Budget Resolutions

Lindsay Hoyle Excerpts

Thursday 23rd November 2017 Commons Chamber

[Susan Elan Jones (Clwyd South) (Lab)]

It is a great pleasure to follow the hon. Member for Stafford (Jeremy Lefroy). I want to agree with the Secretary of State for Communities and Local Government on one thing. In his great peroration, he said how proud he was to have been born British. I, too, am very proud to have been born British. In fact, I am doubly blessed, of course, because I was born Welsh as well as British.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

North Wales!

[Susan Elan Jones]

Yes, from north Wales—even better. [Laughter.] In all seriousness, one of the reasons why I feel so proud to have been born in this country is that I know the quality of our public servants across this country—the people who teach in our schools, the people who work in our hospitals, our firefighters and our police—who go above and beyond to serve us every day and right through the night. We often speak in statistics in this place, which is fair enough, but that is why we are right to feel aggrieved that there has been no real movement on the public sector pay gap. This is now as much a matter of morality as it is one of economics, and I regret the fact that the Government have not taken this more seriously.

Yesterday, I heard the very sad news of the passing of Mrs Anne Davies. She was a schoolteacher in Ponciau junior school in my constituency; indeed, she was one of my teachers. She served the communities of Ponciau and Rhosllannerchrugog with great distinction. She was a school teacher between the late 1940s and the 1980s, and I reckon she must have taught about 1,200 children. Think of the effect that one of the best teachers in Wales and one of the strongest people in those communities had on so many children. That is why the current public sector pay freeze does a grave disservice to people across the length and breadth of our country.

I agree with the Welsh Cabinet Secretary for Finance, Mark Drakeford, when he points out that the Welsh governmental budget will still be 5% lower in real terms in 2019-20 than it was in 2010-11. I feel concerned that, as the Chancellor said yesterday, we are only beginning negotiations on the north Wales growth deal. Those negotiations have been beginning for a long time, and it is time we had some action. Wrexham County Borough Council, which is run not by Labour but by a coalition of Conservatives and independents, makes that point on its website. It has already saved around £18 million in the past three years, and it thinks that it will have to find another £13 million over the next two years. It states:

“We have less and less money to spend every year”.

Yet as we hear about these great concerns, we recognise that we are now giving away £3 billion to pay for the Government’s failure in the Brexit negotiations—they never put that on the Brexit bus did they! UK national debt is now of staggering proportions. According to figures from the Office for National Statistics, debt that was £358.6 billion in May 1998 now stands at £1,726.9 billion—a staggering sum. In a phrase worthy of Jim Hacker, yesterday the Chancellor said that our productivity performance “continues to disappoint”. Had Sir Humphrey been sitting behind him, he would have said, “A brave comment, Chancellor.”

The Deputy Governor of the Bank of England, Ben Broadbent, stated:

“Productivity growth has slowed in just about every advanced economy, but it has been more severe in this country than in others.”

The Daily Telegraph, that most Tory of Tory papers, commented that “productivity growth has crashed”. The journalist Tim Wallace spoke of how the 1860s was the last decade of negative real income growth. He wrote:

“That the move to electricity did spark a resurgence in growth would provide reassurance if only we knew that the next technological revolution was sure to bring the same benefits in the 21st century”.

That is the view from Planet Tory, which shows how the Government are failing. Finally, the Government really need to sort out land banking for the sake of Heol Berwyn in Cefn Mawr and other communities.

--- Later in debate ---

[Jo Churchill (Bury St Edmunds) (Con)]

I welcome the Budget, particularly on R and D, the enterprise investment scheme and small and medium-sized enterprises, which I hope to be able to address next week.

Today I will concentrate on housing. I am encouraged by the ambition we showed yesterday, and now we need to focus on delivery. It is a sad fact that the average age at which people now enter the housing market is 37, and half of people in their 30s do not expect to own a house like their parents have, so there is work to do.

Some 217,000 houses were built out this year, compared with the woeful 75,000 built out during the last year of the Labour Government, but arguably this is not about more council houses, more of this and more of that; it is about the industry, about housing authorities and about all of us working to deliver what people want, which is homes. No matter a person’s tenure, they want a roof. The important thing is that we get the right homes for people, that we get the right quality of homes and that we get homes where we need them. I am pleased to see that we are looking for density, particularly on urban sites, because that makes a great deal of difference in ensuring that people in cities are near their place of work.

I am also pleased to see that the Homes and Communities Agency will become Homes England, and the £44 billion of capital funding, loans and guarantees is most welcome. The acknowledgement of the importance of small builders is also welcome because they have largely disappeared from the construction industry. Their need to be able to access finance has been acknowledged with a further £1.5 billion for the home building fund and £630 million for the housing infrastructure fund.

We want homes to have quality and to be well designed. We would also like homes to have electric charging points, which the Chancellor spoke about. We want to use R and D and innovation in building. There is no reason why we should not be using robotic bricklaying machines and modular builds, where accessible and appropriate, to ensure that we get on with delivering these houses in a smart way so that we put roofs over people’s heads.

More houses should not mean lower quality. The all-party parliamentary group on excellence in the built environment is considering the possibility of a new homes ombudsman, because 98% of all houses that currently come to market have some sort of snagging issue. I hope to talk to Ministers about that as the idea develops.

There is also £170 million coming into the skills agenda through the industrial strategy, which is most welcome, with another £34 million going into innovation and training. It would be great to see construction colleges at every large construction site, with large house builders basing a training centre at the centre of each large site that could later be redeveloped and used as a community centre.

We need all sorts of approaches to development if we are to build this number of houses. Construction is now a high-tech industry, and it should not be thought of as the preserve of boys at the back of the class who perhaps cannot add up. I would like to see a higher degree of attention on delivering quality training in this area.

We need road and rail infrastructure to connect new housing developments. Overspill from the west-east Oxford-Cambridge corridor will undoubtedly come upon us in Bury St Edmunds. Houses are very expensive in my constituency, and they are often out of reach of people in an area where average wages sit below the national average. I would like us to concentrate on having a planning system that looks across the piece. The current two-tier system is not helpful. Bringing empty homes into use is something we are concentrating on in St Edmundsbury, but the problem is often about discovering ownership, rather than applying the council tax. I do feel, however, that applying the council tax levy will certainly add a bit of weight to encourage people to consider whether their house should be empty or not.

Given that we have little time left, let me end by thanking the Exchequer Secretary, my hon. Friend the Member for Harrogate and Knaresborough (Andrew Jones), for listening to me and my young constituent from the Suffolk Accident Rescue Service, and examining the accident rescue charities grant scheme. We were most grateful for being able to retrieve—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I call Alison Thewliss.

Financial Statement

Lindsay Hoyle Excerpts

Wednesday 22nd November 2017 Commons Chamber

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Before I call the Chancellor of the Exchequer, I remind hon. Members that copies of the Budget resolutions will be available in the Vote Office at the end of the Chancellor’s speech. I also remind them that it is not the norm to intervene on the Chancellor of the Exchequer or the Leader of the Opposition.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

I report today on an economy that continues to grow, continues to create more jobs than ever before, and continues to confound those who seek to talk it down: an economy set on a path to a new relationship with our European neighbours and a new future outside the European Union—a future that will be full of change, full of new challenges, and, above all, full of new opportunities. In this Budget, we express our resolve to look forward, not back; to embrace that change; to meet those challenges head-on; and to seize those opportunities for Britain.

The negotiations on our future relationship with the European Union are in a critical phase. My right hon. Friend the Prime Minister has been clear about the fact that we seek a deep and special partnership, based on free and frictionless trade in goods and services, close collaboration on security, and strong mutual respect and friendship; and, as Chancellor, I am clear about the fact that one of the biggest boosts that we can provide for businesses and families—one of the best ways to protect British jobs and prosperity as we build that new future—is to make early progress in delivering my right hon. Friend’s vision, with an implementation agreement that allows businesses to plan and invest with confidence. This Government will make the pursuit of that progress a top priority in the weeks ahead.

While we work to achieve this deep and special partnership, we are determined to ensure that the country is prepared for every possible outcome. We have already invested almost £700 million in Brexit preparations and today I am setting aside over the next two years another £3 billion. I stand ready to allocate further sums if and when needed. No one should doubt our resolve.

But this Budget is about much more than Brexit. The world is on the brink of a technological revolution—one that will change the way we work and live, and transform our living standards for generations to come. We face a choice: either we embrace the future, seize the opportunities which lie within our grasp and build on Britain’s great global success story; or, as the Labour party advocates, we reject change and turn inwards to the failed and irrelevant dogmas of the past.

We have no doubts. We choose the future. We choose to run towards change, not away from it, and to prepare our people to meet the challenges ahead, not to hide from them. And the prize will be enormous because, for the first time in decades, Britain is genuinely at the forefront of this technological revolution—not just in our universities and research institutes, but this time in the commercial development labs of our great companies, and on factory floors and business parks across this land. But we must invest to secure that bright future for Britain, and at this Budget that is what we choose to do.

We are listening and we understand the frustration of families where real incomes are under pressure. So at this Budget, we choose a balanced approach—yes, maintaining fiscal responsibility as we at last see our debt peaking, continuing to invest in the skills and infrastructure that will support the jobs of the future and building the homes that will make good on our promise to the next generation, but crucially also helping families to cope with the cost of living.

As we invest in our country’s future, I have a clear vision of what that global Britain looks like: a prosperous and inclusive economy where everybody has the opportunity to shine, wherever in these islands they live and whatever their background, where talent and hard work are rewarded, and where the dream of home ownership is a reality for all generations; a hub of enterprise and innovation; a beacon of creativity; a civilised and tolerant place that cares for the vulnerable and nurtures the talented; an outward-looking, free-trading nation; and a force for good in the world. That is the Britain that I want to leave to my children—a Britain we can be proud of, and a country fit for the future. I know we will not build it overnight but we will lay the foundations in this Budget today. [Interruption.] Mr Deputy Speaker, I am being tempted with something a little more exotic here, but I will stick to plain water. I did take the precaution of asking the Prime Minister to bring a packet of cough sweets, just in case. [Laughter.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I think it might be hearing aids that we will all need if this noise continues.

[Mr Hammond]

I shall first report to the House on the economic forecasts of the independent Office for Budget Responsibility. This is the bit with the “long, economicky words”. Once again, I thank Robert Chote and his team for their hard work over the last few weeks. I believe passionately that the best way to improve the lives of people across the length and breadth of this country is to help them get into work. I am acutely aware that 1.4 million people out of work is 1.4 million too many, so today I welcome the OBR forecast that there will be another 600,000 people in work by 2022. I am immensely proud of this Government’s record in having created over 3 million new jobs since 2010—incidentally, a rather far cry from the 1.2 million job losses that the right hon. Member for Hayes and Harlington (John McDonnell) predicted in 2011—but let nobody be in any doubt that this Government will continue their relentless focus on getting more people into work, giving them the security and peace of mind of a regular wage.

I also want work to be good quality and well paid, and regrettably our productivity performance continues to disappoint. The OBR has assumed at each of the last 16 fiscal events that productivity growth would return to its pre-crisis trend of about 2% a year, but it has remained stubbornly flat. So today it revises down the outlook for productivity growth, business investment and GDP growth across the forecast period. The OBR now expects to see GDP grow 1.5% in 2017, 1.4% in 2018, 1.3% in 2019 and 2020, before picking back up to 1.5% and finally 1.6% in 2022, with inflation peaking at 3% in this quarter before falling back towards target over the next year. I reaffirm the remit for the independent Monetary Policy Committee and its 2% CPI inflation target.

We took over an economy with the highest budget deficit in our peacetime history. Since then, thanks to the hard work of the British people, that deficit has been shrinking and next year will be below 2%. However, our debt is still too high and we need to get it down, not for some ideological reason but because excessive debt undermines our economic security, leaving us vulnerable to shocks; because it passes the burden unfairly to the next generation; and because it cannot be right to spend more on our debt interest than we do on our police and our armed forces combined. So I am pleased to tell the House that the OBR expects debt to peak this year and then gradually fall as a share of GDP—a turning point in our recovery from Labour’s crisis. Apparently not everyone shares the view that falling debt is good news. I have heard representations from Labour Members suggesting increasing the debt by £500 billion, taking us back to square one and wasting an extra £7 billion a year on debt interest. If they carry on like that, there will be plenty of others joining Kezia Dugdale in saying, “I’m Labour, get me out of here.”

I have rejected these representations, and instead I reaffirm our pledge of fiscal responsibility and our commitment to the fiscal rules I set out last autumn, but now I choose to use some of the headroom I established then, so that as well as reducing debt, we can also invest in Britain’s future, support our key public services, keep taxes low and provide a little help to families and businesses under pressure: a balanced approach that will prepare Britain for the future, not seek to hide from it.

Today, the OBR confirms that we are on track to meet our fiscal rules. Borrowing is forecast to be £49.9 billion this year. That is £8.4 billion lower than forecast at the spring Budget. After taking account of all decisions since the spring Budget, the OBR’s GDP revision and the measures I will announce today, borrowing will fall in every year of the forecast, from £39.5 billion next year to £25.6 billion in 2022-23, to reach its lowest level in 20 years. As a percentage of our GDP, it falls from 2.4% this year to 1.9% next year, then 1.6%, 1.5%, 1.3% and, finally, 1.1% in 2022-23. The OBR forecasts the structural deficit to be 1.3% of GDP in 2020-21, giving £14.8 billion of headroom against our 2% target. Debt will peak at 86.5% of GDP this year and then fall to 86.4% next year, then 86.1%, 83.1%, 79.3% and, finally, 79.1% in 2022-23—the first sustained decline in debt in 17 years. Under Conservative-led Governments, the hard work of the British people is steadily clearing up the mess left behind by Labour.

At the heart of a global Britain must be a dynamic and innovative economy. On Monday, the Prime Minister set out the key elements of our modern industrial strategy—a strategy to raise productivity and wages in all parts of our country and to guarantee the brighter future we have promised to the next generation. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy will present a White Paper to the House in the next few days. This is not just an economic plan; it is a key part of our vision for a fairer Britain—a Britain where every one of our citizens can contribute to, and share in, the benefits of prosperity. The key to raising the wages of British workers is raising investment, both public and private, and we are investing in Britain’s future: half a trillion pounds since 2010; the biggest rail programme since Victorian times; the largest road building programme since the 1970s; the biggest increase in science and innovation funding in four decades; and the two largest infrastructure projects in Europe—Crossrail and HS2.

When I took this job, I committed to making the battle to raise Britain’s productivity, and thus the nation’s pay, the central mission of the Treasury. Last autumn, I launched the national productivity investment fund to provide an additional £23 billion of investment over five years to upgrade Britain’s economic infrastructure for the 21st century. Today, I can announce that I will extend the fund for a further year and expand it to over £31 billion, meaning that public investment under this Government will, on average, be £25 billion higher per year in real terms than under the last Labour Government. We are allocating a further £2.3 billion for investment in R and D, and we will increase the main R and D tax credit to 12%, taking the first strides towards the ambition of the industrial strategy to drive up R and D investment across the economy to 2.4% of GDP.

