Spending Review

Debate between George Osborne and Stephen Williams

Wednesday 26th June 2013 Commons Chamber

[Mr Osborne]

I inherited from the last Chancellor a plan greatly to reduce capital spending—to cut it by 50%. In the 2010 review, we increased it from the plans we inherited. We increased it in the years since, and now we are maintaining it in the years going forward and setting it out for the rest of the decade. So the big reduction in capital spending that the right hon. Lady refers to is one I guess she must have supported, because she was a Minister of that Government.

[Stephen Williams (Bristol West) (LD)]

We all know that if we try to live a £40,000 lifestyle on a £30,000 salary, it soon leads to misery unless corrective action is taken. That was the legacy, at a national level, that we were left by the last Government. Despite that tough backdrop, have not this coalition Government secured funding for the national health service and for schools, including more money for children on free school meals, and today announced a massive boost to infrastructure spending and scientific research in order to smooth the way to sustainable economic growth?

[Mr Osborne]

My hon. Friend is right, and in the end this is about choices. I say to all the Labour Members getting ready to ask questions that, given that the Labour leader says that he will take these resource plans as a starting point, if they complain about any cut, they have to suggest what else they would cut. We have made choices as a Government. We have committed to protecting the NHS, committed to schools, committed to the pupil premium—we have done these things because we want a fairer society, and we also believe that investing in infrastructure and growth enhances our country’s economic performance. Those are our choices: if people have an alternative plan, we have not heard of it.

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 12th March 2013 Commons Chamber

[Mr Osborne]

We have cut the deficit by a quarter, a million new jobs are being created in the private sector and there is record employment in our economy, as well as record female employment. We are rebalancing the British economy after all the problems of the past. The hon. Gentleman talks about remorse and contrition, but until we hear some remorse and contrition from those on the Labour Front Bench about the economic mistakes they made, no one will pay the slightest attention to what they, and in particular the shadow Chancellor, have to say.

[Stephen Williams (Bristol West) (LD)]

Given that the UK Government are able to borrow at historically low rates, may I urge my right hon. Friend to take advantage of that position in order to prioritise capital investment, particularly in the housing market, to give a strong fillip to growth?

[Mr Osborne]

We have increased capital investment from the period of the Labour Government. Capital spending as a percentage of our national income is more than under the Labour Government, and we have increased by £10 billion our spending on capital from the plans they left us. I agree that we should be using the Government’s credibility to do more, which is why the infrastructure guarantees and the housing guarantees are coming on stream. Guarantees are being written and that will help to build the infrastructure that this country needs.

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 29th January 2013 Commons Chamber

[Stephen Williams (Bristol West) (LD)]

We already know that in April the personal tax allowance is going to be raised to £9,400—the largest rise in history. By the time we next meet for Treasury questions, the Chancellor will have put the finishing touches to his Budget. I now urge him to take the final step and deliver £10,000 of tax-free pay in time for April 2014.

[Mr Osborne]

We have a very clear commitment to reach that £10,000. We have not put a time scale on it, but even under the plans we have already put forward, that level will be reached with inflation increases before the end of this Parliament. This is a good example of two parties coming together to help working people across this country.

Autumn Statement

Debate between George Osborne and Stephen Williams

Wednesday 5th December 2012 Commons Chamber

[Mr Osborne]

This Government came in in May 2010, picking up the pieces of an incredibly difficult economic inheritance. We were recovering from the deepest recession since the second world war—which, as I pointed out in my statement, was a contraction of over 6% in the economy, which puts today’s numbers into some context—and we were dealing with the problems in the banking system, and we have been hit with the problems in the eurozone. Despite all that, we have made progress. We have got credibility in the bond markets, as my hon. Friend the Member for Lichfield (Michael Fabricant) said, the deficit has come down, and jobs are being created. It is a difficult situation, but we are on the right track. Going back, as the right hon. Gentleman would suggest, would be a complete disaster.

