk, try new things and do new things. State-owned companies compete for space and resources with private companies, starving them of oxygen. What is worse is that what Labour is planning would have to be funded through higher taxes.

Under the last Labour Government, we saw public services that did not improve in terms of the outcomes for patients or students, but we also saw huge amounts of money squandered. The hon. Member for Stalybridge and Hyde (Jonathan Reynolds) is laughing. Is he laughing at the fact that in the international education league tables, the UK ended up 26th in mathematics? We saw no improvement, although vast amounts of money were squandered.

Through the fiscal discipline of the last eight years, we have reduced the deficit by three quarters to 2.3%, and we have reached the turning point of debt falling as a share of the economy in the coming financial years. Our efforts, needless to say, have been opposed at every turn by the Labour party, but they have restored confidence in our economy. They have boosted investment, and they have led to more jobs and growth. The Government’s concrete plan to get debt down has given us a competitive advantage. If businesses know that we can keep our house in order, they will base themselves here in the UK, creating highly skilled and well-paid jobs.

At the same time, we have ensured that our public services are improving through public sector reforms such as the introduction of academies and free schools, and programmes that have put more people into work. We are seeing record cancer survival rates, better school results and record employment levels, because we have made the decision to reform the way in which our public services work. Because of our stewardship of the economy, we are now able to target Government spending where it is needed and where we recognise that there are issues.

Alongside our national retraining programme, we are tripling the number of fully qualified computer science teachers, so that our young people are able to succeed in the modern economy. We are increasing infrastructure spending on things like transport, which the hon. Member for Colne Valley (Thelma Walker) mentioned, to a 40-year high, even though we are having to make difficult decisions elsewhere. Yesterday we struck a deal to give nurses and other NHS staff a 6.5% pay rise over three years in exchange for reform that will improve patient outcomes, to make sure we can continue to recruit high-quality people in the NHS. We can do that only because we have got control of the public finances and we have fixed the economy, measures that Labour opposed at every turn.

So let me be clear: if we had listened to Labour and let the public finances spin out of control, there would be no money to invest in public services, and there would be no money now for that NHS deal, so nurses would not get their well-deserved pay rise. It is Labour that put public services at risk by losing control of spending and crashing the economy. Conservatives are delivering a stronger economy, stronger public services and a pay rise for hard-working NHS staff.

We are not out of the woods yet, however. Debt and borrowing are still too high. Debt is forecast to peak at 85.6% of GDP in 2017-18, the highest it has been for 50 years. That leaves us vulnerable to economic shocks in the future that are by their nature hard to predict, but—worst of all—it places a burden on the next generation, because we are still spending £50 billion a year on interest payments, more than the combined amount we spend on the police and armed forces. So in order to ensure the UK’s economic resilience, improve sustainability and reduce the burden on future generations, we need to get our debt falling. However, even despite all these obvious facts that are all there in black and white, the Opposition continue to call for big spending announcements.

[Bim Afolami]

On debt interest repayments, will my right hon. Friend explain further how even a relatively modest rise in interest rates would make what is currently £50 billion of interest repayment completely unmanageable if Labour got in and we had a run on the pound?

[Elizabeth Truss]

My hon. Friend makes a good point, and the reality is that the Opposition are planning for a run on the pound; they have actually released documentation that suggests that this is a real risk should they get into power. I find that incredibly worrying.

As I mentioned, the Opposition have called for big spending announcements. That is fiscal fantasy land, and there are only two ways it could be achieved. First, we could borrow more and plunge ourselves further into debt, making us less resilient to any potential shocks that might happen to the economy. Secondly, we could increase taxes, which would be bad news for families, bad news for businesses and bad news for the economy.

The Opposition claim that they could just increase taxes on the highest earners. That is simply not true. The levels of taxation they are talking about for their plans for a state on steroids would lead to the highest taxes we have seen in peacetime history, and the people who would really suffer are ordinary working people struggling to get by, and struggling to get on the housing ladder. Those are the people who would be hammered by Labour’s tax increases.

Alongside our fiscal policy, we have a clear independent monetary policy and a macro prudential framework that has helped to bring inflation under control and promoted financial stability. We must remember what happens when the Government do not get this right: the banks had to be bailed out under the failure of Labour’s tripartite regimes. Our reforms, which included establishing the Financial Policy Committee in the Bank of England, have made sure we have the sound financial institutions that people can rely on. In 2017 the Bank of England tested the financial system against a scenario that was more severe than the global financial crisis, and our system had the capital to cope. Our independent monetary policy regime has also kept control of inflation, which is set to fall this year, easing pressure on living standards.

Ten years ago we were on the brink: we were teetering on the edge of a very serious crash, and public spending was out of control. Over the past eight years, and as a result of the policy decisions we have taken, we have seen a huge growth in the number of new businesses opening in this country; we have got more people, particularly the young, into employment; and we have put our public services on a sustainable footing.

We are getting our public finances back to black. This week’s economic news has been positive, but we are not complacent. We recognise that there is more work to do and we will continue to work hard to make sure our economy continues to grow, because as Britain prepares to leave the EU it is more important than ever that we unleash businesses and the people of Britain to fulfil their true potential.