Britain is the world’s sixth largest economy. London is the No. 1 international financial services centre. We have some of the world’s best companies, and a commanding position in a raft of tech and digital industries that will form the backbone of the global economy of the future. Those who underestimate Britain do so at their peril, because we will harness that potential and turn it into the high-paid, high-productivity jobs of tomorrow. Others may choose to reject the future; we choose to embrace it. A new tech business is founded in Britain every hour, and I want that to be every half hour, so today we invest over £500 million in a range of initiatives from artificial intelligence to 5G and full-fibre broadband. We support regulatory innovation with a new regulators’ pioneer fund and a new geospatial data commission—[Interruption.] Opposition Members should listen. The new commission will develop a strategy for using the Government’s location data to support economic growth.

To help our tech start-ups reach scale, we asked Sir Damon Buffini to review the availability of patient capital, and I am grateful to him. Today, we are publishing an action plan to unlock over £20 billion of new investment in UK knowledge-intensive, scale-up businesses, including through a new fund in the British Business Bank seeded with £2.5 billion of public money, by facilitating pension fund access to long-term investments, and by doubling enterprise investment scheme limits for knowledge-intensive companies while ensuring that EIS is not used as a shelter for low-risk capital preservation schemes. We stand ready to step in to replace European Investment Fund lending if necessary.

There is perhaps no technology as symbolic of the revolution gathering pace around us as driverless vehicles—[Interruption.] Opposition Members surely do not want me to make that joke about the Labour party again. I know that Jeremy Clarkson does not like driverless vehicles, but there are many other good reasons to pursue the technology, so today we step up our support for it—sorry Jeremy, but this is definitely not the first time that you have been snubbed by Hammond and May. Our future vehicles will be driverless, but they will be electric first, and that is a change that needs to come as soon as possible for our planet. So we will establish a new £400 million charging infrastructure fund and invest an extra £100 million in plug-in car grants and £40 million in charging R and D. I can confirm today that we will clarify the law so that people who charge their electric vehicles at work will not face a benefit-in-kind charge from next year. The tax system can play an important role in protecting our environment.

We owe it to our children that the air they breathe is clean. We published our air quality plan earlier this year, and we said then that we would fund it through taxes on new diesel cars. From April 2018, the first-year vehicle excise duty rate for diesel cars that do not meet the latest standards will go up by one band, and the existing diesel supplement in company car tax will increase by one percentage point. Drivers buying a new car will be able to avoid the charge as soon as manufacturers bring forward the next-generation cleaner diesels that we all want to see, and we will only apply the measures to cars. Before the headline writers start limbering up, let me be quite clear: no white van man or white van woman will be hit by these measures. The levy will fund a new £220 million clean air fund to provide support for the implementation of local air quality plans, improving the quality of the air in cities and towns up and down the UK.

However, air quality is, sadly, not our only environmental challenge. Audiences across the country who have been glued to “Blue Planet II” have been starkly reminded of the problems of plastics pollution. The UK led the world on climate change agreements and is a pioneer in protecting marine environments. I want us now to become a world leader in tackling the scourge of the plastic that is littering our planet and our oceans. With my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs, I will investigate how the tax system and charges on single-use plastic items can reduce waste, because we cannot keep our promise to the next generation to build an economy fit for the future unless we ensure our planet has a future.

Meeting the challenge of change head-on means giving our people the confidence to embrace it and the skills to reap the rewards from it, and we have a plan to do so. We are delivering 3 million apprenticeship starts by 2020 thanks to our apprenticeship levy, and I will keep under review the flexibility that levy payers have to spend that money. We are introducing T-levels, and today I provide a further £20 million to support further education colleges to prepare for them. Knowledge of maths is key to the high-tech, cutting-edge jobs in our digital economy, but it is also useful in less glamorous roles such as frontline politics. So we will expand the Teaching for Mastery of Maths programme to a further 3,000 schools; we will provide £40 million to train maths teachers across the country; we will introduce a £600 maths premium for schools, for every additional pupil who takes A-level or core maths; and we will invite proposals for new maths schools across England, so that highly talented young mathematicians can release their potential, wherever they live and whatever their background. More maths for everyone—Mr Deputy Speaker, don’t let anyone say I don’t know how to show the nation a good time.

Computer science is also at the heart of this revolution, so we will ensure that every secondary school pupil can study computing by tripling the number of trained computer science teachers to 12,000, and we will work with industry to create a new national centre for computing. But rapid technological change means that we also need to help people retrain during their working lives, ensuring that our workforce are equipped with the skills they will need for the workplace of the future. Today, my right hon. Friend the Education Secretary and I are launching an historic partnership, between the Government, the CBI and the TUC, to set the strategic direction for a national retraining scheme. Its first priority will be to boost digital skills and support expansion of the construction sector. To make a start immediately, we will invest £30 million in the development of digital skills distance learning courses, so that people can learn wherever they are and whenever they want.

I am pleased to be able to accept the representation I have received from the TUC to continue to fund Unionlearn, which I recognise is a valuable part of our support for workplace learning. [Interruption.] Apparently the Opposition do not know what that is, Mr Deputy Speaker. I got an email from Len asking me especially, so I couldn’t say no, could I?

Backing skills is key to unlocking growth nationally, but far too much of our economic strength is concentrated in our capital city. If we are truly to build an economy that is fit for the future, we have to get all parts of the UK firing on all cylinders. That is what our modern industrial strategy is all about. Today we back the northern powerhouse, the midlands engine and elected Mayors across the UK, with a new £1.7 billion Transforming Cities fund: half to be shared by the six areas with elected metro Mayors, to give them the firepower to deliver on local transport priorities, and the remainder to be open to competition by other cities in England.

We are investing £300 million to ensure that HS2 infrastructure can accommodate future northern powerhouse and midlands engine rail improvements. I am also providing £30 million today to trial new solutions to improve mobile and digital connectivity on trains on the TransPennine route. We are developing a local industrial strategy with Manchester, and I am pleased to announce a second devolution deal with Andy Street in the west midlands. We have agreed a new devolution deal with North of the Tyne, and we will fund the replacement of the 40-year-old rolling stock on the Tyne and Wear metro, at a total investment of £337 million.

We will invest £123 million in the Redcar steelworks site to support the ambitious plans of our new Tees Valley Mayor, Ben Houchen, and my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke), who are leading the fight for prosperity in their area. We are piloting 100% business rates retention in London next year and continuing to work with Transport for London on the funding and financing of Crossrail 2. We will also make over £1 billion of discounted lending available to local authorities across the country to support high-value infrastructure projects—a Conservative Government giving power back to the people of Britain, and driving prosperity and greater fairness across our United Kingdom.

The decisions taken in this Budget also mean £2 billion more for the Scottish Government, £1.2 billion more for the Welsh Government and over £650 million more for a Northern Ireland Executive. I can confirm today that progress is being made on city deals for Tay Cities and Stirling, and on a growth deal for Borderlands. I am getting used to the experience of having my ear bent by 13 Scottish Conservative colleagues, most recently on the issue of Scottish police and fire VAT. The Scottish National party knew the rules and knew the consequences of introducing these bodies, and ploughed ahead anyway. My Scottish Conservative colleagues have persuaded me that the Scottish people should not lose out just because of the obstinacy of the SNP Government, so we will legislate to allow VAT refunds from April 2018.

In response to yet more representations from my hon. Friends from Scotland, aided and abetted by my hon. Friend the Member for Waveney (Peter Aldous), from November 2018 we will introduce transferable tax history for transfers of oil and gas fields in the North sea, an innovative tax policy that will encourage new entrants to bring fresh investment to a basin that still holds up to 20 billion barrels of oil.

We will begin negotiations towards growth deals for north Wales and mid-Wales, and we will abolish tolls on the Severn bridge, as promised, by the end of next year. We will deliver on our commitment to review the effect of VAT and air passenger duty on tourism in Northern Ireland, reporting at next year’s Budget, and we will open negotiations for a Belfast city deal as part of our commitment to a comprehensive and ambitious set of city deals across Northern Ireland—a Conservative Government delivering for all parts of our United Kingdom.

It is only by supporting our regions and nations, dealing with our debts and investing in skills and infrastructure for the long term that we can we build an economy fit for the future. But I recognise that many people are feeling pressure on their budgets now, and because we are all in politics to make people’s lives better, in the short term as well as the long term, we will take further measures in this Budget to help families and businesses where we can.

The switch to universal credit is a long-overdue and necessary reform, replacing Labour’s broken system that discouraged people from working more than 16 hours a week and trapped 1.4 million on out-of-work benefits for nearly a decade. Universal credit delivers a modern welfare system where work always pays and people are supported to earn, but I recognise the genuine concerns on both sides of the House about the operational delivery of this benefit, and today we will act on those concerns.

First, we will remove the seven-day waiting period applied at the beginning of a benefit claim so that entitlement to universal credit will start on the day of the claim. To provide greater support during the waiting period, we will change the advances system to ensure that any household that needs it can access a full month’s payment within five days of applying; we will make it possible to apply for an advance online, and we will extend the repayment period for advances from six months to 12 months; and any new universal credit claimant in receipt of housing benefit at the time of the claim will continue to receive that housing benefit for a further two weeks, making it easier for them to pay their rent. This is a £1½ billion package to address concerns about the delivery of the benefit. My right hon. Friend the Secretary of State for Work and Pensions will give further details in a statement to the House tomorrow.

We also want to help low-income households in areas where rents have been rising fastest. In the long run, of course, the answer lies in increasing the amount of housing available, a theme I shall return to. In the meantime, the best way to help them is by increasing the rate of support in those areas where rents are least affordable. So we will increase targeted affordability funding by £125 million over the next two years, benefiting 140,000 people. We will always listen to genuine concerns and act where we can to help.

Making work pay is core to the philosophy of this Government. That is why we introduced the national living wage in 2016. From April, it will rise by 4.4%, from £7.50 an hour to £7.83, handing full-time workers a further £600 pay increase and taking their total pay rise since its introduction to over £2,000 a year. We also accept the Low Pay Commission’s recommendations on national minimum wage rates, supporting our young people with the largest increase in youth rates in 10 years and delivering a pay rise for over 2 million minimum wage workers of all ages across the country.

The facts are these: income inequality today is at its lowest level in 30 years; the top 1% are paying a larger share of income tax than at any time under the last Labour Government; the poorest 10% in Britain have seen their real incomes grow faster since 2010 than the richest 10%; and the proportion of full-time jobs that are low paid is at its lowest level for 20 years—a Conservative Government delivering a fairer Britain.

As well as making work pay, we want families to keep more of the money they earn. When we came into office, the personal allowance stood at £6,475 a year. From April, I will increase the personal allowance to £11,850 and the higher rate threshold to £46,350, making progress towards our manifesto commitments, which I reiterate today. The typical basic-rate taxpayer will be £1,075 a year better off compared with 2010, and a full-time worker on the national living wage will take home more than £3,800 extra—this Conservative Government, delivering for Britain’s workers.

I turn now to duties. The tobacco duty escalator will continue at inflation plus 2%, with an additional 1% duty on hand-rolling tobacco this year, and minimum excise duty on cigarettes will also rise. Excessive alcohol consumption by the most vulnerable people is all too often done through cheap, high-strength, low-quality products, especially so-called white ciders. I pay tribute to the campaign led by my hon. Friend the Member for Congleton (Fiona Bruce) on this issue. Following our recent consultation, we will legislate to increase duty on these products from 2019. But, recognising the pressure on household budgets, and backing our great British pubs, duties on other ciders, wines, spirits and beer will be frozen. This will mean that a bottle of whisky will be £1.15 less in 2018 than if we had continued with Labour’s plans, and a pint of beer 12p less. So, merry Christmas, Mr Deputy Speaker.

The cost of travel is an important factor for families and businesses. From April 2019, I will again freeze short-haul air passenger duty rates, and I will also freeze long-haul economy rates, paid for by an increase on premium-class tickets and on private jets—sorry, Lewis. For those who do not stretch to a private jet, I can announce a new railcard for those aged 26 to 30, giving 4.5 million more young people a third off their rail fares. I will, once again, cancel the fuel duty rise for both petrol and diesel that is scheduled for April. Since 2010, we will have saved the average car driver £850 and the average van driver over £2,100, compared with Labour’s escalator plans. Fuel duty has now been frozen for the longest period in 40 years, at a total cost to the Exchequer of £46 billion since 2010.

Our NHS is one of our great institutions: an essential part of what we are as a nation and a source of pride the length and breadth of the country. Its values are the values of the British people, and we will always back it. Dedicated NHS staff are handling the challenges of an ageing population and rapidly advancing technology with skill and commitment, and we salute them. Mr Deputy Speaker, although you would not think so to listen to the Leader of the Opposition as he regularly talks down the achievements of the NHS, the number of patients being treated is at record levels, cancer survival rates are at their highest ever level, 17 million people are now able to access GP appointments in the evenings and at weekends, and public satisfaction among hospital in-patients is at its highest level in more than 20 years.

It is central to this Government’s vision that everyone has access to the NHS, free at the point of need. That is why we endorsed and funded the NHS’s five-year forward view in 2014. But even with this additional funding, we acknowledge that the service remains under pressure, and today we respond. First, we will deliver an additional £10 billion package of capital investment in frontline services over the course of this Parliament to support the sustainability and transformation plans that will make our NHS more resilient—investing for an NHS fit for the future. But we also recognise that the NHS is under pressure right now. I am therefore exceptionally, and outside the spending review process, making an additional commitment of resource funding of £2.8 billion to the NHS in England: £350 million immediately, to allow trusts to plan for this winter, and £1.6 billion in 2018-19, with the balance in 2019-20, taking the extra resource into the NHS next year to £3.75 billion in total, meaning that our NHS will receive a £7.5 billion increase to its resource budget over this year and next.

Our nation’s nurses provide invaluable support to us all in our time of greatest need and deserve our deepest gratitude for their tireless efforts. My right hon. Friend the Health Secretary has already begun discussions with health unions on pay structure modernisation for “Agenda for Change” staff, to improve recruitment and retention. He will submit evidence to the independent pay review body in due course, but I want to assure NHS staff and patients, and Members of this House, that if the Health Secretary’s talks bear fruit, I will protect patient services by providing additional funding for such a settlement.

Just as our public services must be fit for the future, so too must our tax system. It must remain competitive to attract the brightest and the best to establish and grow the businesses of the future. It must raise the revenue we need to fund our public services and it must be robust against abuse so that it is fair to all. We have heard a lot of talk recently from the Opposition about what they would do to crack down on tax avoidance and evasion, but the truth is that they did not. It is this Government who have clamped down on avoidance and evasion; this Government who have seen the tax gap cut by a quarter since 2010, to a record low; and this Government who have raked in an extra £160 billion over seven years for our public services by collecting the taxes that are due. So I am going to take no lectures, but I will take action. This Budget continues the work of the last seven years, with a package of measures that is forecast to raise £4.8 billion by 2022-23—doing the job that Labour failed to do for 13 years in office.

Our long-term phased reduction of corporation tax has generated investment and jobs and raised £20 billion extra for our public services. We are committed to maintaining Britain’s competitive corporation tax rates, but there is a case now for removing the anomaly of the indexation allowance for capital gains, bringing the corporate tax system into line with the personal capital gains tax system. I will therefore freeze this allowance so that companies receive relief for inflation up to January 2018, but not thereafter.

