Oral Answers to Questions

Debate between Jonathan Reynolds and David Gauke

Tuesday 17th January 2017 Commons Chamber

[Mr Gauke]

We are, of course, determined to ensure that all of the UK is a good place for these businesses to develop, and to encourage the development of technology and businesses that are based on it. The future of the United Kingdom has to be as a highly skilled, technologically advanced, outward-looking country. We have engaged with all the devolved Administrations to further that aim.

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

We Labour Members believe that encouraging investment is essential to making our economy more productive, and we recognise that that will be especially important post Brexit. Does the Treasury have a genuine indicator of how foreign direct investment has been affected by the referendum result, given that it was recently revealed that the Department for International Trade’s figures incorrectly include decisions taken before the vote for Brexit?

[Mr Gauke]

We are at an early stage, in terms of the impact on foreign direct investment. On the level of business investment since the referendum, the numbers have held up pretty strongly, although, as I say, it is early days and early data. The hon. Gentleman says he welcomes business investment in this country; he should listen to some of the things his party leadership is saying, which would do nothing but drive business out of the United Kingdom.

EU Draft Budget 2017

Debate between Jonathan Reynolds and David Gauke

Monday 31st October 2016 General Committees

[Jonathan Reynolds]

I see. I thought the Minister preferred them all at once.

[Mr Gauke]

I welcome the hon. Gentleman to his position on the Front Bench. I will deal with regional funding and assessments and also his point on the European Union solidarity fund. We are supportive of the principles of the European Union solidarity fund in providing support when an EU country is seriously affected by a major natural disaster. I make the point— it is a general point that may apply to several of his questions—that it is right that the EU prioritises its expenditure in the way that provides the most value for money and achieves the most for the people of the European Union. It is therefore right that through sound financial management, the EU frees up resources so that it can respond to natural disasters, and the solidarity fund is a means by which it is capable of responding.

The hon. Gentleman asked about the impact of Brexit and in particular the applications to regional funding. At this stage, I cannot say much more than the points we have already made about the support that we have provided for measures that have been announced. Essentially, the Government have agreed to guarantee projects entered into before the autumn statement. Anything that is entered into subsequent to the autumn statement but before we leave the European Union will be supported to the extent that it provides value for money and is consistent with the Government’s priorities. On regional assessments, all I can say at this point is that we will take into account the regional impacts when looking at our future position and determining our future priorities.

[Jonathan Reynolds]

I have just one more question. In preparing the Government’s statement to the Committee, what conversations have Ministers had with the devolved Administrations—in particular those in Scotland, Northern Ireland and Wales, where issues relating to the EU budget are particularly sensitive?

[Mr Gauke]

I am sure that it will not have escaped the hon. Gentleman’s notice that there were several meetings this time last week between the First Ministers of all the devolved Administrations, the Prime Minister and several colleagues, and I met the Finance Ministers on Monday afternoon. There is obviously significant interest from the devolved Administrations in these matters, which were discussed. Where the devolved Administrations sign up to structural investment projects under their current EU budget allocation prior to Brexit, we will ensure that they are funded to meet those commitments. It will be for the devolved Administrations to decide what criteria they use to assess projects, in line with the devolution settlements.

Oral Answers to Questions

Debate between Jonathan Reynolds and David Gauke

Tuesday 19th July 2016 Commons Chamber

[Mr Gauke]

It was not just the money—I also rattled off the numbers. I would be delighted to provide the hon. Lady with details of the projects that have been delivered, with, as I say, 300 infrastructure schemes delivered in the west midlands and 240 infrastructure schemes delivered in the north-west. Accountability depends on the specific nature of the schemes. Clearly, over the past six years we have delivered on infrastructure, but there is more to do and we are determined to do it.

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

One of the absurdities of the previous Chancellor’s tenure was the fiscal rule that forbade borrowing money for infrastructure investment even when the return on that investment would have grossly exceeded the cost of the borrowing. Instead, the former Chancellor ended up borrowing billions to compensate for low growth and the cost of failure. That orthodoxy was strongly challenged in the Conservative leadership election, so will we now see a more rational approach from this Chancellor’s team?

[Mr Gauke]

As my right hon. Friend the Chancellor has made clear, and as, indeed, the previous Chancellor made clear, in circumstances where there is a projection of growth less than 1% over a 12-month period, that fiscal rule does not apply. The fact is that we inherited a very high deficit, and we have shown very strong determination over the past six years to bring that deficit down. As we face the challenges that we now face in terms of Brexit, had we not taken the tough decisions on public spending over the past six years, we would be in a much more vulnerable position than we are now.