Economic Situation

Debate between James Cartlidge and Chris Philp

Wednesday 12th October 2022 Commons Chamber

[Chris Philp]

I thank the hon. Lady for her question. I have already set out how there have been global trends over the past six or nine months, with higher energy prices, higher inflation and a cycle of increasing interest rates around the globe. In particular, I set out how the monetary tightening in the United States, at 300 basis points over the past nine or 10 months, is one and a half times higher than the fiscal tightening in the United Kingdom, which has been 200 basis points over the same period.

In relation to the hon. Lady’s questions about balancing the books over the medium term, the medium-term fiscal plan will set that out. We do intend to control public spending—[Hon. Members: “Ah!”] Well, just listen to the answer—for example, to stick within the spending review 2021 spending limits. I would point out to the House that those SR21 spending limits do see real-terms increases over the three years, but we are going to be sticking with iron discipline to those spending limits, not increasing them, and we will also show spending restraint in the years ahead. However, showing spending restraint is different from real-terms cuts.

[James Cartlidge (South Suffolk) (Con)]

It is very welcome that, a few minutes ago, the Chief Secretary said that the effect of the statement on 31 October will be to show that the Chancellor is 100% committed to fiscal responsibility. That is very welcome to colleagues on all sides, I think, but can he confirm that that means all the previous unfunded tax cuts will now be funded in that statement?

[Chris Philp]

What the statement will set out in the round is how we will get debt as a proportion of GDP falling in the medium term. That is the critical metric, and that is what the medium-term fiscal plan will deliver.

Health and Social Care Levy (Repeal) Bill

Debate between James Cartlidge and Chris Philp

2nd reading
Tuesday 11th October 2022 Commons Chamber

[Chris Philp]

I do not think I should trespass into the realm of my right hon. Friend the Secretary of State for Health and Social Care and Deputy Prime Minister. She will make her own views and policy on that issue without intervention from me. We are ensuring that the NHS is well funded so that it can provide the treatment our constituents need. Our commitment to NHS funding is undiminished.

Let me turn to the Bill, which repeals the health and social care levy. Members will recall that the health and social care levy was originally announced in September last year, and the Health and Social Care Levy Act 2021 received Royal Assent on 20 October last year. The levy had two phases: first, a temporary 1.25% increase for employers and employees in the current tax year; and then from April 2023 a formal surcharge of 1.25%, which would have affected not just those of working age but also those of state pension age. The Bill repeals that Act with elegant simplicity. Clause 1 states simply:

“The Health and Social Care Levy Act 2021 is repealed.”

[James Cartlidge (South Suffolk) (Con)]

This is my first opportunity to congratulate the Chief Secretary on his appointment. What he said on the energy support for my constituents and all our constituents is very important, and I very much welcome that. However, on repealing the levy, he is of course aware that one of the most important things that it was going to fund was the welcome cap on care costs introduced by the Government, which had been promised by successive Governments with many a White Paper and many a Green Paper. How will we now pay for that?

[Chris Philp]

I thank my hon. Friend for his kind words. We are long-standing colleagues, and I look forward to working with him for many years to come. To be clear, the funding that was to be provided via the levy for both health and social care, which in the case of social care amounted to £5.4 billion over the three-year spending review period, is completely unaltered. There is no change to that funding at all.

My hon. Friend asked about funding for social care. The funding envelope for all public services will be set out by my right hon. Friend the Chancellor on 31 October via his medium-term fiscal plan. We will ensure that we are responsible custodians of the public finances by sticking to the spending plan set out in spending review 2021. We will be disciplined about doing that. We will ensure that we generally exercise spending restraint, mindful of the fact that we cannot have public spending forever increasing at faster and faster rates. We will be disciplined about how we manage the public finances.

I also point to economic growth. If, or rather when, we are successful in delivering the growth plan’s mission to elevate trend growth from 1.5% to 2.5%, with an extra 1% per annum over a consistent period of time—for example, five years—by the fifth year that additional growth will deliver about £47 billion of extra tax revenue, as set out in the table on page 27 of the Blue Book that accompanied the growth plan. I hope that gives my hon. Friend a hint about our thinking, but really the medium-term financial plan on 31 October will provide the most complete answer.