[Stephen Williams (Bristol West) (LD)]

Liberal Democrat priorities for the coalition have been delivering £10,000 of tax-free pay for every working family in the country, effective taxes on the wealthy, and closing down opportunities for tax evasion and tax avoidance. Does the Chancellor agree that today’s very welcome news of a further rise in the personal tax threshold—to £9,440, putting us within touching distance of £10,000—a restriction on tax relief on pension contributions for the very rich, and more resources to tackle tax evasion and tax avoidance effectively show that the coalition Government are committed to tax fairness even in difficult times?

[Mr Osborne]

I do agree with my hon. Friend. It is worth remembering that we put together these difficult autumn statements and the like in a coalition. We are able to demonstrate to the rest of the world that Britain has strong and decisive government. I am grateful to my Liberal Democrat colleagues who have helped me in this. I hope that Liberal Democrats and Conservatives can celebrate the increase in the personal allowance. There are many Conservatives who also wanted to achieve that, and it was in the Liberal Democrat manifesto too. The fact that we are able to do that shows that we are helping working people even in these difficult times.

Bank of England

Debate between George Osborne and Stephen Williams

Monday 26th November 2012 Commons Chamber

[Mr Osborne]

There should not be any conflicts of interest, because he is very clearly the Governor of the central Bank of Canada, will remain so until the end of May, and will fight Canada’s corner as we would expect him to do. However, he is also the chair of the Financial Stability Board, of which we are a member. He is already heavily involved in international financial regulation and in decisions that have a real impact on our financial services. Moreover, Canada is a G7 country, and is probably one of our closest allies: it is difficult to think of a closer ally than Canada. We already work incredibly closely with the Canadians. Incidentally, the fact that we co-ordinated the press conference in Ottawa and the statement in the House of Commons today and the news did not leak in advance shows that the two Governments work together and trust each other.

[Stephen Williams (Bristol West) (LD)]

On behalf of the Liberal Democrats in the coalition, I welcome Mr Carney to his post. Although he will not take up his position until next summer, no doubt his views will be keenly studied in expectation of his doing so. Does the Chancellor agree that one thing that all our constituents will want to hear from him is a clear indication that he will expect the very highest professional standards in the banking industry, so that bankers can be seen to be working in favour of taxpayers and consumers and not just with self-regard?

[Mr Osborne]

Mr Carney has been pretty tough in Canada, and Canada has a much better record than this country of avoiding bail-outs and keeping Canadian banks safe. As chair of the Financial Stability Board, he has been very keen to secure international agreement on new, tougher rules on pay, risk-taking and the like in order to ensure that individual financial centres do not try to out-compete each other for less and less regulation. I should also make clear that he supports the John Vickers reforms that will be introduced in the Financial Services (Banking Reform) Bill, including the ring-fencing of retail banking, which is the really major reform of banking that the coalition Government are bringing about.

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 11th September 2012 Commons Chamber

[Mr Osborne]

This is, of course, the key challenge in these difficult financial conditions, which have endured for five years or so. I know that there is a particular challenge in Northern Ireland, where the collapse of the banking system in southern Ireland has had a real impact. The funding for lending scheme, launched last month, is an £80 billion Treasury/Bank of England scheme to reduce bank funding costs so that banks are able to lend to businesses and households. A number of banks, such as Barclays and Lloyds, have already launched products that will bring those lower interest rates to the hon. Gentleman’s constituents.

[Stephen Williams (Bristol West) (LD)]

The fact that the deficit has come down by a quarter enables the British Government to borrow at roughly the equivalent rate of the United States Government—a rate lower than every EU member state apart from Germany. Does the Chief Secretary agree that this enables the Government to contemplate infrastructure investment and to use the strength of our balance sheet to facilitate and guarantee private sector infrastructure investment?

LIBOR (FSA Investigation)

Debate between George Osborne and Stephen Williams

Monday 2nd July 2012 Commons Chamber

[Mr Osborne]

The Serious Fraud Office is absolutely independent of Government, but it will be in no doubt that this House and the Government want to ensure that the law is properly enforced and that if there are legal avenues that it can explore, it should use them. We must accept that the Financial Services Authority, which is also a prosecuting authority in respect of financial crime, does not feel that it was given enough powers to undertake a criminal prosecution, as Lord Turner has said very clearly. That is why I want to give the regulators the powers they need. Instead of spending two or three years getting to that point—a long public inquiry would take a year or two, after which the Government would go away, consult, publish a White Paper and introduce legislation, and it would be 2015 or 2016 before we did anything—I propose that we use the Financial Services Bill that is already before the House and next year’s banking Bill to put things right.