--- Later in debate ---

[Peter Dowd]

We lost our triple A rating under the hon. Gentleman’s Government, so I do not think he has any room to point the finger at anyone.

While stressed-out doctors and teachers go to work every day, the Government duck responsibility and parliamentary scrutiny at every opportunity. The Chief Secretary to the Treasury might call these hard-working people “blobs”, but every day they run our health service and educate our children. Rather than spending her time attacking workers and the professional classes, the blob snob Chief Secretary should instead focus her attention on lifting the public sector pay right across the board and stepping up and taking action on our schools.

[Elizabeth Truss]

The point I was making was that, rather than supporting the vested interests, as the Opposition want to do, we want to get rid of state aid roles supporting the big companies and those who want to stop new people entering professions. I am on the side of people who have not got on the housing ladder or who have not entered a profession but who want to set up a new business. We want to deal with the vested interests that prevent that from happening.

[Peter Dowd]

I will tell the right hon. Lady what those professionals have: they have a vested interest in the health of our people, and in the health and education of our children. They have a vested interest in those people, unlike those on her side of the House.

--- Later in debate ---

[Peter Dowd]

Of course, and I am glad that the Chief Secretary mentioned the port of Liverpool, which is actually in my constituency. She should have popped in for a cup of tea.

[Elizabeth Truss]

The hon. Gentleman was not there.

[Peter Dowd]

I know; I was busy here. The hon. Member for Ochil and South Perthshire (Luke Graham) makes a point about exports, but we have seen the biggest devaluation in the pound for as long as anyone can remember, and I suspect that that has had something to do with it. It is hardly down to the policies of the Government; it is an unexpected consequence.

Let us move on to something released today. Her Majesty’s Inspectorate of Constabulary and Fire and Rescue Services yet again reports huge pressures on police forces, with emergency services responding not in seconds, minutes or even hours, but days. The “golden hour” is being stretched to up to a week—there is an achievement by this Government from a strong economy! It comes in the wake of the UK Statistics Authority having to correct the Prime Minister’s imaginative—not a word that we often use in association with the Prime Minister—use of police funding figures. I cannot see much cause to celebrate the current state of the economy after eight years of Tory austerity.

Britain continues to have astonishingly low levels of productivity compared with other G7 countries, which is a direct result of this Government’s failure to invest productively and proactively in the economy. Bizarrely, however, the Chief Secretary wants to celebrate—she did it again today—the poorly paid, precarious labour market that has fostered unproductive business models, which rely on exploitation instead of innovation and investment. For example, much of her Policy Exchange speech was spent singing the praises of Uber, as she did again today, but Uber’s labour practices and poor track record on safety have made it the subject of an investigation by Transport for London. She sits in awe of some large corporations that use every opportunity to dodge their taxes. Yesterday, we heard about Facebook misusing people’s personal data for profit. Is that the sort of country we want to live in? Of course it is not. Is that the sort of company that the Chief Secretary thinks is marvellous, wonderful and a model?

The Labour party embraces the opportunities of a fourth industrial revolution that empowers working people to take control of their own lives, yet the Conservative party wants to return to the practices of the first industrial revolution, when the world was dominated by the interests of the few. It is strange that the Chief Secretary talks about freedoms while advocating a society in which the broad mass of citizens are denied basic rights. For example, how has the slashing of public services, while tax breaks are being handed to big corporations, made us freer? It has only trapped people in poverty and poor health.

--- Later in debate ---

[Vicky Ford]

Absolutely. I thank the hon. Lady for that intervention, because I was the only British MEP involved in the negotiations on the last European collaborative research project. I was pleased to hear the Minister responsible for science and research confirming that he intends to continue that type of collaboration—provided that it is still focused on excellence, value for money and so on—as part of the science and innovation pact that the Prime Minister intends to deliver. This sector is vital, and we need to ensure that our world-leading scientists can continue to work easily with those in other areas.

My final thought is—[Interruption.] No, I have got my new medical school. This is an enormously important year, because it is 100 years since women got the vote, and it is also the Year of Engineering. I want hon. Members to focus for a moment on young women considering careers in engineering. This country needs 20,000 more engineers every year, and we absolutely need to invest in our science, technology, maths and engineering skills. The number of professional women engineers in this country is shockingly low. Only one in 10 are female, a lower figure than in nearly all the other European countries. There are fantastically good reasons why girls should go into engineering. One third of all businesses say that they want to recruit more people with STEM skills, and women who study science tend to earn an average of 30% more than their peers. A recent study said that 85% of women engineers were either happy or very happy—

[Elizabeth Truss]

rose—

[Vicky Ford]

I will give way to my right hon. Friend, because she has done something amazing in relation to maths skills.

[Elizabeth Truss]

I completely agree with my colleague on the vital importance of more girls studying maths. Does she agree that we should encourage girls who are considering their A-level options at the moment to think about studying maths A-level, because their school will get an extra £600 maths premium if they make that excellent decision not only for their own future but for the future of the country?