I am grateful to the Office of Tax Simplification for its recent report on the VAT registration threshold. At £85,000, the UK’s VAT threshold is by far the highest in the OECD. By contrast, in Germany it is just £15,600. I note the OTS conclusion that it distorts competition and disincentivises business growth. I also note the concerns of the Federation of Small Businesses about the cliff edge of the threshold. But such a high threshold also has the benefit of keeping the majority of small businesses out of VAT altogether, so I am not minded to reduce the threshold, but I will consult on whether its design could better incentivise growth, and in the meantime we will maintain it at its current level of £85,000 for the next two years.

We cannot build an economy fit for the future without supporting its backbone: our 5.5 million small businesses, which are responsible between them for nearly half of our private sector jobs. They give our economy its extraordinary vibrancy and resilience, but I recognise that many are feeling under pressure right now. I know what hard work it is to get a business off the ground, to get it to grow, so today I want to do what we can to ease that pressure.

Business rates represent a high fixed cost for small businesses. At Budget 2016 we introduced a package of business rate relief worth almost £9 billion, with a further £435 million in the spring Budget. Today I go further. We have listened to concerns about the potential costs of the annual uprating of business rates in April next year, and today I will accept the representation of the British Chambers of Commerce, CBI and other business organisations and bring forward the planned switch from RPI to CPI by two years, to April 2018—a move worth £2.3 billion to businesses over the next five years.

I have also listened to businesses affected by the so-called staircase tax. We will change the law to ensure that where a business has been impacted by the Supreme Court ruling, it can have its original bill reinstated, if it chooses, and backdated. I hope that I can expect cross-party backing to speed that measure through Parliament.

There are three simple steps to solve the staircase tax—[Interruption.] What do they expect? It’s the tax section. To support the thousands of small pubs that are at the heart of so many of our communities, we will extend the £1,000 discount for pubs with a rateable value of less than £100,000 for one more year, to March 2019.

And I have heard the concerns about the five-yearly revaluation system. Shorter revaluation periods will reduce the size of changes in valuations, so I can announce today that after the next revaluation, future revaluations will take place every three years—this Conservative Government listening to small business.

There is a wider concern across this House and in the business community about the tax system in the digital age. Along with the innovation and growth that it brings, digitalisation poses challenges for the sustainability and fairness of our tax system. But this challenge can only be properly solved on an international basis, and the UK is leading the charge in the OECD and the G20 to find solutions.

Today we publish a position paper on the tax challenge posed by the digital economy, setting out our emerging thinking about potential solutions. But in the meantime, we will take what action we can. Multinational digital businesses pay billions of pounds in royalties to jurisdictions where they are not taxed, and some of these royalties relate to UK sales. So from April 2019, and in accordance with our international obligations, we will apply income tax to royalties relating to UK sales when those royalties are paid to a low-tax jurisdiction, even if they do not fall to be taxed in the UK under our current rules. That will raise about £200 million a year. It does not solve the problem, but it does send a signal of our determination and we will continue work in the international arena to find a sustainable and fair long-term solution that properly taxes the digital businesses that operate in our cyber-space.

Following representations from a number of my hon. Friends, we are also taking further action to address online VAT fraud, which costs the taxpayer £1.2 billion per year, by making all online marketplaces jointly liable with their sellers for VAT, ensuring that sellers operating through them pay the right amount of VAT, just as we would expect traditional retailers to do.

I want to turn to the challenge of the housing market, but before I do so I want to touch on the aftermath of the appalling events at Grenfell Tower. We have provided financial support for the victims of this terrible tragedy, and today I can announce we will provide Kensington and Chelsea Council with a further £28 million for mental health and counselling services, regeneration support for the surrounding areas and to provide a new community space for local residents.

This tragedy should never have happened, and we must ensure that nothing like it ever happens again. All local authorities and housing associations must carry out any identified necessary safety works as soon as possible. If any local authority cannot access funding to pay for essential fire safety work, they should contact us immediately. I have said before, and I will say it again today: we will not allow financial constraints to get in the way of any essential fire safety work.

I want to address the issue of empty properties. It cannot be right to leave property empty when so many are desperate for a place to live, so we will legislate to give local authorities the power to charge a 100% council tax premium on empty properties. We will also launch a consultation on barriers to longer tenancies in the private rented sector and how we might encourage landlords to offer them to those tenants who want the extra security.

I also want to say something about rough sleeping. It is unacceptable that in 21st-century Britain there are people sleeping on the streets, so we will invest today £28 million in three new Housing First pilots in the west midlands, Manchester and Liverpool, and we will establish a homelessness taskforce as part of our commitment to halving rough sleeping by 2022 and eliminating it by 2027.

I thank the many colleagues who submitted ideas on how to tackle the challenge of the housing market, including my hon. Friends the Members for North East Hampshire (Mr Jayawardena), for Eastleigh (Mims Davies) and for Weston-super-Mare (John Penrose) in particular. By continuing to invest in Britain’s infrastructure, skills and research and development, we will ensure the recovery in productivity growth that is the key to delivering our vision of a stronger, fairer, more balanced economy, and the assurance to the next generation of their economic security.

But however successful we are in that endeavour, there is one area where young people today will, rightly, feel concern about their future prospects, and that is in the housing market. House prices are increasingly out of reach for many. It takes too long to save for a deposit, and rents absorb too high a portion of monthly income, so the number of 25 to 34-year-olds owning their own home has dropped from 59% to just 38% over the last 13 years. Put simply, successive Governments, over decades, have failed to build enough homes to deliver the home-owning dream that this country has always been proud of, or indeed to meet the needs of those who rent.

In Manchester a few weeks ago, my right hon. Friend the Prime Minister made a pledge to Britain’s younger generation that she would dedicate her premiership to fixing this problem, and today we take the next steps to delivering on that pledge. By choosing to build we send a message to the next generation that getting on the housing ladder is not just a dream of your parents’ past, but a reality for your future.

We have made a start with schemes such as Help to Buy, which has helped over 320,000 people buy a home. We have increased the supply of homes by more than 1.1 million since 2010, including nearly 350,000 affordable homes. House building stands at its highest level since the crash, with the latest figures showing that over 217,000 net additional homes were added to the stock last year. That is a remarkable achievement, but we need to do better still if we are to see affordability improve.

This is a complex challenge, and there is no single magic bullet. If we do not increase the supply of land for new homes, more money will simply inflate prices and make matters worse. If we do not do more to support the growth of the SME house building sector that was all but wiped out by Labour’s great recession, we will remain dependent on the major national house builders that dominate the industry. If we do not train the construction workers of tomorrow, we may generate planning permissions but we will not turn them into homes. Solving this challenge will require money, it will require planning reform and it will require intervention. So today we set out an ambitious plan to tackle the housing challenge.

Over the next five years, we will commit a total of at least £44 billion of capital funding, loans and guarantees to support our housing market, to boost the supply of skills, resources and building land, and to create the financial incentives necessary to deliver 300,000 net additional homes a year on average by the mid-2020s—the biggest annual increase in housing supply since 1970; new money for the home builders fund to get SME house builders building again; a £630 million small sites fund to unstick the delivery of 40,000 homes; a further £2.7 billion to more than double the housing infrastructure fund; £400 million more for estate regeneration; a £1.1 billion fund to unlock strategic sites, including new settlements and urban regeneration schemes; a lifting of housing revenue account caps for councils in high demand areas, to get them building again; and £8 billion of new financial guarantees to support private house building and the purpose-built private rented sector. And because we need a workforce to build these new homes, we are providing an additional £34 million to develop construction skills across the country.

Solving the housing challenge takes more than money—it takes planning reform. We will focus on the urban areas where people want to live and where most jobs are created, making best use of our urban land and continuing the strong protection of our green belt, in particular building high quality, high density homes in city centres and around major transport hubs. And to put the needs of our young people first, we will ensure that councils in high demand areas permit more homes for local first-time buyers and affordable renters.

My right hon. Friend the Communities Secretary will set out more detail in a statement to the House in due course. However, one thing is very clear: there is a significant gap between the number of planning permissions granted and the number of homes built. In London alone, there are 270,000 residential planning permissions unbuilt. We need to understand why. So I am establishing an urgent review to look at the gap between planning permissions and housing starts. It will be chaired by my right hon. Friend the Member for West Dorset (Sir Oliver Letwin) and will deliver an interim report in time for the spring statement next year. And if that report finds that vitally needed land is being withheld from the market for commercial, rather than technical, reasons, we will intervene to change the incentives to ensure that such land is brought forward for development, using direct intervention compulsory purchase powers as necessary.

Mr Deputy Speaker, my right hon. Friend the Prime Minister has said that we will fix this problem, and no one should doubt the Government’s determination to do so. But the solution will not deliver itself. Local authorities will need help and support. Developers will need encouragement and persuasion. Infrastructure to facilitate higher-density development must be funded and delivered. So the Homes and Communities Agency will expand to become Homes England, bringing together money, expertise and planning and compulsory purchase powers, with a clear remit to facilitate delivery of sufficient new homes, where they are most needed, to deliver a sustained improvement in housing affordability.

But Mr Deputy Speaker, the battle to achieve and sustain affordability will be a long-term one, so we also need to look beyond this Parliament, to long-term measures. We will use new town development corporations to kick-start five new locally agreed garden towns in areas of demand pressure, delivered through public-private partnerships and designed to attract long-term capital investment from around the world.

Last week, the National Infrastructure Commission published their report on the Cambridge-Milton Keynes-Oxford corridor. Today we back their vision and commit to building up to 1 million homes by 2050, completing the road and rail infrastructure to support them. And as a down-payment on this plan, we have agreed an ambitious housing deal with Oxfordshire to deliver 100,000 homes by 2031. We are capitalising on the global reputations of our two most famous universities and Britain’s biggest new town to create a dynamic new growth corridor for the 21st century.

Mr Deputy Speaker, this is our plan to deliver on the pledge we have made to the next generation: that the dream of home ownership will become a reality in this country once again. But I also want to take action today to help young people who are saving to own a home. One of the biggest challenges facing young first-time buyers is the cash required up front. We have put £10 billion more money into Help to Buy: Equity Loan to help those saving for a deposit, but I want to do more still. I have received representations for a temporary stamp duty holiday for first-time buyers, but this would only help those who are ready to purchase now and would offer nothing for the many who will need to save for years. So with effect from today, for all first-time-buyer purchases up to £300,000, I am abolishing stamp duty altogether.

[Hon. Members]

More!

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. If you want more, you are going to have to let the Chancellor finish.

[Mr Hammond]

Mr Deputy Speaker, to ensure that this relief also helps first-time buyers in very high price areas like London, it will also be available on the first £300,000 of the purchase price of properties up to £500,000, meaning an effective reduction of £5,000. That is a stamp duty cut for 95% of all first-time buyers who pay stamp duty and no stamp duty at all for 80% of first-time buyers from today. When we say we will revive the home-owning dream in Britain, we mean it. We do not underestimate the scale of the challenge, but today we have made a substantial down-payment.

Mr Deputy Speaker, one of the things that I love most about this country is its sense of opportunity. I have always felt it, and I want young people growing up today to have that same sense of boundless opportunity. In this Budget, I have set out a vision for Britain’s future and a plan for delivering it: by getting our debt down, by supporting British families and businesses, by investing in the technologies and the skills of the future and by creating the homes and the infrastructure that our country needs.

We are at a turning point in our history, and we resolve to look forwards, not backwards—to build on the strengths of the British economy, to embrace change not hide from it, to seize the opportunities ahead of us and, together, to build a Britain fit for the future. I commend this statement to the House.

Provisional Collection of Taxes

Motion made, and Question put forthwith (Standing Order No. 51(2)),

That, pursuant to section 5 of the Provisional Collection of Taxes Act 1968, provisional statutory effect shall be given to the following motions:—

(a) Stamp duty land tax (higher rates for additional dwellings) (motion no. 35.)

(b) Stamp duty land tax (relief for first-time buyers) (motion no. 36.)

(c) Tobacco products duty: rates (motion no. 40.).—(Mr Philip Hammond.)

Question agreed to.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I now call upon the Chancellor of the Exchequer to move the motion entitled “Income tax (charge)”. It is on this motion that the debate will take place today and on succeeding days. The questions on this motion and on the remaining motions will be put at the end of the Budget debate on Tuesday 28 November.

Budget Resolutions

Lindsay Hoyle Excerpts

Wednesday 22nd November 2017 Commons Chamber

[Jeremy Corbyn (Islington North) (Lab)]

The test of a Budget is how it affects the reality of people’s lives all around this country. I would submit that the reality—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Look, if somebody wants to go for an early cup of tea, please do so—I am told there are mince pies waiting—but what I will have is the Leader of the Opposition listened to, and quietly, from the Government side, in the same way I expected from the other side of the House.

[Jeremy Corbyn]

Thank you, Mr Deputy Speaker.

The reality test of this Budget has to be how it affects ordinary people’s lives. I believe, as the days go ahead and this Budget unravels, the reality will be that a lot of people will be no better off, and the misery that many are in will be continuing.

Pay is now lower than it was in 2010, and wages are now falling again. Economic growth in the first three quarters of this year is the lowest since 2009 and the slowest of the major economies in the G7. It is a record of failure, with a forecast of more to come.

Economic growth has been revised down. Productivity growth has been revised down; business investment, revised down; people’s wages and living standards, revised down. What sort of strong economy is that? What sort of “fit for the future” is that?

You may recall, Mr Deputy Speaker, that the deficit was due to be eradicated by 2015. Then that moved to 2016; then to 2017; then to 2020. And now we are looking at 2025. The Government are missing their major targets, but the failed and damaging policy of austerity remains.

The number of people sleeping rough has doubled since 2010. This year, 120,000 children will spend Christmas in temporary accommodation. Three new pilot schemes to look at rough sleeping across the whole country simply does not cut it. We want action now to help those poor people who are forced to sleep on our streets and beg for—[Interruption.]

[Mr Deputy Speaker]

Order. I think the Whips should know better. Mr Spencer, I am sure you could relax—please, we do not need any more from you. If not, leave the Chamber.

[Jeremy Corbyn]

The point I was making is that three new pilot schemes for rough sleepers simply does not cut it. It is a disaster for those people sleeping on our streets and forced to beg for the money for a night shelter. They are looking for action now from Government to give them a roof over their heads.

In some parts of the country, life expectancy is actually beginning to fall. The last Labour Government lifted 1 million children out of poverty—it was an amazing achievement. Under this Government, an extra 1 million children will be plunged into poverty by the end of this Parliament. Some 1.9 million pensioners, or one in six of all pensioners, are living in poverty—the worst rate anywhere in western Europe. So, it is falling pay, slow growth and rising poverty. This is what the Chancellor has the cheek to call a strong economy.

The Chancellor’s predecessor said they would put the burden on

“those with the broadest shoulders”—[Official Report, 20 October 2010; Vol. 516, c. 951]—

so how has that turned out? The poorest 10th of households will lose 10% of their income by 2022, while the richest will lose just 1%—so much for “tackling burning injustices”. This is a Government tossing fuel on the fire.

Personal debt levels are rising: 8.3 million people are over-indebted. If the Chancellor wants to help people out of debt, he should back Labour’s policy for a real living wage of £10 an hour by 2020. Working-class young people are now leaving university with £57,000-worth of debt because this Government—his Government—trebled tuition fees. The new Government policy is to win over young people by keeping fees at £9,250 per year—more debt for people who want to learn.

