The Growth Plan

Greg Hands Excerpts

Friday 23rd September 2022 Commons Chamber

[Kwasi Kwarteng]

No, I think it is perfectly sane to want to grow the British economy by creating incentives. The Barber boom—the right hon. Lady is a student of history—was driven primarily by very loose monetary policy. It was essentially a demand pump-priming experiment. This is the opposite of that. What we are trying to do is create incentives and look at supply-side reform. It is a completely different model.

[Greg Hands (Chelsea and Fulham) (Con)]

I congratulate the Chancellor on his new role and on the measures announced today—particularly the cut in the basic rate, the abolition of the 45p rate, the stamp duty cut, and the return of tax-free shopping for visitors, which will be welcomed very much in central London. Will he look further, at the seven-year bonus deferral rules in financial services, which are among the most punitive in the world today?

[Kwasi Kwarteng]

Absolutely. I will be updating the House on measures to try to make sure that the financial services become, as they have been in the past, a world-leading industry.

Cost of Living Increases

Greg Hands Excerpts

Wednesday 16th March 2022 Commons Chamber

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

I thank right hon. and hon. Members for taking part in this important debate. This Government recognise and understand the pressures people are facing with the cost of living. This is of course a deeply worrying time for many of our constituents, and we will continue to listen to people’s concerns, as we have done throughout the pandemic.

Wholesale energy prices have been rising due to global pressures. Let me add here the Government’s condemnation of Vladimir Putin’s invasion of Ukraine, with its inevitable impact on global energy prices, and the UK is not alone in feeling the pinch. However, I reiterate that energy security remains an absolute priority for the Government. We are confident that our security will be maintained as we transition to net zero. Indeed, many of the measures in going to net zero will help our energy security by reducing dependency on imported fossil fuels.

We continue to work closely with key industry organisations including Ofgem and National Grid Gas to monitor both supply and demand. As well as ensuring security of supply, we are also working to ensure that consumers get a fair deal.

Let me turn to points raised in the debate, first by Back-Bench Members. My hon. Friend the Member for Tiverton and Honiton (Neil Parish), in a sound speech, called for more nuclear power and reminded us of Labour’s failures in the past. In 1997, the Labour party manifesto said

“We see no economic case for…nuclear power stations.”

Secondly, he rightly spoke against hydrocarbon imports from Russia. Thirdly, he spoke about heating oil—as we heard, heating oil prices are a concern on both sides of the House at the moment—and raised a few points about whether the prices charged can be justified. A recent Competition and Markets Authority investigation did not show any sign of profiteering, but, if he has evidence of unfair or sharp practices, he should please let me or others in the Department or the Treasury know.

The right hon. Member for Dundee East (Stewart Hosie) had done his homework. He spoke of the impacts of bills and other changes. However, he also needs to consider other aspects of Government action, such as the 12-year freeze in retail fuel prices and the increase in the national living wage from £8.91 to £9.50, which will put an extra £1,000 a year into the pockets of someone on that.

[Peter Grant]

Will the Minister give way?

[Greg Hands]

I will respond first to the debate. If I have time, I will take interventions.

My hon. Friend the Member for Blackpool South (Scott Benton) said that there were more universal credit recipients in his constituency than in any other in the UK—a startling fact for his constituency—and said how much his constituents are benefiting from the changes in the UC taper rate as well as the increases in the national living wage, which he supported. On green levies, we announced in the heat and building strategy an affordability call for evidence on where to put those levies. We will take decisions on that later this year. His support for nuclear was well made, particularly coming from his part of the world near Springfields.

The hon. Members for Airdrie and Shotts (Ms Qaisar) and for West Dunbartonshire (Martin Docherty-Hughes) gave a selective account of Scottish Government actions. But Scotland is benefiting hugely from the broad shoulders of the United Kingdom and the UK taxpayer in particular. What would really hammer his constituents is separation and the immediate huge budget deficit, which would be easily the largest in the western world. Either taxes would have to rise or Scottish public services would be cut.

My hon. Friend the Member for Stourbridge (Suzanne Webb) praised the £9.1 billion package to help those with increased energy bills and spoke about how to reduce our dependence as well as the importance of the transition to renewables. That is the answer. She also praised the Government for the 500% increase in the proportion of our electricity that comes from renewables since 2010.

