Oral Answers to Questions

Debate between Graham Stringer and Kemi Badenoch

Tuesday 26th January 2021 Commons Chamber

[The Exchequer Secretary to the Treasury (Kemi Badenoch)]

The Government recognise the significant impact of covid-19 on every region and nation of the UK. I can assure hon. Members across the House that levelling up remains a key priority for the Government. That is why the spending review also announced longer-term measures to support every region and nation, including a new £4 billion levelling-up fund to invest in local infrastructure priorities.

[Graham Stringer]

It is good to hear that the Government are still committed to levelling up, but all the academic studies that have been done have shown that covid has disproportionately affected the regional economies, with Greater Manchester the third most badly affected region in the country. Those regions need more support, but Transport for the North and Northern Powerhouse Rail are being cut; is that not going in exactly the opposite direction?

[Kemi Badenoch]

I would dispute the hon. Gentleman’s claims. We have taken unprecedented steps to support people and businesses around the country. We have supported 19,100 jobs in his constituency through the coronavirus job retention scheme. Greater Manchester Combined Authority has been allocated £54.2 million from the Getting Building fund for a wide-ranging package of projects. We have also provided over £170 million for the Greater Manchester-Preston city region and Liverpool city region to improve public transport. We have also supported the regeneration of 33 towns in the north-west through the towns fund. There is a lot that is happening on levelling up. If he would like me to write to him to explain everything that we have done in his region, I am happy to do so.

Financial Reward for Government Workers and Key Workers

Debate between Graham Stringer and Kemi Badenoch

Monday 14th December 2020 Westminster Hall

[Kemi Badenoch]

I am not giving way. I have already said I am not; please stop asking.

As the Chancellor pointed out in his statement on the spending review, in the six months to September, private sector wages fell by nearly 1% compared with last year. Over the same period, public sector wages rose by nearly 4%. Workers in the private sector have lost jobs, been furloughed, and seen their wages cut and their hours reduced, while those in the public sector have not. [Interruption.]

[Graham Stringer (in the Chair)]

Order. Carry on.

[Kemi Badenoch]

Thank you, Mr Stringer. For that reason, the Chancellor announced a temporary pause to pay awards for some public sector workers for the year 2021-22. Disappointing though I know this will be, this approach allows us to protect public sector jobs at this time of crisis and ensure fairness between the private and public sectors. Crucially, as I have said, we are targeting our resources at those who need them most. First, taking account of the NHS Pay Review Body’s advice, we are providing a pay rise to over 1 million nurses, doctors and others working in the NHS. Secondly, we are protecting those on lower incomes. The 2.1 million public sector workers who earn below the median wage of £24,000 will be guaranteed a pay rise of at least—and I emphasise “at least”—£250.

In the spending review, we also accepted in full the recommendations of the Low Pay Commission—to increase the national living wage by 2.2% to £8.91 an hour, to extend that rate to those aged 23 and over, and to increase the national minimum wage. According to the commission, those rates will give low-paid workers a real-terms pay rise and protect their standards of living without significant risks to their job prospects. A full-time worker on the national living wage will also see their annual earnings increase by £345 next year. That is a pay rise of over £4,000 compared with 2016, the year in which the policy was first introduced. Taken together, these minimum wage increases will likely benefit around 2 million people and help make real progress towards ending low pay in the UK.

The risk with broader-brush measures, including income tax or national insurance policies—this particular point was not made today, but it is an important one to reiterate—is that it is difficult to define and limit who should benefit. The result could merely be to reward the better paid, at a time when the Government have already been forecast to be borrowing at record peacetime levels.

As a Government, we are committed to keeping taxes low in order that working people, including key workers, are able to keep more of what they earn. In April 2019, the Government increased the personal tax allowance to £12,500, meaning that the personal allowance is up by more than 90% in less than a decade, ensuring that more of the lowest earners do not pay any income tax at all. In April this year, we also increased the national insurance contributions primary threshold and lower profits limit to £9,500—a move that will benefit 31 million people. Add all that together, and changes to income tax and national insurance contributions between 2010-11 and 2020-21 mean that a typical basic rate employee in England, Wales or Northern Ireland is more than £1,600 better off a year.