Oral Answers to Questions

Jeremy Hunt Excerpts

Tuesday 7th May 2024 Commons Chamber

[The Chancellor of the Exchequer (Jeremy Hunt)]

Improving public sector productivity is a major focus for this Government, which is why I announced £4.2 billion of funding to make our public services more efficient in the Budget.

[John Penrose]

As a former Health Secretary, my right hon. Friend will know that evidence-based medicine transformed health productivity, systematically cutting out ineffectual treatments and replacing them with ones that worked better. Using the evaluation task force and the What Works centres to do the same for other public services, including back to work programmes, prisoner rehabilitation and early interventions for supported families, could be the productivity-improving silver bullet that he needs, so can I urge him to beat a path to their door?

[Jeremy Hunt]

My hon. Friend is right to talk about the What Works programme, which has delivered more than 500 trials and is recognised internationally. There are some very good example in the NHS of what is working, including the NHS app. That is now used by 75% of NHS patients—including 17,000 over-90s, so let no one assume that older people are not internet savvy.

[Clive Efford (Eltham) (Lab)]

Some £8.7 billion was wasted on defective personal protective equipment during the covid crisis, much of it paid to people associated with the Conservative party. People did not have to be Conservative party members to benefit from the fast track, but it did not half help. What is the Chancellor doing to get public money back from those people who sold that defective equipment to the NHS, and does it not just show that we cannot trust the Tories with public money?

[Jeremy Hunt]

What it shows is that we took very difficult decisions in the pandemic to speed up access to PPE for frontline workers, who were literally dying at the time—but there should be no hiding place whatsoever for anyone who commits fraud on taxpayers, which is why there have been over 100 arrests.

[Mr Speaker]

I call the shadow Minister.

[Darren Jones (Bristol North West) (Lab)]

The only productivity improvement we have seen from this Government is the awarding of wasteful contracts. On top of all the PPE waste that my hon. Friend the Member for Eltham (Clive Efford) referred to, there are still £1 billion-worth of unresolved PPE contracts that this Government awarded, but that have not been delivered on. Only one company, PPE Medpro, is facing legal action. Why are the Government not taking legal action against the other companies that have not delivered on their contract with members of the public?

[Jeremy Hunt]

Let me be clear: there is absolutely no hiding place for anyone, whether they are connected to the Conservative party, the Labour Party or any other party. If they have defrauded the taxpayer, we will go after them.

[Darren Jones]

The Chancellor says that he is making progress, and that there is no hiding place, but that money belongs to our public services. The Government know that the contracts have not been delivered on, but they will not reveal the names of the companies and the contracts that have not been delivered on. If there is no hiding place, why would the Chancellor not name them today?

[Jeremy Hunt]

Because we are taking legal action, and as the hon. Gentleman knows full well, when we take legal action, that information belongs to the police.

[Maggie Throup (Erewash) (Con)]

6. What steps his Department is taking to reduce taxes.

[The Chancellor of the Exchequer (Jeremy Hunt)]

The spring Budget delivered personal tax cuts, including cuts to national insurance, for 29 million workers. That means that someone on the average salary has the lowest effective personal tax rate since 1975, and that is the lowest effective tax rate of any G7 country.

[Maggie Throup]

While responsible tax cuts, such as the £900 cut to national insurance contributions, are welcome, can my right hon. Friend update the House on when we can expect VAT to be abolished on high-factor sunscreen? That would not only help to protect more people from one of the leading causes of preventable cancer, but could save the NHS approximately £55 billion.

[Jeremy Hunt]

My hon. Friend and I have talked about this issue on many occasions. She will know that high-factor sunscreen is on NHS prescription for certain conditions and is VAT-free when dispensed by a chemist. With my Chancellor hat on, I should say that we have had £50 billion of requests for VAT relief since Brexit. It is great to have the freedom to make those changes, but we have to be honest about the trade-offs. In particular, we must ensure that if we do apply reliefs, the benefits are fed through to consumers.