[Vicky Ford]

I am so delighted that my right hon. Friend has said that, because that is exactly the point. The Government have done a transformational thing by saying that we will give schools £600 more for every pupil who studies maths, which will be great at getting more pupils to choose the subject. However, if I may say so, the issue is not just with maths, but with physics. Forty per cent. of pupils studying maths are girls, but the figure for physics is only one in five. The last, tiny tweak that I would like in the autumn Budget would be for the premium to apply to physics, too.

ECOFIN

Elizabeth Truss Excerpts

Monday 19th March 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

A meeting of the Economic and Financial Affairs Council (ECOFIN) was held in Brussels on 13 March 2018. The UK was represented by Mark Bowman (Director General, International Finance, HM Treasury). Council discussed the following:

Early morning session

The Eurogroup President briefed Ministers on the outcomes of the 12 March meeting of the Eurogroup, and the Commission provided an update on the current economic situation in the EU. Council also discussed progress on the banking package, aimed at reducing risk in the banking industry, agreeing to defer agreement on a general approach until a later date.

Mandatory disclosure rules

The Council reached political agreement on the Council directive regarding the mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements.

Current financial services legislative proposals

The Bulgarian presidency provided an update on current legislative proposals in the field of financial services. The Commission presented a package of proposals relating to the EU’s Capital Markets Union.

European semester 2018

The Council exchanged views on the implementation of country-specific recommendations with a focus on productivity growth. Ireland and the Netherlands provided presentations on their experience of reforms to improve productivity growth. The Council also adopted the conclusions on the European Court of Auditors special report on the macroeconomic imbalance procedure (MIP).

G20 Meeting

The Council approved the EU Terms of reference for the G20 meeting on 19-20 March in Buenos Aires.

Status of the implementation of Financial Services Legislation

The Commission informed the Council on the status of the implementation of financial services legislation.

[HCWS559]

Spring Statement

Elizabeth Truss Excerpts

Tuesday 13th March 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

Making a success of EU exit is a priority for the Government and the Treasury. At the Autumn Budget 2017, my right hon. Friend the Chancellor of the Exchequer committed £3 billion over the next two financial years to helping Departments and the devolved Administrations to prepare. Working with colleagues across Government to prioritise the essential programmes to realise the opportunities from EU exit, the Treasury has allocated funding to Departments as follows in 2018-19:

ECOFIN

Elizabeth Truss Excerpts

Monday 12th March 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

A meeting of The Economic and Financial Affairs Council (ECOFIN) will be held in Brussels on 13 March 2018. EU Finance Ministers will discuss the following:

Early morning session

The Eurogroup President will brief the Council on the outcomes of the 12 March meeting of the Eurogroup, and the European Commission will provide an update on the current economic situation in the EU.

Mandatory disclosure rules

The Council will be invited to reach political agreement on the Council directive regarding the mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements.

Banking package

The Council will be invited to agree on a general approach on the legislative proposals included in the Banking package (Capital Requirements Regulation (CRR) and Directive (CRD), Single Resolution Mechanism Regulation (SRMR), and the Bank Recovery and Resolution Directive (BRRD)).

Current financial services legislative proposals

The Bulgarian presidency will provide an update on current legislative proposals in the field of financial services and the Commission will present its most recent capital markets union package.

European semester 2018

Following a presentation by the Commission on its 2018 country reports, the Council will hold an exchange of views on the implementation of country-specific recommendations with a focus on productivity growth. The Council will also be requested to adopt the conclusions on the European Court of Auditors special report on the Macroeconomic Imbalance Procedure (MIP).

G20 meeting

The Council will be invited to approve the EU terms of reference for the G20 meeting on 19-20 March in Buenos Aires.

Status of the implementation of financial services legislation

The Commission will inform the Council on the status of the implementation of financial services legislation.

[HCWS536]

Oral Answers to Questions

Elizabeth Truss Excerpts

Tuesday 27th February 2018 Commons Chamber

[Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)]

2. What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on trends in the level of funding for local authorities since 2010.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

It is right that more of our money that is spent locally is raised locally. In 2010, councils were 80% dependent on Government grants. By 2020, they will largely be funded by council tax and other local revenues.

[Rushanara Ali]

Local councils have faced devastating cuts. The Institute for Fiscal Studies estimates that, between 2010 and 2020, councils will have had their direct funding cut by 79%. In Tower Hamlets, we have lost £138 million through budget cuts since 2010. With one of the Conservative party’s own councils going bust, will the Minister now finally commit to funding local authorities properly, so that they can provide vital services to their communities?

[Elizabeth Truss]

As I have pointed out, it is right that we rebalance council spending from central Government grants to locally raised taxes, to help to keep councils accountable. We have seen councils up and down the country finding innovative ways of working, such as sharing back-office services and doing things such as installing wi-fi and improving waste collection. We have also seen Labour councils wasting money. For example, Momentum-supported Birmingham City Council bin strikes have cost the taxpayer £40,000 a day, and Reading—

[Mr Speaker]

Order. Resume your seat, Minister. That is the end of it. You answer for Government policy. You do not waste the time of the House by launching into rants about the policies of other parties. I have made my point, and if the Chancellor is confused about it, he really is under-informed and I say to him: stick to your abacus, man.