The hon. Member for Glasgow South West (Chris Stephens) made some important points about in-work poverty, but the best route out of poverty is work itself. I heard no mention from him of yesterday’s amazing figures, with the number of unemployed falling below pre-pandemic levels for the first time and another strong increase in employees on the payroll in February.

[Chris Stephens]

Will the Minister give way?

[Greg Hands]

I will answer the hon. Member’s point about minimum wage job adverts. The Department for Work and Pensions does have checks and, if it discovers any positions below the minimum wage, it will take them down.

[Chris Stephens]

I thank the Minister for that helpful answer. Is it in order for us to report the Department for Work and Pensions to the national minimum wage compliance unit?

[Greg Hands]

We take enforcement of the national minimum wage incredibly seriously across Government—all Departments do. However, I point out that the increase in the national living wage from £8.91 to £9.50, which is coming in just a few weeks, will help out someone working full-time by £1,000 a year. That will make a huge difference to their pay packets.

The hon. Member for Edinburgh North and Leith (Deidre Brock) rightly condemned the Russian invasion of Ukraine—I praise her for that—and made some important points on food security that I am sure will be drawn to the attention of the Department for Environment, Food and Rural Affairs. The hon. Member for Midlothian (Owen Thompson) called for a package of measures to tackle the crisis. Well, I had to go back to the SNP motion, because we will remember a package of measures being announced by our Chancellor of the Exchequer on 3 February at this Dispatch Box precisely to take action on energy bills. The hon. Gentleman is calling for a package of measures. Unfortunately, his motion calls

“to scrap the energy bill rebate scheme”.

His own motion calls for that very package of measures to be scrapped.

Moving on to the Front-Bench contributions, I have been in this House 17 years but I do not think I have ever heard a Member of Parliament for Aberdeen—for Aberdeen itself—without a single word of support for the North sea oil and gas sector. The hon. Member for Aberdeen South (Stephen Flynn) was ducking the issue, rightly raised by the hon. Member for Edinburgh South (Ian Murray), about what exactly is meant by the windfall tax. There are 100,000 Scottish jobs at stake, many in his constituency—in fact, his constituency may have more of those jobs than any other constituency in Britain—yet there was not a single word of support for those hard-working people in the North sea oil and gas sector.

The First Minister of Scotland said—these are her own words—

“production from the North Sea in the short term is not a practicably deliverable solution.”

That is totally defeatist. We will do further licensing rounds and we will do one this year. We are now seeing the benefits of previous licensing rounds. Only today IOG announced the Elgood field coming online, the second new field this week. This is great news for the UK as a whole and for the overall North sea sector so crucial for Scotland’s success, as well as the success of the whole of the United Kingdom.

They are not the Scottish national party. They are against the interests of Scotland. They are the Scottish dependency party, dependent on imported hydrocarbons from abroad, including from Russia. I read carefully the hon. Gentleman’s motion—one should always read the motion, as we all well know—which calls to

“scrap the energy bill rebate scheme”.

That would mean no reduction of £200 in energy bills in October, no council tax reduction in two weeks’ time, and, presumably, a repayment of the £290 million Barnett consequentials. What public services would the hon. Member for Aberdeen South cut in Scotland to fund that £290 million repayment?

Finally, I turn to Labour’s windfall tax. I must say that I had a slightly different interpretation of the position of SNP Front-Benchers. I think the hon. Member for Aberdeen South was supporting the windfall tax. I agree that it was not really clear, but I took it as supporting given that the motion talks about the windfall tax and this is a debate on energy. But I have to say to Labour that 82% of oil and gas produced in the UK is produced in Scotland, which means that Labour’s windfall tax would very largely hit the Scottish economy. A windfall tax could accelerate rising prices.

Labour has given up on Aberdeen and north-east Scotland. I remember when Labour had both seats for Aberdeen. Now, they are nowhere near—nowhere near. The Scottish Conservatives have overtaken them and anyone opposing the SNP in Aberdeen should vote for Ryan Houghton and his team in May. With moves like the windfall tax, is it any wonder that Labour support in Aberdeen is in decline and going nowhere? Maybe the hon. Member for Edinburgh South should go back to the shadow Cabinet and stick up for Scotland, and not throw in Labour’s lot with the Scottish National party—or the Scottish dependency party—when it comes to oil and gas.

