Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Thursday 26th October 2023 Commons Chamber

[Jesse Norman]

Of course, I have visited the technology that my hon. Friend is describing and seen it in action. We must balance the safety of patients and vulnerable road users with the potential benefits of this new technology, but I am very pleased to confirm that the Department will be funding research to advance our understanding of the impacts of this technology. The results will be published once the research has concluded.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Heavy goods vehicles cause a disproportionate number of cycling deaths. To cut the number of deaths of cyclists by illegal freight operators in other places, will the Department look at the successful London scheme and encourage partnerships between local authorities, the Driving and Vehicle Standards Agency and police forces to address this problem?

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Thursday 13th July 2023 Commons Chamber

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

4. What steps he has taken to improve infrastructure for cycling and walking.

[The Minister of State, Department for Transport (Jesse Norman)]

The Government, as the House will be aware, are investing more than any other in active travel, with more than £3 billion in investment over this Parliament, which enables the delivery of high-quality schemes across the country. Active Travel England is helping local authorities to deliver the greatest possible value for money in that investment by ensuring that relevant schemes comply with the guidance. It is also ensuring that any active travel schemes funded by the Department are of the highest quality.

[Ruth Cadbury]

In 2022, the Minister’s Department said:

“Increasing walking and cycling can make life easier and more convenient for people, whilst helping to tackle some of the most challenging issues we face as a society—improving health and wellbeing, improving air quality, combatting climate change and tackling congestion on our roads.”

His Department’s data confirms all that, including the role that low-traffic neighbourhoods play in all this. Now the Secretary of State has boasted that he has stopped funding for future LTNs as part of the two-thirds cut in active travel, which the local authorities do not have the money to build back up, due to the cuts they have had. Why are the Government pandering to the Twitter warriors and not the data and those in their own party who support investment in active travel?

[Jesse Norman]

I find that surprising, if I may say so, because this Government are not only investing, but seeking to reduce any possibility of conflict between drivers of cars and cyclists. I do not think the hon. Lady should disagree with policies that are designed to reduce that conflict. What we want to see is more choice for people in how they travel. Inevitably, many and increasing numbers of people want to use active travel, because of all its health and environmental advantages.

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Thursday 8th June 2023 Commons Chamber

[Jesse Norman]

The Government are committed to ensuring that roads are safe for drivers. I have no doubt that the roads Minister would be absolutely delighted to visit my hon. Friend in his constituency, and to talk to those community groups and other interested parties about this important issue.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Since 2010, the rate of road deaths has plateaued. Is the Minister proud of that record, and when will he finally publish the long-awaited road safety strategic framework?

[Jesse Norman]

As the hon. Lady knows, when I was roads Minister, we did a lot of work on safety reviews for walking and cycling. I do not think anyone who looks at the statistics, which of course are not controlled by Government or any single force, will be proud of where they are. One reason why I am excited about the potential for new automated, driver-assistive and other technologies is that in principle, they have the capacity to reduce the number of fatalities and injuries very significantly. That is something we should all welcome.

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Tuesday 7th September 2021 Commons Chamber

[The Financial Secretary to the Treasury (Jesse Norman)]

Good morning to you, Mr Speaker. It is great to be in a Chamber that is 100% full strength after so many months. If I may make a personal note without undue deference, Mr Speaker, I will say that I thoroughly appreciated your remarks about standards within the Chamber.

To date, Her Majesty’s Revenue and Customs has not initiated insolvency proceedings against any taxpayer for a loan charge debt. No estimate can be provided for the number of people who have fallen into debt or who have been declared bankrupt and are subject to the loan charge because, where debts arise, HMRC is not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt and some may choose to enter insolvency themselves based on their overall financial position.

[Ruth Cadbury]

We know that there are many, many thousands of nurses, social workers and other public sector workers who have been caught up in the loan charge. They took work via agencies that basically told them, “Sign here or you don’t get the work.” Checking to see whether they would be liable for the loan charge was not an option. Last week, the Yorkshire Post reported that a number of former services personnel had been affected and that one is feeling suicidal as a direct result. What does the Minister say to this veteran and the thousands of other public servants whose lives have been turned upside down by this retrospective taxation?