[Stephen Williams (Bristol West) (LD)]

The Chancellor mentioned new legislation on the destination of fines on the banking industry and other financial services providers. I raised the issue with our hon. Friend the Financial Secretary in January and got the answer that in the past 10 years, £377,734,373 was levied in fines across the banking sector—a staggering amount. Does the Chancellor agree that a suitable destination for future fines might be the not-for-profit sector and the debt advice agencies that do such valuable work in all our constituencies?

[Mr Osborne]

My hon. Friend is right to point out that under the current arrangements, these fines, including the one that Barclays is paying, will be used to reduce the levy that the rest of the banking industry pays to the Financial Services Authority, so the rest of the banking industry will be the beneficiary of the fines. I do not think that that is right and that is why we are making the changes. We are making them retrospective from the beginning of April to ensure that the fine paid by Barclays will be available to be used for the benefit for the public, and I am sure that we will have a lively debate about how that money should be spent.

LIBOR (FSA Investigation)

Debate between George Osborne and Stephen Williams

Thursday 28th June 2012 Commons Chamber

[Mr Osborne]

What I have said is that the chief executive of Barclays has some very serious questions to answer about who knew what when, and who in the management knew that.

[Stephen Williams (Bristol West) (LD)]

All our constituents will be outraged but perhaps not surprised by yet another scandal rocking the foundations of part of a functioning liberal democracy. A fine on the bank is all very well; that just hits the shareholders. The directors of that company have, at the very least, failed in their fiduciary duties to those shareholders and may have done or sanctioned an awful lot worse. What sort of sanctions should be taken against directors who preside over such terrible practice?

[Mr Osborne]

The Government whom the hon. Gentleman and I both support have introduced clawback so that the bonuses that were given to executives, traders and others in the banks can be clawed back if necessary. That did not previously exist. We are looking specifically at the responsibilities of directors of failed banks. The consultation on that will be published next week as a result of the FSA inquiry into what went wrong at RBS, and as I say, we are responding to today’s report by looking at the regulation of LIBOR, at the criminal sanctions that are available for prosecution, and at what happens to the fine, so that it is the people of Bristol who benefit from the fine that is paid, rather than other banks in the City of London.

IMF

Debate between George Osborne and Stephen Williams

Monday 23rd April 2012 Commons Chamber

[Mr Osborne]

No, I do not accept that. For the IMF to walk away from the enormous problems that we all know exist in the eurozone would be a betrayal of why we and other countries created the IMF: to be there to help countries, including groups of countries, that get themselves into trouble. The IMF also provides advice and conditionality along with its loans. Having set up an institution to deal with global economic problems, it would be bizarre if, when some of the largest economic problems the world has ever known arise, we were to say that the IMF is not going to help.

[Stephen Williams (Bristol West) (LD)]

The central unifying purpose of this coalition Government is to bring stability and credibility to the management of the United Kingdom’s economy and public finances. That, in turn, enables us to play a constructive role on the world stage. Does my right hon. Friend agree that, just as it is in the Swedish, Swiss, Australian, South Korean and Japanese national interest to give extra contributions to the IMF, it is in the British interest not just to help the eurozone, but to lend assistance wherever the IMF team’s assistance is required?

[Mr Osborne]

I agree with my hon. Friend. The coalition Government have taken very difficult decisions in order to make sure that our public finances are back under control, and we are seen by the world to be dealing with our debt crisis. After spring meetings in Washington at which countries not in the EU, including Australia, Japan, South Korea, Norway and Switzerland, all agreed to contribute to increased IMF resources, it would be truly bizarre if a British Chancellor were to come to the House today and announce that Britain is not contributing. [Interruption.] What did the shadow Chancellor say? [Interruption.] What? [Interruption.] What? The truth is that a Chancellor who came here and said he was not taking part when all those other countries, some of them on the other side of the world, were taking part, would have absolutely no credibility abroad.

