Oral Answers to Questions

Kemi Badenoch Excerpts

Tuesday 9th March 2021 Commons Chamber

[Mr John Baron (Basildon and Billericay) (Con)]

What recent discussions he has had with Cabinet colleagues on plans to increase the national living wage.

[The Exchequer Secretary to the Treasury (Kemi Badenoch)]

As the Chancellor reaffirmed at the Budget, the Government are increasing the national living wage by 2.2% from £8.72 to £8.91, an above-inflation pay rise. The Government remain committed to their ambitious target for the national living wage to reach two thirds of median earnings by 2024 provided that economic conditions allow. The Treasury will continue to work closely with Cabinet colleagues to ensure that we reach this target.

[Mr Baron [V]]

In welcoming the Government’s generous economic support packages and the increase in the national living wage, may I just ask the Minister to consider further increasing it ahead of inflation in the years ahead to help achieve our one nation agenda and ensure that work pays? I suggest that, combined with an effective and controlled immigration policy, that will also encourage businesses to invest in their workforce and in research and development generally, which will help to improve productivity.

[Kemi Badenoch]

I thank my hon. Friend for his question. He should know that the Government remain committed to ensuring that work pays and to helping to end low pay. As he knows, investment to raise productivity is vital for long-term sustainable growth in wages. I am sure that his request is one that we will consider, as always, in future Budgets. Taxes and minimum wages are always under review, but this Government are absolutely focused on levelling up. We have set out our plan to build back better, which will drive economic growth that levels up the whole of the UK through significant investment in infrastructure as well as skills and innovation.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

What fiscal steps he is taking to support the UK’s economic recovery.

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[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?

[The Exchequer Secretary to the Treasury (Kemi Badenoch)]

The hon. Gentleman will know we are carrying out an alcohol duty review that will look at all these decisions in the round, and I am very happy to speak to him in more detail specifically about any particular schemes or requests that he has.

[Stuart Anderson (Wolverhampton South West) (Con) [V]]

If every working adult in Wolverhampton spent £5 a week extra with local businesses such as Mode Menswear and Tony’s Deli, it would boost the local economy by around £780,000 a week. What is the Chancellor doing to ensure that local independent shops and city centre businesses can bounce back from covid-19 in Wolverhampton?

[Kemi Badenoch]

The Government are supporting these businesses through new restart grants—a one-off cash grant of up to £6,000 per business premises for non-essential retailers in England—and up to £18,000 for hospitality and leisure businesses. They will also benefit from a five-month extension of the coronavirus job retention scheme, a further 12 months’ relief from business rates and a new UK-wide recovery loan scheme. Tony’s Deli, which my hon. Friend mentioned, and other businesses serving hot food can also enjoy a 12-month VAT cut at 5% until the end of September, and at 12.5% until the end of March.

[Ian Lavery (Wansbeck) (Lab) [V]]

Earlier this week, there was an attempt by the Health Secretary to justify the incredibly insulting 1% pay offer to our nurses by contrasting it with the Government-imposed pay freeze on our heroic essential key workers. That is a pay freeze on 2.5 million public servants. Can the Chancellor confirm when he will recognise their worth, do the right thing and announce the lifting of the pay freeze?

[Ben Everitt (Milton Keynes North) (Con)]

  Treasury Ministers are no doubt aware of my support for a brand-new university for Milton Keynes, focused on science, technology, engineering and mathematics and digital skills, so vital for our future economy. I wonder, though, whether they are aware that we are already home to the Open University, which is a pioneer of modular learning and is upskilling and reskilling—important for our future economy. The Budget last week announced support for further education and skills. Will that apply to institutions like the Open University?

[Kemi Badenoch]

We are committed to improving skills in the economy and levelling up productivity across England. That will be achieved through our lifetime skills guarantee and further reforms, which will create jobs and opportunity across the country, supporting us to build back better from the coronavirus pandemic. We will provide further detail and a full conclusion to the review of post-18 education and funding at the next comprehensive spending review. I thank my hon. Friend and the Open University for their engagement on this so far.

[Zarah Sultana (Coventry South) (Lab) [V]]

The disgraceful 1% pay rise for NHS workers is really a pay cut when inflation is factored in. The Prime Minister claims that it is all we can afford. The Government had no problem finding £37 billion for the private test and trace system, an extra £16 billion for the military budget, or hundreds of millions of pounds in dodgy covid contracts for the Health Secretary’s WhatsApp contacts. NHS workers have seen their pay fall by more than 10% in real terms in the past decade, so instead of handing out fortunes to mates and donors, will the Chancellor heed the calls of trade unions and NHS staff and give them the pay rise that they deserve, which is 15% to make up for a decade of lost pay?

[Ian Levy (Blyth Valley) (Con)]

The Government recently confirmed the first eight sites to be awarded freeport status. That will provide great opportunities for prosperity in those areas. In my home constituency of Blyth Valley we have the only deep-water port in Northumberland, with investments in offshore wind, such as at the Catapult, as well as Britishvolt with the only gigaplant in the UK. What assessment has my hon. Friend made of granting a second round of bidding for areas such as Blyth that were not successful on this occasion?

[Kemi Badenoch]

Freeports will be national hubs for international trade, innovation and commerce and they will regenerate communities across the UK. The Ministry for Housing, Communities and Local Government led a fair, open and transparent selection process to determine successful freeport locations in England. Unfortunately, as with any competitive process, there will always be those that are unsuccessful, and I am afraid there are no plans to designate other freeports in England. Freeports are part of a wider package of UK Government support, which invests in skills, infrastructure and innovation at local, regional and national levels. As part of that package, Blyth was awarded £11 million through the future high streets fund in December and is also one of 101 towns eligible for up to £25 million funding from the towns fund.

[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?