Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 7th February 2023 Commons Chamber

[Steven Bonnar]

I thank the Chancellor for that answer, but analysis by Bloomberg estimates that Brexit is costing the UK £100 billion a year in lost output. The Office for Budget Responsibility forecasts the UK economy will be 4% smaller in the medium term, again due to the impacts of Brexit. The Centre for Economic Performance has warned that Brexit has added almost £6 billion on to UK food bills in the two years to the end of 2021. How much more damage will need to be done before this Government take off the red, white and blue goggles and see the reality that Brexit is an economic drag of disastrous proportions for the countries of the UK?

[Mr Speaker]

Chancellor, it is 14, not 16, but do carry on.

[Jeremy Hunt]

Thank you for correcting me, Mr Speaker.

[Mr Speaker]

It’s for Barry’s benefit. [Laughter.]

[Jeremy Hunt]

And very important, too, if I may say so.

There is a certain irony in the SNP opposing Brexit at the same time as advocating separation for Scotland, which would have a far bigger impact. But as the hon. Member has talked about our economic performance, since we left the single market, our growth has actually been higher than that of France or Germany. There are other things that have happened since then as well, but I do not think it is the doom and gloom that he suggests.

--- Later in debate ---

[Catherine West (Hornsey and Wood Green) (Lab)]

Question 5, Mr Speaker.

[Mr Speaker]

Four would be even better.

[Catherine West]

4. What recent steps he has taken to ensure fairness in the application of the tax system.

[The Financial Secretary to the Treasury (Victoria Atkins)]

With permission, Mr Speaker, I should like to answer this question with Question 25; I hope that is correct.

[Mr Speaker]

Question 23.

[Victoria Atkins]

There we go; what is going on with the Order Paper today?

It is right that everyone contributes to sustainable public finances in a fair way. The autumn statement tax reforms mean those with the broadest shoulders contribute the most by ensuring that energy companies pay their fair share, and by making the personal tax system fairer through changes to the income tax additional rate threshold and reforms to dividends and capital gains tax allowances.

--- Later in debate ---

[Victoria Atkins]

My hon. Friend has raised this with me before orals today and, if she writes to me, I will be happy to look into it further for her.

[Mr Speaker]

I call the shadow Minister.

[James Murray]

In October 2021, the right hon. Member for Richmond (Yorks) (Rishi Sunak), as Chancellor, welcomed the OECD global agreement on a global minimum corporation tax rate. The then Chancellor’s press release made it clear that

“The aim is for these historic rules to be implemented and effective from 2023.”

Yet now we hear rumours that some senior Conservatives are agitating against the deal being implemented, and we have all seen the Prime Minister’s weakness when facing resistance from his own party. Can the Minister confirm that pillar two of the OECD deal will be in place, as promised, by the end of this year?

--- Later in debate ---

[James Cartlidge]

I am grateful to the hon. Lady, and I know this will be an important matter for the new Secretary of State for Energy Security and Net Zero. As for the Treasury position and our assistance in this matter, we should remember we have given the greatest support with energy bills to those with the greatest need. In the current financial year, we have given a cost of living payment of £650 for those on benefits, and in the next financial year there will be £900 of support. It is significant and it is comprehensive.

[Mr Speaker]

I call SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

I have a constituent with a number of shops. He has seen his four-weekly energy costs rise from £12,000 last October to £27,000 today. Moving on to lower tariffs, but with the reduced energy support, he will still see that £12,000 every four weeks doubled, to £24,000. What advice would the Minister give to my constituent? How would he find the £140,000 off the bottom line in a business already operating on tight margins?

--- Later in debate ---

[The Exchequer Secretary to the Treasury (James Cartlidge)]

With your permission, Mr Speaker, I will answer Question 10 with what I believe to be Questions 11 and 20.

[Mr Speaker]

Correct!

[James Cartlidge]

Thank you, Mr Speaker. It is good when a Treasury Minister gets the numbers right.