Banking Commission Report

Debate between George Osborne and Stephen Williams

Monday 19th December 2011 Commons Chamber

[Mr Osborne]

I would not say that what we are undertaking is of biblical proportions, but we are acting now to deal with those problems. We are changing the system of regulation, which will be in place once the draft financial services Bill is passed next year; we are changing the competition remit, which will be in place by 2013; and we are committed to introducing all that legislation, including the secondary legislation, in this Parliament. We are undertaking those reforms, but in the years in the desert, which were the years under the Labour Government, none of those things was proposed at all.

[Stephen Williams (Bristol West) (LD)]

I congratulate my right hon. Friends the Chancellor and the Business Secretary on working together to provide a secure future for our banking sector and to put behind us the failures of the past. Uppermost in the public’s mind from the past will have been the £45 billion bail-out of the Royal Bank of Scotland, and, given that it is now under state ownership, could not the Chancellor consider its break-up to establish a challenger bank on the high street for lending specifically to small and medium-sized businesses in order to provide the finance for future growth and economic recovery?

[Mr Osborne]

I have already set out the Government’s view on the Royal Bank of Scotland, and the issue of what to do when we come to dispose of the shares will be one that we can all address at the time.

The document and the process have been a very good advertisement for the coalition Government. The Business Secretary and I have worked incredibly closely on the document, which is a joint one from us both, and people will not have read in the newspapers lots of stories about the “splits between us on the issue”—

Autumn Statement

Debate between George Osborne and Stephen Williams

Tuesday 29th November 2011 Commons Chamber

[Mr Osborne]

We have worked with the business groups and businesses to make sure that the youth contract is going to be effective. I respect the fact that the right hon. Gentleman told us some days ago that the problem of youth unemployment was not invented by this Government. I respect his honesty in saying that. This is a problem that all western countries are facing at the moment. Frankly, in Britain youth unemployment has been going up for the past seven years. A subsidised job in the private sector is part of the answer. The work experience places are already working well, and we are adding to those. Of course, there is some conditionality in all this, so we are introducing, for example, weekly signing on after five months.

[Stephen Williams (Bristol West) (LD)]

I welcome what the Chancellor has said about protecting our economy from the external pressures that we face and rebalancing and strengthening it for the future. Will he confirm that despite these difficult circumstances, this Government are acting to raise the income tax threshold so that the poorest in society do not pay income tax, are fully increasing out-of-work benefits by 5.2%, and are increasing the state pension by £5.30? Does not that demonstrate that this coalition Government are determined to protect the poorest in society despite the very difficult circumstances in which we operate?

[Mr Osborne]

My hon. Friend is right. We are uprating out-of-work benefits and the basic state pension. The coalition Government are committed to the triple lock. People can see the benefit of that today. He is also right that we are committed to real increases in the personal income tax allowance. We have already had two of those. The coalition agreement is absolutely clear on that. I also support it as a tool of economic policy. We want to lift more people out of tax altogether.

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 1st November 2011 Commons Chamber

[Stephen Williams (Bristol West) (LD)]

Whatever one thinks of the tactics of those who are camping outside St Paul’s and in the middle of my constituency, one issue that they are raising that resonates with the British public is the feeling that people are not paying their fair share of tax. Will my right hon. Friend update us on what progress we are making across the House, particularly on lifetime loans—disguised remuneration?

[Mr Osborne]

My hon. Friend raises a good point. At a time like this, people want to make sure that everyone pays their fair share of tax. We have taken action on the situation in Switzerland and on long-stay non-doms, but he raises a third point about disguised remuneration. That is a way in which people, often in financial services, get away with a much lower rate of tax. Guess who in the House voted against that action? The Labour party.

Eurozone Crisis

Debate between George Osborne and Stephen Williams

Thursday 27th October 2011 Commons Chamber

[Mr Osborne]

Let me be clear to the hon. Lady. The IMF potentially has a role—but that is yet to be decided—in helping the eurozone to organise its special purpose vehicle, provide technical support and do all the things that it is very good at doing, which is stepping in and providing expertise. That is a perfectly legitimate role for the IMF. It has done it in other situations where trust funds and the like have been created around the world. However, we are saying that there should not be IMF resources going into this special purpose vehicle in terms of a lending programme. The IMF lends money to countries with conditions attached, and that is what it should do in the future. It is what its articles require it to do. We do not support, and I do not think that the IMF does either, changing those articles and allowing the IMF to lend money to the special purpose vehicle. We are against that and against Britain contributing to the special purpose vehicle, even if countries such as China or Chinese sovereign wealth funds do contribute.