[Lloyd Russell-Moyle]

My own council of Brighton and Hove has had to make £52 million-worth of cuts in three years, despite superb Labour leadership in the city. With one of the Minister’s own Tory councils going bust, will the Chancellor finally commit to properly funding local government in tomorrow’s local government finance settlement?

[Elizabeth Truss]

We have provided local councils with council tax flexibilities to enable them to fund spending in their areas. It is absolutely right that councils should not waste money and should find savings. The fact is that we went through an incredibly profligate period under Labour in which the Government were running record deficits, and we have succeeded in reducing the deficit by three quarters. I must also point out to the hon. Gentleman that councils have reserves of £23 billion. In fact, those reserves have increased by £8 billion since 2010.

[John Stevenson (Carlisle) (Con)]

In Cumbria, the Labour council leaders failed to reach a devolution settlement with the Government that would have brought in additional resource. Does the Minister agree, however, that this is not just about resource and that it is also about council structures, leadership and creating efficient organisations?

[Elizabeth Truss]

My hon. Friend is absolutely right. Lots of councils have done things better and more efficiently, and have led the way across government. We have given more powers to local Mayors, and we are giving Mayors across the country £4.8 billion of new investment over the next 30 years.

[Sir Desmond Swayne (New Forest West) (Con)]

What priority does my right hon. Friend attach to local authorities building new housing?

[Elizabeth Truss]

It is vital that we see more housing built across the country, and that is why in the Budget we committed to 300,000 homes a year being built over the next decade.

[Charlie Elphicke (Dover) (Ind)]

Will the Chief Secretary to the Treasury join me in paying tribute to Kent County Council, which has managed to make substantial savings and efficiencies since 2010, while continuing to provide excellent services?

[Elizabeth Truss]

My hon. Friend is absolutely right. We have seen the leadership of numerous Conservative councils across the country in finding new and efficient ways of doing things. That is what we need to do as a Government. We need to find better ways of doing things and more efficiency, rather than wasting money and crashing the economy, as happened under the previous Labour Government.

[Ruth George (High Peak) (Lab)]

23. My county council of Derbyshire has seen its Government funding cut by over £200 million, and two thirds of its spending goes on adult social care. Does the Minister think that a postcode lottery of which counties can afford the most council tax should determine whether their elderly get looked after decently?

[Elizabeth Truss]

We have put additional funding into social care, and we have also allowed councils to raise the precept, but it is a very important principle that local councils are accountable to local voters for the money they spend. The situation we inherited in 2010, when 80% of the money came from the Government, meant we could have profligate local councils and local taxpayers would not have to foot the bill.

[Mr Philip Hollobone (Kettering) (Con)]

This week, having faced the same central Government cuts as everyone else, Conservative-controlled Kettering Borough Council, of which I am a member, can be expected to freeze its council tax for the eighth year in a row. Does it therefore appear that some councils are better at managing their affairs than others?

[Elizabeth Truss]

My hon. Friend is absolutely right. I note that council tax doubled under the previous Labour Government, and we are hearing talk from the Opposition that there might be another rise if they were to get into government again.

[Kirsty Blackman (Aberdeen North) (SNP)]

The issue of public sector pay is inextricably linked to the level of funding provided to both local authorities and other public bodies. Will the Chief Secretary commit to lifting the public sector pay cap across the board and to properly funding these pay increases?

[Elizabeth Truss]

We put an extra £2 billion of spending power into the hands of the Scottish Government at the last Budget, and we have also said that we want to be flexible over public sector pay to make sure we are retaining and recruiting the best possible staff.

[John McDonnell (Hayes and Harlington) (Lab)]

First, if you will forgive me, Mr Speaker, as we came into the Chamber we heard the news of the death of Simeon Andrews, who co-ordinated a large number of all-party groups and trade union groups, and, if we can, I would like us to send our sympathies to his family on behalf of the House.

The ministerial responses we have heard demonstrate absolutely no understanding whatsoever of the crisis created by the cuts of the past eight years and their impact on local government. Local councils are now facing a funding gap of nearly £6 billion by 2020, and it is the most vulnerable in our society who are suffering. The number of children taken into care is at its highest level since 1985, and one in three councillors are warning that the cuts have left them with insufficient resources to support these children. The leader of the Chancellor’s own Surrey council said:

“The Government cannot stand idly by when Rome burns.”

Will the Chief Secretary commit today to use the opportunity of next month’s spring statement to address the funding crisis in our local councils?

[Elizabeth Truss]

First, the spring statement is not a fiscal event, and it is vital that we maintain the discipline that we have achieved over the past eight years and keep control of public spending, because that is what has led to the strong economy we are now seeing, with record levels of employment and an increasing number of new businesses starting up. The reality is that if Labour were to get into power, that legacy would be squandered.

Local government will see a 2.1% increase in cash terms between 2015 and 2019, and, as I have pointed out, they have also seen an increase in local council reserves of £8 billion—money available to spend on, and invest in, local services.

[John McDonnell]

With the crisis in children’s services, to be frank this is not the time for political knockabout responses. I am not sure whether the Chief Secretary has witnessed a child being taken into care; I have, and it can scar that child for life. But do not listen to me; listen to the all-party inquiry into children’s social care, which warned that nine out of 10 councils are struggling to meet their legal duties to children. The president of the Association of Directors of Children’s Services has said:

“We cannot go on as we are”,

and it is reported that over half the councils in England are planning further cuts to children’s services.