[Jesse Norman]

I thank the hon. Lady for her question. Taxation is often a difficult matter for the relatively small number of individuals who may be affected by particular pressures. Of course the Government recognise and understand that, but it is nevertheless the case—it is indeed a foundational principle of the tax system—that people should be responsible for their own tax returns. If I may, I would like to refer the hon. Lady to the very wise words of the former shadow Chancellor, the hon. Member for Oxford East (Anneliese Dodds), who said in 2018 that

“we would obviously welcome tightening in the area of disguised remuneration schemes…We are concerned that the measures in the Bill do not go far enough…There should be no excuse”—

these are her words—

“for people not to be aware of the situation”.––[Official Report, Finance (No. 2) Public Bill Committee, 9 January 2018; c. 30.]

I am afraid that she was right about that.

Finance (No. 2) Bill

Debate between Jesse Norman and Ruth Cadbury

Committee stage & Committee of the Whole House (Day 2)
Tuesday 20th April 2021 Commons Chamber

[Jesse Norman]

I have been held to account by my right hon. Friend and I am grateful to him for that, because that power—if I have any power—should always be held to account. Let me put the record straight: my hon. Friend the Member for Thirsk and Malton is an estate agent, and yet with that estate agency genius he combines the forensic skills of an accountant in holding to account, indirectly, members of the Government and, directly, the Opposition. I thank him for that.

My hon. Friend the Member for Thirsk and Malton pointed out that these disguised remuneration schemes are highly contrived. It is terribly important to remind ourselves of that. It is all very well to complain about the loan charge, but these are highly contrived schemes. My hon. Friend reminded us—as, indeed, did my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) —of the general rule that all taxpayers are responsible for their own tax, and that if, by implication, a scheme looks too good to be true, it almost certainly is too good to be true. Those are important messages and no Government should wish to weaken that important principle that people are responsible for their own tax.

[Ruth Cadbury]

I understand what the Minister has said. Of course, most of us are aware of our own tax bands. But how can the Minister expect basic rate taxpayers—a nurse, an IT contractor, somebody working in the film industry, even somebody on minimum wage—to do due diligence when nothing they read or have been sent ever mentions loans, and when they are given a convincing narrative that their tax is being paid for and they do not need to worry? Should not HMRC and the Treasury be addressing this issue, because it is a growing part of the employment market?

[Jesse Norman]

HMRC is addressing these issues. That is why this Bill has so many measures in it that are focused on the disclosure of tax avoidance schemes, toughening up that regime and improving the regime against the promoters of tax avoidance. But let me say to the hon. Lady that I thought her remark was dripping with condescension towards the ordinary taxpayers of this country. The fact of the matter is that people, from whatever walk of life, are perfectly competent—they do not need to be patronised by Labour Members of Parliament—at working out when something looks too good to be true. That is why so many—such a high percentage; well over 90% of people—do manage to work out what is too good to be true and behave on that basis. To suspect otherwise, when HMRC is absolutely working as hard as it can to make sure that the truth is out there and well understood, and is closing down opportunities for misleading advertising, in a recent initiative with the Advertising Standards Authority and a whole host of other things, is completely wrong.

I am grateful to my hon. Friend the Member for Burnley (Antony Higginbotham) for what I thought was a very robust and thoughtful contribution. He is absolutely right to highlight that HMRC has not been slow in this area. He was right to pick up the point about VAT on online platforms, but, of course, that is merely the tip of the iceberg. The hon. Member for Ealing North (James Murray) somehow suggested that we were failing to tackle this issue. The tax gap, as he pointed out, is 4.7%—a historic low. Let me remind the House and him of some of the actions that the Government have taken—leadership on base erosion and profit shifting over many years, the diverted profits tax, the corporate interest restriction, the tax charge on offshore receipts, hybrid mismatch rules, our new digital services tax.

