Oral Answers to Questions

John Glen Excerpts

Tuesday 9th March 2021 Commons Chamber

[Mary Kelly Foy (City of Durham) (Lab)]

What recent discussions he has had with his international counterparts on requiring private creditors to cancel debt owed by developing countries during the covid-19 pandemic.

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

The Chancellor regularly engages with his international partners in the G7, G20 and the Paris Club on debt issues, including private sector participation in debt restructurings, and Treasury officials are also engaging with the private sector on this issue.

[Mary Kelly Foy [V]]

As the Government slash international aid, covid-19 could push up to 150 million people globally into extreme poverty, yet many banks and asset managers operating in the UK, including HSBC, BlackRock and J.P. Morgan, continue to demand debt repayments from developing countries, leaving them with less money to respond to covid-19. Will the Government urgently introduce new legislation to prevent developing countries from being sued in UK courts by banks, asset managers and vulture funds if they are unable to pay their debts as a result of the pandemic?

[John Glen]

I note the hon. Lady’s long-standing interest in this subject, but I want to state clearly that the Government support the role of the low-income developing countries to be supported by the UK’s G7 presidency. We have made clear our expectation that the private sector and the firms she mentioned will offer debt treatment on at least as favourable terms as the official sector, under the common framework, as agreed by the G20 last November.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

What fiscal steps he is taking to help support people ineligible for his Department's covid-19 income support schemes.

--- Later in debate ---

[Mrs Pauline Latham (Mid Derbyshire) (Con) [V]]

My right hon. Friend the Chancellor said the day after the comprehensive spending review that the Government were looking at when they will bring forward legislation on the 0.7% of gross national income target. Can he update us? What is the Government’s timescale for bringing forward the legislative proposals to reduce the annual target of spending 0.7% of GNI on aid to 0.5%?

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

The Foreign Secretary is continuing to look very carefully at the legislative requirements and will set out further detail in due course on how the Government intend to proceed.

[Kenny MacAskill (East Lothian) (SNP) [V]]

If the Government are unwilling to support the licensed trade through varying duty rates, there is another fiscal policy to sustain hard-pressed pubs in our communities. Italy has reduced VAT and alcohol sales in pubs and restaurants. Should that not be replicated here, sustaining public revenue while supporting the consumption of alcohol on supervised premises and maintaining community assets in our towns and villages?

--- Later in debate ---

[Nick Fletcher (Don Valley) (Con) [V]]

With Doncaster missing out on its freeport bid, what other incentives does my hon. Friend believe there are for businesses to locate in the town?

[John Glen]

The Government are committed to encouraging business investment in Doncaster and its surrounding area, and at the Budget we confirmed £23 million funding for Goldthorpe’s town deal—just due west of the town—and that will boost economic growth and encourage business investment in the area. MHCLG is currently assessing the remaining 49 towns fund bids, including those from Doncaster and Stainforth; we will make further announcements on those in due course.

[Mr Speaker]

I am suspending the House for a few minutes to enable the necessary arrangements for the next business to be made.