[Sammy Wilson (East Antrim) (DUP)]

This weekend, I spoke to a constituent who has invested heavily in a restaurant in my constituency over the last 15 years. He was in desperation because his business, like two other businesses that have already closed in the town, is being crushed by VAT, business rates and increases in corporate taxes. He finds that he can no longer sustain a business that has become the love of his life. Does the Chancellor realise that the tax burden he is imposing on small and medium-sized businesses is crushing this economy?

[Jeremy Hunt]

We are doing everything we can to support small businesses. Businesses like the one that the right hon. Gentleman mentions have received, for two years in a row, a 75% discount on their business rates. That is a massive leg up for businesses recovering from the pandemic. We have also made sure that any increases in corporation tax apply only to larger businesses. There is only one major party in British politics that wants to bring down the tax burden for businesses, and it is the Conservative party.

[Chris Loder (West Dorset) (Con)]

7. Whether his Department has made a recent assessment of the adequacy of its guidance entitled “The Green Book.”

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[Nadia Whittome (Nottingham East) (Lab)]

18. What fiscal steps he is taking to support households with increases in the cost of living.

[The Chancellor of the Exchequer (Jeremy Hunt)]

Over the last two years, cost of living support has totalled £96 billion, or an average of £3,400 per household. As a result, living standards, which were predicted to fall 2% last year, rose by nearly 1%, and we are on track to reach pre-pandemic living standards two years early.

[Mrs Drummond]

I welcome the support that the Government have provided throughout covid and the recent energy crisis for my constituents in Meon Valley—I thank the Government. It has made a huge difference to people’s domestic budgets, but now inflation is falling and the economy is improving, can we look forward to the Government’s continued support with a range of fiscal steps, including cutting taxes?

[Jeremy Hunt]

We can absolutely do that. I thank my hon. Friend for pointing out that the biggest single thing we can do to help people with cost of living pressures is to bring down inflation. That seems to be something that escaped the shadow Chancellor this morning, when she said it was not a big deal to get inflation down to its target. It is a very big deal for families facing a cost of living crisis, and she needs to know that inflation falls by design, not by accident.

[Nadia Whittome]

The Chancellor can talk all he wants about inflation falling, but this is little comfort to my constituents who are still struggling to make ends meet. Even with the national insurance cut, annual post-tax earnings for the average family remain on course to be £380 lower at the start of 2025 than they were in 2021—a gap not predicted to close until 2029. This means yet more years of lost wage growth, so when will the Government get serious about tackling the low-wage, insecure work that they have allowed to become the norm in this country?

[Jeremy Hunt]

Could I suggest, if the hon. Member really thinks that inflation falling from 11% to 3.2% is little comfort to her constituents, that she might want to talk to a few more of them, because actually it is the biggest single thing that we can do to deal with cost of living pressures. If she says, “What are we doing to tackle the scourge of low pay?” we have abolished it by raising the national living wage to £11.44 this year alone. For someone working full-time, that will mean an increase in their pay of £1,800.

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

13. Whether he has taken recent steps with Cabinet colleagues to ensure that people with disabilities can access their child trust fund when they turn 18.

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[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

T1.   If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (Jeremy Hunt)]

The shadow Chancellor often likes to ask what has improved over the past 14 years, so I thought I would update the House on some of the latest statistics about the British economy. According to UN conference data, we have now overtaken France, the Netherlands and Japan to become the world’s fourth largest exporter. The International Monetary Fund says that we will grow faster over the next six years than France, Italy, Germany or Japan, and there are 200,000 more people in work compared with a year ago, which means that, for every single day Conservative Governments have been in office since 2010, there are 800 more people in work, many of whom will be very pleased that we are sticking to our plan.