Finance Bill

Debate between Jesse Norman and Ruth Cadbury

Report stage & Report stage: House of Commons & Report: 1st sitting & Report: 1st sitting: House of Commons
Wednesday 1st July 2020 Commons Chamber

[Jesse Norman]

I take my hat off to the astonishing hon. Member for Bradford South (Judith Cummins), who brought so much content into such a short presentation, and I thank her for that. We have an enormous body of material to get through quickly, so I shall deal initially with the question relating to new clause 26 on job creation and related measures. The new clause would require the Government to conduct an assessment of the effect of the Act on job creation. As the House will know, the Government have announced unprecedented support through the coronavirus job retention scheme, the self-employed scheme and the like. The Office for Budget Responsibility has said that those actions will directly help to support the incomes of individuals. The Treasury does not produce economic forecasts and the OBR does, publishing them twice a year. For that reason, I ask Members to reject the new clause.

New clause 12 relates to a matter previously considered in the Public Bill Committee, the impact on regions and nations. The new clause would require the Chancellor, within one month, to review the impact of the Act. As I emphasised in Committee, the provisions in this Bill have already been developed with careful consideration. Analysis of Government decisions on GDP is also carried out by the independent OBR. Again, we will continue to monitor the impact of the crisis, but I ask Members to reject the new clause. SNP new clause 18 would require a review of the impact of the Act on investment, productivity and employment. Again, it would require the Government to look at hypothetical scenarios, whereas the OBR is required by law to produce its forecasts based on stated Government policy, so I ask Members to reject the measure.

I come now to IR35 and the off-payroll working rules. I have been pressed vigorously on this issue by my hon. Friends the Members for Milton Keynes North (Ben Everitt), for Guildford (Angela Richardson), for Workington (Mark Jenkinson) and for Barrow and Furness (Simon Fell). Amendments 16 and 17 seek to remove the reform of these rules from the Bill, which would be a serious mistake, costing the country many hundreds of millions of pounds. The level of non-compliance at the moment with the rules is scheduled to cost the country £1.3 billion in 2023-24 if not addressed. As I do not believe the SNP really wants that, I encourage Members to vote against it.

I come now to the cross-party amendments framed by my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), as it is important to engage with several of the things he said. He said that contractors could be pushed into a state of no benefits employment. It is important to note the contractors already receive a number of benefits funded by the Government when they are employees of their own personal service companies. Such benefits include statutory maternity, paternity, adoption, parental bereavement and shared parental pay, and they are provided by PSCs, which are then able to claim 100% of those payments plus 3% compensation from the Government. My right hon. Friend said that at least seven people have taken their own lives as a result of the loan charge. It is important to put on the public record that of course every single death of an individual is a tragedy. The circumstances surrounding those deaths have been considered by the coroner, the Independent Office for Police Conduct and HMRC’s own internal independent investigations. None of them has suggested, in these four reports, that HMRC is to blame for these deaths; no conduct issues have identified either by the independent office or internal investigations that would warrant disciplinary actions.

[Ruth Cadbury]

Will the Minister give way?

[Jesse Norman]

I am afraid that I just have to press on, because I have no time. My right hon. Friend raised the issue of a review on the loan charge. These are some of the most egregious and clearest forms of tax avoidance in the tax system. In reaction to my right hon. Friend the Member for Gainsborough (Sir Edward Leigh), let me say that it is hard to see how simplification of the tax system would prevent the kind of abuse we have seen through the loan charge or indeed potentially through IR35. The all-party group on the loan charge published a report rubbishing the independence of the Morse review. I can do no better than refer its members to the remarks made by my right hon. Friend the Member for Haltemprice and Howden, who described Sir Amyas Morse as

“principled and highly respected”

That was true then and it is true now.

New clause 31 would drive a coach and horses through long-standing principles of taxation, because the tax system relies on people being responsible for their own tax and there being as little discretion as possible in the system. Both principles would be overturned, as my hon. Friend the Member for Wimbledon (Stephen Hammond) hinted. For that reason, I urge the House to reject the new clause, if it comes to a vote.

Question put, That the clause be read a Second time.

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Tuesday 24th March 2020 Commons Chamber

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T2. I acknowledge that the Government are dealing with an incredible number of challenges at this time and pay tribute on behalf of all MPs to the work that has been done by Ministers, by those on the Front Benches and by the people behind the scenes who are supporting them in this work. The financial challenges of families with children have not yet been specifically addressed, so will the Treasury listen to the Child Poverty Action Group and work with the Department for Work and Pensions on a fairly simple solution that will put money directly into the pockets of families with children, which is temporarily to increase child benefit?

