Tax Credits

Jeremy Quin Excerpts

Thursday 29th October 2015 Commons Chamber

[Jeremy Quin (Horsham) (Con)]

I hope that the hon. Lady recognises that the national living wage, which has been applauded, is already addressing exactly the concern that she has just raised. It has been a very effective way of raising the wages of those in employment.

[Vicky Foxcroft]

The national living wage that the hon. Gentleman is talking about is not a national living wage that would drive up people’s standards. People will be worse off because of the cuts to tax credits and people’s wages. That is why we are having this debate today.

The Government are a joke. The left hand does not know what the right hand is doing and their policies are simply not joined up. While those on the Front Bench have been laughing at stories of people in housing trouble, Members from my party are working with trade unions to improve the lives of millions. I urge the Government to halt the cuts to tax credits until we can guarantee that no family will be worse off.

--- Later in debate ---

[Scott Mann]

Absolutely not. We are looking seriously at the proposal and we will make some announcements in the autumn statement.

North Cornwall, which I represent, is a modest-waged economy. We benefited from the economic improvements that the country has seen. We have seen rising school provision and many people in my constituency have benefited from the Help to Buy scheme. They are trying to improve their lot in life and trying to do the right thing. As my hon. Friend the Member for Tiverton and Honiton (Neil Parish) said so eloquently, the Government must ensure that we make it better for people to be in work than out of work, but we must support those who work.

[Jeremy Quin (Horsham) (Con)]

I do not want to put my hon. Friend off his stride, but remarks were made from a sedentary position on the Opposition Benches during the earlier part of this speech. In the course of this debate we have had a non-partisan discussion. I thought I heard Opposition Members say that Labour is keen to see changes in tax credits and would move to cut the £30 billion of expenditure. Does my hon. Friend, like me, look forward to hearing such remarks made from the Opposition Front Bench, with an explanation of how the Opposition would cut the bills?

[Scott Mann]

I would indeed welcome that. We have heard nothing from the Opposition to illustrate how they would deal with the £30 billion deficit.

Welfare Reform and Work Bill

Jeremy Quin Excerpts

Tuesday 27th October 2015 Commons Chamber

[Jeremy Quin (Horsham) (Con)]

Will the hon. Gentleman give way?

[Owen Smith]

I will not give way again.

The problem with this change is that it will simply compound that fundamental mistrust. Before the last election, the Prime Minister said, on live national television, that he was not going to cut child tax credits, but he is going to do so. That was a fundamental misleading of the British public. Other Ministers also made categorical statements. When asked whether the Conservative party would cut tax credits, one of them said:

“"No; we are going to freeze them for two years; we are not going to cut them.”

That was a fundamental untruth, and the country knows it.

Unfortunately, when that is added to the Government’s smoke and mirrors and what they say about how they intend to offset the impact of these cuts, it is clear that we as a group—and the Conservatives as a political party—are deepening what is already a profound mistrust in our politics. For the Conservatives to describe themselves as the workers’ party is laughable. Theirs is the party that is cutting the incomes of the workers of Britain, and they should be ashamed of that. They should stand up today and vote with us for new clause 1, and repeal the tax credit cuts.

Tax Credits

Jeremy Quin Excerpts

Tuesday 20th October 2015 Commons Chamber

[Jeremy Quin (Horsham) (Con)]

It is a pleasure to follow the hon. Member for Airdrie and Shotts (Neil Gray). He said that the tax credits change was not why the electorate voted Conservative. I am not quite certain how he knows that.

[Neil Gray]

I take it that the hon. Gentleman did not watch “Question Time” the other night?

[Jeremy Quin]

I did indeed watch “Question Time” the other night. I sincerely hope that the reports in the press that the lady concerned had misunderstood her exact situation and will not be affected by these cuts is the case. I put it to the hon. Gentleman that Government Members have a better understanding of why people voted Conservative: they did so to sort out the mess of the past few years.

The Chancellor is right to continue the process of reform. As my right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) said—this was echoed by my hon. Friend the Member for Spelthorne (Kwasi Kwarteng)—now is the optimal time to put forward sensible, necessary reforms: there is a strong economic backdrop, UK employment is at a record high and the economy is growing faster than anywhere else in Europe. These reforms are a package of measures that cannot be viewed in isolation.