But that is just one of the multitudes of injustices presided over by this Government. Another is universal credit, which we called on Ministers to pause and fix. That is the view of this House. It is the verdict of those on the frontline.

[Christopher Pincher (Tamworth) (Con)]

Keep going, Jeremy!

[Mr Deputy Speaker]

Mr Pincher, you shouted out “Keep going,” and the right hon. Gentleman will—but you will be going out of the Chamber.

[Jeremy Corbyn]

I would rather people stayed to listen, actually, Mr Deputy Speaker, to the reality—[Interruption.]

[Mr Deputy Speaker]

Order. Silence—that’s the difference. It will be in silence.

[Jeremy Corbyn]

Thank you, Mr Deputy Speaker.

Maybe Government Members would like to listen to Martin’s experience. A full-time worker on the minimum wage, he said:

“I get paid four weekly meaning that my pay date is different each month”.

Because, under the universal credit system, he was paid twice in a month and deemed to have earned too much, his universal credit was cut off. He says:

“This led me into rent arrears and I had to use a food bank for the first time in my life”.

That is the humiliation that he and so many others have gone through because of the problems of universal credit. Would it not have been better to pause the whole thing and look at the problems it has caused?

The Chancellor’s solution to a failing system causing more debt is to offer a loan, and a six-week wait, with 20% waiting even longer, simply becomes a five-week wait. This system has been run down by £3 billion of cuts to work allowances, the two-child limit and the perverse and appalling rape clause, and it has caused evictions because housing benefit is not paid direct to the landlord. So I say to the Chancellor again: put this system on hold so it can be fixed and keep 1 million of our children out of poverty.

For years, we have had the rhetoric of a long-term economic plan that never meets its targets when what all too many people are experiencing is long-term economic pain—and hardest hit are disabled people, single parents and women—so it is disappointing that the Chancellor did not back the campaign by my hon. Friend the Member for Brent Central (Dawn Butler) to end period poverty. He could have done that. Well done her on the campaign; shame on him for not supporting it.

The Conservatives’ manifesto in the last election disappeared off their website after three days, and now some Ministers have put forward some half-decent proposals conspicuously borrowed from the Labour manifesto. Let me tell the Chancellor: as socialists, we are happy to share ideas. The Communities Secretary called for £50 million of borrowing to invest in house building; presumably, the Prime Minister slapped him down for wanting to bankrupt Britain. The Health Secretary has said that the pay cap is over, but where is the money to fund the pay rise?

The Chancellor has not been clear today—not for NHS workers, our police, firefighters, teachers, teaching assistants, bin collectors, tax collectors, or armed forces personnel—so will he listen to Claire? She says:

“My Mum works for the NHS. She goes above and beyond for her patients. Why does the government think it’s ok to under pay, over stress and underappreciate all that work?”

The NHS chief executive says:

“The budget for the NHS next year is well short of what is currently needed”.

From what the Chancellor has said today, it is still going to be well short of what is needed. He said in 2015 that the Government would fund another 5,000 GPs, but in the last year we have had 1,200 fewer GPs—and we have lost community nurses and mental health nurses. The Chancellor promised £10 billion in 2015 and delivered £4.5 billion. So if he does not mind, we will wait for the small print on today’s announcement—but even what he said certainly falls well short of the £6 billion Labour would have delivered from our June manifesto.

Over 1 million of our elderly are not receiving the care they need. Over £6 billion will have been cut from social care budgets by next March. [Interruption.] I hope the hon. Member for Burton (Andrew Griffiths) begins to understand what is like to wait for social care stuck in a hospital bed, with other people having to give up their work to care for them. The uncaring, uncouth attitude of certain Government Members has to be called out—[Interruption.]

[Mr Deputy Speaker]

Order. Carry on.

[Jeremy Corbyn]

That is why social care budgets are so important for so many very desperate people in our country.

Our schools will be 5% worse off by 2019 despite the Conservative manifesto promising that no school would be worse off. Five thousand head teachers from 25 counties wrote to the Chancellor saying that:

“we are simply asking for the money that is being taken out of the system to be returned”.

A senior science technician, Robert, wrote to me saying:

“My pay”

has been

“reduced by over 30%. I’ve seen massive cuts at my school. Good teachers and support staff leave.”

That is what does for the morale both of teachers and students in school. According to this Government, 5,000 head teachers are wrong, Robert is wrong, the IFS is wrong—everybody is wrong except the Chancellor.

If the Chancellor bothered to listen to what local government is saying, he would know that it has been warning that services for vulnerable children are under more demand than ever, with more children being taken into care and more in desperate need of help and support. Yet councils are labouring with a £2 billion shortfall in the cost of dealing with vulnerable children. Local councils will have lost 80% of their direct funding by 2020. The reality of this across the country is women’s refuges closing, youth centres closing, libraries closing, museums closing, and public facilities understaffed, under-resourced and under-financed—it could be so different—but compassion can cost very little. Just £10 million is needed to establish the child funeral fund campaigned for so brilliantly by my hon. Friend the Member for Swansea East (Carolyn Harris). Why could not the Chancellor at least have agreed to fund that?

Under this Government, there are 20,000 fewer police officers, and another 6,000 community support officers and 11,000 fire service staff have been cut as well. You cannot keep communities safe on the cheap. Tammy explains:

“Our police presence has been taken away”

from her village

“meaning increasing crime. As a single parent I no longer feel safe in my own village, particularly”

at night.

Five and a half million workers earn less than the living wage—1 million more than five years ago. The Chancellor, last Sunday, could not even see 1.4 million people unemployed in this country. There is a crisis of low pay and insecure work affecting one in four women and one in six men, with a record 7.4 million people in working households living in poverty. If we want workers earning better pay and less dependent on in-work benefits, we need strong trade unions—the most effective way of boosting workers’ pay. Instead, this Government weakened trade unions and introduced employment tribunal fees, now scrapped thanks to the victory in the courts by Unison—a trade union representing its members.

Why did not the Chancellor take the opportunity to make two changes to control debt: first, to cap credit card debt, so that nobody pays back more than they borrowed; and secondly, to stop credit card companies increasing people’s credit limit without their say-so? Debt is being racked up because the Government are weak on those who exploit people, such as rail companies hiking fares above inflation year on year, and water companies and energy suppliers. During the general election, the Conservatives promised an energy cap that would benefit

“around 17 million families on standard variable tariffs”,

but every bill tells millions of families that the Government have broken that promise.

With £10 billion in housing benefit going into the pockets of private landlords every year, housing is a key factor in driving up the welfare bill. There were not too many words from the Chancellor about excessive rents in the private rented sector. With this Government delivering the worst rate of house building since the 1920s and a quarter of a million fewer council homes, any commitment would be welcome, but we have been here before. The Government promised 200,000 starter homes three years ago; not a single one has been built in those three years. We need a large-scale, publicly funded house building programme, not this Government’s accounting tricks and empty promises. Yes, we back the abolition in stamp duty for first-time buyers—because it was another Labour policy in our manifesto in June, not a Tory one.

This Government’s continual preference for spin over substance means that across this country the words “northern powerhouse” and “midlands engine” are now met with derision. Yorkshire and Humber gets only a 10th of the transport investment per head given to London. Government figures show that every region in the north of England has seen a fall in spending on services since 2012. The midlands, east and west, receives less than 8% of total transport infrastructure investment, compared with the 50% that goes to London. In the east and west midlands, one in four workers is paid less than the living wage—so much for the midlands engine. Re-announced funding for the trans-Pennine rail route will not cut it, and today’s other announcements will not redress the balance.

Combined with counterproductive austerity, this lack of investment has consequences in sluggish growth and shrinking pay packets. Public investment has virtually halved. Under this Government, Britain has the lowest rate of public investment in the G7, but it is now investing in driverless cars, after months of road testing back-seat driving in the Government.

By moving from RPI to CPI indexation on business rates, the Chancellor has adopted another Labour policy, but why do the Government not go further and adopt Labour’s entire business rates pledge, including exempting plant and machinery, and an annual revaluation of business rates?

Nowhere has the Government’s chaos been more evident than over Brexit. Following round after round of fruitless Brexit negotiations, the Brexit Secretary has been shunted out for the Prime Minister, who has got no further. Every major business organisation has written to the Government, telling them to pull their finger out and get on with it. Businesses are delaying crucial investment decisions, and if this Government do not get their act together, those businesses will soon be taking relocation decisions.

Crashing out with no deal and turning Britain into a tax haven would damage people’s jobs and living standards, serving only a wealthy few. It is not as though this Government are not doing their best to protect tax havens and their clients in the meantime. The Paradise papers have again exposed how a super-rich elite is allowed to get away with dodging taxes. This Government have opposed measure after measure in this House—their Tory colleagues have done the same in the European Parliament—to clamp down on the tax havens that facilitate this outrageous leaching from our public purse. Non-paid tax and clever reinvestment to get away with tax hit hospitals, schools and housing, and they hit the poorest and most needy in our society. There is nothing moral about dodging tax; there is everything immoral about evading it.

Too often, it feels as though there is one rule for the super-rich and another for the rest of us. The horrors of Grenfell Tower were a reflection of a system that puts profits before people and that fails to listen to working-class communities. In 2013, the Government received advice in a coroner’s report that sprinklers should be fitted in all high-rise buildings. Today, once again, the Government failed to fund the £1 billion investment needed. The Chancellor says that councils should contact them, but Nottingham and Westminster have done so, and they have been refused; nothing was offered to them. We have the privilege of being Members of Parliament, in a building that is about to be retrofitted with sprinklers to protect us. The message is pretty clear: this Government care more about what happens here than about what happens to people living in high-rise homes, in effect saying that they matter less.

Our country is marked by growing inequality and injustice. We were promised, with lots of hype, a revolutionary Budget, but the reality is that nothing has changed. People were looking for help from this Budget, and they have been let down by a Government who, like the economy that they have presided over, are weak and unstable, and in need of urgent change. They call this a Budget fit for the future; the reality is that they are a Government no longer fit for office.

--- Later in debate ---

[Wes Streeting (Ilford North) (Lab)]

I welcome the exemption on the vehicle excise duty supplement for new zero-emission-capable taxis, so I thank the Chancellor for listening to representations. Through the right hon. Lady, may I urge the Chancellor to bring forward that measure so that it will kick in earlier than April 2019, because many such vehicles will be on the road from next month and we will want drivers to be able to take advantage of these new zero-emission-capable and environmentally friendly taxis?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. May I just say, because the hon. Gentleman will want to make a separate speech, that if Members make interventions, they should please make them short?

[Nicky Morgan]

It is also a pleasure to serve with the hon. Gentleman on the Treasury Committee. I am sure that the Chancellor will have has heard what he said. I am also sure that the Chancellor is looking forward to appearing in front of the Committee on 6 December, when we will be able to ask him such questions directly.

--- Later in debate ---

[Luke Graham (Ochil and South Perthshire) (Con)]

On a point of order, Mr Deputy Speaker. I seek clarification as to whether we are allowed to try to intervene on the right hon. Gentleman’s speech—whether he takes an intervention or not is another matter.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

The rules are that the Chancellor of the Exchequer and the Leader of the Opposition are not to be intervened on, but the courtesies go to the leader of the SNP here. He may wish not to give way, and that is his choice. What I suggest—[Interruption.] Order. He has made it clear that he wants the same courtesies that have been established for others, in which case he will not be giving way. So it will save us a lot of time if people do not keep standing.

[Ian Blackford]

Thank you very much, Mr Deputy Speaker. It is about time the Scottish Conservatives showed some proper respect, not just to the SNP here, but to the Scottish Government in Edinburgh.

Let me return to my point. It is an absolute disgrace that we have had £140 million taken out of frontline spending by a Tory Government ahead of this announcement. VAT should never have been charged to the Scottish police and fire services. The sole blame for that lies with the Conservative Government. [Interruption.]

--- Later in debate ---

[Mr Deputy Speaker]

Order. Mr Kerr, you are a normal, gentle person—a man who comes to Chorley and shows such dignity. I am hoping you will show me some dignity today.

[Ian Blackford]

Thank you, Mr Deputy Speaker. The SNP spoke out, here and in Holyrood, 140 times before the Government finally saw sense. What about the £140 million that has been paid? The Chancellor has confirmed today what we knew all along: that it was a political choice to charge VAT on our emergency services. He has accepted that he was wrong, but I am calling on him and his friends from Scotland on the Tory Benches to make sure that we push for a refund of the VAT that has been paid over the past three years.

The Chancellor has painted a picture of a strong economy, ready for the impending economic disaster of Brexit. We all have to wonder just what planet he is on. Most workers are seeing a decline in their living standards and have done so since the financial crisis. We are living through the worst decade for wage growth in 210 years. Young people are going to be poorer than their parents. Housing has become unaffordable for many. The austerity economic model has failed millions—the Prime Minister alluded to that when she talked about those “just about managing”. Today’s Budget was an opportunity to address these challenges and make this a Budget for people and prosperity.

The reality is that nothing in this Budget deals with the challenges we face. We face the impending UK exit from Europe. We know that the Government are preparing for a no deal, yet the Chancellor made no mention of how the economy would cope with that. The cliff edge is before us and the Chancellor sits transfixed, unable or incapable of rising to the challenge. No doubt he recognises the economic self-harm that comes with leaving the single market and the customs union, but he has failed to act. Why? It is because the Brexiteers have set the agenda for this Government and the Chancellor is without the authority to challenge the madness. The Chancellor, like his Government, is in office but not in power.

We know that the Prime Minister has to present a financial settlement to the EU27 over the coming days, yet there was no mention of that in the statement—none at all. This Government have to take their head out of the sand and accept that the future indicates the likelihood of significant economic self-harm.

Before the winds of Brexit hit us, the starting position for millions of people is that by then they will have already been struggling with nine years of austerity. The cuts being imposed on public services mean impacts on service delivery, and public service workers in particular are feeling the squeeze. This Budget shows that the Chancellor is either blind to what is going on or is behaving like a frightened rabbit caught in the headlights. Either way, people are going to pay the price for his lack of leadership. [Interruption.] I can see the Chancellor saying, “An extra £2 billion for Scotland”, but let me tell this House the reality: it is a £250 million cut in real terms. That is what the Government here are delivering to the people of Scotland.

This Government used to speak of the empty rhetoric of the “long-term economic plan”, but they have failed to provide a vision and have no plan for delivering prosperity. The long-term economic plan has given way to no plan. Scratch the surface of the economy and we see a structure barely coping with the state of society: a structure that is so unfairly built in the favour of the wealthy that we have created a situation where we have the worst wage growth in 200 years and the IFS tells us that an additional 400,000 children will be in “absolute poverty” within six years due to the benefits cuts that are to come. Let us remind ourselves that there are still £12 billion of welfare cuts to come from this Tory Government.

The case is that working people are paying the price for this Government’s ideological obsession with austerity—and let us make no mistake, it is an ideological obsession. It is a pity that people watching and listening to this cannot see the Conservative Members sitting there laughing while people in our country are paying the price—those Members should be utterly ashamed of themselves. Effective stewardship of our economy has to recognise the importance of fiscal and monetary policy working in tandem to create the circumstances of sustainable and inclusive economic growth. Any disconnect leads to a failure to deliver an economy that works for all, and that is precisely what is happening. A failure to deliver a Budget for prosperity hits all workers, in particular those in the public sector.