As the Exchequer Secretary and I have set out, the Government have listened to, recognised and acted on the concerns of families who are struggling with the cost of living. We do not take their concerns lightly. The energy bills support scheme will provide £5.6 billion of support to households later this year, ahead of the winter period, while the additional support for English homes in council tax bands A to D will further help households with the cost of living—totalling, with Barnett consequentials, a package worth £9.1 billion. The Government will continue to engage with industry, consumer groups and other stakeholders as we progress these measures.

It is this Government who have the clear plan. The Opposition parties have squabbled among themselves today, arguing over the definitions of windfall tax, but it is we who are delivering energy security and energy transition, and securing this nation’s prosperity.

Question put and agreed to.

Resolved,

That this House warns that households will soon be suffering the worst income squeeze since the 1970s; notes The Institute for Fiscal Studies analysis that households are on course to be £800 worse off; calls on the Government to scrap VAT on energy bills, implement a windfall tax on companies which are benefitting from significantly increased profits as a result of impacts associated with the covid-19 pandemic or the current international situation, and to scrap the energy bill rebate scheme and introduce immediate emergency cash payments for households.

House of Commons Members’ Fund

Ordered,

That Stuart Andrew be removed as a Trustee of the House of Commons Members’ Fund and Christopher Pincher be appointed as a Trustee in pursuance of section 2 of the House of Commons Members’ Fund Act 2016.—(Gareth Johnson.)

Household Energy Bills: VAT

Greg Hands Excerpts

Tuesday 11th January 2022 Commons Chamber

[The Minister for Energy, Clean Growth and Climate Change (Greg Hands)]

I thank right hon. and hon. Members for their valuable contributions to this debate.

I can fairly describe the main thrust of our debate as: wholesale gas price volatility has caused many problems—what are the Government doing about it? By contrast with what the right hon. Member for Doncaster North (Edward Miliband) said, we have everything to say about this issue. There are two main parts to the Government’s answer, and the first is about making significant improvements to our energy supply, with more energy.

Our long-term strategy is about finding effective replacements for fossil fuels that are reliable and do not expose us to the volatility of international commodity markets. That means investment in renewables, as my right hon. Friend the Member for Kingswood (Chris Skidmore) pointed out, and in nuclear energy, which will be key to achieving that aim. In both areas we have made massive progress since 2010 and continue to do so. As of 2020, renewables contributed 43% of our electricity mix. I checked who the Secretary of State for Energy and Climate Change was in 2010: of course, it was the right hon. Member for Doncaster North. Renewables are now six times the level they were when he was Secretary of State, when they contributed just 7% in that year.

On 13 December, we launched our biggest-ever contract for difference renewables auction—the largest yet—with a goal of around 12 GW, which is more capacity than the previous three rounds combined. That was a major step towards delivering the Government’s increased ambition. We already have the world’s largest installed offshore wind capacity, which was created under this Government, but we are not resting on our laurels: our ambition is to quadruple that over the next decade. It is a proven technology that is moving us away from the volatility of gas and other fossil fuels.

There is a key role for nuclear. I am delighted that the Labour party supported in principle the Nuclear Energy (Financing) Bill last night. That is a far cry from Labour’s 1997 manifesto, in the writing of which I think the right hon. Member for Doncaster North was involved. In that year, the Labour manifesto said:

“We see no economic case for the building of any new nuclear power stations”.

The lost time on nuclear is entirely down to the Labour party.

I am delighted that we have the new regulated asset base model for the financing of new nuclear power stations.

[Several hon. Members rose—]

[Greg Hands]

I am not giving way.

There is £1.7 billion of funding to support our objective of approving at least one new large nuclear power project by 2024, as well as the new £120 future nuclear enabling fund. Nuclear will play a vital role in the reduction of volatility in the energy system and work hand in hand with renewables to produce reliable power for generations of consumers to come.