I can confirm that the Government are supporting businesses with energy costs during the winter by means of the energy bill relief scheme. The scheme came into effect on 1 October 2022, and will run until 31 March this year. Following the review of the operation of the current scheme, we announced that we would launch a new energy bills discount scheme, which will provide eligible, non-domestic energy users—including eligible hospices—with a discount on their energy bills for a further 12 months from 1 April until 31 March next year.

--- Later in debate ---

[Andrew Jones (Harrogate and Knaresborough) (Con)]

The work to deliver a new banking hub in Knaresborough is progressing so well that we are looking at an opening date in only a few months. Will my hon. Friend come to Knaresborough when the hub is open?

[Mr Speaker]

Yes or no.

[Andrew Griffith]

I will be delighted to visit, and I commend the good work done by Link and the access to cash action group.

--- Later in debate ---

[John Glen]

There is a constant dialogue at a central and local level to evaluate projects and look at what can be done to maximise delivery in the anticipated timeframe. Obviously, inflation affects the whole economy and every Secretary of State who comes to see me raises the same issue. That is why the Government are so determined to halve inflation and set the conditions for growth.

[Mr Speaker]

I call the shadow Minister.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

Following the recent levelling-up round 2 announcements, in which all five bids from Birmingham were refused, as were both bids from the great city of Wolverhampton, but, miraculously, the one from the Prime Minister’s constituency was approved, the Conservative Mayor of the West Midlands Combined Authority, Andy Street, said:

“Fundamentally this episode is just another example as to why Whitehall’s bidding and begging bowl culture is broken”.

What is the Chief Secretary’s response to the Conservative Mayor’s comments?

--- Later in debate ---

[The Financial Secretary to the Treasury (Victoria Atkins)]

I thank my right hon. Friend for her question. The pillar two rules mean that large companies—these are defined as businesses with revenues of €750 million or more—are subject to a top-up tax if the profits that they make are not subject to at least a 15% tax. The reason that the international community is coming together to draw up these rules is precisely to do with the new shape that all our economies are taking, with international businesses spreading out around the world. We are trying to find a way to ensure that those very profitable businesses pay their fair share of tax.

[Mr Speaker]

I call the shadow Chancellor of the Exchequer.

[Rachel Reeves (Leeds West) (Lab)]

Last week, Shell announced profits of £32 billion, the highest in its 115-year history. Today, BP announced profits of £23 billion, the highest in its history. Meanwhile, in April, energy bills for households will go up by £500. The cost of living crisis is far from over, so will the Government follow our lead and impose a proper windfall tax to keep people’s energy bills down.

--- Later in debate ---

[James Cartlidge]

My hon. Friend makes an important point. We have already discussed energy support, but efficiency is also key. Businesses can take advantage of the £315-million industrial energy transformation fund, which supports industrial sites to invest in energy efficiency and decarbonisation projects. There are several important capital allowances that may help businesses to make energy-efficient investments, such as the annual investment allowance, which has been set permanently at £1 million, the structures and buildings allowance, and, until 31 March, the super deduction—

[Mr Speaker]

I think we have got it, Minister.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

The recent inquiry by the child of the north all-party parliamentary group found that, under this Government, children in the north live in greater poverty, many in destitution, and that that problem is likely to keep growing. Why is it that, when it comes to children, this Government’s mission is always to level down rather than level up?

--- Later in debate ---

[James Cartlidge]

I am grateful to the hon. Lady and, though I do not know the specifics of her cases, she is welcome to write to me. On the hospitality sector and pubs in particular, we have done two key things: we have kept the reduction in rates, increasing it to 75% relief in the following year, and we have renewed our support with energy bills, saving a typical pub up to £2,400.

[Mr Speaker]

I call the Chair of the Select Committee.

[Harriett Baldwin (West Worcestershire) (Con)]

The Treasury Committee recently published a report titled “Fuel Duty: Fiscal forecast fiction”, because we do not think the Chancellor will really be able to raise fuel duty by 12p, as is currently baked into the Office for Budget Responsibility numbers. Will the Chancellor be able to respond to our report before the Budget?