Oral Answers to Questions

Laura Trott Excerpts

Tuesday 19th December 2023 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

3. What recent discussions he has had with his Scottish counterpart on farm budgets for the financial year 2024-25.

[The Chief Secretary to the Treasury (Laura Trott)]

A very merry Christmas, Mr Speaker. The Government guarantee to maintain the £2.4 billion annual budget for farmers across the UK for every year of this Parliament. As agriculture is devolved, it is ultimately for the Scottish Government to decide how to allocate that money to farming in Scotland.

[Mr Carmichael]

The Minister will be aware of the frustration that is felt by many farmers and crofters in Scotland that the £33 million that was given to the Scottish Government for a specific purpose as part of the Bew review has been deferred hitherto. What will she do in future to ensure that where money is given for the express purpose of supporting Scottish agriculture, it is in fact used for that purpose?

[Laura Trott]

The right hon. Member raises an excellent question. The SNP Government are yet to clarify when this ringfenced money will be returned. I hope they will do so this afternoon at the Budget.

[Mr Speaker]

I call the SNP spokesperson.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

May I echo your comments, Mr Speaker, with Christmas wishes for all the House staff, your staff and Members? The UK Government’s attempt to overhaul the EU subsidy scheme has left English farmers 50% worse off in cash terms than in 2020. While the Scottish Government have sought to protect our farmers’ payments, can the Minister guarantee that the UK Government will not try to undermine their payments and devolution by back-door use of the United Kingdom Internal Market Act 2020?

[Laura Trott]

I note that the hon. Member did not answer my question, nor that of the right hon. Member for Orkney and Shetland (Mr Carmichael) about when the ringfenced money will be returned.

[Mr Speaker]

Order. Questions are normally to the Minister, not the other way around.

[Laura Trott]

Very good point, but I still maintain that the hon. Member needs to clarify that matter. It is up to the Scottish Government if they would like at any point to top up the amount that goes to Scottish farming. I encourage them to do so this afternoon at the Budget.

[Drew Hendry]

I do not think any Scottish farmer will be reassured by what the Minister has just said. I just said that the Scottish Government are protecting those farmers’ payments, while English farmers are losing out, as we know. What we do not have from the UK Government is detail on what they will be doing after 2025. If we had remained in the European Union, we would know that figure for farming subsidies so that the Scottish Government could make plans to help farmers plan ahead. Can the Minister apologise for that situation and guarantee that in the early months of next year we will have clarity on farming payments?

[Laura Trott]

The UK Government have laid out plans for the agriculture transition in England that go beyond the current spending review, giving farmers increased certainty over policy and spending intent for years to come. The Scottish Government could decide to provide farmers in Scotland with similar certainty if they chose to do so.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

14. What recent assessment he has made of the potential impact of the OBR’s growth forecasts on living standards.

[The Chief Secretary to the Treasury (Laura Trott)]

The OBR revised up its growth figures after data revisions by the Office for National Statistics indicated the economy had recovered more fully from the pandemic than had been expected, which means that the current level of real GDP is nearly 3% higher than was predicted in March forecasts.

[Kerry McCarthy]

The Government put a positive spin on the provisional local government finance settlement yesterday, but the Local Government Association said that it did not provide enough funding to meet the severe cost and demand pressures on councils, and assumed that all councils would increase their tax bills by the maximum allowed next year. What will that do for my constituents’ living standards?

[Laura Trott]

As the hon. Lady will know, we put billions of pounds into councils this year, and the provisional settlement is above what is expected to be the inflation rate next year. If she has specific issues with her local council, I shall be happy to take that up with her.

[Lloyd Russell-Moyle]

We have seen one of the greatest falls in living standards in a generation, and the Chancellor has callously removed the household support fund from councils. In Brighton the fund pays for free school meal vouchers in the holidays, the warmth and wellbeing scheme, career centres, family hubs, and food banks such as the one in Whitehawk where my constituency office has its surgeries. Will the Minister think again about scrapping the household support fund, so that councils can support the very worst off?

