Oral Answers to Questions

John Glen Excerpts

Tuesday 17th April 2018 Commons Chamber

[John Mann (Bassetlaw) (Lab)]

13. What comparative assessment he has made of the size of the national debt (a) today and (b) 12 months ago.

[The Economic Secretary to the Treasury (John Glen)]

Public sector net debt as a percentage of GDP was 85.1% at the end of February 2018, which was 0.9 percentage points higher than last February. The latest forecast shows that debt will fall this year, two years before the fiscal rules require.

[John Mann]

The national debt is going up by £5,000 a second. Can I be helpful? Will the Minister join me in stopping hospitals that are outsourcing staffing to avoid VAT, with an estimated 6% savings on wages lost to the Treasury, from doing so?

[John Glen]

The important point is that the debt is going down this year. We want to avoid a situation like that in the last three years of the last Labour Government, when public sector net debt doubled.

[Mr Speaker]

The hon. Member for Mid Dorset and North Poole (Michael Tomlinson) can very easily shoehorn in his own inquiry on this question. Question 14 is not dissimilar to 13—have a go on 13, man.

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[Michael Tomlinson]

14. That is very kind of you, Mr Speaker. Is it not vital that we reduce our national debt, stop wasting taxpayers’ money on debt interest repayment, and spend it on our public services instead?

[John Glen]

I concur absolutely with my hon. Friend. He might like to know that between 2010 and 2017, we spent £300 billion on debt interest, which is twice the current annual budget of the NHS.

[Philip Davies (Shipley) (Con)]

rose—

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[Philip Davies]

Given all the talk of austerity, will the Minister tell us what Government spending was in cash terms in 2010 and what it is in this financial year?

[John Glen]

I can assure my hon. Friend that the Government have taken a balanced approach to the public finances, reducing the deficit by three quarters. We have also made tough decisions to invest as well as to spend on public services, which is what the public expect of us.

[Jessica Morden (Newport East) (Lab)]

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

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[Paul Blomfield (Sheffield Central) (Lab)]

T6. The number of people with unmanageable payday loan debt has more than halved since the Financial Conduct Authority introduced a total cost cap more than three years ago following pressure from Members on both sides of the House. New analysis by Citizens Advice suggests that extending the cap to doorstep-loan and rent-to-own markets would have the same impact on problem debt in those sectors, and could save consumers up to £154 million a year. Will the Chancellor consider taking such action?

[The Economic Secretary to the Treasury (John Glen)]

The hon. Gentleman has made a very sensible point. The FCA is looking into that proposal and will publish another report in May. I met Andrew Bailey just a few weeks ago to underscore the importance of the issue, and as we proceed with the construction of the single financial guidance body that will deal with some of the challenges of problem debt, I know that this will be another focus of its work.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Automation, machine learning and artificial intelligence have the potential to offer huge productivity gains. What discussions has my right hon. Friend had with colleagues across Government about providing leadership in this important field so that we can reap the maximum productivity boost and be at the forefront of this exciting technology?

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[Mr Marcus Jones (Nuneaton) (Con)]

We have heard encouraging news today about wages, but what more can Ministers do to help my constituents with the cost of living?

[John Glen]

There are a number of challenges that need to be overcome for the poorest. We have increased the national living wage by 4.4%—to £7.83 an hour—and also the allowance that applies before people pay tax. We have made other changes, such as freezing fuel duty, to ensure we are doing all that we can for the hardest-working people in our communities.

[Mr Speaker]

Order. I exhort the Minister to face the House; I understand the temptation to look backwards, but one should always look at the House.

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[Stephen Lloyd]

Thank you, Mr Speaker. An elderly couple in my constituency, Mr and Mrs Fitzgerald, are about to lose their home. They have an interest-only mortgage with Santander, which does not allow mortgages for people over 75, although the Nationwide allows them for people up to 85. Will the Minister help me to persuade Santander so that Mr and Mrs Fitzgerald do not lose their home in the coming weeks?

[John Glen]

Clearly, the lending decisions of individual banks are a matter for them, but I would be happy to meet the hon. Gentleman to consider the case and see what has happened.