In September, the Scottish Government became the first in the UK to announce they will scrap the public sector pay cap, as our nurses, teachers, police officers and firefighters deserve a fair deal for the future. Future pay rises will be based on the cost of living. Today, the Chancellor betrayed public sector workers by refusing to fund a fair pay rise.

It is not just the squeeze on pay that is leaving low earners struggling to get by; the UK Government’s social security cuts are specifically designed to remove the welfare state. The SNP will never accept this ideological attack on the most vulnerable in our society. The damaging and destructive universal credit system must be halted and fixed. I welcome some of the things that we have heard today, but they simply do not go far enough. The cuts to work allowances are still taking place. While young people are pushed into poverty, universal credit is not fit for purpose. The Chancellor of the Exchequer should call a halt to it today and reform the system properly.

We also call on the Chancellor to scrap the two-child policy and the immoral rape clause. According to the IFS, the two-child cap on tax credits will mean about 600,000 three-child families losing £2,500 a year on average and about 300,000 families with four or more children losing a whopping £7,000 a year on average. Most of those families are in work. If we want to make work pay, let us remove the rape clause.

There is nothing in the Budget for the women born in the 1950s who are seeing a rise in their pensionable age of up to six years, without proper notice. That is depriving millions of a pension that they have paid for and that they are entitled to. Time and again, the Government have been asked to slow down the rate of increase in women’s pensionable age. It is increasing at a rate of three months for each calendar month. Either the Chancellor decides to act now to deliver fairness to 1950s women, or he will find that Parliament does it for him. There is a private Member’s Bill that calls for mitigation to be put in place for 1950s women. I say to the Government: recognise the cross-party nature of that Bill and act, or face defeat.

While the Tory attack on benefits pushes more families into poverty, the financial squeeze on household incomes continues as Brexit bites. Today, inflation sits at 3%. Prices are rising at a faster rate than wages. The Resolution Foundation has calculated that inflation of 3% combined with the benefits freeze will impact on 7.3 million children, 2.4 million disabled people and 800,000 people looking for work. There was no answer to that from the Chancellor—there was nothing in the Budget.

Let me tell the Chancellor and those on the Tory Benches what life is like outside the gilded rooms of Whitehall: electricity bills have increased by 9%—[Interruption.] You laugh, when people in Scotland and the rest of the United Kingdom have seen electricity prices rise by 9%. [Interruption.] You really ought to be ashamed of yourself and I hope that your electorate hold you to account. I refer, by the way, to the hon. Member—the so-called honourable Member—for Ayr, Carrick and Cumnock (Bill Grant).

The price of children’s clothing has increased by 6.7% and the price of butter by 12%. Bus and coach fares have risen by 13% and train fares by 3.4%. Transport insurance is up by 12.6%, motor vehicle insurance by 13% and travel insurance by 10%. That is the reality for ordinary working people in Scotland and the rest of the United Kingdom.

While inflation is making the cost of the weekly shop soar, real wages are falling. There was nothing in the Budget to address that. The rise in inflation and the squeeze on wages are creating a crisis for low-income earners. Between 2010 and 2016, official GDP per employee had risen by 3.5%, yet real wages are 1.1% lower, when adjusted for consumer prices index inflation. If inflation is calculated to include housing costs, real wages are down by 7.2%. That is the economic record of the Tory Government. The collapse of UK productivity growth has driven low growth and stagnant wages.

While many of my constituents and families across the UK are relying on credit cards to put food on the table, a different story is unfolding in the City. Under the Tory Government, boardroom pay has soared. From 2010 to 2016, the average remuneration for FTSE 100 chief executive officers almost doubled. The average remuneration of an executive director has doubled from £1.5 million to £3.1 million.

The inequality goes much deeper. European Commission figures reveal that the UK had the biggest increase in the EU’s gender pay gap in 2015. The difference in average hourly pay between male and female workers jumped from 19.7% in 2014 to 20.8% in 2015. In effect, women are working unpaid for more than two months a year compared with men.

The Government have not only driven thousands into poverty; they have failed to invest in building an inclusive economy fit for future generations. The legacy this Chancellor leaves is an economy that works only for the rich and the reckless. We need a Government that will create the circumstances to deliver inclusive, sustainable economic growth; a Government that will encourage investment, enhance innovation and drive up productivity and living standards; a Government that recognise that monetary and fiscal policy have to work in unison. The focus on monetary policy has driven up house prices and stocks and shares, but failed to drive investment in the real economy.

Back in 2009, quantitative easing was an obvious choice as part of the attempt to restore confidence and growth, provided that it was matched with fiscal measures, such as investing in our infrastructure and building capacity in our economy, with a focus on investment to improve efficiency. There was an opportunity to invest in the economy to kick-start growth and productivity. However, under the steer of this Government, there was investment to benefit the wealthy. In the end, that has done nothing but exacerbate the gap between rich and poor.

Even the Bank of England has recognised the negative effect of this policy. In 2012, it said that although quantitative easing had increased asset prices, it had disproportionately benefited the top 5% of households. Standard & Poor’s argued that—[Interruption.] I see the Chancellor waving his hands, but this is important and something for which he ultimately has to take responsibility. Standard & Poor’s argued last year that inflating asset prices had exacerbated the gap between rich and poor. It found that the wealthiest 10% of households held 56% of all net financial assets in 2008, and that by 2014 the proportion of the nation’s wealth in the hands of the richest 10% had increased to 65%.

It is easy to see why the Tories do not want to change this policy. Reducing inequality has never been one of their aims. The evidence is stark: quantitative easing has mostly benefited those who started with considerable wealth. The FTSE 100 was sitting at 3,805 on 18 March 2009, just ahead of the launch of the QE programme. Last night, the market closed at 7,411. That is growth of 95% in just over eight years. The Government have stuffed cash into the pockets of the wealthy, while ordinary folk have paid the price for austerity. The cry “There’s no money” flies in the face of the Government’s own agenda.

A further £70 billion was invested in QE after the Brexit vote, taking the programme to £435 billion. That is £435 billion that has been put on to our debt, with no plan for how it will be repaid. We could have invested in our infrastructure, for example by dealing with the demand for housing and dampening the rise in house prices at affordable levels. We could have invested in connectivity—in transport and in digital—to allow our citizens and businesses to compete, rather than being caught in the slow lane of transport snarl-ups and fighting to get decent broadband or mobile connectivity. Such investment in our people and infrastructure would have grown the economy and tax receipts, allowing us to cut the deficit. There would have been a payback. The Government could have supported businesses at the same time as supporting people. They cannot tell us that there is no money when they can invest an additional £70 billion in QE at the drop of hat. They must take responsibility and create the circumstances for inclusive growth and prosperity. Of course, taking responsibility is not something that this Government do.

Some £6.9 billion is lost to our schools and hospitals every year because the Government have failed to tackle aggressive tax avoidance and tax evasion. I call on them to take tough new action to ensure that the richest in society and the biggest corporations pay the taxes they owe in full. They have chosen to cut public spending while protecting the super-rich—of course, the Tories are the party of the super-rich. If they will not take the action required, they should devolve the powers needed to tackle the issue to the Scottish Parliament.

When I asked the Chancellor last month about any assessment he had made of the interrelationship between monetary and fiscal policy, the answer I got was that monetary policy was the responsibility of the Bank of England. There was no regard for a link between the two. It is left to the Bank of England to shine a light on the failure of the Chancellor to engage in joined-up thinking. In written evidence to the Treasury Committee, the Bank of England admitted that the steep rises in house prices in the decade preceding the crisis, together with a fall in long-term interest rates, have led to

“a sharp rise in intergenerational dispersion of wealth benefiting in particular older people who had already entered the market before prices began to rise.”

The Government have avoided every opportunity to invest in young people. What hope—[Interruption.] The Chancellor says, “Rubbish”. I am afraid I am actually giving him facts from respected institutions, not least the Bank of England. Is the Chancellor really saying that the Bank of England is wrong as well? I think the Bank of England might have something to say about that.

What hope do millennials have to cling on to? Robbed of their housing allowance and lumbered with chronic student debt, this Government have gone out of their way to avoid investing in young people. The intergenerational wealth unfairness is creating the perfect storm for future generations. Research from the Resolution Foundation shows that today’s 27-year-olds are earning the same amount that 27-year-olds did a quarter of a century ago. A typical millennial has actually earned £8,000 less during their twenties than those in the preceding generation.

We have missed chance after chance to invest in inclusive growth opportunities. The Government have been the proverbial one-club golfer relying on monetary measures, but in a vacuum. Even the IFS has warned the Chancellor about his calculations. First of all we had George Osborne proclaim he wanted to balance the books by 2015. That did not happen. Now the current Chancellor wants to eliminate borrowing by the mid-2020s. But with Brexit set to hit the economy, even the IFS has called on him to abandon his fanciful fiscal targets. There is more uncertainty on forecasts now than ever before. The Chancellor himself told the Treasury Committee that a

“cloud of uncertainty is acting as a temporary damper, and we need to remove it as soon as possible”.

Well, there was nothing in the Budget today to remove it.

Mr Deputy Speaker, I am in a giving mood. I will give the Chancellor a bit of fundamental economic advice. End the suicidal flirtation with a no-deal scenario, give business something to invest in and work on keeping the UK in the single market. The stupidity and recklessness of some on the Government Front Bench who rode around in that famous red bus has to be the most damaging economic pledge in modern history. They said £350 million a week for the NHS. Well, they are silent on that now. The Foreign Secretary and Environment Secretary should listen up, because here are some home truths about the mess they have created: the Bank of England has confirmed that 75,000 jobs are at risk in the financial sector owing to Brexit; the London School of Economics has revealed that Scotland’s towns and cities could lose up to £30 billion over five years; the Fraser of Allander Institute revealed that Brexit would cost Scotland up to 80,000 jobs and see wages fall by £2,000 a head per year; and now the Chancellor is planning for a no deal—a complete catastrophe which is unfolding on his watch. He knows how devastating such a path would be for the UK economy. He has given Departments £250 million to carry out work in preparation. To put that into context, that would pay for 11,553 new starter nurses, teachers or police officers.

It is not just the spending to fund Brexit that is costing communities, however. Leaving the EU will cut off the financial social funds we have benefited from for so long. This will be devastating for communities where poverty and destitution at the hands of the Tory austerity policies have seen volunteers pick up the pieces. Although as the UK haemorrhages EU funding and the Chancellor proclaims austerity is essential to save, he did manage to find £1 billion for the DUP—quite remarkable. The Chancellor found £1 billion for the Northern Irish Executive to spend on devolved areas, but no additional funds were provided to Scotland or any other part of the UK. Cash for votes—not very honourable at all.

And what use are the Scottish Conservatives, who pledged to work as a bloc to protect Scotland’s interests? That was their chance to shine: a golden opportunity to show they were prepared to put politics aside and stand up for Scotland. But no, party loyalty prevailed and now Scotland is being overlooked in this dodgy deal. This money cannot be processed until the discussions have concluded on the appropriateness of the way in which the UK Government decided to provide the additional financial support. The Barnett formula rules mean that Scotland, Wales and Northern Ireland are entitled to an extra £2.9 billion and £1.67 billion respectively as a result of the deal. Where are the Scottish Tories standing up for that £2.9 billion that Scotland deserves? Where are the calls from the Scottish Tories for this UK Government to match the deal from Northern Ireland? They have been found wanting.

Year after year, the UK Government continue to let down our world-class oil and gas industry in the north-east of Scotland. Two years ago, the Conservatives boasted about the creation of a new oil and gas ambassador, who would

“promote the North Sea around the world and boost inward investment”.

How embarrassing, then, for the Chancellor that the role, two years later, has yet to be filled. It seems that the Chancellor and his Cabinet colleagues have simply forgotten about our North sea industry once again. Despite the Chancellor’s tight grip restraining Scotland’s economic potential, the SNP in Scotland has delivered for our people.

[Anna Soubry (Broxtowe) (Con)]

On a point of order, Mr Deputy Speaker. Is it in order for hon. Members to make speeches in which they completely ignore the contents of the Budget that the Chancellor has just delivered?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

That was definitely not a point of order and the right hon. Lady knows it. She has provided a running commentary all the way through. I think I have heard more than enough for the time being and I want to get to the end of the speech by the leader of the SNP.

[Ian Blackford]

Thank you, Mr Deputy Speaker.

In Scotland, international exports are up 41% between 2007 and 2015. The latest employment figures show that Scotland has higher employment rates and lower unemployment rates than the UK. Youth employment continues to outperform that in the UK. The Scottish Government fulfilled their commitment to reduce youth unemployment by 40% four years ahead of schedule—that is how to make fiscal targets.

But it is not just about the ability of the Scottish Government to deliver an inclusive society that works for all; it is their vision for an economy that benefits all. When the UK Government chose the rape clause, the Scottish Government chose the baby box. When the UK Government trebled tuition fees, the Scottish Government maintained the principle of free tuition for all. When the Conservatives pushed for a dementia tax, the Scottish Government stood by free personal care for the elderly. We know that an economy is not just a tool for inclusive growth, but is central to the social fabric of the society in which we grow up. It is time for an economy that benefits all. End the damaging austerity agenda and stop the catastrophic ideological obsession with a Brexit no deal.

[Several hon. Members rose—]

[Mr Deputy Speaker]

Order. Just to say that we are going over to 10-minute speeches.

[Diana Johnson (Kingston upon Hull North) (Lab)]

On a point of order, Mr Deputy Speaker. This morning in Cabinet Office questions, the First Secretary of State claimed that the consultation on the contaminated blood scandal had been extended until the end of October this year at the request of the all-party group. That is not correct. In fact, the all-party group had asked for an extension of the original date of the consultation, which was in August 2017. Many people have contacted me, concerned that this is now being used as a reason why progress has not been made on the announcement of a chair and terms of reference, and I wondered if there was a way of correcting the record.

[Mr Deputy Speaker]

I think the hon. Lady has already achieved that. She has put a correction on the record.

Finance Bill

Lindsay Hoyle Excerpts

Tuesday 31st October 2017 Commons Chamber

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I beg to move amendment 7, page 78, line 19, after “day”, insert

“no earlier than 1 January 2022”.

This amendment provides that the provisions for digital reporting in Clause 60 may not be brought into force before 2022.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Amendment 8, page 78, line 20, at end insert—

“(4A) No regulations may be made under subsection (4) until 90 days after the Chancellor of the Exchequer has laid a report before the House of Commons which sets out—

(a) the steps which HMRC has undertaken to establish that suitable software is available;

(b) the results of the testing by HMRC and others of that software, and

(c) the reasons why mandatory use of the software is in the interest of HMRC and taxpayers.”

This amendment would require the Chancellor of the Exchequer to report on software suitability and testing before giving effect to the provisions of Clause 60.

Amendment 9, in clause 61, page 78, line 34, after “day” insert

“no earlier than 1 January 2022”.

This amendment provides that the provisions for digital reporting in Schedule 14 and Clause 61 may not be brought into force before 2022.

Amendment 10, in clause 62, page 79, line 12, at end insert—

“(5A) No regulations may be made under sub-paragraph (5) on a day prior to 1 January 2022.”

This amendment provides that the provisions for digital reporting in Clause 62 may not be brought into force before 2022.

