Lindsay Hoyle
Main Page: Lindsay Hoyle (Speaker - Chorley)Department Debates - View all Lindsay Hoyle's debates with the HM Treasury
(1 month, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Dan Tomlinson
I understand my hon. Friend’s point. There are many businesses in rural and coastal communities across the country that we want to see thrive and grow, which is why the Chancellor announced the great British summer savings scheme, which will run until 1 September. On the point about the online giants, we are looking at further ways to raise more revenue by going after those online giants dodging VAT. In the last Budget, the Chancellor changed the multipliers in the business rates system so that the tax rate paid by a small high street business would be 33% lower than that paid by large properties, such as those occupied by online giants.
Daisy Cooper (St Albans) (LD)
It was recently reported that the newly elected hon. Member for Makerfield had pledged that he would cut business rates for pubs, clubs and music venues by 20% if he became Prime Minister. Given that the hon. Member is facing the near certainty of becoming Prime Minister, I ask those on the Front Bench whether the Treasury has started modelling the numbers to deliver on that pledge, and if not, when that work will begin.
John Milne (Horsham) (LD)
In my constituency, Chess Dynamics, part of Cohort, is a world-leading developer of counter-drone and air defence technology, yet like much of the defence sector, it has been left waiting for clarity on future investment. Given the recent turmoil at the top of the Labour party, can the Minister assure us that the vital defence investment plan will not be pushed back even further and finally give defence manufacturers the go-ahead—
Rebecca Smith (South West Devon) (Con)
Rachel Reeves
As I just said, the DIP will be published before the summit. It will involve more money spent more effectively, and it will meet the scale of the challenges we face. Frankly, I will take no lectures from the Conservatives, who left our armed forces, in the words of their former Defence Secretary, “hollowed out”. Our forces hit rock bottom for pay, morale and numbers. The Tories do not like to mention the £12 billion of cuts that they made to defence in their first five years in office. We are turning that around with the biggest uplift in defence spending since the end of the cold war. This Labour Government will continue to invest in defence, with contracts awarded to firms here in Britain to keep our country safe.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
My right hon. Friend is right to highlight those challenges. Throughout the 10-year equipment plan, there was always a £14 billion deficit that never seemed to go away. It is great that we are seeing more investment, but could the Chancellor update the House on what conversations she or her Ministers are having with Governments in Europe and with Canada about the Defence, Security and Resilience Bank and the multilateral defence mechanism for funding and procuring defence across NATO?
Rachel Reeves
I thank my hon. Friend for her question. As Members will know, this Government are working on plans with our NATO allies for a multilateral defence mechanism. We have already signed a treaty agreement with Finland and the Netherlands, and we are working closely with Scandinavian, Baltic and eastern European countries. The multilateral defence mechanism will enable us to procure jointly and stockpile equipment off the balance sheet, ensuring better value for money for taxpayers and enabling innovative forms of finance to fund our defence. We are also working closely with Canada on the multilateral defence mechanism and the Defence, Security and Resilience Bank, which lends to smaller businesses in the supply chain, so that we have one model to help us better fund defence in our country and across Europe.
James Wild (North West Norfolk) (Con)
It is good that the Chancellor has had those meetings, but perhaps they have come too late, because when the former Defence Secretary resigned, he said that the Treasury was “unwilling” to provide the resources needed to defend the country against rising threats. The Chancellor has said that national security always comes first, so why this dereliction of duty? Why is she failing to tackle the ever-expanding welfare budget and blocking the defence investment plan from getting the funding needed to meet the threats that we face?
Rachel Blake
Absolutely not; we have real confidence in the British venture capital sector. In the 2025 Budget, we doubled the investment limits and gross assets threshold for the enterprise investment and venture capital trust schemes. Those changes are supporting growth and development.
Mark Garnier (Wyre Forest) (Con)
May I start by congratulating the former Economic Secretary, the right hon. and learned Member for Northampton North (Lucy Rigby), on her promotion to Chief Secretary? In the eight months that I shadowed her in her previous role, she made a strong impact and gained significant, well-deserved respect from those in the financial services industry. May I also welcome my fourth Economic Secretary, and wish her the very best of luck in the role?
