Oral Answers to Questions

Gareth Davies Excerpts

Tuesday 6th February 2024 Commons Chamber

[Daniel Zeichner (Cambridge) (Lab)]

16. What recent fiscal steps he has taken to help tackle regional economic inequalities.

[The Exchequer Secretary to the Treasury (Gareth Davies)]

This Government are committed to supporting all parts of the United Kingdom. In October we announced the £1.1 billion long-term plan for towns, which gives 55 towns up to £20 million of endowment-style funding. We are delivering an ambitious programme of investment zones and devolution deals, we ae continuing to support local growth through the UK shared prosperity fund and we are investing billions to improve local transport connections in our regions outside London.

[Daniel Zeichner]

By their own measures, the Government are failing on almost half of their levelling-up missions in the east of England. Meanwhile, the Cambridge sub-region, which is a net contributor to the Exchequer, has vital transport projects on hold or awaiting finance. When will the Treasury stop stalling growth and give power back to the regions, which know best what needs to be done in their area?

[Gareth Davies]

This Government are committed to levelling up by boosting growth, raising living standards and spreading opportunity throughout the country in several different ways. The hon. Gentleman talks about giving more power to local areas, and he will know that the Cambridgeshire and Peterborough Combined Authority is getting a £97 million devolution deal. He will also know that Cambridge received some £14 million as part of the shared prosperity fund to spend on local projects. I reject his assertion; the people of Cambridge are benefiting from this Government.

[Danny Kruger (Devizes) (Con)]

The way to reduce regional inequality is to ensure that growth happens everywhere across the country. One way to do that is to support small and medium-sized enterprises and community enterprises, which are particularly located in under-served regions. I commend the Government for the recovery loan scheme, which has been a lifeline to many small businesses and community enterprises. Can the Minister tell us whether that scheme is likely to be renewed? Hundreds of millions of pounds of private investment is waiting on the Government to make a decision.

[Gareth Davies]

My hon. Friend has a long history as a great champion for community organisations. I will write to him on his specific question.

[Dr Luke Evans (Bosworth) (Con)]

17. What recent progress he has made on raising the level of the national living wage.

--- Later in debate ---

[Kenny MacAskill (East Lothian) (Alba)]

T5. With winter still upon us and fuel bills still rising, Ofgem is advising that the level of domestic energy debt is approaching £3 billion. When people cannot meet their current bills, how can they possibly be expected to meet that level of arrears? Is it not time to fund a debt write-off scheme, as proposed by National Energy Action and other fuel poverty campaigners, before hypothermia and misery worsen?

[The Exchequer Secretary to the Treasury (Gareth Davies)]

The Government continue to work with Ofgem. In fact, I met the chief executive officer very recently. Ofgem continues to monitor the levels of energy debt to ensure that consumers are protected. The hon. Gentleman will know that, last year, the Chancellor announced measures to ensure that households with prepayment meters paid no more than those with standard meters, and that is on the back of the energy price guarantee, which effectively paid 50% of people’s household energy bills.

[Sir Sajid Javid (Bromsgrove) (Con)]

The Chancellor will be aware of a proposal from the World War Muslim Memorial Trust to establish a memorial at the National Memorial Arboretum, honouring an estimated 750,000 Muslims who have fought for the British armed forces, with tens of thousands of them paying the ultimate sacrifice. Previous Budgets have supported memorials that honour those who have given us the freedoms that we enjoy. May I ask the Chancellor to personally consider this proposal and help make it a reality?

--- Later in debate ---

[David Duguid (Banff and Buchan) (Con)]

Last June the Exchequer Secretary announced the energy security investment mechanism, and I welcomed the announcement in last November’s autumn statement that the floor price would rise with inflation from April. How and when will that be legislated for, and will he look at alternative ways of setting that floor price, other than the 20-year reference period that is already used?

[Gareth Davies]

The energy security investment mechanism was designed, as my hon. Friend points out, to give more certainty not only to the oil and gas sector, but to investors, ensuring that the energy profits levy is disapplied when prices return to historically normal levels. To provide additional certainty, on the back of urging from him and the industry, we have agreed to legislate for ESIM and will be announcing that shortly.

[Imran Hussain (Bradford East) (Lab)]

Regardless of what the Chancellor tells us, the reality remains that people in Bradford are worse off after 14 years of this Government. Healthcare, GPs and dentists are less accessible, homes are more expensive, colder and riddled with mould, jobs are less secure and badly paid, with stagnating wages, and household savings have been wiped out by rising food, water, energy and fuel bills. Ahead of the last Budget he will deliver before the general election, will the Chancellor apologise for 14 years of disaster that have devastated our communities?

[Peter Gibson (Darlington) (Con)]

Can my hon. Friend tell me how many staff are now employed across the eight Departments based at the Darlington Economic Campus? What progress is being made on naming the new building “William McMullen House”?

[Gareth Davies]

I can tell my hon. Friend that 750 staff are employed across all Departments at the Darlington Economic Campus. The Treasury’s aim is to reach 355 full-time staff by March 2025, and we are on track to meet that target. The official name of the campus will be decided closer to the 2025-26 delivery date and will be consulted on by the Government Property Agency, but we have heard very clearly his suggestion of William McMullen House, and we will consider that in due course.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

The Chancellor knows jolly well that in April 2023 Sir Brian Langstaff made his final recommendations on compensation for those infected and affected by the contaminated blood scandal. The Chancellor also gave evidence in July to Sir Brian and said that work was under way. In December, this House voted for a compensation body to be set up. I would like the Chancellor to answer my question, please, not a junior Minister, and explain exactly what is going on in the Treasury, what work is being undertaken and whether there will be an announcement in the Budget.