[Debbie Abrahams]

We should add to the Chancellor’s statistics that we have the widest economic inequalities in Europe. Last week, Professor Sir Michael Marmot published new analysis showing significant increases in health inequalities—how long we live, and how long we live in good health—and that is particularly the case between the north and south-east England. That is of course driven by the economic inequalities that I have just referred to. What assessment has the Chancellor undertaken on the loss in productivity directly as a result of that increase in health inequalities?

[Jeremy Hunt]

If the hon. Lady is concerned about economic inequalities, she will be horrified to know that they were even worse under the last Labour Government. They have been reduced under this Government. When it comes to health inequalities, it is this Government who are phasing out smoking for everyone under the age of 14—one of the biggest single things in a generation that will reduce health inequalities and mean that poorer people live longer.

[John Penrose (Weston-super-Mare) (Con)]

T6. The Government’s plans for a carbon border adjustment mechanism will create a level playing field for British manufacturers facing un-green, high-carbon competition from abroad, but to comply with free trade rules, the CBAM must be an environmental measure, rather than revenue-raising trade protectionism. Will Ministers confirm that it will be fiscally neutral and that any net receipts will be returned to taxpayers, perhaps even by cutting fuel duty or green levies on energy bills?

[Jeremy Hunt]

I can confirm that we are very alive to cost of living pressures caused by fuel duty. In fact, we spent £6.4 billion freezing the duties on fuel, which will save the average motorist £50 over the coming year.

[Rachel Reeves (Leeds West) (Lab)]

At the Budget, the Chancellor set out his intention to abolish national insurance—a £46 billion annual commitment with no clear plan as to how it would be paid for. One way to do it would be to merge income tax and national insurance. Does the Chancellor agree with analysis from the House of Commons Library that shows that merging those two would increase income tax by 8p in the pound?

[Jeremy Hunt]

Which is why it is not our policy.

[Rachel Reeves]

That is strange, because the day after the Budget, the Chancellor told Sky News that

“you can end that unfairness of taxing work: you can merge income tax and national insurance.”

The late Chancellor, Nigel Lawson—the Prime Minister’s hero—warned that merging them would

“destroy the contributory principle and create many losers, especially among the elderly.”

In fact, a retired pensioner with an average occupational pension income of £198 a week would pay an additional £738 a year in tax. Is the reason that the Conservatives will not come clean not that they are planning to pick pensioners’ pockets to fund the abolition of national insurance?

[Jeremy Hunt]

If the right hon. Lady listened to my comments carefully, and I do not always give her credit for that, she would know that our policy is to abolish employees’ national insurance, and that means we want to bring it down to zero. If Labour’s strategy is to win the election by frightening pensioners with fake news stories, I would just say that Britain deserves better.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

T8. The taskforce on nature-related financial disclosures came out with its framework last year. I would like an update on where we are with the International Sustainability Standards Board approach, because just as it has been a huge success for companies and for UK plc to switch to the recommendations of the taskforce on climate-related financial disclosure, it is vital for our planet that we also start to have the TNFD framework as standard right across the board.

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[Kerry McCarthy (Bristol East) (Lab)]

T3.   According to the Bank of England, a typical family remortgaging this year will pay £240 a year more in mortgage payments. Does the Chancellor accept that even if the Bank cuts rates, those homeowners will still be paying a penalty because the Government crashed the economy?

[Jeremy Hunt]

What I would say to those families is that the most damaging thing of all is to have inflation at 11%. Now we have reduced it to 3.2%, and indeed we expect it to go lower. Interest rates are also starting to fall. If the hon. Member is worried about families in her constituency, she might be extremely worried by the shadow Chancellor saying that if interest rates fall, it is somehow not a big deal. It really is.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

May I encourage my right hon. Friend the Chancellor to revisit his decision to change the tax arrangements of furnished holiday lets in rural constituencies such as my own? Those businesses make an important contribution to the local economy, provide jobs and enhance the tourism offering. Indeed, they stop depopulation rather than adding to it. His decision is creating much concern among those who operate such businesses.