[Stephen Williams (Bristol West) (LD)]

I welcome the Chancellor’s statement that resolving the immediate crisis in the eurozone and securing the long-term future of the euro currency are in Britain’s national interest. However, does he agree that it is also in Britain’s national interest to maintain full, positive and active engagement within the EU 27 member states in order to deepen the single market and increase intra-EU trade, which will benefit all member states?

[Mr Osborne]

I absolutely agree that there is a very important role for the EU27 to strengthen and deepen the single market and to promote free trade—the EU has just concluded a free trade agreement with South Korea that benefits the British economy directly. Also, the EU will have an important role in things such as financial services regulation, and it is important that that is discussed at the level of the 27, because we are such an important player in the financial services industry worldwide. So I completely agree with the hon. Gentleman. Britain has been absolutely clear in recent months that issues affecting the 27 should be discussed by the 27, not at the level of the 17 euro members. It has been partly through our insistence, with others, that there have been two European Councils and an ECOFIN this week to ensure that proper procedures are followed.

Independent Banking Commission Report

Debate between George Osborne and Stephen Williams

Monday 12th September 2011 Commons Chamber

[Stephen Williams (Bristol West) (LD)]

Reform of the banks was one of the key foundation stones of the coalition Government, so I very much welcome today’s report. The public will certainly expect this Government to legislate as soon as possible to enact the various parts of the report, but they will need a reassurance today that there will be no excuse for the banks not returning to lending to small and medium-sized businesses, which are so necessary for our economies to return to sustainable growth.

[Mr Osborne]

The agreement among my right hon. Friend the Chief Secretary to the Treasury, the Business Secretary, me, the Prime Minister and other members of the coalition Government has been solid on this report. Anyone who has been looking for disagreement in the coalition has not really been able to find it today because both parties agreed that this was a good idea and we both support the report’s conclusions. On lending, briefly, we have the Merlin agreements and we are trying to protect small and medium-sized businesses as these huge banks deleverage, and the process has helped to do that. Indeed, the targets are for a big increase in small business lending, and I am confident that they will be met.

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 6th September 2011 Commons Chamber

[Mr Osborne]

I think that question involved a contradiction in that the hon. Lady pointed out that there was either slow or no growth in the United States and Europe and then somehow blamed my economic policies for that situation. That points to a broader observation: until the Labour party has some cognisance of what is happening in the world and how our policies are protecting the country with the largest budget deficit in the G20 from being caught in the firestorm that some other European countries have found themselves in, frankly it is not going to be at the races.

[Stephen Williams (Bristol West) (LD)]

Coming back to the crisis in some of the economies of the European Union, out of a crisis can sometimes come an opportunity. Will the Chancellor, next time he is meeting his fellow Finance Ministers, impress upon them the need further to deepen and reform the single market in order to promote trade and growth within the European Union?

[Mr Osborne]

I certainly will. I agree 100% with the point the hon. Gentleman is making, and on Friday we will be meeting as the G7, and then we have the ECOFIN meeting next week. He is absolutely right: as well as needing to tackle the fiscal policies and budget deficits, we need to make Europe more competitive. We need to make the whole of the European continent more competitive, and that involves supply-side reforms, deepening the single market and promoting free trade around the world, and I will be making that point today and in future.

Sovereign Grant Bill

Debate between George Osborne and Stephen Williams

Thursday 14th July 2011 Commons Chamber

[Mr Osborne]

As I have said, we could have chosen another mechanism, but I thought that it was not unreasonable to take a large, conservatively run property company to determine expenditure by the royal household, given that a lot of its expenditure is on property maintenance and the like. I completely accept that not every Member of the House will agree with that, but the effect, which is surely the important thing, is that the amount of money going from the public purse to the royal family will be broadly the same. They were receiving about £34 million on average from the civil list, the palaces grant and the travel grant, plus the money put into the reserves by the taxpayer, and they will go on receiving £34 million. We can have a debate about the mechanism, but the effect will be pretty much to continue through this Parliament with the sums that they were getting during the last one. We are of course talking in cash terms, which will mean about a 9% real cut, coming on top of a more than 15% real cut over the past 20 years.