[Richard Graham (Gloucester) (Con)]

My hon. Friend is quite right to mention that the changes are part of a package, which includes higher tax-free allowances, lower social housing rents and wage rises that are significantly higher than inflation. Does he agree that we still have not seen a full assessment of the impact of all those changes or of the tax credit changes in research by either Parliament or the IFS?

[Jeremy Quin]

I am grateful to my hon. Friend for drawing the House’s attention to the many factors that are mitigating the tax credit reforms, including the national living wage, the fuel escalator—my hon. Friend the Member for Croydon South (Chris Philp) referred to that—and the doubling of free childcare provision. As a colleague of mine on the Work and Pensions Committee, my hon. Friend the Member for Gloucester (Richard Graham) will be well aware that it is going to look at some of the detail of how the reforms may affect people. I look forward to engaging with him on that, as well as with the right hon. Member for Birkenhead (Frank Field) and others.

I recognise that there are concerns. However, I urge all hon. Members to remember that we are dealing not with a static environment, but with the most dynamic economy we have known for many years. The positive reforms that the Chancellor is making will have a pronounced ripple effect. Morrisons, Costa Coffee, Sainsbury’s and Ikea are among 200 firms that have already increased pay to meet the national living wage or move above it.

[Peter Grant (Glenrothes) (SNP)]

rose—

[Dr Eilidh Whiteford]

rose—

[Jeremy Quin]

I apologise, but I have given way twice and other people want to speak.

Those pay increases are only part of the story. The ripple effect will continue as those who are on the national living wage see others coming on to it and the pay differentials kick in.

[Peter Grant]

Will the hon. Gentleman give way?

--- Later in debate ---

[Jeremy Quin]

I have already given way to the SNP and will not do so again.

There is currently a 4% increase in wages against a flat inflationary background. The reforms, taken overall, will deliver for working people. We will continue to deliver a vibrant economy. The Government will ensure that this generation covers the debts that have been incurred, rather than endlessly passing the buck into the future.

Charter for Budget Responsibility

Jeremy Quin Excerpts

Wednesday 14th October 2015 Commons Chamber

[Jeremy Quin (Horsham) (Con)]

It was good to hear the shadow Chancellor refer to his economic advisers. I believe that I heard one of them on the radio this morning. He said that economic policy can be messy. Well, he has got that right, if nothing else. He then said that economic policy can take some time to develop. Before entering this place, I spent 25 years working with investors, and I spent some time in the Treasury. Economic policy may take some time to develop, but rarely is the adage “first impressions count” more true than when setting out one’s economic stall to the markets. The message that the shadow Chancellor has sent out over the past two weeks is one of irresolution. Two weeks ago he was in favour of the charter, but tonight he is against it. It is fine to start a debate, but it will perplex international investors if he is on both sides of that debate at the same time.

The messages that we send out to those who invest in this country matter. A lack of confidence in the UK economy would affect all other facets. It could affect inward investment. It could cause a sterling crisis. It could increase the interest that we are paying on our debt. I do not believe the MPC fudge will work or hold water. No wonder the president of the CBI has stated: “Firms”—the very same firms that, as the Chancellor mentioned, are delivering the highest rate of employment ever in this country—

“have been unwavering in their support for the Chancellor’s deficit reduction plans and will welcome the clarity that the new fiscal rules provide.”

However, this is not just about the firms that invest and the investors that provide the wherewithal; it is about the message that we are sending to the people who send us here. They elected a Government on a platform of sorting out our national debt. We have made great strides in reducing the increase in the national debt, but it still stands at over £15,000 per man, woman and child. The current level of debt interest is costing us £1 billion a week. On an annual basis, we are spending half as much to service our national debt as we are to fund the NHS. The scary thing is that that is on a weighted average gilt rate of 2%—a full 3% below where the OBR thought we could be by this stage. I will allow hon. Members to work out the maths for themselves.

To have no concrete plan to reduce our national debt in the good times will mean one thing—a willingness to increase our national debt still further. As the Chancellor said, Conservative Members know that no Government can abolish boom and bust. We recognise that monetary and fiscal policy must be managed to give the Government the maximum ability to support the vulnerable in the down times. The flexibility that we have through the fiscal charter is meaningful, and essential for the UK. Part of that, crucially, is to reduce our national debt—an ambition that should be shared by Members on both sides of this House.