[Laura Trott]

I want to reassure the hon. Gentleman: no decision has been made about the household support fund. More broadly, however, we have pulled in an average of £3,700 per household this year to help people with exactly what we are talking about. This Government are on the side of people during what is a very difficult time.

[Justin Madders]

According to the Low Pay Commission, one in five people who should be receiving the national minimum wage do not even get that. This is a huge failure of enforcement. How can we have increased living standards if people do not even receive the legal minimum to which they are entitled?

[Laura Trott]

If the hon. Gentleman can give individual examples, I ask him please to let us know. It is, obviously, extremely important that we enforce this, but I should point out that we will increase the levels by 9.8% next year, which will make a significant difference to households up and down the country.

[Greg Smith (Buckingham) (Con)]

Is not the more fundamental problem with the question posed by Opposition Members the fact that the OBR’s forecasts are never right?

[Laura Trott]

All I can say is that they have definitely gone in the right direction, because the economy next year will be billions of pounds bigger than we thought it was going to be in March.

[Samantha Dixon (City of Chester) (Lab)]

15. What steps he is taking to ensure value for money in public spending.

[The Chief Secretary to the Treasury (Laura Trott)]

Value for money is at the heart of Government spending and it is one of the key considerations for any decision involving the use of public funds across Government. As Chief Secretary, I am committed to tackling waste and promoting productivity across the public sector.

[Samantha Dixon]

Last year, Government officials admitted that they were paying companies to burn and destroy 15,000 pallets of unusable personal protective equipment each month. Does the Treasury have any idea how much wasted PPE has gone up in smoke this year?

[Laura Trott]

During the pandemic our priority was absolutely clear: to get PPE to the frontline as quickly as possible. There was an unprecedented global increase in demand for PPE during the emergency response to the pandemic and items were procured at pace. The Department of Health and Social Care continues to seek to recover fraud losses to ensure that public funds are protected.

[Mr Speaker]

I call the shadow Minister.

[James Murray (Ealing North) (Lab/Co-op)]

Throughout the pandemic, people across the country made extraordinary and heart-wrenching sacrifices, yet as they did so, a small minority were instead making millions of pounds by ripping off the taxpayer. With conflicts of interest, defective goods and exorbitant profit margins, it has been greedy and grubby and this Conservative Government have enabled it all. As taxpayers, we want our money back, so Labour will create a covid corruption commissioner to chase down every pound we can. Does the Minister have any idea just how angry people are that our country has been taken for a ride?

[Laura Trott]

The hypocrisy is absolutely astonishing. During the pandemic the shadow Chancellor wrote that the strategy of turning to big-name UK manufacturers was not delivering the supply that was needed. Yes, we procured things very fast—we needed to do that to get things to the frontline—and we are trying to get back every single penny that was lost to fraud, but we make no apology for doing whatever we could to get PPE to the frontline as quickly as possible.

[James Murray]

The Minister’s response really does not reflect the seriousness of the situation. This is not just one bad apple; this is a rotten culture that goes to the very top, with £8.7 billion lost on wasted PPE and £7.2 billion lost to covid fraud. That is £15.9 billion of public money gone at a time when people and public services are struggling. Can the Minister remind the House who was Chancellor at the time that all of this was signed off?

[Laura Trott]

I do not know what more I can add to my last answer. This was done very quickly, at pace, because we were desperate to get PPE to the frontline as quickly as possible. We have set up initiatives to recoup money from fraudulent activity including the Public Sector Fraud Authority, which has already saved taxpayers £311 million in the first year of operation.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

16. If he will make mandatory the recommendations on reporting of the taskforce on nature-related financial disclosures.

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[Theresa Villiers (Chipping Barnet) (Con)]

21. What steps he is taking to reduce inflation.

[The Chief Secretary to the Treasury (Laura Trott)]

Inflation has now halved from 11.1% in October 2022 to 4.7% in October 2023, delivering on the Prime Minister’s pledge. This has happened not by accident but as a result of difficult decisions made by the Government and the Bank of England—Government decisions that were opposed every step of the way by the Labour party.

[Theresa Villiers]

Thank you for calling me to ask a question while I catch my breath, Mr Speaker!