Amendment 11, page 79, line 19, at end insert—

“(6A) Regulations under sub-paragraph (5) may not impose mandatory requirements for businesses to generate quarterly updates.”

This amendment provides that any system for quarterly updates to be generated must not be mandatory.

New clause 2—Taxation of chargeable gains: review of treatment of commercial property held by persons with foreign domicile—

“(1) The Taxation of Chargeable Gains Act 1992 is amended as follows.

(2) After section 14 (non-resident groups of companies), insert—

“Review of treatment of commercial property held by persons with foreign domicile

(1) Within three months of the passing of the Finance (No. 2) Act 2017, the Commissioners for Her Majesty’s Revenue and Customs shall complete a review about the taxation of chargeable gains held by persons with foreign domicile.

(2) The review shall consider in particular the implications if the treatment of commercial property were to be the same as the treatment of residential property under section 4BB(2).

(3) The Chancellor of the Exchequer shall lay a report of the review under this section before the House of Commons within three months of its completion.””

This new clause requires a review to be undertaken of the treatment of capital gains on commercial property disposed of by UK taxpayers with a foreign domicile.

New clause 3—Income provided through third parties: review of effects generally and in relation to sports image rights—

“(1) The Chancellor of the Exchequer shall, no later than 21 July 2019, undertake a review of the effects of the changes made in relation to income provided through third parties.

(2) The review under subsection (1) shall consider in particular the effects in relation to sports image rights.

(3) The Chancellor of the Exchequer shall lay before the House of Commons a report of the review under this section no later than 15 October 2019.

(4) In this section—

“the changes made in relation to income provided through third parties” means the provisions of sections 34 and 35 of and Schedule 11 to this Act,

“sports image rights” means the rights or purported rights, whether or not protected or capable of protection under any relevant laws, associated with the identity or activities of a person where those rights or purported rights are associated with their participation or former participation in a sport.”

This new clause requires the Chancellor of the Exchequer to carry out and publish a review of the effects of provisions for disguised remuneration in relation to income provided through third parties, including particularly the effects in relation to sports image rights.

New clause 4—Impact analyses of provisions of this Act—

“(1) The Chancellor of the Exchequer must review the impact of the provisions of this Act in accordance with this section and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider—

(a) the impact of those provisions on households at different levels of income,

(b) the impact of those provisions on people with protected characteristics (within the meaning of the Equality Act 2010), and

(c) the impact of those provisions on different parts of the United Kingdom and different regions of England.

(3) In this section—

“parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland;

“regions of England” has the same meaning as that used by the Office for National Statistics.”

This new clause requires the Chancellor of the Exchequer to carry out and publish a review of the effects of the provisions of the Bill on households with different levels of income, people with protected characteristics and on a regional basis.

New clause 5—Review of the conditions of registration for third country goods fulfilment businesses and traders using their services—

“(1) Within six months of the passing of this Act, the Chancellor of the Exchequer shall complete a review of the conditions of registration for third country goods fulfilment businesses and the traders using their services.

(2) The review shall consider in particular—

(a) an automatic joint and several liability for VAT between registered fulfilment businesses and the traders using their services, and

(b) a requirement that registered fulfilment businesses should charge VAT to customers on behalf of traders using their services.

(3) The Chancellor of the Exchequer shall lay a report of the review under this section before the House of Commons within one month of its completion.”

This new clause requires a review to be undertaken of the conditions of registration for third country goods fulfilment businesses and the traders using their services.

Government amendments 12 to 16.

[Jonathan Reynolds]

I rise to speak to amendments 7 to 11, which relate to the Government’s Making Tax Digital proposals. I do not think I will be able to get in any references to ancient Rome or Greece, unlike my colleagues, because of the subject matter.

Given that the debate on this package of measures has been ongoing since the first version of the Finance Bill, Labour’s many concerns have been well rehearsed at every stage of the discussions. However, they are not our concerns alone. They echo the worries of businesses, service providers and the trade associations that represent them, including the Institute of Chartered Accountants, the Chartered Institute of Taxation and the Federation of Small Businesses.

We recognise that Labour’s repetition of and emphasis on the potential damage that the measures might have had has led to a number of concessions over the summer. The Government had to concede that the timeline for implementation was not feasible and undertook a U-turn to delay the implementation of digital reporting for VAT until 2019. The Federation of Small Businesses described that change to the timetable as a “lifeline for small firms”. Labour has also ensured that there is an exemption for small businesses operating under the VAT threshold of £85,000.

However, we do not believe that those changes are enough. That is why Labour proposes this package of amendments today. To be clear, we support the principle of digitising tax returns, as we would any measure that purported to simplify the compliance and reporting burden on UK businesses and that might help HMRC efficiently and accurately to collect the amount of tax it is owed. That does not change the fact that the Government have made a chaotic mess of implementing Making Tax Digital. This significant and important change to the system needs to be approached with due care and attention.

If the Government’s measures are carried out as currently proposed, there is a risk that added costs and unintended consequences will be passed on to small and medium-sized businesses, as tax experts and accountants have warned. The Government’s target implementation date is unrealistic and unworkable. What is more, it will coincide with the uncertainty created by Britain’s departure from the EU, which is already creating a significantly tougher operating climate for small businesses. I note the comments made by Conservative Members during the debate on the first group of amendments about not wanting a review of any measure in the Finance Bill to coincide with Brexit. I am sure that they will apply that view consistently to this package of measures.

To be frank, nobody is sure whether HMRC or business can be ready for the implementation date. At present, the plans are rushed and poorly thought through. This is why our amendment proposes that the date is put back to 2022 to allow time for consideration and compliance and to avoid a clash with our exit from the European Union.

Finance Bill

Lindsay Hoyle Excerpts

2nd reading: House of Commons
Tuesday 12th September 2017 Commons Chamber

[Mr Kevan Jones (North Durham) (Lab)]

On a point of order, Mr Deputy Speaker. We are seeing an historic event tonight: a Government actually filibustering their own Finance Bill! I think that should have a plaque somewhere in this Chamber. I am told through the usual channels that the Conservative Whips told their Members to book hotel accommodation tonight because the Labour party was apparently going to talk the Bill long, even though Labour Members were assured by our own Whips that we would not. They have got to keep it going until 10 o’clock, so their Members can be reimbursed by the Independent Parliamentary Standards Authority. With 25 more speakers to go, and the Whips doing their best to cut down contributions, I wonder, Mr Deputy Speaker, whether you could institute a time limit to save Government Members from the incompetence of their own Whips Office. [Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Hang on a minute. I thank the Government Whips, who have turned out in force, for their advice. I do not know what fear you have put among them, Mr Jones. However, if they were really interested in filibustering, they would have asked you speak. The fact that they did not has probably saved the House. As you well know, that is not a point of order but you have put your point on the record.

[Jack Brereton]

On the points made by the hon. Member for High Peak (Ruth George) in her intervention, we are simplifying the tax system to ensure that work pays for people who are in work. Under Labour, people were better off on benefits and that is not right. People should be better off when they are in work. Some of Labour’s claims are not true. We on the Conservative Benches believe that the only way for people to get out of poverty and deprivation is through work.

We must monitor closely the increases in consumer debt and insolvency in constituencies such as mine. It is much lower than the 150% it was under Labour during the financial crisis, but with low interest rates making borrowing cheaper we have seen rises from 130% to 135% of income in recent years. As Conservatives in government, we must continue to ensure that lenders are not allowed to take the high levels of risk seen under Labour. Lenders need to continue to be more careful, and to ensure that mortgages and other consumer borrowing remains affordable.

It is vital that we do all we can to ensure a decent level of security for our constituents and their families in later life. Measures introduced under the Conservative leadership, such as pension auto-enrolment, have made sure that millions more are now saving enough to support themselves in retirement. It is now even more important that savers of working age access the advice they need to manage their pension investments to maximise their income once they draw their pension. Clause 3 will therefore be welcomed by my constituents. In 2017-18, the state pension is more than £1,200 higher than in 2010. For those reaching state pension age after April 2016, the new state pension introduces a single flat rate of £159.55 per week. That means many people will receive much more than under the old system, and it is much fairer.

We have some incredible employers in my constituency. I was very privileged to visit Goodwin International and Wedgwood over the summer. Such businesses are at the cutting edge in their field. Whether it be in high-tech manufacturing, precision engineering or the creative ceramics industry, businesses are enjoying blossoming success with the fruits of better skilled jobs.

I am particularly pleased with the provisions on business investment relief, which will help businesses to continue to bring more investment to the UK and encourage more foreign investment in British companies, with investors no longer being dissuaded by excessive taxes. It is especially important that more of this investment enters areas such as Stoke-on-Trent, where we have an appetite for development, huge potential to grow and prosper and an ability to improve jobs. The provisions will expand the types of investment that can be made in UK businesses under the business investment relief scheme and so encourage greater foreign investment. It builds on the more than £1.5 billion invested under the scheme since its introduction in April 2012 and makes it easier and more attractive to bring in foreign investment that would otherwise go elsewhere.

Although I can identify examples in my constituency of the progress made nationally, we still need to go further in Stoke-on-Trent, which has suffered from years of lacklustre representation by Labour MPs who failed to deliver for the area even when their own party was in government. I have made it clear that the battle now is over skills and creating higher skilled and better paid jobs for my constituents, and critical to this is helping local businesses to grow these opportunities. We have colossal potential in Stoke-on-Trent to do this and to expand further the successes of Conservatives in government and Conservative MPs locally.

Stoke-on-Trent has been named the second-best place in the country to start a business and one of the best places nationally for business survival. Nationally, there are 1 million more businesses now than in 2010. The Government have helped business create jobs through cuts to corporation tax, which has fallen from 28% to 19% since 2010 and is set to fall further to 17%, and through the re-evaluation of business rates, which has taken 600,000 small firms out tax altogether. This is in direct contrast to Labour’s often stated policy of taxing businesses and jobs to pay for its £58 billion spending black hole. These uncosted promises could be paid for only through higher taxes and debt for our constituents, and that is why I will be supporting the Bill tonight.

Ways and Means

Lindsay Hoyle Excerpts

Ways and Means resolution: House of Commons
Wednesday 6th September 2017 Commons Chamber

Taxable Benefits

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Before I call the Financial Secretary to the Treasury to move the first Ways and Means motion, I make it clear to the House that motions 1 to 48 will be debated together.

Summer Adjournment

Lindsay Hoyle Excerpts

Thursday 20th July 2017 Commons Chamber

[Kevin Foster (Torbay) (Con)]

It is a pleasure to be called to speak in this debate. One person who must be looking forward to the recess is the speech writer of the hon. Member for Strangford (Jim Shannon), who is sadly no longer in his place, given the number of contributions that the hon. Gentleman makes in Parliament. He is probably busy writing an intervention for tonight’s Adjournment debate. It was certainly interesting to hear the hon. Gentleman’s comments.

I have three issues that I wish to raise. Hopefully, they will be the subject of some attention before we return in September. The first is the school funding formula. It was great to hear the announcements that were made earlier this week, which reflected much of the lobbying that had been done by Torbay schools. The next part is ensuring that we get the detailed figures for what it means per school, especially as it will mean that we can rebut some of the stuff that has been put out on the internet. I am looking forward to seeing the figures, and I know that many schools in Torbay will appreciate having the certainty that they will represent.

The key issue that I hope will be worked on over the summer relates to transport issues in my constituency. The first is around finally sorting out the remaining funding needed to deliver the first new station in Torbay for decades—at Edginswell. There is a strong business case, with local enterprise partnership support and £4 million in match funding, and the council has been told that delivery would be relatively easy, with planning permission in place and a site that is ready to go. I hope that the Department for Transport will decide to cut at least £1.5 million off the total cost of delivery by insisting that Network Rail covers the costs of realigning the track, which locally we suggest is a maintenance task.

The project has gone through all the GRIP—governance for railway investment projects—stage 3 documentation for Network Rail. The moment there is an announcement on funding from the new stations fund, a start could be made. I know that the council is keen to invest and the operator is keen to provide services. It would send a huge message about our ambitions in the bay, not least in developing the business park at Edginswell and supporting the nearby hospital, which has had numerous staff access issues, because a convenient train service would make a real difference. New housing estates are being built nearby, so the station would open up opportunities for residents to find jobs in the bay and slightly further afield. I hope that we can take the project forward when we return in September.

I also hope that by the time we return in September there will have been some progress on CrossCountry’s proposals for a new train timetable. The initial proposals produced last year were nothing short of disgraceful. CrossCountry attempted to portray them as an “improvement to your services”, even though that poster was on a platform at Torquay station from which all the services would be scrapped. I was pleased that those proposals were withdrawn, but discussions are still ongoing. I hope that by September we will have received confirmation that Torbay will definitely stay on track. I hope that families coming to the bay for a holiday will not have to change trains with their luggage at a busy Exeter St David’s station to what is joyfully called a “metro service” but is actually a commuter train that is likely to be overcrowded at particular times of the day and on which seats cannot be reserved.

One of my priorities over the recess will be to campaign with local residents on another transport issue: reinstating the bus services that were lost when Local Link, a local operator, ceased all its local routes back in April. Many have been reinstated—I am thinking of the No. 60, in particular—with a community bus operator or an alternative operator, but residents in Torbay Park, Ellacombe and the Lichfield Avenue area of Barton are still waiting. Given the topography of Torquay—the town of seven hills—someone might not be all that far from a bus route as the crow flies, but if that journey involves walking up a steep hill, for many elderly residents their bus pass becomes almost useless. If getting to the bus stop is fine, coming back might not be. I have started a petition, which I hope to present to the House in September. It is vital that we campaign for the return of those services, particularly given the information I have received that a route on a not-for-profit basis could well be viable. It is about sorting out capital funding for a new bus that would allow the service to be delivered.

Politics in Torbay is always at its best when we are talking about policies and delivery, not bickering about structures and personalities. That point will have particular prominence today back in the bay, given a meeting that is going on. I hope that all those elected to serve the most beautiful bay in the UK will remember that that must be the focus of their time and energy, and I hope that people see that it is the focus of my energies in this House.

I am conscious of time and know that other Members wish to speak, so I will draw my remarks to a close. I am looking forward to the recess because, as some Members will know, I got married on 10 June. [Hon. Members: “Hear, hear.”] Thank you. Many things had to be cancelled because of a decision made by the other woman in my life—Mrs May, not Mrs Foster. For example, my stag night ended up being an election count, Hazel’s hen night was cancelled and our honeymoon was postponed. Hopefully we will find some time over the recess to have our honeymoon—as Hazel pointed out, the trip up to London this week to cover my office for a couple of days was not really what she was looking forward to. Recess will certainly be busy. I wish everyone in the House, including you, Mr Deputy Speaker, a very enjoyable and productive break.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Happy honeymoon.

[Alex Chalk (Cheltenham) (Con)]

May I, on behalf of all the House, start by warmly congratulating my hon. Friend the Member for Torbay (Kevin Foster) on his wedding and wish him a very happy honeymoon, whenever that takes place?

I thank you, Mr Deputy Speaker, for this opportunity to raise a few issues that can be crowded out in the ordinary course of busy parliamentary business. In doing so, I will unapologetically focus on Cheltenham, because one thing I have learned over the last two years is that, for all the cynicism about our democratic process, Parliament does, indeed, remain the forum in which we can seek effective redress for our constituents and speak truth to power. We saw that in action with the Government’s welcome decision last week to allocate more frontline funding for our secondary schools, and my hon. Friend the Member for Gloucester (Richard Graham) and I saw it in the last Parliament, with the passage of legislation to extend the maximum sentence for stalking, following the terrible ordeal of a Cheltenham GP.