--- Later in debate ---

[Chris Philp]

I am spoilt for choice; I will start with my hon. Friend the Member for South Suffolk (James Cartlidge).

[James Cartlidge]

I am lucky to have a second intervention already. I know that as a former businessman, the Minister cares passionately about growth, and I respect that. However, as a businessman, he must also know that the single most important factor for business is confidence and stability. When we speak to businesses at the moment, we hear that they are worried about the lack of stability. They want certainty and confidence. He needs to explain the basic question about the £17 billion of revenue from the levy to fund social care and the NHS. If the levy is going, surely that implies that borrowing fills the gap or some other change fiscally. Is it the case that that will be confirmed on the 31st?

[Chris Philp]

Yes, it is. My hon. Friend is asking entirely reasonable questions, but we have to look at this issue in the round across the entirety of public expenditure. The Chancellor will set that out in detail on 31 October to the House, accompanied by the OBR scoring.

EU: Withdrawal and Future Relationship (Motions)

Debate between James Cartlidge and Chris Philp

Wednesday 27th March 2019 Commons Chamber

[Chris Philp]

That was not the case that the right hon. Lady made. She made the case that people should be able to change their mind repeatedly, which implies that she would support any number of referendums.

I rise to speak against motion (D), in the name of my hon. Friend the Member for Grantham and Stamford (Nick Boles), on common market 2.0, and a similar motion, (H), in the name of my hon. Friend the Member for Camborne and Redruth (George Eustice), on membership of the European economic area. I strongly oppose those motions for two reasons. First, they both entail signing up to full single market rules. The House of Commons Library published a paper only yesterday that says on page 19:

“EEA membership… involves a range of obligations, including implementation of EU rules relating to the Single Market”,

with no decision-making role, other than being “consulted”. For a great British institution such as the City of London or our entire industrial economy, our merely being consulted on the rules that govern them simply is not good enough.

Secondly, there is the question of financial contributions, which was a controversial part of the referendum campaign. Another House of Commons paper published on 21 December found that Norway pays per capita contributions that are around half our current level—so, one would assume, about £5 billion per year. The promise made to the British people about saving money would not be delivered in either common market 2.0 or as a member of the European economic area.

We then come to the question of free movement, which was another contentious issue during the referendum campaign. Membership of the single market entails full free movement. Some Members have referred to various brakes or safeguards in the European economic area agreement. Specifically, article 112 says that any such safeguards must be “restricted” in their “scope and duration”. Article 114 says that if a state, like the UK, were to use those safeguards, other member states could take “rebalancing measures” against them, meaning that some of the benefits of single market membership could be withdrawn. No country other than Liechtenstein, in very limited circumstances, has ever taken advantage of those provisions.

[James Cartlidge]

Switzerland.

[Chris Philp]

Well, Switzerland is currently engaged in a running battle with the European Union and has been unable to implement the result of its own 2014 referendum on free movement.

In the 54 seconds remaining, let me briefly turn to the question of trade deals, which relates only to motion (D) and not motion (H). Under the proposal of my hon. Friend the Member for Grantham and Stamford, during our customs union membership—this would probably apply to the Labour party’s official proposal as well—we would be bound by all trade agreements done by the European Union. We would be compelled to follow them, without the right of veto that we currently enjoy, and we would be prevented from doing any free trade deals of our own. That would be greatly to our disadvantage and would exclude countries such as India, China and the USA. For those reasons, I will be opposing motions (D) and (H).

Finance (No. 3) Bill

Debate between James Cartlidge and Chris Philp

Committee: 2nd sitting: House of Commons
Tuesday 20th November 2018 Commons Chamber

[Chris Philp]

It is a huge pleasure to follow my hon. Friend the Member for Ochil and South Perthshire (Luke Graham), who is always an incredibly eloquent and articulate commentator on matters financial.

I am delighted to see that news of my speech has spread to the office of the shadow Chancellor, the right hon. Member for Hayes and Harlington (John McDonnell), and that he has come to the Front Bench especially to hear it. I am delighted that he has chosen to come to the Chamber for this purpose; I eagerly await the imminent arrival of the Chancellor as well.