Budget Resolutions and Economic Situation

Jeremy Quin Excerpts

Tuesday 14th July 2015 Commons Chamber

[Michelle Thomson]

I thank my hon. Friend for his intervention, and I thank the House of Commons Library for some excellent work on GDP per capita and GDP per hours worked, including in relation to Ireland. I shall come on to that.

Where the UK stands in relation to Germany, France, Italy, the USA, Canada and so on provides some useful benchmarks for relative economic performance. The fact that the UK lags behind its peers on so many key indicators is another, all too sad, story. Last out of the recession, lowest productivity, and lowest GDP per capita growth rates—a record that does not tally with the UK Government’s “back in business” narrative.

Although the G7 provides a useful comparison for the UK, its relevance to Scotland is less apparent. We do not aspire to be one of the largest economies in the world, to strut faded imperial grandeur on the world stage or to maintain the pretence of exerting some kind of global influence, 100 years after the height of the British empire. Our ambitions are different—more modest, some would say; more enlightened, others would call it. In business there is a saying, “Turnover is vanity, profit is sanity.” To be big is not always to be beautiful. Scotland seeks fairness and prosperity for those who live there.

[Jeremy Quin (Horsham) (Con)]

Given what the hon. Lady said about financial services in this country and how they should be funded, how would she propose to deal with the situation of RBS?

[Michelle Thomson]

We know that at its heart the sell-off of RBS is an attempt to balance the books, but the issue that I pointed out earlier is that banks such as RBS are still not lending enough to small businesses. That is vital. I referred to challenger banks. I come from a business background and speak to many people. That is what I hear from them about what they consider to be a critical issue.

For us, the G7 has more limited relevance. What we need to know is how we are performing as a medium-sized north-west European nation. Are we doing well, or are there opportunities for improvement? Thankfully, there is no shortage of comparable countries—our very own G7 equivalents, nations with characteristics similar to those of Scotland, but in most cases with far fewer natural resources. Whether we look north to Scandinavia, east to central Europe, south to the low countries or west to our Celtic cousins, comparisons abound among nations of similar size to Scotland. They are medium-sized in global terms, sitting in the middle third of global population rankings, not too big, not too small—the Goldilocks nations. Let us call them the M8, and I do not mean the boring motorway that runs between our two great cities. Those are countries with diverse histories, a range of memberships of international organisations and monetary systems, and varying levels of natural resources, physical geographies and cultures, but in their diversity all providing useful comparisons for Scotland. So how does the UK line up against them?

The M8 countries are among the wealthiest nations in the world. In terms of GDP per head their average has consistently outperformed that of both the G7 and the European 28. In terms of GDP per hour worked, which it is so vital to improve as a measure of productivity, their average also beats that of the G7 and Euro28. M8 countries are all richer than the UK by 25% on average, and the M8 countries are 9% richer per capita than the G7 as well—not a bad place to start, given our ambitions. Our aspiration as a nation is to be the best we can be, not to accept the poor performance and failed austerity agenda of the UK Government, but to look to what can be achieved when we set our sights a bit higher. Perhaps it is time we used the M8, rather than the G7, to frame our aspirations.

Greece

Jeremy Quin Excerpts

Monday 6th July 2015 Commons Chamber

[Mr Osborne]

The sustainability of Greece’s debt payments is clearly a big issue. That is why it failed to meet the IMF payment last week and faces such a big challenge with the ECB repayment later this month. That is one of the challenges, but alongside it—and the IMF draws this to our attention as well—there must be some indication that the Greek Government can undertake the kind of reforms that will modernise the Greek economy, make sure it is a success and ensure a stream of tax revenues in the future. No one is pretending that it is easy, but that is the substance of the negotiation.

[Jeremy Quin (Horsham) (Con)]

I am thinking of what has been going on recently in China, in particular, and know that my right hon. Friend will be well aware that there are always dangers to the global economy. He has always been very alert to the deficiencies of governance within the eurozone. Does he believe that that governance has reformed sufficiently to prevent another similar crisis in the future in another eurozone state?