I would like to take the opportunity at the outset to congratulate all the students who are receiving awards at the National Star College leavers award ceremony in Gloucestershire. The National Star College, for those who do not know it, is an independent specialist further education college for people with physical disabilities, acquired brain injuries and associated learning difficulties. It is an extraordinary place; no one who visits it can fail to be moved by what is being achieved by staff and students alike.

What I want to talk about specifically today is Cheltenham General Hospital. We in Cheltenham value our hospital greatly. Members might think that that is a truism, but it is particularly the case in a town of 115,000 people. Only this morning, I received a message from a constituent, who referred to Cheltenham General, stating:

“My wife has been admitted there four times in the past two years—three times for surgery—and on each occasion—from the first visit of the paramedics to the A&E staff and on the various wards she has received the most wonderful attention—professional, kind, caring and patient.”

What a wonderful tribute, and it is not unusual. It is echoed by the findings of the recent Care Quality Commission report. Inspectors describe staff as “committed, caring and compassionate”. They also observed “exceptional teamwork”, particularly when a department was under pressure.

However, there is an issue about our night-time A&E. In 2013, Cheltenham General’s A&E service was downgraded. Blue light services were diverted to Gloucestershire Royal Hospital. Although night-time A&E notionally remained, and indeed remains, open for GP referrals and walk-ins, the reality is that a major service change took place. The emergency nurse practitioners, who do a magnificent job of holding the fort, do not have doctor support to assist them. That is important, because in the CQC report I referred to a few moments ago, medical and nursing staff raised concerns with inspectors about medical cover at night. To their great credit, consultants regularly work longer hours to support their junior colleagues. The CQC was not convinced that that was sustainable, and nor am I. That is notwithstanding the fact that the care that has been delivered is co-ordinated and multi-discipline.

What needs to be done? There is a clear problem with the recruitment of middle-grade doctors in A&E not just in Cheltenham but across the piece—the trust has made that clear, and the evidence bears it out. That is why I have called for a debate on the issue in this place, and I take the opportunity to raise it now.

Improving incentives for middle-grade A&E doctors is a crucial part of the long-term solution. In the short term, I welcome the fact that the trust is looking closely at providing an urgent care centre at Cheltenham General Hospital—something that was reported in the local paper, the Gloucestershire Echo, in March this year. Only today, we heard my hon. Friend the Member for Corby (Tom Pursglove) extol the virtues of urgent care centres, because they provide urgent care, as the name might suggest, and, crucially, divert patients from accident and emergency—something we all have an interest in. An urgent care centre would see emergency nurse practitioners supported by GPs, which I welcome. However, that will take place only if we as a country increase the pipeline of GPs in our surgeries, and that means addressing the issue of rising GP indemnity—or insurance—premiums, which I have referred to previously.

The key point is that the people of Cheltenham want Cheltenham’s A&E to be preserved and enhanced. I have made that point in the past and I will continue to make it. Some have raised with me a concern about whether the downgrading of night-time A&E was simply the thin end of the wedge that would presage the end of A&E in Cheltenham. After my election in 2015, I met representatives of the trust to make precisely that point and to raise precisely that concern. I was given a clear assurance regarding A&E’s future; there was no suggestion of its demise. That was also the case in the following year, 2016, when I met the then chief executive, who described rumours of A&E closing as “blatant scaremongering” and confirmed:

“What we said to you on 5 June 2015 still stands and the board has not changed its position on A&E at Cheltenham General.”

I welcome that robust commitment to A&E. It must remain in place. Crucially, it must remain in place notwithstanding the recent finding of financial mismanagement at the trust—which, I should stress, predates the appointment of the current chief executive and chairman, who are doing an excellent job in uncovering these problems.

Retaining and enhancing A&E at Cheltenham General must remain a service priority. I say that because the idea that a resident in Battledown, Oakley, Charlton Kings or Charlton Park to the east of Cheltenham can readily get to A&E at Gloucestershire Royal hospital, having to travel all the way down the Golden Valley bypass and the A40 in a big traffic jam, is for the birds. Those of us who live there know that that is not a realistic or optimal solution.

Finally, I want to pay tribute to two constituents of mine, Lynda and Philip Hodder. Mr and Mrs Hodder are the parents-in-law of a young Australian woman who, in June of this year, was, very sadly, killed in Borough Market in the terrorist atrocities. The young woman who was killed was referred to by some as “the angel of London Bridge” because of the way that she sought to aid others who were coming under attack. The dignity, fortitude and courage shown by my constituents has been enormously humbling. It is what has fortified me in making the representations that I have made about how we go about addressing the issue of those who are suspected and even convicted of terrorist offences in this country.

The point that my constituents have made to me, with a power that only people in that position can, is that while of course in a free society we rightly take account of the human rights of all people who come into contact with our criminal justice system—and yes, that must mean people who come into contact with it for terrorism offences—let us never forget that the most fundamental human right of all is the right to life of people who are innocent, decent, hard-working, law-abiding members of our community doing nothing more than going about their business, whether at Borough Market or anywhere else. Their rights must always be put first.

It is a huge privilege to be able to raise the concerns of my constituents in this great place, and to seek redress on their behalf. Thank you, Mr Deputy Speaker, for giving me the opportunity to do so. I wish you and all Members of this House a very happy and restful recess.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I call Nigel Evans.

--- Later in debate ---

[The Deputy Leader of the House of Commons (Michael Ellis)]

It is always a pleasure to be under your jurisdiction, Mr Deputy Speaker.

May I start by warmly welcoming the hon. Member for Bristol South (Karin Smyth) to her position as shadow Deputy Leader of the House? I look forward to working with her on those collaborative and common-ground issues on which we can work together. I am sure we will continue to do that.

My hon. Friend the Member for Bridgwater and West Somerset (Mr Liddell-Grainger) started this afternoon’s debate. He puts his views extremely powerfully on the record. I am not going to say anything more about that.

The right hon. Member for Leicester East (Keith Vaz) spoke once more about Yemen, an issue that is very close to his heart. He is a doughty campaigner, a powerful advocate for a wide variety of causes. He is not in his place because he has business elsewhere. The Foreign and Commonwealth Office is fully engaged on the issue of the appalling cholera epidemic in Yemen and, of course, this Government are honouring the 0.7% GDP commitment to international development. I congratulate the right hon. Gentleman on his newly elected position on the new all-party parliamentary group on immigration and visas.

My hon. Friend the Member for Southend West (Sir David Amess) spoke about a very wide variety of issues, from a visit from Her Royal Highness the Countess of Wessex to his belief that the BBC would be somewhat cheaper if he had a presenter’s job. I think that is probably true, and maybe he should consider making an application. He always thanks and congratulates a wide variety of people in his constituency, and I know that they will very much appreciate being mentioned in this House. He is such a superb representative of his constituency and works very hard to represent everyone there.

The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) spoke next. He too is a powerful advocate, especially on the issue that several Members mentioned—leaseholders and freeholds and land rights. He is a doughty force as co-chair of the APPG on leasehold and commonhold reform. He does a powerful job as an advocate in that area, and I congratulate him on his work.

My hon. Friend the Member for Harrow East (Bob Blackman) was, of course, responsible for the Homelessness Reduction Act 2017. He got it on the statute book, which is a great accolade and a huge credit to him for his work in that quarter. He spoke about his fight for a smoke-free Britain and about war crimes, the importance of human rights and the issue of caste. He speaks regularly on issues that cross party divides—issues that we can all understand and support. I know that he is widely admired and respected by all quarters of society in his constituency, particularly those of the minority ethnic community, who very much appreciate his powerful representation on their behalf.

The hon. Member for Reading East (Matt Rodda) gave his maiden speech, on which I congratulate him. I welcome him to this place. He spoke proudly of his constituency and spoke very well of his predecessors. I wish him well. I am sure that he will be an asset to his party. One of his predecessors whom he did not mention was none other than Rufus Isaacs, whose priorities, although more than 100 years ago, also included land reform, before world war one, as well as the legal standing of unions. He was a Liberal Member, but history remembers him very kindly.

My hon. Friend the Member for Gloucester (Richard Graham) spoke powerfully about the flood disaster in 2007. Everyone remembers it as an appalling incident. He described how he organised a group of people to help his community and we thank him for that. He encouraged people to sign up to the Environment Agency’s text alert system, and I join him in that. He spoke of the importance of local media. As constituency Members of Parliament, we all know how important our local media are. My hon. Friend spoke of resilience, communities sticking together, leadership and a shared purpose. I support him and second his comments.

The hon. Member for Wakefield (Mary Creagh) spoke about a performing arts school in her constituency and how she had greatly enjoyed a production of “West Side Story”. She spoke so compellingly about it that I wish I had seen it. I have looked into the matter that she raised and she should receive a reply. She said that she had not received one and I shall follow that up. I will also forward her concerns to the Department for Education. I note that she said that she would welcome Channel 4. I hope her area could pay salaries commensurate with what might be expected.

My hon. Friend the Member for Cleethorpes (Martin Vickers) also spoke about BBC salaries. That is, of course, a matter for the BBC, but there is disappointment about apparent gender disparity. Lord Hall has said that it was not where they wanted to be. My hon. Friend also spoke about Travellers and acknowledged that the law has dramatically improved in that area, but he wants a further robust approach and I think that many people in and outside his constituency would support him in that.

It was typically kind and considerate of the hon. Member for Dundee East (Stewart Hosie) to think of the staff of Members who were not returned at the election. There is a unique contractual situation in this place for those staff—it is not the most secure position. Of course, it is the responsibility of the Independent Parliamentary Standards Authority to keep those matters under review and I encourage him to speak to IPSA. He made some points with which I saw colleagues from different parties nodding in agreement.

My hon. Friend the Member for Corby (Tom Pursglove) is a frequent and powerful contributor in the Chamber. He spoke about the Corby Urgent Care Centre, where there are 70,000 patients, only 6% of whom needed to be referred on to hospital. The centre clearly does a good job. I am concerned that my hon. Friend is worried about it. I strongly recommend that the clinical commissioning group in the area meet him and that they work together. He is another doughty campaigner and he should get the support of everyone in his community in working for the wider interest there and the valuable urgent care centre.

The hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) spoke about the refugee crisis around the world and issues that are important to his constituency, including HMRC and immigration rules. Doubtless, many will have noted the power of his comments.

My hon. Friend the Member for Congleton (Fiona Bruce) was full of praise, rightly, if I may say so, for Ministers—I think it was for Ministers in other Departments, not for me—as regards school funding. She said that there was more for schools in her constituency. There is more for other constituencies across the country, thanks to this Government. She is working with other Conservatives in her area to achieve a great deal for her constituency.

The hon. Member for North Tyneside (Mary Glindon) was complimentary to the soft drinks industry for the work it is doing on a plan to reduce sugar. There is always more that can be done, of course, as I am sure she would accept. She is right to fight against the problem of obesity, which is life-limiting and has an adverse and deleterious effect on the health of young people—on the health of people of all ages. No doubt she will continue her fight in that quarter.

My hon. Friend the Member for Rochford and Southend East (James Duddridge) spoke very fondly and movingly of Lucy, his staff member. I would like to mention her from this Dispatch Box as well. I do not know her, but I have no doubt that she has done a wonderful job for him. He also spoke of the aggression and intimidation he has received in his constituency. I know that that will not succeed against my hon. Friend. He is a powerful advocate for everyone in his constituency, and will no doubt reject and completely oppose those who use aggression and intimidation to try to get their way. The hon. Member for Ellesmere Port and Neston (Justin Madders) proposed some radical reforms to leasehold, and no doubt he will pursue his cause with the passion that I know he has in this quarter. We will have to see where that takes us.

My hon. Friend the Member for Sutton and Cheam (Paul Scully) spoke about St Helier Hospital, and said it had the best A&E, with wonderful staff, I am sure. He spoke of the fracture and renal units there. I take this opportunity to thank the staff at that hospital and all our NHS staff around the country for the work they do to help those who need medical attention. There is work to do for that hospital, my hon. Friend said, and I am sure he will be a powerful advocate for it.

The hon. Member for Strangford (Jim Shannon) spoke about the Royal Black Preceptory, which was formed in 1797, and is apparently often called the senior of the loyal orders fraternal societies. I know that all Members in this House would want to wish everyone and all the communities in Northern Ireland all the very best.

My hon. Friend the Member for Redditch (Rachel Maclean) is a new Member and I welcome her to this place. She says that her priority is to support small businesses, and rightly so. The unemployment rate in her constituency stands at 2.1%, so she is obviously doing a good job. She also spoke about fake news. We have to stop false or fake news reports worrying voters unnecessarily. Other Members also mentioned that. I know that my hon. Friend will be an advocate for her constituents’ interests in this House, hopefully for many years.

The hon. Member for Heywood and Middleton (Liz McInnes) spoke very movingly about the death of Joseph and many others. There was an appalling collision in Joseph’s case and in other cases. Understandably, she is concerned about the apparent disparity between the sentencing and what those in society whom she is campaigning with would see as right. My heart goes out to all the families she mentioned, and there are so many others. Law changes take time. She is a powerhouse of a campaigner, and I am sure she will continue her work. I understand that a response to the consultation is hoped for soon.

My hon. Friend the Member for South Suffolk (James Cartlidge) spoke about an important piece of constituency casework. I recommend that Calibre Homes conduct themselves with appropriate care when it comes to my hon. Friend and have respect for his role as Member of Parliament for his constituency.

The hon. Member for Glasgow East (David Linden) spoke movingly and powerfully about children with complex needs. I know that Her Majesty’s Government are working with Motability on the particular point that he raised. He also spoke movingly about his son. His family must be proud of him for being here, and it must be difficult for him to be some distance from Glasgow East when he is serving his constituents in this House.

My hon. Friend the Member for Torbay (Kevin Foster) had a list of local issues. From his speech, it will be obvious to anyone who did not already know it that he is an active local representative. He spoke of the beautiful bay that he represents and mentioned the fact that he was married on 10 June. I congratulate him and wish him well. I presume that his being here today is part of his honeymoon. I hope that he will be keeping an eye on his emails in the weeks ahead. I wish him all the very best.

My hon. Friend the Member for Cheltenham (Alex Chalk) was one of a number of Members who spoke passionately about their local hospital. He is fighting for, and with, Cheltenham General Hospital. His is a powerful voice, and he is a hard-working Member here. He says that he has been given repeated assurances about his hospital. He also spoke about the dignity and fortitude of the relatives of people who have been killed, particularly in terrorist attacks. I endorse what he said, and I offer the respect of everyone in the House for those family members. Our hearts go out to them in these difficult times.

My hon. Friend the Member for Ribble Valley (Mr Evans) said that, as the last Member to speak, he was the tail-end Charlie. Others have called him other things, but one thing he certainly does is speak powerfully in the House. I know that millions will agree with what he said about Cecil the lion’s son being killed by a poacher. We all hope that the maximum force of the law will be applied to those who kill wildlife and endangered animals in that way. My hon. Friend also spoke about ground rent issues. I would say that those he is up against in his constituency and elsewhere ought to be careful, because he is one of the men in grey suits who are spoken of apocryphally and who get things done in this place and elsewhere. In all seriousness, the scams that are perpetrated on our constituents must be dealt with.