I know that we are still debating clause 1, but I hope that the Committee will acknowledge that, in accepting the shadow Chancellor’s amendments to clause 7, we have tried to show that we are open to argument and open to trying to work on a cross-party basis. We want to ensure that the Bill proceeds with the consent of those in all parts of the House of Commons.

I want briefly to deal with the shadow Chancellor’s third and fourth questions. He asked about the issue of accountability, and he has tabled amendments proposing annual value-for-money studies. I would much rather leave the discretion with the Comptroller and Auditor General and the Public Accounts Committee. If they want to undertake such studies, they may do so, but I propose to leave that discretion with them. I remind the Committee that we are undertaking a pretty historic transfer of accountability to Parliament here. Parliament has fought for many decades to get scrutiny of the official expenditure of the royal family, and that is now happening through the Bill. Of course, the Public Accounts Committee will be able to ask the Keeper of the Privy Purse, as the accounting officer, to come before it to give evidence.

Let me deal with the fourth question, which was about royal protection. I am afraid that I will not be able to answer the shadow Chancellor’s request here. I have looked into it and made quite a number of inquiries to probe whether it would be possible for me to give the Committee more information about how much is spent on royal security. I have to say that I have run into a metaphorical brick wall in Whitehall, probably for very good reason, which is that it would not be appropriate—this was a view taken by Home Secretaries over many years—to reveal how much was spent on royal security because that might present a security risk. Unfortunately, I am not able to accede to the shadow Chancellor’s request. Let me reassure the Committee, however, that in the process, I have taken a look at the protection arrangements and costs, and I certainly satisfied myself that they are reasonable, proportionate, in line with the current threat assessment and pretty cost-effective. I am fairly confident that the Queen and her family are adequately protected.

I hope that I have answered the various questions asked. My hon. Friend the Member for Gainsborough asked a question about Frogmore, particularly the mausoleum for Queen Victoria and Prince Albert. The royal household has confirmed that it expects to carry out conservation work on the mausoleum over the next five to eight years, so in a few years’ time, my hon. Friend will be able to visit a much restored and improved mausoleum at Frogmore.

[Stephen Williams (Bristol West) (LD)]

Given that the mausoleum is currently on the English Heritage buildings at risk register, will the Chancellor confirm whether what he announced means that it will shortly be removed from that register?

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 21st June 2011 Commons Chamber

[Mr Osborne]

First, the announcement was made with the consent of the Independent Commission on Banking. Secondly, it is established that the Chancellor is able to give the Mansion House speech each year. I seem to remember that the last-but-one Chancellor announced the renewal of the nuclear deterrent at the Mansion House without coming to the House of Commons to do so. If the hon. Gentleman will allow me to say something about banking reform at the Mansion House in the years to come, I will therefore be grateful.

[Stephen Williams (Bristol West) (LD)]

The spending review said that employee contributions to public sector pensions would need to increase in order to make the funds sustainable for the future. Does my right hon. Friend agree that that rate should not be applied uniformly in order to protect the lowest-paid public sector workers and encourage them to stay within public sector pension schemes?

Banking

Debate between George Osborne and Stephen Williams

Wednesday 9th February 2011 Commons Chamber

[Mr Osborne]

The disclosure will be of those senior executives not on the board, but in the Walker proposals there was not even a proposal to identify individual salaries. So it is the senior executives who will be identified.

[Stephen Williams (Bristol West) (LD)]

I welcome what the Chancellor says about the levy, the extra lending, the transparency on bonuses and, in particular, the restraint shown by the two banks that are effectively under state control. On the banks that are not under our control, however, does he agree that, at a time when families throughout the country face difficulties, some banks seem to have lost their moral compass and really ought not to award themselves extravagant bonuses on a level that families could only dream of?