Recent estimates of Government spending and income show that the Chancellor will have sufficient resources to protect our children from further cuts. So I appeal—once again—to the Chancellor to use the flexibility he has to use the spring statement to address the £2 billion funding gap in our children’s services, to protect our children.

[Elizabeth Truss]

It is a bit rich of the right hon. Gentleman to suggest that we should not bring politics into this when that is precisely what he is doing. We are making sure that local councils have the flexibility to raise council tax to fund these vital public services. Labour has to acknowledge that this is not just about the money we spend but the way we spend it. The reality is that if the entire focus is on the level of spending rather than what we are doing, we end up with the situation that occurred in 2010—vast increases in spending and services actually getting worse.

[Graham P. Jones (Hyndburn) (Lab)]

3. Whether he has reviewed his Department’s procedures for authorising and monitoring private finance initiative contracts as a result of the liquidation of Carillion.

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[Nick Thomas-Symonds (Torfaen) (Lab)]

11. What equality impact assessments his Department has undertaken on the Government’s policy on the public sector pay cap.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

It is for Departments to consider the equalities impact of their proposals on workforce strategy and pay. The important thing is that we reward public servants fairly for the work they do.

[Nick Thomas-Symonds]

Well, public sector servants have certainly not been rewarded fairly, but let me turn to pay differentials in the private sector. Is the Chief Secretary as concerned as I am that many private sector firms are excluding partners’ income in their reporting obligations on the gender pay gap, on the basis that they are not employees? What will the Government do to close that loophole?

[Elizabeth Truss]

We have announced new policies on reporting the private sector pay gap. The pay gap has come down under this Government and we are now seeing a record number of women in work, and the reason is that we have taken the difficult economic decision to close the deficit and ensured that we have allowed the private sector to flourish.

[David Hanson (Delyn) (Lab)]

17. With inflation at 3% and Government cuts to council tax and police budgets forcing up precepts, why should low-paid workers, who are predominantly women, have an increase of only 1% next year, after four years of 1% already?

[Elizabeth Truss]

First, I point out that those on the lowest pay have seen their real wages rise by 7% since 2015, which is the highest level for some time. Also, it is women who are more likely to be in work, with record levels of employment. We have also given additional flexibility to public services to ensure that they can recruit and retain.

[Imran Hussain (Bradford East) (Lab)]

12. What plans he has to tackle household debt.

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[Fiona Onasanya (Peterborough) (Lab)]

18. What recent discussions he has had with the Secretary of State for Housing, Communities and Local Government on trends in the level of funding for local authorities since 2010.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

We have made sure that local councils have the full ability to serve local residents by giving them additional council tax flexibility.

[Fiona Onasanya]

I thank the Minister for that answer, but between 2010 and 2020, Peterborough City Council will have had its direct funding cut by 78.7%. Can she explain how my authority is expected to meet the rising children’s services and adult social care demands?

[Elizabeth Truss]

As laid out in the local government settlement, councils have been given the ability to increase council tax levels to pay for those services. It is vital that those taxes are raised locally, so that local councillors are accountable for the decisions they make.

[Neil O'Brien (Harborough) (Con)]

Can my right hon. Friend confirm that the Government will move promptly to a new fair funding formula for local government to replace the untransparent and unfair system? Will she look closely at the Leicestershire model for doing that?

[Elizabeth Truss]

My hon. Friend makes a very good point. Local government funding has not been fair enough. That is why we are consulting on a fair formula at the moment, and I will look with interest at his representations.

[Robert Courts (Witney) (Con)]

20. What progress is being made on reducing the deficit.

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[Peter Dowd (Bootle) (Lab)]

The Chief Secretary gave a speech last year calling for better value for money from the public finances and not spending money we do not have, and she has talked about not wasting money today, so how can she justify spending hundreds of millions of pounds on further tax giveaways worth £2,000 per child to the wealthiest families—those, for example, using private schools—via the tax-free childcare scheme? Is that not a waste of money and spending money we do not have?

[The Chief Secretary to the Treasury (Elizabeth Truss)]

I would point out to the hon. Gentleman that the voucher scheme invented by the previous Labour Government benefited only 600,000 families whereas our scheme is much broader—it benefits 1.5 million people—and the Labour Government’s scheme was open to private schools and private nurseries as well.

[Nigel Huddleston (Mid Worcestershire) (Con)]

T3. Last week in the Chamber, we yet again heard an Opposition MP complain that they believed they should personally be paying far more tax. Will the Minister confirm the mechanism by which anybody can currently do exactly that voluntarily?

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[Lilian Greenwood (Nottingham South) (Lab)]

T4. “The health and social care system has been pushed to its limits in recent weeks”—those are not my words, but those of my local hospital trust. Last month, it was forced to cancel about 325 operations and 640 outpatient appointments. That not only means that my constituents who are unwell or in pain are being made to wait longer for treatment but makes the trust’s already challenging financial situation even worse. When is the Chancellor going to give our health and social care system the sustainable funding it needs?

