Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Kirsty Blackman Excerpts
Tuesday 27th February 2018

(6 years, 8 months ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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My hon. Friend is absolutely right. I note that council tax doubled under the previous Labour Government, and we are hearing talk from the Opposition that there might be another rise if they were to get into government again.

Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
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The issue of public sector pay is inextricably linked to the level of funding provided to both local authorities and other public bodies. Will the Chief Secretary commit to lifting the public sector pay cap across the board and to properly funding these pay increases?

Elizabeth Truss Portrait Elizabeth Truss
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We put an extra £2 billion of spending power into the hands of the Scottish Government at the last Budget, and we have also said that we want to be flexible over public sector pay to make sure we are retaining and recruiting the best possible staff.

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Lord Hammond of Runnymede Portrait Mr Hammond
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The Government intend to maintain the greatest possible access for British businesses to European Union markets. The hon. Lady is right that we should approach this on the basis of evidence. We should look for evidence of the value of our trade flows with Europe and what jobs they generate in the UK, and we should look objectively at the opportunities that arise with third-country trade deals and with the likely profile of the new jobs, trade and opportunities that can be created, and then weigh those carefully.

Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
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Leaks from the Brexit analysis show that UK Government borrowing will rise dramatically under Brexit, with figures ranging from £45 billion to £120 billion in a worst-case scenario. Can the Chancellor reassure us that he will not cut vital public services to plug this gap?

Lord Hammond of Runnymede Portrait Mr Hammond
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As the hon. Lady knows, the analysis to which she refers is based on standardised, off-the-shelf trade models. The Government are seeking a bespoke deal with the European Union to deliver a deep economic partnership, which would have a completely different set of outcomes. That remains our objective.