A major component of inflation over this past year has, of course, been the energy price shock. What are the Government doing to ensure the continued expansion of renewable energy so that we have greater energy security, and so that we are more resilient in the face of energy price shocks from overseas?

[Laura Trott]

My right hon. Friend is right, and she nailed the delivery of her question while out of breath.

At the autumn statement, the Chancellor announced measures that demonstrate the Government’s ongoing commitment to renewable energy as a priority growth sector essential to our energy security and net zero ambitions. The announcements made include a new investment exemption from the electricity generator levy and a £960 million green industries growth accelerator.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[Mr Rob Roberts (Delyn) (Ind)]

T8.   The electrification of the north Wales main line has been a vital issue to Delyn and the rest of north Wales for many years. Back in 2015, when it was judged as costing about £850 million, it was kiboshed by the Treasury as not being value for money. Now that it is expected to cost over £1 billion, will the Chancellor guarantee that the project will definitely go ahead and that the Treasury will not put a stop on it again?

[The Chief Secretary to the Treasury (Laura Trott)]

I will write to the hon. Gentleman.

[Sarah Dyke (Somerton and Frome) (LD)]

T6. Mr Speaker, I wish you, those across the House and my constituents a very merry Christmas. People in rural areas suffer more than their urban counterparts because of the rural premium they encounter in their daily lives. With food inflation at around 10%, people in Somerton and Frome are once again facing a choice between heating and eating. What recent assessment has the Department made of the effect of inflation on food prices?

[Laura Trott]

I know that the hon. Lady will have welcomed the most important change to cost of living pressures, which is inflation coming down. In addition, we have had the cost of living payments this year, and also benefits going up by 10.1% this year and by more than the expected level of inflation next year. We as a Government have done all we can to support people and will continue to do so.

[Tim Loughton (East Worthing and Shoreham) (Con)]

T9. Mr Speaker, as mine is the last name on the Order Paper, may I wish you and Mrs Speaker, and the two Front-Bench teams, a very happy Christmas? Notwithstanding his predilection for myrrh and frankincense, may I ask the Chancellor to comment on the state of our gold reserves and whether, in a world where peace to all men seems to be in rather short supply at the moment, he anticipates adding to them in 2024?

[Rachael Maskell (York Central) (Lab/Co-op)]

Right now, council leaders up and down the country are having to make very difficult decisions on cutting vital services—not because of profligacy, but because of Government cuts to their funding. What steps is the Chancellor taking to ensure that local authorities—such as that in York, which is the lowest-funded area—are adequately funded?

[Laura Trott]

The hon. Lady will have heard my answer to a previous question where I stated that we have put billions of pounds of extra money into local government this year to cover pressures. We recognise that those pressures are real, which is why the provisional settlement proposes an above-inflation rise for next year.

[Mr David Davis (Haltemprice and Howden) (Con)]

A fortnight ago, Kaye Adams, a TV presenter, won her case against His Majesty’s Revenue and Customs on IR35 status. Despite the fact that she won her first tax tribunal on the issue, HMRC took her to either a tribunal or court four times over a nine-year period, forcing her to spend £200,000 in legal fees. HMRC spent many times that, using two King’s counsel at the last hearing alone. This was over a net tax bill of £70,000. There is no conceivable economic case for that. What HMRC is trying to do is move the guidelines by coercing Ms Adams and using her as an example to intimidate other self-employed workers to give in to HMRC’s bullying. This is a disgrace. It has gone on for too long. The 2021 revisions were inadequate and ministerial oversight is too weak. When will the Government review IR35 and, ideally, abolish it?

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[Laura Trott]

My hon. Friend is a brilliant advocate for his constituency. I hear what he has to say and I am happy to meet him to talk about it.

[Martin Vickers (Cleethorpes) (Con)]

My right hon. Friend is well aware of the threat to thousands of jobs at Scunthorpe steelworks and many more in the supply chain that supports it, all of which would have a devastating effect on the economy of northern Lincolnshire. Can he and his colleagues in the Department for Business and Trade bring a speedy conclusion to the negotiations and lift the cloud over Scunthorpe?