Spending Review and Autumn Statement

Debate between George Osborne and Cheryl Gillan

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

This spending review delivers economic and national security for the people of Scotland. It funds a £1.9 billion increase to their capital budget and the block grant goes up by £1 billion. There is a 14% capital boost from the United Kingdom Government. Instead of complaining, the hon. Gentleman might, on behalf of the Scottish Government, have welcomed that and set out any plans he might have for how to spend it. I suspect we will hear a lot from the Scottish nationalists in this Parliament about process, constitutional issues and all that, but they will not tell us what they are actually going to do to improve the lives of people in Scotland. He talks about productivity. If we look at the Scottish Government’s record, we see that they have cut 140,000 further education college places in Scotland. They have used the money they have taken from the university sector for free prescriptions for millionaires, as if that is a good use of Scottish taxpayers’ money. Health spending in Scotland is rising more slowly than it is in England, where the Conservative Government are in charge of the English national health service.

In the spending review, there is extra capital for Scotland so it can invest in its long-term future. There is a huge commitment to the defence estate in Scotland, with new planes based at RAF Lossiemouth and a massive investment in shipbuilding on the Clyde for many years to come. By the way, I know that the SNP is keen to court the unions in Scotland. The GMB said that the news about the frigates

“should be welcomed and not used for political mischief”.

That is another sensible thing the GMB has said. And there is the huge investment at the base at Faslane, where 8,000 people work. The Scottish National party pretends it would get rid of the nuclear deterrent and somehow give all those 8,000 people jobs in our defence establishment—the SNP is not being straight with the people who work on the Clyde or in Scotland’s defence industries.

We are also working on implementing the Glasgow city deal, and on a city deal for Inverness and for Aberdeen, and we are ready to sit down with John Swinney to negotiate a fiscal framework. We have now the Scotland Bill, which Lord Smith says “delivers the legislation required” to deliver the agreement. For months, SNP Members have been telling us that we were not doing what the Smith commission said, but now Lord Smith says that we are. To make these powers work, we need agreement on a fiscal framework. Let us sit down—we can sit down tomorrow, next week or whenever—to agree a fair fiscal funding framework.

The truth is that SNP Members complain about decisions on public expenditure, but if Scotland had voted to be independent, its public finances would be in complete tatters. The OBR forecast today is that oil revenues are down 94% in the North sea because of the fall in the world oil price. That is a £20 billion hole in the financial programme that the SNP Government tried to foist on the people of Scotland. The whole thing can be summed up by the words of Mr Alex Bell, who was the former First Minister’s head of policy. He said this week:

“The SNP’s model of independence is broken beyond repair…the campaign towards the 2014 vote, and the economic information since, has kicked the old model to death. The idea that you could have a Scotland with high public spending, low taxes, a stable economy and reasonable government debt was wishful a year ago—now it is deluded.”

That is the SNP verdict on the SNP plans.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

May I congratulate the Chancellor, both on his leadership in continuing to secure our economic recovery and on his long-term economic plan, which is certainly working? There is so much to welcome in this autumn financial statement. While he is continuing to develop our infrastructure plans, may I ask him also to look at the Government’s promise on the environment? Will he again examine the plans for HS2 and look at extending the tunnelling under the full length of the Chilterns area of outstanding natural beauty—a mere 8.8 km? I think he will find that the savings in time and costs to this project are worth it, as are the savings to the misery of my constituents and many others.

[Mr Osborne]

I thank my right hon. Friend for her support for the statement, and of course she is absolutely right that the sound public finances that are at the heart of what we are seeking to build in our country are vital for the working people of Chesham and Amersham. They also enable us not only to afford big infrastructure projects such as HS2, but to mitigate the environmental impacts. We of course have listened to the representations she has made so forcefully and well on behalf of her constituents to ensure that more of that line is in tunnels through her constituency than would have been the case if she had not fought hard for her constituents. Of course I will always listen to the case she makes, but the plans for HS2 are now well developed and construction is going to start in this Parliament. Indeed, one of the major capital commitments in this spending review is to the budget for HS2, which increases during this Parliament, but I think this is exactly the kind of big infrastructure that this country has not been good at providing in the last few decades and is vital for our future.