[Mr Osborne]

My hon. Friend is right to draw the House’s attention to some of the economic issues in China, but if we can stay in the western hemisphere for the purposes of this statement, the eurozone is a much better place than it was in 2012 to deal with any contagion from the Greek crisis. That is reflected in the fact that the bond spreads for the peripheral countries have not gone out today, because the ECB is prepared to do, in its words, “whatever it takes” in its outright monetary transactions policy. We have the European stability mechanism, which is, in other words, a sort of central bail-out fund. We have more of the machinery in place than we did in 2012, which is why we are not seeing quite as much contagion. I would make a general observation I have made before, however. I do not think people should underestimate the medium to long-term impact of a country leaving the euro and showing that it is possible to exit that currency.

Productivity

Jeremy Quin Excerpts

Wednesday 17th June 2015 Commons Chamber

[Michelle Thomson (Edinburgh West) (SNP)]

I commend the Chief Secretary for his speech. He has clearly been reading the SNP manifesto, given his comments on female participation in the workplace and the gravitational pull of London. I hope that he enjoyed reading it.

Productivity in the UK is indeed low, and it has shrunk by 0.7% over the past seven years. It is now 17% lower than the average in the G7 economies, and that has had an associated impact on living standards. Growth in the EU has been 5% over the same period. The United Kingdom’s GDP is only now returning to pre-crash levels, a point that most of our European competitors reached many years ago. Our downturn in the UK was steeper and lasted longer than those of our neighbours, and recovery has also taken longer.

[Jeremy Quin (Horsham) (Con)]

Does the hon. Lady not recognise that during that period we were more dependent on the financial services sector than any other country in the G7, and also in the EU? That undoubtedly had an impact on our productivity.

[Michelle Thomson]

I am going to address that point.

The much-vaunted recent growth has brought us back only to a certain point. When judged against nations smaller in population size—those with between 3 million and 10 million people—the sluggishness of UK plc is laid bare for all to see. Sweden’s productivity is 18% higher than that of the UK; Denmark’s is 26% higher and Norway’s an incredible 77% higher. Even poor Finland, which has no oil, no fisheries and no substantive premium food and drink industry—in fact, it has none of the inherent advantages and natural resources that Scotland enjoys—delivers a productivity performance some 8% higher than that of the UK. The phenomenon is not limited to Scandinavia. In central Europe, Austria’s productivity is 13% higher, and Switzerland’s 23% higher, than that of the UK.

Oral Answers to Questions

Jeremy Quin Excerpts

Tuesday 16th June 2015 Commons Chamber

[Damian Hinds]

Minimum wage compliance is, of course, vital, and work in that regard is ongoing. Universal credit encourages people to work more hours, and, in general, they should be doing higher-paid work.

[Jeremy Quin (Horsham) (Con)]

Will my hon. Friend join me in welcoming the fact that this Government, more than any other, have made quality childcare accessible to hard-working families?

[Damian Hinds]

My hon. Friend is right. The suite of childcare support that the Government are providing for families is unprecedented. It includes the doubling of provision for three and four-year-olds, the extension of provision under universal credit, and tax-free childcare.

Royal Bank of Scotland

Jeremy Quin Excerpts

Thursday 11th June 2015 Commons Chamber

[Harriett Baldwin]

I think my right hon. Friend was delighted to be invited back to the Mansion House to make a speech again this year. The question the hon. Lady asks about locally owned banks indicates that she favours a system of public ownership of our banking sector which, overall, the Government disagree with.

[Jeremy Quin (Horsham) (Con)]

Having worked on the sale of Northern Rock—I refer the House to my entry in the Register of Members’ Financial Interests—may I congratulate the Government on their successful asset sale programme to date? As referenced in paragraph 2.2.2 of the Rothschild report, the benefits of these sales are not just direct for the taxpayer; they are indirect as well. They may result in increased lending and more mortgage approvals. Will my hon. Friend confirm that those indirect benefits will be taken into account when we judge the success of this programme?

[Harriett Baldwin]

I welcome my hon. Friend to his place, and also welcome his wealth of experience and knowledge in this matter, which he ably demonstrates in his question. The sale will bring wider benefits to the overall economy. It will help us to continue to make progress in making the banking sector more competitive, and may result in a more competitive financial services sector and mortgage sector. That position is echoed not only in the Rothschild report, but in the Governor of the Bank of England’s letter.