Let me turn to the points raised by my hon. Friend the Member for South Thanet (Craig Mackinlay). It is a misnomer to say that the Government are not appreciative of the efforts currently being made on issues such as the North sea. It is not right to say that we have not welcomed more investment in the North sea. In the final quarter of 2020 alone, five new gasfields came onstream: Arran, Columbus, Finlaggan, Tolmount and Blythe and Elgood. The majority of our gas consumption still comes from domestic production; of the rest, the biggest part comes from Norway, which provides more than half our imports.

There is this idea that storage would have helped. Storage does not help when there is a price issue. It might help when the issue is supply, but here it is price. Being able to store high-cost gas does not help with a price crisis.

The protection of households is vital to the Government. We are committed to supporting vulnerable households with their energy bills. My right hon. Friend the Chief Secretary to the Treasury pointed out many of the important schemes that we have in place, not least the energy price cap, the warm home discount scheme, the energy company obligation, the solar process, which has led to the ability to transfer people’s energy provision from one company to another seamlessly and without cost to the consumer, the winter fuel payment, and the £500 million household support fund. They are all in place to help and protect consumers.

We have had a very good debate. If I may say so, we had some fantastic contributions from my own side of the House. My hon. Friends the Members for Birmingham, Northfield (Gary Sambrook) and for Stoke-on-Trent South (Jack Brereton) spoke passionately about Government help for residents in their constituencies. My hon. Friend the Member for Brecon and Radnorshire (Fay Jones) spoke about her rural constituency and again highlighted support from the Government in her area. My hon. Friends the Members for Ashfield (Lee Anderson) and for Mansfield (Ben Bradley) forensically and skilfully took apart the Labour motion. We had thoughtful speeches on net zero from my right hon. Friend the Member for Kingswood and my hon. Friends the Members for Devizes (Danny Kruger) and for North Norfolk (Duncan Baker), who also looked in detail at the workings of the energy market.

My hon. Friend the Member for South Thanet called for changes in energy policy. There are changes. The main one is that we are producing more energy. We are producing more renewables and more nuclear. We are making sure that we get as much gas as we can from UK domestic sources. That is the basis of our energy policy.

In contrast to the Opposition, we have a plan. I have outlined what it is. Labour Members do not have a plan. A four-page motion is not a plan. This is a student union tactic, which they rehearsed well during the Brexit years. I thought that the departure of the right hon. Member for Islington North (Jeremy Corbyn) as leader of the Labour party might herald a return to serious Opposition politics. To be fair to the hon. Member for Leeds West (Rachel Reeves) and the right hon. Member for Doncaster North, they were part of what was a more serious Labour Opposition from 2010 to 2015. I give them that credit, having done Opposition politics myself from 2009 to 2010. It all started well for them. On Sunday, there was that classic briefing to The Observer about their plans, and a full media round on Monday. It was all looking good until they arrived here today and produced this four-page, 20-clause, student union motion. The first line mentions “households” and “bills”. In the following four pages, there is no repeat of those words. Instead, we have multiple mentions of “motion”, “proceedings”, “amendments” and even the term “dilatory Motion.” They have completely lost the plot and disappeared into their own world of procedural gobbledegook. The Opposition have no new plan and no new thinking. Their motion does not deserve serious consideration today and should be comprehensively rejected.

Question put.

Oral Answers to Questions

Greg Hands Excerpts

Tuesday 11th February 2020 Commons Chamber

[Sajid Javid]

The hon. Lady talks about the importance of manufacturing. Since the change in Government in 2010, we have seen 58% growth in auto manufacturing and 22% growth in aerospace manufacturing. Again, because of the recent general election result, a survey of manufacturers carried out by the CBI a few weeks ago saw the biggest increase in confidence in the history of that survey—in more than 60 years.

[Greg Hands (Chelsea and Fulham) (Con)]

The financial services sector generates 7% of UK GDP, provides 1.1 million jobs and is responsible for £29 billion-worth of tax revenue. Does the Chancellor agree that we need to ensure that the financial services sector is looked after in any trade agreement with the European Union if we are to pay for the infrastructure projects that we expect an announcement on today?

[Sajid Javid]

My right hon. Friend, as always, is absolutely right. The financial services sector employs millions of people—not just in London, but in Edinburgh, Birmingham and so many other parts of our great country—and generates more revenue for public services than any other industry. He is right that financial services will be a key part of forging that new relationship with our European friends.