Autumn Statement

Debate between George Osborne and Cheryl Gillan

Wednesday 3rd December 2014 Commons Chamber

[Mr Osborne]

I have set out today how our plans to bring the deficit down and bring borrowing down can be achieved through spending reductions in Departments and through welfare savings, and therefore do not require tax increases. I also explained that if we were to achieve over the next period the same as we have achieved during this Parliament in dealing with tax avoidance, tax planning and aggressive tax evasion, we could achieve £5 billion of savings, or extra revenue, in that space of time as well. That is a better way to proceed, and that is the course we have set.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

The Chancellor will be aware that I, and many colleagues in this House, have been working with the CLA, which is actively campaigning for reform of compulsory purchase to deliver fairer compensation for landowners who are affected by infrastructure projects such as HS2. I greatly welcome his announcements on stamp duty. Will he go a bit further and consider abolishing stamp duty land tax on the purchase of replacement property by landowners who are so badly affected by infrastructure projects?

EU Budget (Surcharge)

Debate between George Osborne and Cheryl Gillan

Monday 10th November 2014 Commons Chamber

[Mr Osborne]

As I have already said, it was not clear that the rebate would apply, which is why the shadow Chancellor, in his article in The Guardian, uses a number that assumes that we are going to pay £1.7 billion. That is what he thought we were going to pay, but we negotiated hard and had intensive discussions, and as a result we have got this result for Britain.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Will my right hon. Friend confirm that it was the UK’s leadership in Europe that resulted in the deal being struck that has enabled all nine countries that were being surcharged by the EU to delay their payment until 1 September next year? Does he agree that such leadership in Europe bodes well for our renegotiations next year, after the Conservative party has won the next general election?

[Mr Osborne]

My right hon. Friend is absolutely right. Of course, we needed the agreement of all the member states for this budget deal. Any one of them could have blocked the deal, but we got the support of all the other 27 member states, not just to delay the payment and have no interest applied but permanently to change the rules.

Autumn Statement

Debate between George Osborne and Cheryl Gillan

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

I welcome the hon. Gentleman’s support for some of the measures we have taken to help the Northern Irish economy, which I am well aware has particular problems in the banking system that require even more attention. I have always sought to respond to the Executive’s proposals where there is a specific case for Northern Ireland, as we did with transatlantic flights, for example. More generally, we are committing additional money to infrastructure, and I want some of that additional infrastructure to be in Northern Ireland. We are also guaranteeing infrastructure projects across the United Kingdom, and £10 billion of projects have pre-qualified for that under the legislation we took through Parliament this autumn. That scheme is available to people and companies in Northern Ireland, and if the Executive want to talk to the Treasury about what more we can do to encourage take-up in Northern Ireland, I would be happy for those conversations to take place.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I welcome my right hon. Friend’s proposals, particularly the extension of the expenditure envelope for infrastructure plans, but will he personally ensure that our transport policy is fully integrated? At present, the proposals for HS2 completely ignore any plans we might have to expand our airport capacity. There is little point in building or announcing any extension to the railway if it does not connect adequately to our major international hub airport. Will he personally look into this?

[Mr Osborne]

Of course I understand why my right hon. Friend speaks on behalf of her constituents who will be affected by the High Speed 2 development, but I think that it is the right infrastructure for our country, and that it will help to change the economic geography of Britain by connecting some of our northern and midland cities with London. I hope she will acknowledge that we have been generous with some of the compensation as well. She asked specific questions about the extension to Heathrow and the design of the route. My right hon. Friend the Transport Secretary would be better placed to answer them, and in the new year he will have more to say about the route to the north-west and to west Yorkshire.