Oral Answers to Questions

John Glen Excerpts

Tuesday 21st May 2019 Commons Chamber

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

7. What fiscal steps he is taking to tackle child poverty.

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

The Government take child poverty extremely seriously and are committed to ensuring that all children have the best life chances. The Government believe that moving into work and progressing in work is the best and most sustainable route out of child poverty, and we have reformed the welfare system to ensure that work pays and working families can keep more of what they earn.

[Mrs Lewell-Buck]

I despair at that predictable answer. There are 1.7 million children in destitution. Reports of children arriving at school hungry, scouring bins and stealing food from dinner halls are commonplace. Child poverty has risen by over half a million since 2010. Yesterday the UN rapporteur on extreme poverty was joined by Human Rights Watch in making it very clear that this Government’s relentless austerity measures and cruel welfare reforms are to blame for growing levels of hunger and poverty. Does the Minister agree with those internationally respected organisations?

[John Glen]

No, I do not. I do recognise the diverse needs across this country. When I served with the hon. Lady on the all-party parliamentary group on hunger and food poverty and visited South Shields, I acknowledged that there are significant challenges. That is why I am very pleased to see that the employment rate in her constituency is up 20% since 2010.

[Michael Fabricant (Lichfield) (Con)]

I wonder whether the Minister and the Chancellor have had a chance to read the west midlands local industrial strategy, drawn up by the Business Secretary and the Mayor of the West Midlands, Andy Street. Is the Minister aware that youth unemployment has reduced by some 50% over the last few years in the west midlands? Is that not a way to take children out of poverty?

[John Glen]

It is well known that Andy Street has done a phenomenal amount to invest in the right sort of infrastructure and transform the life chances of many people across his region, and he deserves credit across the House for what he has achieved.

[Tim Farron (Westmorland and Lonsdale) (LD)]

While there are only 300 people registered as unemployed in my constituency, there are nearly 2,500 children living below the poverty line, which tells us that living in a workless household is not the principal or only cause of poverty; low wages are also a cause. Will the Chancellor urgently review the living wage, so that it actually becomes a living wage, rather than giving it an inaccurate label intended only to ease the consciences of the comfortable?

[John Glen]

The national living wage has gone up to £8.21 an hour. The Government’s aspiration is to allow it to rise to 60% of median earnings. It is important to acknowledge that in 2010 take-home pay was £9,200 after national insurance and tax. For someone working full time on the national living wage, that figure is now £4,500 more, at £13,700.

[Tom Pursglove (Corby) (Con)]

Investing in education and skills is a positive, proactive means of promoting aspiration and ensuring that the families of the future are in working households, not in poverty. To that end, what discussions are being had between Ministers in the Treasury and elsewhere in Government about education funding and investment in skills and training?

[John Glen]

Conversations are going on among Treasury Ministers. The Chief Secretary has heard that representation, and announcements will be made in the autumn Budget.

[Kirsty Blackman (Aberdeen North) (SNP)]

In evidence to the Work and Pensions Committee, the Child Poverty Action Group said of the two-child cap:

“You could not design a better policy to increase child poverty than this one”.

Will the Minister use the spending review to ditch that policy?

[John Glen]

We spend £95 billion on working-age benefits, hardship payments, benefit advances and budgeting loans. Obviously all matters are under review in the context of spending decisions, which will be made clear in the autumn Budget.

[Kirsty Blackman]

That is not good enough. Analysis by Cambridge Econometrics states:

“In all of the Brexit scenarios, real wages for low-pay workers are depressed due to increases in prices and reduced levels of productivity, due to skills shortages and lower industry investment.”

Faced with this child poverty double-whammy, does the Minister agree that it is no surprise that the Tories are set for an absolute drubbing on Thursday?

[John Glen]

I listen to the Office for Budget Responsibility, which is forecasting sustained real-wage growth for every one of the next five years. The latest statistics capture household income up to April 2018, but since then we have had a year of real-wage growth.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Child poverty has now reached such an unconscionable level that Members are right to highlight that, this week, the Government were condemned by Human Rights Watch for pursuing what it called “cruel and harmful policies”. Whether or not the Government accept that, the reality is that 4 million British children now live in poverty, that that figure has grown by 500,000 in the last five years and that the majority of those children have parents who are in work. Let me ask the Government: if they do not accept that Conservative policies are creating this crisis, what do Ministers believe is responsible for this humanitarian disaster?