[The Financial Secretary to the Treasury (Jesse Norman)]

I am very grateful to the hon. Lady for the suggestion, and we will certainly look closely at the Child Poverty Action Group’s recommendation.

Loan Charge 2019: Sir Amyas Morse Review

Debate between Jesse Norman and Ruth Cadbury

Thursday 19th March 2020 Commons Chamber

[Jesse Norman]

I am very grateful to the hon. Gentleman, but if I may say so, I do not think that has been true. I think the conclusion colleagues have been pushing in this debate is that they disapprove thoroughly of tax avoidance, and their view is that this is not tax avoidance in many cases. If they accept that this is tax avoidance and that the issue is merely as to the remedy, that is of course a slightly different position, and one that I am happy to respond to.

I just want to make it clear that this is a form of tax avoidance. It goes to the wider issue as to whether people should have known what it was. The point is that it is tax avoidance, and it costs the Exchequer hundreds of millions of pounds a year. That has two effects: it deprives public services of the money they need to operate; and it forces other taxpayers to pay more to make up the shortfall.

The purpose of the loan charge was to combat this form of abusive tax avoidance. The loan charge was introduced as a new measure in 2017. Following a public campaign last year, we asked Sir Amyas Morse, as has been noted, to conduct a review of whether it was an appropriate policy response to the use of the disguised remuneration scheme. He had full control of the review’s management and recommendations. He took evidence from a very wide range of individuals affected, and he spoke to interest groups, MPs, tax specialists and many other stakeholders.

Again, the facts are not in doubt. Sir Amyas Morse, as has been recognised by colleagues today, is an individual of huge experience and great independence of mind, and he is widely respected across the House. He was independent in his review, and he was given wide scope in expert support. He produced a thorough and exacting piece of work—a 76-page, 30,000-word report—that drew on over 700 individual testimonies and impact statements, and which painstakingly worked through the issues before recommending notable changes to the policy, including substantial carve-outs as to who was affected. Sir Amyas was clinical and at times unsparing in his criticisms, including of Her Majesty’s Revenue and Customs and, be it said, of the Loan Charge Action Group. All but one of these recommendations were accepted by the Government.

Among those recommendations were two to which I want to draw the House’s particular attention. The first is Sir Amyas’s insistence, as we have heard across the House today, on the need for the Government to go further in going after and bringing to justice people who enable or promote tax avoidance schemes. I am therefore delighted that, as part of the Budget documentation we have produced today, we have published a policy document on “Tackling promoters of mass-marketed tax avoidance schemes”, and I draw the attention of all colleagues to it. It is a sober and thorough piece of work that looks at lots of different approaches as part of an integrated strategy.

The other thing that Sir Amyas pointed to—again, I think rightly, but also picking up on a widely anticipated and understood gap—is the importance of raising standards in the tax advice market. Again, I am pleased to say that, as part of the Budget documentation, we have published a call for evidence on this very topic, “Raising standards in the tax advice market”. I encourage all colleagues and their constituents to contribute to that approach.

[Ruth Cadbury]

I thank the right hon. Member for the points he is making about advice and information. However, I again come back to the fact that the low-paid and the averagely-paid—generally public sector workers—are still being sold these schemes. They cannot be paid through a personal services company, but they need to work freelance and locum, and this is still happening to them. If the Government see these schemes as contrived, why are they not doing more to stop the mass marketing of them, such as by making the promoters personally liable for defeated schemes and similar?

[Jesse Norman]

I have in my hand a detailed document designed to address this very issue. It goes through a whole range of different approaches and integrates them into a strategy. I would be delighted to have any input that she would like to make about other ways in which that can be improved and developed. We work on the basis of the law as it presently stands, and which we have inherited. It is itself the result of previous Parliaments, including of course the parliamentary consideration of the loan charge. We have to work with the hand we have got, and improve it as fast and as comprehensively as we can.

I will now address the motion directly and then, in the limited time I have, turn to the comments that have been made. Is the loan charge retrospective? Again, I think it is clear that it is not. It was introduced as a new measure in 2017. It taxes a loan outstanding at a future date. It does not change any law previously on the statute book.