HMRC Impact Analysis: Customs

Greg Hands Excerpts

Tuesday 8th October 2019 Commons Chamber

[Jesse Norman]

As the House will know, a lot of mitigations have already been passed through statutory instruments, including instruments in relation to stream- lining customs import processes and procedures, special procedures for other areas, and deferment of import duty and VAT. Only yesterday, we passed a statutory instrument on safety and security declarations on our imports.

Mitigation very much depends on the shape of any deal. As the House will appreciate, the figures we are discussing today pertain to a worst-case scenario of a no-deal impact. There are many other areas in which the EU has already indicated that it is happy to give mitigations—for example, in relation to some of our haulage processes and people travelling by air into the European Union.

[Greg Hands (Chelsea and Fulham) (Con)]

In the debate around the UK-Ireland border, my hon. Friend will be aware of the confusion among commentators between customs checks and customs declarations. Of course, most customs transactions are not done at borders by a uniformed officer sitting in a customs office, but are essentially financial transactions akin to tax or VAT that are done at the point of production, shipment, transit or arrival. Does my hon. Friend agree that there is a role for HMRC in educating commentators about how modern customs practices work?

[Jesse Norman]

I pay tribute to my right hon. Friend for the work that he and the Secretary of State for Digital, Culture, Media and Sport have done on alternative arrangements. He raises a very important issue. As he says, Customs operates a risk-based assessment system of checks that is quite different from declarations. As for educating commentators, I absolutely agree with him and wish those commentators also included some Members of this House.

Oral Answers to Questions

Greg Hands Excerpts

Tuesday 21st May 2019 Commons Chamber

[Elizabeth Truss]

The hon. Gentleman will be well aware that the spending review is coming up. If there is a specific issue with London local authorities or other local authorities, I would expect that issue to be raised by the Local Government Secretary, and I encourage the hon. Gentleman to meet him to discuss the issue.

[Greg Hands (Chelsea and Fulham) (Con)]

One specific issue in relation to the London Borough of Hammersmith and Fulham is the reopening of Hammersmith bridge. It is about time that the council got on with repairing and reopening the bridge. The council has a very good financial settlement. Will the Chief Secretary join me in knocking heads together between the council and Sadiq Khan’s Transport for London to get the bridge open?

[Elizabeth Truss]

I welcome my right hon. Friend’s efforts to build bridges across London and to improve London’s infrastructure. The London mayoral elections are coming up, and I suggest that people vote for somebody who is going to make change happen much quicker.

Discrimination in Football

Greg Hands Excerpts

Thursday 11th April 2019 Commons Chamber

[Mims Davies]

I thank the hon. Gentleman for raising important points about the ability to report with confidence through the Kick It Out app and about the education piece, which is vital. We want our football clubs across the land to be welcoming, diverse and representative of the communities they serve. They should absolutely be tolerant places where people want to be, not places where they feel they have to speak out about behaviours that are not acceptable, whether in the pub or the wider community. We must work together as fellow sports fans and do our level best to ensure that football is welcoming at every level.

[Greg Hands (Chelsea and Fulham) (Con)]

May I commend the approach taken by the two premiership clubs in my constituency? Fulham has had a long tradition as a pioneer in combating racism in football. Obviously, Chelsea has had more trouble over the years, but the recent instance in December with Raheem Sterling, to which my hon. Friend the referred, led to tough action—led personally by the chairman of the club, Bruce Buck—against four supporters. Does she agree that clubs such as Chelsea need to keep up the pressure on these abhorrent fans and ensure that racism in football is stamped out entirely in the coming days?

[Mims Davies]

I thank my right hon. Friend for raising the good work done in the community. I have met with Fulham, been to its training ground and seen the work it does in the community, and have also met with Chelsea about particular issues. The pride in a football club and the badge can be used so positively, and we must harness that.

Oral Answers to Questions

Greg Hands Excerpts

Tuesday 9th April 2019 Commons Chamber

[Elizabeth Truss]

Let us be clear about the statistics. Over the past year, 90% of the increase in employment has come from full-time workers, and 97% has come from high-skilled jobs. We are building an economy fit for the future.

