Autumn Statement

Debate between George Osborne and Simon Hughes

Thursday 5th December 2013 Commons Chamber

[Mr Osborne]

The economy is smaller because it fell 7%. That is why. It fell in the years 2008 and 2009 when the Labour party was in charge.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I warmly welcome the Chancellor’s announcement about capital gains tax for foreign owners of property, particularly in London, and the increase in the borrowing limits for local authorities. When he does his review, promised in the autumn statement, of local councils’ ability to deliver more affordable housing, will he look at some very good examples of housing associations that, by using private sector investment and private sales, have hugely increased their capacity to build social housing—not just at affordable rents, but at social and target rents as well?

[Mr Osborne]

My right hon. Friend is absolutely right. Some excellent housing associations have used private money and sold off some of the most expensive social homes in order to provide more resource for building more homes, which is precisely what we want to encourage. On the additional money in the housing revenue grant, which I know has been of particular interest to his party, we have said that that money should be available on a competitive basis to those councils that are going to work with housing associations, for example, to deliver the sort of innovative schemes that he champions.

Economic Growth

Debate between George Osborne and Simon Hughes

Wednesday 15th May 2013 Commons Chamber

[Mr Osborne]

My party voted against the tripartite arrangement. I do not have the quote with me today—I will send it to the right hon. Gentleman or ensure that my right hon. Friend the Chief Secretary has it for the wind-up—but the shadow Chancellor at the time, my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley), warned in this House that taking prudential regulation away from the Bank of England was a massive mistake and that the Bank of England would not be able to spot the growth of debt bubbles in the economy. Tragically, that is precisely what happened a decade later, and in part the responsibility lies with the people who set up the regulatory system. Is it not extraordinary that Labour Members get up and say that the Conservatives said this or that, yet we are looking at the City Minister at the time? We are looking at the person who, before that, was the chief economic adviser who devised the system and who used to take pleasure in telling everyone that he turned up in government and gave Eddie George a letter saying that he was no longer in charge of banking regulation—that used to be the shadow Chancellor’s story, but he never talks about it now.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I think the country understands that we could not go on as we did, with a completely unregulated City, with bonuses out of control and with unjustifiable profits. The Government’s policy on taxation is fairer now than it ever was under the previous Government. May I ask the Chancellor, however, to address the matter of the housing market, to which he partly referred? In addition to the welcome measures in the Queen’s Speech, will he look into how we can increase the supply of social rented housing and deal with the fact that many non-domiciled people are buying property in this country, not to live in or to rent out, but to keep empty, forcing up prices for everyone, beyond what people can afford?

[Mr Osborne]

We are putting in place, right now, new guarantees—the first time that the Treasury has done this—for social housing associations to enable them to build more social homes; in the Budget, we also confirmed support for an additional 30,000 social homes, so we are taking action to help on that front. With our Help to Buy scheme we are also helping those who want to buy their own home in the private market. My right hon. Friend is absolutely right that we should do both, which is precisely what we are doing.

Oral Answers to Questions

Debate between George Osborne and Simon Hughes

Tuesday 11th September 2012 Commons Chamber

[Mr Osborne]

The number of specialist tax people at HMRC dealing with compliance is going up over this Parliament. We are also committing an extra £900 million to the organisation specifically for that activity. As I have just explained to the House, we are collecting £3 billion more in tax as a result of compliance over this Parliament and, as we will confirm later this week, we are collecting £500 million more from high net worth individuals because of the high net worth unit and its better than expected performance over the past two years.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

Following the Government’s very good initiatives so far on dealing with tax avoidance, will the Chancellor look at those private sector companies that are monopoly providers of public sector services, which have billion-pound turnovers, pay no corporation tax and often channel their money through offshore accounts in places such as the Caribbean and the Channel Islands?

[Mr Osborne]

I repeat the general observation that we are making every effort, through legislation and enforcement activity, to reduce tax avoidance and to stop tax evasion. If my right hon. Friend has specific examples that he wants to bring to my attention, he should please do so, and if necessary we will investigate.

Comprehensive Spending Review

Debate between George Osborne and Simon Hughes

Wednesday 20th October 2010 Commons Chamber

[Mr Osborne]

We have had to take some difficult decisions on housing benefit, but I think they are fair and we have sought to protect the most vulnerable. Of course, the universal credit we are introducing means that it will always pay to work—that is the basic principle and housing benefit is part of it. The Secretary of State for Communities and Local Government will set out the reforms in detail. The principles are set out in the document, which the hon. Gentleman can look at. As I said, existing social tenants will be protected through their rent agreements.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

The Government have rightly taken decisions to deal with the deficit left by the international recession, the banks and the outgoing Labour Government. Can the Chancellor confirm that the policy behind the statement is not just that those with the broadest shoulders should carry the biggest burden, but that as well as children, pensioners and households on the lowest incomes will be protected most, which will be supported by the assessment of the impact of the Budget and the statement he has made and presented today?

[Mr Osborne]

The poorest suffer when a country loses control of its public finances. That, indeed, was the assessment of the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), and it was one of the few things he said that I agreed with. Constituents on the lowest incomes benefit from a Government trying to deal with this economic problem. The structural deficit—someone asked me about it—is the bit that does not go away when the economy grows. Labour Members seem to be suggesting that in four years’ time, a Chancellor of the Exchequer will stand up to announce the next four-year programme of cuts, which would not do this country much good.

Specifically on pensioners, we have of course taken the big decision to link the basic state pension to earnings, and we have protected the pension credit. Yes, there have been some difficult decisions on welfare, but I have sought to protect the most vulnerable, and I believe that our overall welfare reforms will help to provide incentives to many in our country who do not currently have them to seek employment.