It has been asked why the loan charge was introduced. In the words of Sir Amyas Morse, it

“offers an expedited means of collecting tax that is due”.

Is the loan charge unjust? Again, I would suggest not. If one asks the average man or woman in this country, I think they would say, “Everyone should pay their fair share of taxes. People are responsible for their own tax affairs. Real loans get repaid; if someone offered you a loan for which no repayment, no tax and no interest was due, it would probably be too good to be true.” And so it is.

The numbers seem to bear that out. More than 99.8% of the tax-paying population have never used a scheme. Even among the freelance population, the take-up has been only 2.5%. It is notable that Sir Amyas Morse was clear that he supported the essential purpose of the loan charge and that it should remain in force.

We have heard a lot about how the law was not settled in 2017. Again, as I said, I can do no better than refer colleagues to section A of the Morse review, which carefully reconstructs the history of the past 20 years of disguised remuneration.

Let me quickly turn to the many excellent contributions that have been made. I will start with the excellent contribution made as a point of order by my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), who pointed out the excellence of my book on Adam Smith—I thank him for that, although I defer to the hon. Member for Kirkcaldy and Cowdenbeath (Neale Hanvey), as Kirkcaldy was, of course, Smith’s home town. My right hon. Friend the Member for New Forest West will recall—he taught economics so he must know about these things—that Smith not only set out the ideals of a well-functioning tax system, which we all aspire to achieve, but was, for the last 12 years of his life, a practising commissioner of customs, attempting to wrestle with an ever-evolving customs market and seeking to extract duty and tax due, and rightly so.

I would like to touch on the statesmanlike comments of the hon. Member for Bootle, the shadow Chief Secretary, which perhaps reflected his imminent expectation of taking my seat on this side of the aisle. He recognised that what people do not pay in tax due, someone else must. He is right about that. He noticed that if it looks too good to be true, it probably is. He is right to focus, as others have, on the enablers and promoters.

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Tuesday 11th February 2020 Commons Chamber

[Jesse Norman]

HMRC did pursue these cases quite vigorously. Sir Amyas found, on the basis of detailed consideration, that the law was clear then, and therefore HMRC rightly believed that people would accommodate it. Of course, it pursued people who had been avoiding tax through disguised renumeration schemes for many years before that, and it will continue to do so for those that have been carved out by the loan charge review.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

The Treasury has accepted some of Sir Amyas Morse’s recommendations, but there is confusion about some of them. A constituent of mine got caught in a disguised renumeration scheme before 2010, and yet he is still not convinced that he is in the clear and has that fear hanging over him. What does the Financial Secretary have to say about that?

[Jesse Norman]

The hon. Lady is quite wrong. We accepted all but one of Sir Amyas’s recommendations, and we did not accept that one because the issue he raised was already being handled very well within the system. If the hon. Lady has a specific concern, she is very welcome to raise it with tax commissioners or, indeed, with me, although on an anonymised basis because obviously I cannot deal with specifics.

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Thursday 14th February 2019 Commons Chamber

[Jesse Norman]

I cannot really do more than expand on my previous comment, which is that we are reviewing the highway code in this area and are working closely on issues of close passing. They are discussed in some detail in our recent cycling and walking safety review.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

12. What level of direct and indirect public funding will be required to support new regional connections with Heathrow airport.

Airports National Policy Statement

Debate between Jesse Norman and Ruth Cadbury

Thursday 7th June 2018 Westminster Hall

[Jesse Norman]

I do not think that is true, if I may say so. It has already been shown that the Department and the Government’s position has moved in reaction to concerns expressed about this issue. That is why I have described the changes that we are making to predictable periods of relief from noise through a runway programme.

It has been suggested at different times in the debate by some that the Government are rushing headlong, pell-mell into a sudden decision, and by others that we have become immured and mired in consultation and delay. The truth is that we are making fairly steady and stately progress towards a set of decisions, which may go one way or the other, depending on the merits of the case, and we are doing so with previous Governments, certainly on the Labour side, having supported this proposal, so we are rather hoping that many Labour Members will continue to support it.