The Economy

Jeremy Quin Excerpts

Thursday 4th June 2015 Commons Chamber

[Jeremy Quin (Horsham) (Con)]

May I congratulate the hon. Member for Glasgow South West (Chris Stephens) on his maiden speech, as well as my hon. and learned Friend the Member for South East Cambridgeshire (Lucy Frazer) and my hon. Friend the Member for Bexhill and Battle (Huw Merriman)? They all included brilliant eulogies to their predecessors’ political careers. Mr Speaker, you will not get that from me, but for the very best of reasons. Every Conservative Member of this House will be delighted to hear that the political service of my predecessor, now transformed, butterfly-like, into the noble Lord Maude of Horsham, continues in rude health in another place. I have no doubt that his distinguished career in the Treasury, the Foreign Office and latterly in the Cabinet Office will get yet more distinguished as Minister for Trade. If he is as effective at boosting exports as he was at cutting waste, we can look forward to a sustained and ever-growing trade surplus.

In addition to the wise advice of the noble Lord Maude, I am indebted to one of my constituents, the right hon. Sir Peter Hordern, for his advice. He is one of a trio of Conservative MPs who for no less than 93 years represented Horsham during the last century. Major Freddie Gough held the bridge at Arnhem. Lord Winterton went, over a career of 47 years, from being the baby of the House to being the Father of the House. I see she is in her place, Mr Speaker, and I hope that she will accept the compliment when I say that I sincerely hope that the hon. Member for Paisley and Renfrewshire South (Ms Black) will still be gracing this Chamber, for the sake of our country, in half a century’s time.

Horsham is an ancient town, represented here since 1295, but on occasion it has fallen into bad habits. “A Parliamentary History of Horsham” recalls how in the epic struggle between the Tories and the Liberals it moved on from the more prosaic forms of electoral vice to the mass kidnap of each other’s voters. The situation was improved by the addition to the borough constituency of large swathes of rural West Sussex, which we still enjoy. From Rudgwick in the west it sweeps down to Billingshurst and over to Balcombe and Ardingly, the site of the South of England Show. It contains Wakehurst Place, the country home of the Royal Botanic Gardens and the largest seed bank in the world. The north takes in Crawley Down and Copthorne, once the haunt of prize fighters and smugglers, now home to far more respectable residents.

A whole series of opinion surveys consistently rates Horsham as a great place to live and work. There may be some cynicism in this House about opinion polls these days, but I can assure the House that these, at least, can be relied on. The constituency is proud of its economic independence and benefits from a burgeoning small business sector with a vast range of entrepreneurial and innovative industries. It has prospered in no small measure from the economic success fostered by the Government. The growth in the number of new businesses over the past few years is matched in steepness only by the fall in the number of jobseeker’s allowance claimants.

I am one of few new Members who can honestly claim that, no matter how reviled the status of being a Member of Parliament, I have managed to improve my standing in the world, because I was previously employed by an investment bank. However, I have also spent time in Her Majesty’s Treasury, and would like to pay tribute to the Government’s handling of our economic recovery. The robust underpinning of the country’s economy over the past five years gives confidence to the small businesses in my constituency that under this Government they can continue to invest, expand and prosper.

Alongside economic success, Horsham has a strong social conscience; it is home to many charities and is determined to ensure that this and future generations can continue to enjoy our countryside and benefit from excellent services. The area has been subject to substantial recent development, and residents are concerned about the impact on the environment and the supporting local infrastructure, not least the provision of NHS services. That is why we welcomed the Conservative manifesto commitment to encourage brownfield development and why we were delighted to see the trenchant support for enhanced primary health care services. The current building and infrastructure concerns would be as nothing, however, were Gatwick airport to be permitted to build a second runway, the impact of which would be profound right across the constituency and far beyond.

Horsham has real concerns on which I will engage in the coming years, but at least it is certain that under a Conservative Government its economy will flourish and that, as outlined in the Gracious Speech, this Parliament will be focused on ensuring that the increasing wealth created will benefit all and that all our citizens can aspire and prosper.