[Elizabeth Truss]

The hon. Lady should acknowledge that the NHS has been rated as the best healthcare system in the world. We recognise that there are extra demands on the health system and that is why we put in an extra £6.3 billion of funding at the Budget.

[Andrew Lewer (Northampton South) (Con)]

T6. What progress has been made in reducing the level of corporation tax evasion?

[Ellie Reeves (Lewisham West and Penge) (Lab)]

T7. Members have already raised the insufficient funding of local authorities by this Government. A recent campaign in Lewisham prevented local children’s and adolescents’ mental health services from being cut, but they are still facing a 5% loss in funding from national Government. When will the Government finally take this seriously and reverse the cuts to children’s mental health services?

[Elizabeth Truss]

We are putting additional funding and support into children’s mental health services and the Department for Education has recently announced additional support for children’s mental health issues in schools.

[Stephen Hammond (Wimbledon) (Con)]

Will my right hon. Friend tell the House what assessment the Treasury has made either separately or jointly with the Department for Transport of how external initiatives on competitiveness and investment might help the rail sector and Network Rail in particular?

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[Ruth George (High Peak) (Lab)]

North Derbyshire clinical commissioning group finished last year £27 million in the red, and £16 million of cuts were demanded. In spite of closing hospital beds at a time when they are most needed, it will again end this year £27 million in the red. When will the Government give the NHS a sustainable settlement to enable it to provide proper services?

[Elizabeth Truss]

We have given the NHS a sustainable settlement. It received an additional £6.3 billion, but it is also important that we reform our healthcare services, that we put in place sustainable transformation plans, and that we are investing in capital and new technology and making sure that we use our fantastic frontline workers—nurses and doctors—in the best way possible.

[Bim Afolami (Hitchin and Harpenden) (Con)]

As the Chancellor knows, investment in infrastructure is key to ensuring that we can build the thousands of homes that this country needs. Will the Chancellor agree to meet me, other Hertfordshire MPs and the leader of Hertfordshire County Council to discuss how we might be able to do that in Hertfordshire, where we need to deliver about 100,000 new homes?

Public Service Pension Indexation and Revaluation 2018

Elizabeth Truss Excerpts

Wednesday 21st February 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

Legislation governing public service pensions requires them to be increased annually by the same percentage as additional pensions (state earnings-related pension and state second pension). Public service pensions will therefore be increased from 9 April 2018 by 3%, in line with the annual increase in the consumer prices index up to September 2017, except for those public service pensions which have been in payment for less than a year, which will receive a pro rata increase.

Separately, in the new career average public service pension schemes, pensions in accrual are revalued annually in relation to either prices or earnings depending on the terms specified in their scheme regulations. The Public Service Pensions Act 2013 requires HMT to specify a measure of prices and of earnings to be used for revaluation by these schemes.

The prices measure is the consumer prices index up to September 2017. Public service schemes which rely on a measure of prices, therefore, will use the figure of 3% for the prices element of revaluation.

The earnings measure is the whole economy average weekly earnings (non-seasonally adjusted and including bonuses and arrears) up to September 2017. Public service schemes which rely on a measure of earnings, therefore, will use the figure of 3% for the earnings element of revaluation.

Revaluation is one part of the amount of pension that members earn in a year and needs to be considered in conjunction with the amount of in-year accrual. Typically, schemes with lower revaluation will have faster accrual and therefore members will earn more pension per year. The following list shows how the main public service schemes will be affected by revaluation:

Oral Answers to Questions

Elizabeth Truss Excerpts

Tuesday 16th January 2018 Commons Chamber

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

12. What progress is being made on creating jobs and reducing unemployment.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

The unemployment rate is now the lowest since 1975, and 3 million more people are in jobs than in 2010. What that means is that they have the ability to use their talents to support their families and to get on in life.

[Mr Seely]

Will my right hon. Friend and the Treasury team work with me and the Isle of Wight Council to explore how the Island could benefit from a Treasury-supported enterprise zone in the Medina valley or from other regeneration policies that would help to drive the jobs and wealth creation agenda on the Isle of Wight?

[Elizabeth Truss]

My hon. Friend has done a fantastic job of championing the Isle of Wight since 2010, and we have seen a 55% reduction in unemployment on the Island. There are many issues that we need to address to ensure that the economy on the Island is competitive and dynamic. The Isle of Wight ferry is a vital service, and we need to ensure that the Competition and Markets Authority has the tools to deal with that. I would be very happy to meet my hon. Friend to talk about what more we can do to boost the Isle of Wight.

[Michael Tomlinson]

I am the chairman of the all-party parliamentary group for youth employment, and each month we track the jobs figures. Will my right hon. Friend update the House on the impact of this very welcome job creation on poverty levels and welfare dependency since 2010?

[Elizabeth Truss]

I congratulate my hon. Friend on his work. Since 2010, we have seen a 40% reduction in youth unemployment. Let us compare that with what happened under the Labour Government when, during an economic boom, youth unemployment rose and those young people were left on the scrapheap rather than joining apprenticeships and getting the training opportunities that they have under this Government.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

Here is a reality check for the Minister. Limited well-paid jobs and record levels of in-work poverty coupled with this Government’s unflinching assault on the welfare safety net have contributed to the United Nations estimating that 8 million households in the UK are food insecure. My cost-neutral household Food Security Bill will robustly measure these factors and lead to policy development that will eradicate hunger. Why will her Government not back it?