New technology is already making aircraft quieter. By the time a third runway is operational at Heathrow, we would expect airlines to be making much greater use of quieter, more efficient aircraft, which would also help reduce noise.

I want to respond to the Committee’s concerns about the potential effect of pollution on our air quality. Again, we have made changes. We have made the national policy statement clearer that delivering according to air quality obligations will provide protections for health and the environment. We have also made it very clear that the third runway will be allowed to go ahead only if it can be delivered in compliance with the UK’s air quality obligations. The environmental assessment and mitigations proposed by the airport will be very carefully scrutinised, I need hardly say, before any development consent is granted. Measures including a potential emissions-based access charge, the use of zero or low-emissions vehicles and an increase in public transport mode share use by passengers and employees would all contribute towards mitigating the impacts of an expanded airport.

I have touched already on community compensation. This is another issue that we take extremely seriously. On the issue of the compensation package for local communities, we share the Committee’s view that that is a fundamental component of the package of measures that accompany the north-west runway scheme. Heathrow Airport Holdings Ltd has committed to paying homeowners who will need to move considerably more than is required in statute—125% of market value should the developer secure development consent. It has also committed to an extensive programme of noise insulation for homes and schools. A community compensation fund will be developed by an applicant to mitigate still further any environmental impacts and, as I have suggested, a community engagement board has already been set up, with Rachel Cerfontyne appointed as the independent chair. We agree with the Committee that details of the proposals must be worked up through consultation with local communities.

[Ruth Cadbury]

Will the mitigation package and, in particular, the noise insulation be subject to an absolute cap, or will it be subject to the actual noise that people experience, and if they experience the higher level of noise that generates the need for insulation, will it be delivered irrespective of the monetary cap? Also, will it be delivered in advance of the new flights coming in, or will residents, as at present, have to wait up to 10 years for the noise insulation to which they are entitled?

[Jesse Norman]

The answer to that question is, of course, that the package will be developed in consultation with local communities and, wherever possible, with an attempt to respond to the concerns that people have had.

The hon. Member for Slough (Mr Dhesi), who is not in his place, asked whether compensation would be targeted to those most affected. The answer is that we are talking about what appears at the moment to be £2.6 billion in commitments, which is ten times bigger than the previous compensation offer made, including £700 million for noise insulation for homes and £40 million to insulate schools and community buildings. Those will be developed in a way that recognises the impacts, and the greatest impacts will be those most affected.

With regard to surface access, we know that Heathrow is already Britain’s best-connected airport by road and rail—a position that will be strengthened by future planned improvements to the public transport systems that serve the area. In responding to the Committee’s call for a written commitment to southern and western rail access, the Government have amended the NPS—a further change of direction in response to the Committee’s work—to set out our clear support for the western rail link and to explain the continuing development of a southern rail access scheme. We are pressing ahead with both, but these are subject, in the usual way, to appropriate planning processes and approvals. Network Rail already has underway a statutory consultation on the development consent order for western rail. The Transport Secretary recently held an event to engage the market more closely on the appetite for a privately funded and financed southern rail scheme. We are not delaying on this.

We also welcome the Committee’s focus on managing traffic associated with the airport. The airports national policy statement requires the applicant to set out clearly how it will mitigate any impact on the transport network and support additional demands that may be created by expansion. We have proposed specific mode share targets for passengers and employees at the airport, which we expect to be requirements of any development consent order. We also support the aspiration of Heathrow Airport Ltd to expand the airport without increasing airport-related traffic. Of course, it should be for the airport operator to demonstrate, as part of any development consent application, how it intends to deliver that goal and how it will, in so doing, mitigate any impact on the public transport network.

The Chair of the Committee said, absolutely rightly, that expansion cannot come at any cost, and we concur. It is important to take a calibrated approach to this, as the Committee has done. We have been clear that we expect expansion to be financed by the private sector without Government support. We also expect the industry to work together to deliver the ambition, set by the Secretary of State in 2016, that airport charges should remain close to current levels in real terms. We will continue to test the “financeability” and affordability of the Heathrow third runway scheme, as will the regulator, the CAA, and we have revised the national policy statement to clarify how the regulatory and planning processes work in this regard, with a considerable amount of further information provided in the final proposed national policy statement. Again, we are grateful to the Committee for its input.