I want to speak to new clauses 5 and 6, which were tabled by the shadow Minister, the hon. Member for Oxford East (Anneliese Dodds). Their substance would require more analysis and reports on various aspects of the Government’s programme in the areas of avoidance and evasion. However, as so often in life, action and results speak much louder than reports and words. The Government’s actions and the results they have achieved are far more powerful than any call for evidence or any call for a report can demonstrate.

The hon. Lady posed some questions about whether the tax gap is the best measure. It is an internationally accepted measure and it provides for consistent comparison over time, so it is a good way of consistently comparing the record of one Government with that of another. There may be other measures, but it is at least a consistent measure and it is also a good way to compare different countries, as well as to make comparisons within a country over time.

The current tax gap in the United Kingdom is 5.7%, which is extraordinarily low by comparison with other major countries and significantly lower than it was when Labour was in office, when it was between 8% and 10%. Whatever quibbles the hon. Lady may have about the things that are included or excluded, what is clear is that the tax gap is low compared with what it was under Labour and low by comparison with other countries. That is not surprising.

[James Cartlidge]

rose—

[Chris Philp]

But before I lay out the reasons why it is not surprising, I will give way to my hon. Friend.

[James Cartlidge]

My hon. Friend is making an excellent speech on what action is happening, but does he agree that one thing not captured in the statistics is what I would call positive inducement as opposed to avoidance? If there are competitive rates of tax, people are encouraged to avoid avoidance and conduct legitimate activity by paying a standard tax.

Housing

Debate between James Cartlidge and Chris Philp

Tuesday 15th December 2015 Commons Chamber

[Chris Philp (Croydon South) (Con)]

I draw attention to my entry in the Register of Members’ Financial Interests.

I would like to start by replying to some of the points the shadow housing Minister, the right hon. Member for Wentworth and Dearne (John Healey), made at the beginning of the debate about the respective track records of this Government and the previous Government. In particular, I would like to draw attention to the number of housing starts across the country as a whole in the past year, which was 165,000, compared to the right hon. Gentleman’s last year as Housing Minister when the figure was just 124,000—a 33% increase by the current Government, which is an extremely impressive record.

The hon. Member for Sunderland Central (Julie Elliott), who I see is in her place, drew attention to affordable housing. I am similarly pleased to report to the House that, according to House of Commons Library figures, last year 67,000 affordable houses were delivered compared to just 58,000 in the last year of the previous Labour Government. I think there is a record to be proud of.

I was privileged to serve on the Housing and Planning Public Bill Committee for 17 sittings with the hon. Member for City of Durham (Dr Blackman-Woods), but not, I regret, the right hon. Member for Wentworth and Dearne, who did not grace us with his presence. I was disappointed by the lack of new ideas in his speech earlier. I thought we might have heard more from a shadow housing Minister.

There is a great deal to welcome in the Bill, not least the idea that every single local authority must have a local plan by 2017; the local development orders to give outlying planning consent on brownfield sites, which my hon. Friend the Member for South Ribble (Seema Kennedy) mentioned a few moments ago; and the London Land Commission bringing forward public sector land. The GLA has done that successfully: 98% of its land is being brought forward. I suggest to the Minister that the London Land Commission be given more powers to take hold of the surplus public sector land identified and make sure that organisations such as the NHS, Network Rail and Transport for London do not shilly-shally or delay.

I have one or two other suggestions. Parts of the planning process can be cumbersome, with reports on things such as bats and newts—

[James Cartlidge]

Ken Livingstone.

[Chris Philp]

Yes, indeed.

If there is any way of lightening the process, it would be welcome. Similarly, many developers would be happy to pay higher planning fees in exchange for guaranteed faster decision making, perhaps with the extra fees being refunded if the service level was not met. I hope the Minister will take those constructive ideas in the spirit they are intended.

In summary, having sat on the Bill Committee for 17 sittings, I am absolutely confident it will increase the supply of new homes and promote homeownership, and I strongly welcome it.