[Elizabeth Truss]

I am surprised that the hon. Lady is not interested in the news we heard earlier, which is that those on the lowest incomes have seen a 7% real-terms pay rise since 2015, enabling them to support their families.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the Chief Secretary agree that one of the best ways of creating employment is to simplify tax structures to help small and medium-sized enterprises to create employment right across the United Kingdom?

[Elizabeth Truss]

The hon. Gentleman is absolutely right. This Government have cut red tape and taxes. We have cut basic rate tax by £1,000 for working people, which has encouraged more people to get jobs and more companies to take people on. That is why we are seeing economic success.

[Martin Vickers (Cleethorpes) (Con)]

Transport for the North has today published its strategic plan, which forecasts 850,000 new jobs if the plan is delivered. Although the document is disappointing for Cleethorpes and northern Lincolnshire, broadly speaking more investment in transport in the north will provide those jobs. Will the Minister give an assurance that resources will be made available to deliver the plan?

[Elizabeth Truss]

I am pleased to say that we are investing a record amount in economic infrastructure, and the Institute for Fiscal Studies said that such investment would be at a 40-year high by the end of this Parliament. We are giving money to improve transport in towns and cities, allocating £1.7 billion for that purpose at the Budget.

[John McDonnell (Hayes and Harlington) (Lab)]

Thousands of Carillion workers will turn up to work tomorrow unsure whether they have a job, and they may not appreciate Conservative boasts about employment today. The workers face cuts to their pensions, and hundreds of small firms along the supply chain are also uncertain about their futures. The traditional role of the Treasury is to protect our public finances, so will the Minister explain to the House what involvement the Treasury had in the billions of pounds of contracts held by Carillion at the time of its liquidation? We know that Treasury approval is required for PFI contracts, so will she tell the House how many PFI and PF2 contracts were signed by the Treasury during the current Chancellor’s time in office? What will happen to those projects and to the staff working on them? When there were loud and clear worrying signs about Carillion, why did Treasury Ministers, instead of intervening, collude in the strategy of drip-feeding more contracts to Carillion to buoy up an obviously failing company?

[Elizabeth Truss]

What has happened at Carillion is regrettable, which is why we are ensuring that the people employed by Carillion have support from jobcentres and why our No. 1 priority is ensuring that we continue to supply public services. However, it would be completely wrong for a company that got itself in such a state to be bailed out by the state, and we are not doing that. We are making sure that we continue to supply public services at the same time as helping the people who work for the company.

If we look at the record of contracting, a third of those contracts were signed under the previous Labour Government, and one of the most recent contracts was signed by the Labour-led Leeds City Council. The fact is that we have £60 billion of contracts with private sector companies that deliver public services across this country, which is an important way of delivering our public services. When there is an issue, as we have had with Carillion, we have made the preparations, and we are sorting out the situation.

[John McDonnell]

We are asking questions about when it was obvious that this company was failing and what the Treasury’s role was. I put it no stronger than this: at this stage, there are real suspicions that the Government were too close to the company and too wedded to its privatisation role. We need full transparency on the meetings and discussions that took place between Ministers, civil servants and representatives of Carillion. What warnings were given to Ministers and what action was recommended, whether it was implemented or not? We need the Treasury to start playing its proper role and to provide an independent assessment of the potential costs and risks facing the taxpayer. As has already been mentioned, a Cabinet Office minute was published after the statement yesterday that established a contingent liability. We urgently need to know from the Treasury about the potential range of costs now facing the taxpayer.

[Elizabeth Truss]

We already publish all those minutes and details of meetings. We are a transparent Government, and we make decisions in an objective fashion. Those decisions are signed off by the Treasury, and they are signed off by the Cabinet Office. Recent decisions on Carillion contracts have been made on the basis of joint and several liability to make sure the taxpayer is protected. We always look for value for money in the way we set up our contracts. The Government are dealing with this in a responsible and measured way, rather than making cheap political shots at a time when people’s jobs are in question and when we are working to sort that out.

[Rachel Maclean (Redditch) (Con)]

11. What discussions he has had with the Secretary of State for Education on the effect of Government investment in education on pupil outcomes since 2010.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

We are investing a record £41 billion in our schools this year. For the first time ever, we are putting in place a fair national funding formula. We are seeing standards rising. In the recent Progress in International Reading Literacy Study, we saw England gain its highest ever score in reading.

[Rachel Maclean]

Thanks to the incredible hard work of staff, children and parents in Redditch, 92% of our secondary schools are currently rated outstanding. Receiving a great education in maths is critical to equipping children in Redditch for future jobs in the economy. What financial support is the Treasury giving to enable our children in Redditch to have that education?

[Elizabeth Truss]

My hon. Friend is absolutely right that maths is vital for the future of our economy. We know there is huge demand for people with science, technology, engineering and maths skills, which is why at the Budget we allocated a £600 maths premium that schools will receive for every student who does maths from age 16 to 18.