I am also aware of the various representations that have been made in the Chamber that the Government would somehow be liable for Heathrow’s costs, should they decide to withdraw support for the scheme. That point was raised by my right hon. Friend the Member for Putney this morning and in this debate. To be clear to her, I did not say that those policy statements were the same for all three bidders. I said that they were substantially similar. I made that point because I wanted to show that there was no predilection, as it were, towards one bid over another; they were being treated in an equal way. The language in question creates no obligation on the Government, contingent or otherwise.

Let me be clear that the Government have not entered into any agreement that gives Heathrow the right to recover its losses in the light of any scheme not proceeding, and nor do we recognise any liability for any of the costs that Heathrow Airports Ltd has incurred or will incur in future. Separately, the Government laid before Parliament yesterday a written ministerial statement and a departmental minute that set out—this makes the point the other way—a contingent liability where one does in fact exist for statutory blight, which would commence if the proposed airports national policy statement is designated. That liability is contingent, because the Government have rightly protected the taxpayer by entering into a binding agreement with Heathrow Airport Ltd, whereby the airport will assume the financial liability for successful blight claims if, and only if, the scheme proceeds, thus protecting the taxpayer.

Many hon. Members have rightly raised the question of connectivity and regional impact. We agree with the Committee that the benefits of Heathrow expansion must be felt nationally. We welcome the Committee’s endorsement of our plans for an expanded Heathrow airport to retain existing domestic routes and add new routes. We have made it clear in our response that we will further consider domestic connectivity as part of the aviation strategy, which is in the process of being developed. Colleagues will be aware that consultation on that has recently closed. It will include the Secretary of State’s ambition for up to 15% of slots released under expansion to be used for domestic flights. The proposed airports national policy statement makes it clear that the Government require Heathrow Airport Ltd to work with the airlines to protect existing routes and deliver new connections. This will be examined as part of any DCO application. The Government will also hold Heathrow Airport Ltd to account on its public pledges, including the introduction of its £10 million route connectivity fund.

Potholes and Road Maintenance

Debate between Jesse Norman and Ruth Cadbury

Tuesday 5th June 2018 Westminster Hall

[Jesse Norman]

It is certainly preferable, as the potholes review and other survey work recognised, that it be done right first time. Roads should be reinstated in a way that allows the changes to be durable, and road surfaces should be able to stand inclement weather.

Our overall approach is based on principles of asset management, increasing over time. The Government are investing about £6 billion in the network between 2015 and 2021—about £1 billion a year—including through the pothole action fund. That money is increasingly being used as part of a more strategic, asset management-type approach to the roads, which is important. As part of that, we have looked very hard at how we can help highway authorities to adopt planned and preventive maintenance that treats the asset as such, rather than just respond reactively to problems that emerge. Those principles are already demonstrating benefits in terms of financial efficiency, improved accountability, value for money and improved customer service, and we want to continue to work on that.

As matters are presently handled, there is a formula, and rightly so. We do not think councils should constantly have to apply for the vast preponderance of the funding that they receive from the Department for local roads. They should be funded according to an easier and fairer formula.

[Ruth Cadbury]

Does the Minister agree that the £43 million and the officer time spent because 156 local authorities have to deal with claims from motorists and other road users as a result of pothole damage and injury are a waste of money?

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Thursday 19th April 2018 Commons Chamber

[Jesse Norman]

As my hon. Friend says, this scheme potentially offers relief from congestion, better local access and better connectivity to Leeds-Bradford airport, and we are very interested to see it proceed.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

6. What plans his Department has to reduce the number of people affected by aircraft noise near Heathrow airport.

Oral Answers to Questions

Debate between Jesse Norman and Ruth Cadbury

Thursday 19th October 2017 Commons Chamber

[Jesse Norman]

Yes, of course. I have met the Community Transport Association to discuss this at length, as my officials have been doing for some time, and other community transport entities. I would be delighted to meet my hon. Friend and his constituents.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Domestic air travel is surely an integral part of the UK’s transport infrastructure. In their planning for Heathrow expansion, how much have the Government budgeted to increase the number of domestic routes to London from Scotland, Northern Ireland, the north and the south-west?