[Mr Osborne]

I agree with my hon. Friend that the banks should show restraint and an appreciation of the society in which they operate, the challenges that we face with the economy and, indeed, the squeeze on families’ incomes, in part due to the high prices of things such as oil and food. I make this observation: the bonuses this year will be lower than those in the last year of the Labour Government; and, as a result of this agreement, they will also be lower than they would have been, a point that will be confirmed by the independent non-executive director of the individual bank.

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 8th February 2011 Commons Chamber

[Mr Osborne]

This country has a problem with youth unemployment that has been apparent for a decade. Even in the boom years during the middle part of the last decade, youth unemployment was increasing and a whole generation was being left behind. I hope that we can achieve some kind of cross-party consensus on trying to reform our welfare system so that people do not get trapped in poverty and work always pays. We are reforming the new deal and replacing it with the Work programme so that we are more effective at giving young people the training they need and the opportunities that have been lacking for the last decade.

[Stephen Williams (Bristol West) (LD)]

Following on from the question from the right hon. Member for Haltemprice and Howden (Mr Davis), many of us will have seen—and some of us, myself included, will approve of—the demonstrations organised by UK Uncut outside certain high street well-known names. What are the Government doing to tackle corporate tax avoidance schemes by some large corporates; and what is the Chancellor going to do to make sure that the actions of some well-known and popular figures, such as premiership football stars and grand prix drivers, are also tackled?

Oral Answers to Questions

Debate between George Osborne and Stephen Williams

Tuesday 16th November 2010 Commons Chamber

[Mr Osborne]

I think that the hon. Gentleman is thinking of Tony Blair rather than of this Government. We voted against the increase in the European budget, but we were outvoted because it was a qualified majority vote. We are dealing with the fact that the previous Government gave up half the budget rebate, which is why British contributions are going up, and we are very clear that, although we want fiscal rectitude across Europe, we do not propose to hand over substantive new powers to the European Union.

[Stephen Williams (Bristol West) (LD)]

There is much support around the country and in the House for the broad principles of the Robin Hood tax campaign. The coalition Government have made a good start with the permanent bank levy. Will the Chancellor confirm that he expects the Independent Commission on Banking to consider the taxation of bankers’ bonuses and bank profits so that the banks pay their fair share in this country?

[Mr Osborne]

The commission that we have set up is looking principally at the structure of the banking sector, which is another very important issue. We have said that we want the banks to make a contribution, which is why we introduced the permanent banking levy; we did not agree with the previous Government that that should not happen. We followed the best practice set out by the International Monetary Fund, which outlined two taxes that could be pursued—one was a bank levy and the other was a financial activities tax, which we also said that we would consider in the Budget. On the broader point of the Robin Hood tax, or the financial transactions tax, which is sometimes discussed at ECOFIN, I think that everyone accepts that it would have to be introduced internationally or else it would be almost impossible to collect any revenue.

Comprehensive Spending Review

Debate between George Osborne and Stephen Williams

Wednesday 20th October 2010 Commons Chamber

[Mr Osborne]

I am very aware of that project. If the hon. Gentleman will bear with me, the Secretary of State for Transport will make an announcement on it shortly.

[Stephen Williams (Bristol West) (LD)]

The Chancellor said that fairness was one of the objectives of his statement. I grew up in poverty—in fact, I was on free school meals—and one of my ideological objectives in politics is to deliver social mobility, so will the Chancellor confirm that the £7.5 billion of extra investment he has announced today is the biggest part of the CSR and will help unlock potential in some of the poorest families in the country?

[Mr Osborne]

My hon. Friend brings a life experience to bear on this debate. The two biggest settlements have been for health and education. In education, we have particularly prioritised disadvantaged children, primarily those on free school meals. At the heart of the coalition agreement was the commitment to a £2.5 billion pupil premium. We have found that money on top of the flat cash settlement per pupil, even when pupil numbers are rising. It leads to a real increase in resource in schools—over four years, rather than the two years that the Labour party was offering at the general election. We are also offering for the first time 15 hours of free education for all disadvantaged two-year-olds, which will of course include those on free school meals. That offers a real chance to ensure that other people on free school meals have as successful a career as my hon. Friend.