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[Mr Tobias Ellwood (Bournemouth East) (Con)]

May I place on record my thanks to the Chancellor, who in his Budget devoted funds to Bournemouth for a police violence reduction unit? Does he agree that these units have a track record up and down the country of tackling knife crime by not just seeing extra police on the frontline, but engaging with schools to ensure that youths and students understand the folly of carrying a knife in the first place?

[Jeremy Hunt]

My right hon. Friend is absolutely right: violence reduction units reduce crime and save lives. I want to thank him, because he was one of the first colleagues who, ahead of the Budget, brought to my attention how impressive the results are. As a result, I was able to make it a national policy in the Budget.

[Andrew Gwynne (Denton and Reddish) (Lab)]

T7. Many of those campaigning for justice in the contaminated blood scandal will have been encouraged by the reporting in The Sunday Times over the weekend. Given that time is of the essence, will the Chancellor please indicate by which date the promises will be fulfilled?

[Jeremy Hunt]

The hon. Gentleman is absolutely right to say that the Government are taking this issue very seriously, and we completely understand that speed is of the essence. It is now only a matter of days before the report will be published; we have always said that we want to publish our response very quickly after that and I assure the hon. Gentleman that we will not hang around.

[Nick Fletcher (Don Valley) (Con)]

The best way for a business to thrive and for customers to receive a great service is for companies to employ individuals on merit. Does the Chancellor agree that the recent overreach by the Financial Conduct Authority and the Prudential Regulation Authority regarding their equality, diversity and inclusion policies is a step too far, and that it is inevitable that those policies will have a negative effect on us all?

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[Jeff Smith (Manchester, Withington) (Lab)]

T10. The Chancellor recently claimed that £100,000 a year is not a huge salary. Does he realise how out of touch that sounds to families in my constituency who are working hard, earning much less than that and really struggling because they are paying 25% more for their weekly shop than they were two years ago, and whose mortgages soared after the Tories crashed the economy?

[Jeremy Hunt]

The hon. Gentleman knows perfectly well that he has taken my comments out of context. I will tell him what is really out of touch: the shadow Chancellor saying it is not a big deal if inflation falls.

[Ian Levy (Blyth Valley) (Con)]

Cramlington has a world-leading pharmaceutical company, Organon, which employs 700 people and produces medicine for the UK market as well as abroad, with a particular focus on women’s health. Will my right hon. Friend the Chancellor please meet me to discuss the impact on pharmaceutical investment?

[Wera Hobhouse (Bath) (LD)]

Soaring rent costs are the biggest reason why my constituents in Bath are struggling. The average monthly rent in Bath and north-east Somerset has risen by more than £200 in the past three years. What support will the Government give to people who rent in the private sector?

[Jeremy Hunt]

That is why we need to build more houses. The hon. Lady will be reassured to know that we are building record numbers of houses—in fact, more in the last year than in any single year under the previous Labour Government.

[Andrew Rosindell (Romford) (Con)]

I would like the Chancellor of the Exchequer to know that high business rates are having a devastating effect on small and medium-sized businesses in historic market towns, such as Romford, that are large retail centres. As the Government are business friendly, will he please look at ways to reduce the burden of business rates on local businesses in constituencies like mine?

[Jeremy Hunt]

May I say what a pleasure it is to be asked a question by my hon. Friend? I think this is the first time it has happened since he has been back. There is no more formidable a champion for Romford. He speaks about business rates, and we have indeed been doing what we can to bring them down at every fiscal event.

[Jim Shannon (Strangford) (DUP)]

What steps have been taken to support pensioners to know what benefits they are possibly entitled to? I understand that 1.4 million people access pension credit, but a great many more are entitled to it.

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[Mr Speaker]

I believe the Chancellor would.

[Jeremy Hunt]

Further to that point of order, Mr Speaker. The hon. Lady may have misunderstood me. What I said was that economic inequality had fallen since the last Labour Government.