As the Leader of the Opposition said in a speech last week, tax and regulation is getting in the way of financial services lending and investing in the UK economy. Does the new Economic Secretary think that the next Chancellor will do a better job of ensuring growth for this country?
Rachel Reeves
The hon. Gentleman makes an important point about making sure that we get the balance right. We are supporting steel made in Britain, which the previous Government neglected; we are backing it through the nationalisation of the steelworks in Scunthorpe and more support for Port Talbot and Sheffield, but I also recognise the challenge that some British companies will face. This is why, for example, as is shown by the work that we are doing with the EU on the upcoming EU-UK summit, we want a steel alliance, to reduce tariffs on steel.
James Wild (North West Norfolk) (Con)
Next week, those swingeing 50% tariffs on steel imports will hit manufacturing businesses across the country, putting thousands of jobs at risk. While they are intended to protect domestic production, industry is warning that many grades simply are not made in the UK in the quantity needed. It is a simple question for the Chancellor: will she guarantee that tariffs will not apply where businesses cannot get steel in the UK?
Rachel Reeves
In my two Budgets, I have raised an additional £30 billion through taxes for more wealthy people, whether that is through the changes to the non-dom rules, VAT and business rates on private schools, taxes on private jets, the high-value council tax surcharge or, indeed, the increases in capital gains tax. Combined, that is an extra £30 billion secured for our public services, to stabilise our public finances and get debt down as a share of our economy by asking those with the broadest shoulders to pay more.
Richard Fuller (North Bedfordshire) (Con)
I am sorry, but the Chancellor’s recollection of her record is fantasy economics from a fantasy economist. Is it not the case that her true record is poor decision making: with U-turn after U-turn on winter fuel payments, business rates and family farm taxes; tax after tax on jobs, investment and savings; a country more indebted with higher interest rates; and a Chancellor unable to cut welfare and unwilling to fund our defence?
Several hon. Members rose—
Mr Speaker
May I remind everybody that we are on topical questions, and lots of Members need to get in? I call the shadow Chancellor.
Sir Mel Stride (Central Devon) (Con)
Given all that is going on, this could be the last time. The legacy of this Chancellor has been the highest taxes on record, a benefits bill spiralling out of control, and unemployment 300,000 higher than it was at the last general election. The right hon. Lady trumpets 2.8% inflation, but that is still well above target, and only last year it was the highest in the G7, to the detriment of millions up and down our country. Under her plans, how much more does she intend to borrow in this Parliament than under the plan she inherited?
Rachel Reeves
Let’s talk about my record: six cuts in interest rates; wages rising faster than inflation; trade deals secured; investment delivered; support for our energy-intensive industries; half a million children lifted out of poverty; record investment in our national health service; more money for local transport infrastructure right around the country; the biggest uplift in defence spending since the end of the cold war; and an economy that has constantly beaten the forecasts—an economy that is growing, and an economy where inflation has come down. Compared with the disastrous 14 years when the Conservatives were in office, I would take our record any day.
Mr Speaker
May I repeat what I just said? Chancellor, there are lots of Government Members who need to get in. I have to get through this list. You have to help me to help them ask their questions.
Sir Mel Stride
The right hon. Lady cannot bring herself to answer the simple question I asked. I will tell her: she is borrowing one quarter of a trillion pounds more than the plans that she inherited—that is her legacy. We hear that the right hon. Member for Makerfield (Andy Burnham) is considering borrowing even more. Does she agree that that would be utterly reckless and that the bond markets will not wear it?
Rachel Reeves
I thank my hon. Friend for the representation that he makes on behalf of the ceramics industry in Newcastle-under-Lyme. The £120 million funding will be launched in the autumn. We are working with the sector now, and it will be available for firms of all sizes, because it is important that small ceramics manufacturers can benefit, as well as larger ones.
Daisy Cooper (St Albans) (LD)
Today is exactly 10 years since the country voted to leave the EU, and thanks to the Conservatives, the post-Brexit red tape has created 2 billion pieces of extra paperwork for British businesses—enough to stretch around the world 20 times. The hit to growth is the equivalent of the Treasury losing out on £90 billion every single year. Surely by now the Labour Government and the Labour party must recognise that if they want to go for growth and raise revenue, they should drop their red lines on Europe.