[John Glen]

What is important is that this Government continue to focus on creating jobs, and allowing families to experience the value of such a job and receiving more money in their household take-home pay, and that is what we will continue to focus on.

[Mr Philip Dunne (Ludlow) (Con)]

8. What fiscal steps he is taking to support the high street.

--- Later in debate ---

[Stephen Gethins (North East Fife) (SNP)]

13. What recent assessment he has made of the economic effect on Scotland of the UK leaving the EU.

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

The Government published a detailed set of economic analyses on the long-term impacts of EU exit on the UK economy—its sectors, nations and regions, and the public finances—covering multiple EU exit scenarios. The analysis shows that the spectrum of outcomes for the future UK-EU relationship would deliver significantly higher economic output than in a no-deal scenario in all nations, including Scotland.

[Stephen Gethins]

The Minister is right to highlight those analyses, which show that every single Brexit will be damaging to our economy and will hit public services. Coming after a decade of Tory austerity, will he rule out a no-deal Brexit and use the comprehensive spending review to start investing in our public services?

[John Glen]

Clearly, the best way of avoiding a no-deal Brexit is to look favourably on what the Prime Minister brings back to the House of Commons in the week commencing 3 June.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

16. Brexit uncertainty is hurting firms across Scotland and the Bank of England has said that the Prime Minister’s deal could cut GDP by 3%. Does the Chancellor agree with himself, when he told Radio 4 in November last year that the deal will leave the economy “slightly smaller” and that in pure economic terms, there will be a loss?

[John Glen]

I will tell the hon. Lady what is causing great concern and instability in the sector that I am responsible for—life insurance and the pensions industry, which is thriving in Glasgow and Edinburgh—and that is the fear of the SNP leadership introducing a new currency.

[Patrick Grady (Glasgow North) (SNP)]

20. From all the modelling and analysis that the Treasury has done in its economic forecasting, will the Minister tell us in what year he would expect the United Kingdom economy to perform better under a Brexit scenario than under a remain scenario?

[John Glen]

The result of the referendum was clear in 2016 across the United Kingdom, and we need to get on and deliver it.

[Mr Peter Bone (Wellingborough) (Con)]

The Minister did not quite answer the question from the hon. Member for North East Fife (Stephen Gethins). Is the Government’s default position still that on 31 October, we will leave on a no-deal basis if no agreement has been made?

[John Glen]

That is the legal default, but as my hon. Friend will know, the Government hope, even at this late hour, to persuade him of the merits of passing the deal in the week of 3 June.

[Sir Desmond Swayne (New Forest West) (Con)]

Is not the greatest threat of uncertainty to the Scottish economy the prospect of a second independence referendum?

[John Glen]

Absolutely. Another divisive referendum within 18 months would be completely contrary to what the First Minister said five years ago, which was that it was a “once in a generation” event. It would absolutely be a real crisis for Scotland.

[Daniel Kawczynski (Shrewsbury and Atcham) (Con)]

14. What progress he has made on reducing income tax.

--- Later in debate ---

[Kevin Hollinrake (Thirsk and Malton) (Con)]

When Sally Masterton discovered a £1 billion fraud at Lloyds Bank the bank discredited her, constructively dismissed her and prevented her from working with the police investigation. Five years later Lloyds apologised for her mistreatment but nobody at the bank has been formally investigated or sanctioned for this mistreatment. Will the Minister use his powers to instruct the Financial Conduct Authority to carry out that investigation?

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

As my hon. Friend knows, the FCA is conducting two investigations into the events at HBOS Reading and Lloyds has instructed Linda Dobbs to look into who knew what when. It is absolutely clear now that such circumstances could not be repeated given the action we have taken with the senior managers regime, but I look forward to the outcome of those reviews and we will be taking action accordingly.

[Emma Dent Coad (Kensington) (Lab)]

T5. According to the Sunday Times rich list the 10 wealthiest people in the country have a combined wealth of £143 billion; half of them live in my constituency. Meanwhile, according to the Child Poverty Action Group, across Kensington and Chelsea 8,500 children—37%—live in poverty, and in one ward nearly half do. Inequality in my constituency is getting worse. When will the Chancellor reverse this trickle-up economy by chasing tax-dodging plutocrats who are stealing food from the mouths of our children, many of them from working poor families?