[Greg Hands (Chelsea and Fulham) (Con)]

9. Whether he plans to reform stamp duty land tax.

[The Financial Secretary to the Treasury (Mel Stride)]

The Government have made substantial progress in reforming the stamp duty regime. At autumn statement 2014, SDLT was cut for 98% of those people due to pay it.

[Greg Hands]

Since we last spoke about this, the spring statement showed a further decline in receipts of an additional £2.7 billion over the scorecard. That was not due to changes in Wales and the welcome first-time buyer reforms, which were already in the October Budget numbers. What are the Government going to do to reform the system, protect revenue, grow social mobility, allow the elderly to downsize and get Britain moving again?

[Mel Stride]

The year-on-year changes to the level of receipts from SDLT have reduced recently, but that is due largely to the fact that we have put a great deal of relief into first-time buyers’ relief, which is already helping 240,000 first-time buyers get on to the housing ladder.

--- Later in debate ---

[Mel Stride]

It is largely companies that fall due to the loan charge, rather than individuals—of the 6,000 cases currently being settled, 85% by value relate to companies. HMRC has always been clear that appropriate payment arrangements will be in place to ensure that those outstanding amounts of tax, which after all have been avoided, aggressively and in a contrived way, can be settled sensibly.

[Greg Hands (Chelsea and Fulham) (Con)]

What priority will the Chief Secretary to the Treasury give to reducing the tax burden in the coming spending review?

Spring Statement

Greg Hands Excerpts

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

There will be many demands on the available funding at the spending review, and we intend to look at the public’s priorities in the round. Our challenge, as always, is to ensure that we direct funding in the way that most effectively delivers the end result that the public need. If I look at the knife crime debate that we have been having over the last couple of weeks, it is clear that it is not a simple question about putting more money into policing. [Interruption.] No, it is not. If the hon. Lady talks to police chiefs or school heads, they will tell her that it is a multifaceted challenge, and we need to address it as such. That is the point of having a cross-departmental spending review—we can look at our priorities in the round and decide how to allocate funding in a coherent way, to get the outcomes that the public want at the best value for money for the taxpayer.

[Greg Hands (Chelsea and Fulham) (Con)]

I warmly welcome the big improvements in the public finances, particularly those as a result of the last spending review in 2015, but the Chancellor has a problem with stamp duty. Today’s report says that the forecast has “deteriorated significantly” since October, when it was already £4 billion short. Receipts fell 9.8% in 2018, which is a new £2.7 billion shortfall in the scorecard. Transactions in my constituency are down 31% since the reforms. That is something he will need to look at and propose reforms for in due course, perhaps in November. Would he like to comment on the latest deteriorating numbers?

[Mr Hammond]

Yes. My right hon. Friend—perhaps unsurprisingly, given his constituency—is very interested in these issues, and I would be happy to meet him to go through the numbers. There are a number of moving parts underneath the headline number. Stamp duty in Wales has been devolved, which takes a significant chunk out of the total number. There is an overall slowdown in the market, which has an effect. We have also exempted first-time buyer purchases from stamp duty, which is a considerable chunk of the reduction he refers to, but I would be happy to talk him through the details.

Oral Answers to Questions

Greg Hands Excerpts

Tuesday 6th November 2018 Commons Chamber

[Mr Hammond]

That is a matter for the Department of Health and Social Care, and I know that the Health Secretary is in discussion with the pharmaceutical industry. We are supporting the Department with allocations from the £3.5 billion I have allocated for Brexit preparations. We will ensure that adequate supplies of medicines are stockpiled if there is any risk of disruption at the channel ports.

[Greg Hands (Chelsea and Fulham) (Con)]

One way both to reduce the deficit and to deliver a reduction in tax rates would be to do something about stamp duty land tax. Office for Budget Responsibility forecasts show over the scorecard period a £4 billion reduction in stamp duty land tax receipts—down a staggering £800 million since the last forecast in March. Can the Chancellor give me an assurance that the Treasury is actively looking at this issue and designing a solution?

[Mr Hammond]

What I can do is assure my right hon. Friend that we look actively at all taxes at every fiscal event. He will know that stamp duty land tax has been a subject of some interest and, indeed, controversy. We do look very carefully at the receipts data, but we also have to look at the distributional impact of different taxes. As my right hon. Friend will understand, doing anything about high rates of stamp duty land tax would have a very uneven distributional impact.