[Nigel Mills (Amber Valley) (Con)]

13. What progress he has made on reducing the level of corporate tax evasion and the tax gap.

--- Later in debate ---

[Tony Lloyd (Rochdale) (Lab)]

T5. With Carillion now the poster child for dodgy market capitalism, what duty does the Treasury owe to the wider public to prevent Government spending Ministers from engaging in inappropriate contracts, and what steps did the Treasury take?

[The Chief Secretary to the Treasury (Elizabeth Truss)]

We have very clear rules about managing public money. Let me point out to the hon. Gentleman that we are not bailing out this company. It has gone into liquidation, and we are taking the proper steps to protect public services, which is the right approach to take.

[Alex Chalk (Cheltenham) (Con)]

Since 2010, unemployment in Cheltenham has fallen to just over 1%. Does my right hon. Friend agree that, to secure that jobs pipeline, the Government are right to continue backing Cheltenham’s GCHQ-supported cyber-innovation centre, which is creating opportunities for my constituents?

[Elizabeth Truss]

I completely agree with my hon. Friend. I am shortly due to visit the centre in Cheltenham and I look forward to seeing him there.

[Mohammad Yasin (Bedford) (Lab)]

T6. The East of England Ambulance Service experienced its busiest ever Christmas, and it had to rely on taxis to take patients to the hospitals. At least one patient died while waiting for an ambulance. How much worse does it have to get before this Government can meet the funding needed by the East of England Ambulance Service so that it can operate safely and efficiently?

[Elizabeth Truss]

It is important to note that we have 2.9 million more people visiting A&E than we had in 2010. That is why, as well as making sure that we are putting in place a proper modernisation of the health service, we are also investing more money, and we allocated £6.3 billion more at the Budget.

[Nicky Morgan (Loughborough) (Con)]

There are many small and medium-sized enterprises in the Carillion supply chain, as both contractors and direct suppliers. What discussions will the Government have with Her Majesty’s Revenue and Customs and other businesses to make sure that these companies are able to continue to pay the tax liabilities and their employees?

[Afzal Khan (Manchester, Gorton) (Lab)]

T7. Greater Manchester police has faced eight years of real-terms cuts and has lost 2,000 officers. Week after week, constituents come to my surgery in deep distress over antisocial behaviour, muggings and burglaries to which the police cannot attend. As a former police officer myself, I know that they are doing the best that they can. Will the Minister commit to giving more funding for Greater Manchester police?

[Elizabeth Truss]

The hon. Gentleman will have noticed that, in the draft local government settlement, we have given police authorities the power to raise additional precept to be able to deal with those issues. Ultimately, it is a decision for Greater Manchester police.

[Neil O'Brien (Harborough) (Con)]

The current funding formula for local government is opaque, historical and disadvantages Leicestershire. Does the Minister agree that it would be attractive to move to a transparent formula based on the real drivers of costs?

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

T9. Yesterday saw the successful Second Reading of the Space Industry Bill, which could see Prestwick in my constituency become the UK’s first spaceport, but the Ayrshire growth deal is central to ensuring the widest economic impact from that development. The three local authorities and the Scottish Government are backing it, so will the Chancellor now commit to the Ayrshire growth deal?

[Elizabeth Truss]

I can assure the hon. Lady that I am in regular discussions with the Secretary of State for Scotland about the growth deals across Scotland. We have already committed to a number of growth deals and are certainly looking at further ones.

[Mr Speaker]

We are very time constrained today. One sentence—Alex Burghart.

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[Vernon Coaker (Gedling) (Lab)]

Councils such as Gedling Borough Council and Nottinghamshire County Council are setting their budgets now, and they face a funding crisis. What are the Government going to do about it?

[Elizabeth Truss]

We have given councils the power to raise more funds in the draft local government finance settlement, but councils also need to look at how they can become more efficient, share back offices and use modern technology.

[Tom Pursglove (Corby) (Con)]

Unemployment in my constituency is down by over 50%, but will my right hon. Friend consider a new round of enterprise zone bidding opportunities to help further that success story?

Tax-free Childcare Roll-out: Update

Elizabeth Truss Excerpts

Monday 15th January 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

In April 2017 the Government launched tax-free childcare, which helps working parents with the cost of childcare with up to £2,000 of support per child. Today we will open the scheme to parents whose youngest child is under nine, or who turn nine today. We will be opening the scheme to all remaining eligible families on 14 February. This means all eligible parents will be able to apply for tax-free childcare before the end of this financial year.

The Government are giving more help with the cost of childcare to working parents than ever before. We introduced tax-free childcare in April 2017, and have doubled the free childcare available to working parents of three and four-year-olds to 30 hours a week. In 2019-20 we will be spending around £6 billion on childcare support—a record amount of support.

Since opening the childcare service, through which parents apply for 30 hours free childcare and tax-free childcare, more than 325,000 customers have successfully applied and are now using the service. Of these, more than 295,000 parents are eligible for 30 hours free childcare. Over 170,000 have a tax-free childcare account and we have begun activity to further raise awareness of tax-free childcare. We want to encourage more parents to take up the offer they are entitled to.

[HCWS401]