Mr Deputy Speaker, I should like to take this opportunity to thank you, Mr Speaker and the other Deputy Speakers, as well as all the staff—the parliamentary staff, the constituency staff and the civil service staff—and I wish everyone all the very best for a peaceful summer.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I, too, wish everyone a very safe recess. Please take your safety and security seriously over the summer, and we look forward to September. I thank all the staff involved in keeping us safe, fed and looked after in this House.

Question put and agreed to.

Resolved,

That this House has considered matters to be raised before the forthcoming Adjournment.

[Mr Peter Bone (Wellingborough) (Con)]

On a point of order, Mr Deputy Speaker. I should like to associate myself with what you and the Deputy Leader of the House have said in thanking everyone for looking after us. I have a question on a bit of procedure. It is a shame that Mr Speaker is not in the Chair, because he might have been able to give me a slightly more forceful answer. You have just put the Question to the House at the end of our debate. I understand that when more people are in favour, you say, “The Ayes have it, the Ayes have it”, and when more are against, you say, “The Noes have it, the Noes have it.” What happens if there are equal numbers on each side? Would you say, “The ties have it, the ties have it”?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Very good! No, what I would say is, “I have it. I have it.” And if anyone wants to join the big five group, there is a new all-party parliamentary group that has been formed today by the hon. Member for Ribble Valley (Mr Evans).

Economy and Jobs

Lindsay Hoyle Excerpts

Thursday 29th June 2017 Commons Chamber

[John McDonnell]

When it comes to—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I am finding it very hard to hear what the shadow Chancellor has to say. If I cannot hear, you cannot hear. What is the point of posing a question if you cannot wait for the answer?

[John McDonnell]

I am sure that the Chancellor will fill us in on the details when he makes his speech. The reality is that when it comes to cutting taxes, what we have seen over the past seven years is the rich being treated to tax cuts while the poorest in society have seen their services demolished in front of our eyes. The increasing levels of poverty in our society are a direct result of the redistribution of wealth from the poorest to the richest under this Government.

--- Later in debate ---

[Nicky Morgan (Loughborough) (Con)]

It has taken the right hon. Gentleman 33 minutes to get to this country leaving the European Union, which is the defining issue affecting our economy. He talks about divisions. He might want to think about the 100 Members of his own party who have been through the shadow Cabinet during the course of the previous Parliament. He might also want to ask questions about the lamentable performance of his leader, and his Back Benchers might want to ask him questions about his lamentable performance in the EU referendum last year. If they felt that strongly about Brexit, they would have defended our membership of the EU.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I hope to call the right hon. Lady very early on and save her speech until then rather than now. That will help everyone.

[John McDonnell]

It was a great speech, though. I am quite used to throwing red books about in this place. I will send the right hon. Lady a copy of the manifesto my party is united behind.

Finance (No. 2) Bill

Lindsay Hoyle Excerpts

3rd reading: House of Commons
Tuesday 25th April 2017 Commons Chamber

Question proposed, That the clause stand part of the Bill.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Clauses 2 to 6, 16 to 47, and 52 to 56 stand part.

Government amendments 13 to 29.

That schedule 3 be the Third schedule to the Bill.

Government amendments 30 to 56.

That schedules 4 to 15 be schedules to the Bill.

--- Later in debate ---

[Several hon. Members rose—]

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

Order. I am about to call the hon. Member for Copeland (Trudy Harrison), but first I remind the House of the courtesy that we do not intervene on a maiden speech.

[Trudy Harrison (Copeland) (Con)]

I am grateful for this opportunity to deliver my maiden speech as the newly elected Member of Parliament for Copeland, in what is one of the last debates of this Parliament.

First, I would like to pay tribute to my predecessor, Jamie Reed, who was the Member for Copeland from 2005 until he stood down in January this year. It is, in fact, Jamie whom I have to thank for inspiring my introduction to politics. The very first parliamentary debate I ever watched was a Westminster Hall debate called by Jamie and also attended by other Cumbrian Members—my hon. Friend the Member for Penrith and The Border (Rory Stewart) and the hon. Member for Westmorland and Lonsdale (Tim Farron)—to discuss the future of my children’s school, Captain Shaw’s in Bootle. I saw the positive impact that MPs in Westminster could have on their local communities and the powerful influence of their support, even in remote areas, which I had previously felt would never be anyone’s political priority.

Like me, Jamie was born, raised and educated in Copeland, in the fine Georgian harbour town of Whitehaven. He has served the people of Copeland with great talent and dedication. As the elected Member, he worked hard for the rural communities he represented and placed a strong emphasis on improving health and education. In announcing his decision to stand down last December, he said he could achieve more for our community by returning to work in the nuclear industry at Sellafield than by remaining a Labour Member of Parliament.

Jamie was a relentless, proud supporter of our local industry; he championed the world-class specialist skills that make up our towns and villages. He worked hard to make the case for Copeland to host the new nuclear power station, Moorside, adjacent to Sellafield, based on the strong belief that our workforce are best placed to power the northern powerhouse; after all, Copeland welcomed the world’s first nuclear reactor at Sellafield back in 1950. Our local knowledge, experience and skills in the nuclear and other highly regulated industries are internationally recognised and respected.

Sellafield’s safety record is exceptional, and it is seen as an example of outstanding performance across the globe. Jamie said that Copeland’s “best days are ahead”, a statement I agree with and will quote many times. I would like to take this opportunity to thank Jamie for his commitment to Copeland and wish him all the very best in his new role in community development at Sellafield.

Copeland has for centuries pioneered a modern industrial strategy. Our largest town, Whitehaven, was once Britain’s third largest trading port, with an extraordinary shipbuilding reputation thanks to the locally grown, hard-as-nails oak trees used to build the boats. Our ancestors sailed the world, securing deals, and returning with goods which created a crucial global trading centre. Perhaps that is why the Copeland constituency voted to leave the EU with such a high majority: because history provides confidence in our ability to export our knowledge and products across the globe.

Like true pioneers we do not stand still; innovation is in our veins. As shipbuilding and rum sales declined, we dug deep for prosperity. Mining transformed the towns of Egremont, Cleator Moor and Millom; indeed, Millom was widely regarded as an exporter of the world’s highest quality iron ore.

But we are perhaps best known in Cumbria for a delightful little rabbit, Peter Rabbit, and his friends Mrs Tiggywinkle and Squirrel Nutkin, to name just three of Beatrix Potter’s adorable characters. Writers, artists and poets have found inspiration in the beautiful Cumbrian countryside. Wordsworth was sent, under doctors’ orders, to my home village of Bootle, to aid his recovery from a chest infection. With 32 miles of coastline in the Copeland constituency, our air and our landscape are good for the soul.

Three quarters of the Copeland constituency is situated within the Lake District national park boundary, which I hope will become the second world heritage site for the Copeland constituency, complementing that of Hadrian’s Wall in Ravenglass. We eagerly await a decision in July to confirm another world first—the first UNESCO world heritage site to include an entire national park—thanks to a 20-year project by the Lake District National Park Authority and local communities to put Cumbria on the same international must-visit platform as the Taj Mahal and the great barrier reef.

I was brought up in Seascale, and then I moved to Wasdale, where I would open my curtains every morning to reveal Britain’s best view: England’s highest mountain, Scafell. Well before wild swimming was trendy, my childhood weekends would be spent paddling in Wastwater, England’s deepest lake. It is easy to see why Wasdale was the birthplace of mountaineering, and why the beautiful market town of Keswick enjoys such popularity with its annual mountain festival. That is one of the many festivals enjoyed in the Keswick community calendar.

Although the Lakeland topography is the result of glacial formations, our landscape and cultural heritage, for which we are internationally celebrated, are of course man-made. It is vital to support and protect our farming industry, both upland and lowland, to ensure that we can all benefit from quality food production, the highest standards of animal welfare, conservation and our enormously successful tourism industry, on which Copeland is so dependent.

I could not give my maiden speech without acknowledging that I would not be standing in this House today if it were not for the fantastic and unwavering support of my family, friends, community and local association. My husband Keith, my parents, my brother and my daughters—Gabrielle, Savannah, Francesca and Rosemary—have been incredible towers of strength. From the moment I decided to stand, they were there with me, campaigning, delivering leaflets and knocking on doors. My girls have become quite the persuasive activists, and it has been wonderful to see their interest in politics grow.

Having four teenage daughters aged 14, 15, 17 and 18, I was delighted to tip the balance between all history’s women Members and the current number of male Members, equalling it at 456. There was a change of reference in my Mother’s day cards this year, however. Gone were the thanks for the practical tasks of washing, cooking, cleaning and generally being there. Instead, each one referred to a theoretical role, referencing inspiration and pride. That is what a by-election does to family life, and you can only imagine their comments about another round of doorstep challenges! It is, after all, our children and young people who motivate us to secure a bright future for Britain and inspire the next generation of leaders.

I watched my right hon. Friend the Prime Minister’s speech at the Conservative party conference last year and I was so impressed by her strength and commitment to deliver for Great Britain. Her ambitions for our country resonated with my own. As she spoke, I said to myself, “That’s me, that’s who I am, that’s what I want for my community and for my country.” I stood for Parliament because I want to get on and make things happen. I want to be part of a proactive, positive team that makes a tremendous difference to my community: the land of Copeland glory.

My husband and I moved from Whitehaven in the north of the constituency to Bootle, a small village in the south of Copeland, to raise our young family. Our move was motivated by a desire for our girls to attend a village primary school, and in Captain Shaw’s we found our perfect, quintessential Lakeland school. In 2006, I discovered that the school was really struggling to make ends meet. It desperately needed extra funding so I joined the parent teacher association. I soon realised that the problem was a decline in pupil numbers, so I joined the governors. Then I learned that the whole village was declining: we had lost 20 businesses in 20 years. I then applied for the position of regeneration officer at my local borough council, where I realised that the challenge was far more extensive.

Copeland desperately requires investment in infrastructure to be able to thrive. Both professionally, working for the council, and personally, working with the can-do people in my community, I worked to shape policy, giving our planning authority the option to be either the nail in our coffin or the key to our future. We trailed the streets and lanes, collecting and providing the necessary evidence to shape the strategic vision for Bootle, which would become a beacon of hope to other rural communities. We worked hard to secure the Lake District national park’s biggest ever mixed-use planning application for Wellbank, a former 12.5 acre Ministry of Defence base. Wellbank will bring 50 homes, a hotel and enterprise areas, and it will attract public and private investment. For Bootle, that will mean an extra 64 homes, new businesses and, when complete, £20 million of inward investment.

I stood in the Copeland by-election to really make a success of the modern industrial strategy, to be an asset to the northern powerhouse and to realise our full potential as a centre of nuclear excellence and global exporter of knowledge and products. Copeland needs investment. I know that as a pioneering, hard-working and innovative community, we can succeed with the Government’s support. We have people with the skills, the potential, the essential natural resources and a landscape where people love to live, work, learn and invest. We have every reason to be optimistic and to become an asset to the country’s economic performance and world-leading reputation. Copeland is on the brink of the most exciting, game-changing transition, but we need investment to kick-start that transition.

Throughout the election, I campaigned on six vital points. First, I campaigned to make a success of Brexit, as 62% of my constituents voted to leave. Secondly, I campaigned to secure nuclear new build at Moorside benefiting both Copeland and the country. Our Government must commit seriously to new nuclear, now more than ever, if we are to attract international investment. Thirdly, I campaigned to bring our road and rail networks up to modern standards, as they are simply not fit for the modern industrial strategy. Our infrastructure is holding back our ability to diversify and thrive. Fourthly, building resilience against flooding, which wrecks lives and livelihoods, is also essential.

Fifthly, access and connectivity will be key enablers, particularly in our rural area, if we are really going to trade and compete in a global marketplace. Improving mobile and internet connectivity will make a huge difference to our quality of life and our ability to do business in a global market. It will ensure a bright future for our children and young people, and the announcement in the spring Budget supporting an enormous increase in technical apprenticeships is wonderful news for a practical, skilled community such as mine.

Sixthly, I campaigned to secure services. Ensuring that we keep our 24-hour, seven-day-a-week, consultant-led maternity department at West Cumberland hospital in Whitehaven has been one of my key aims throughout my election campaign and as a Member of Parliament. I was born at that hospital and all four of my daughters were born there too. My community has clearly demonstrated the importance of retaining such an essential service. In my first weeks as an MP, I have been able to meet my right hon. Friend the Secretary of State for Health and I have visited the hospital to see the new wards for myself and to meet the staff. I have talked to clinicians and management in order to understand the barriers to having fully operational departments in the future. We now have a fully staffed maternity department, the trust has been removed from special measures and, in addition to the £90 million already invested by this Government, we have secured the funding for the final phase of the hospital’s construction.

Supporting a further recruitment drive with Choose Cumbria is also my priority. Positive action, listening to concerns, tackling problems head on and working with the can-do people in our community who really care—all these have been my mantra for many years. I will continue to strive enthusiastically, because I believe passionately in Copeland, its people and its potential.

Turning to today’s debate on the Finance Bill, I have seen that this Government are the only Government who can deliver a stronger, more secure economy. The economy is getting stronger and growing, the employment rate is at a record high and the deficit has been reduced enormously since its pre-financial crisis peak. We are in a much stronger position than in 2010, but I recognise that we must not be complacent. We must continue to reduce the country’s debt and the deficit even further. We cannot, as previous Labour Governments did, borrow endlessly to plug holes. We need to get the public finances in good order to safeguard the future— the future I want for my daughters and their generation.

Finally, Copeland has been my home since I was born. It is an area I know and love. The opportunity to represent the communities I grew up in as their Member of Parliament is truly a great honour, and I will ensure that the voice of our towns and rural communities is heard loud and clear. I am utterly committed to Copeland, and I will fight hard to deliver on promises made to my constituents during the election.

I am extremely grateful for the time I have been allowed and for the opportunity to deliver my maiden speech in this debate.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

I invite the hon. Lady to join the all-party group on rugby league, as Whitehaven have a great reputation.

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[Mr Andrew Smith (Oxford East) (Lab)]

I also congratulate the hon. Member for Copeland (Trudy Harrison) on a fine maiden speech and thank her for her well-deserved compliment to her predecessor on his service. She spoke with passion, wit and understanding of her beautiful constituency, as well as of Peter Rabbit. None of us envies her speedy transition from by-election to general election, but I do congratulate her.

I made my maiden speech to this House on the remaining stages of the 1987 Finance Bill, so there is a certain symmetry in my making my last remarks on this one. On the substance of the Bill, it is too often overlooked—the hon. Lady talked about balancing public spending—that, although the Conservative party often talks about balancing the budget, the last Government to do so were Labour in 2001-02. Right now, it makes sense to invest more in productive infrastructure, training and public services, with action to combat poverty and to secure Brexit terms that enable our country to grow and flourish. I wish we had a Finance Bill for social justice that stands up for the many, not the few. That is what we need a Labour Government for.

It has been a privilege to be an MP, in and out of government, and I thank the staff of the House, the Library, those who keep us safe and you, Mr Hoyle, and your colleagues. I am grateful to all colleagues and wish them well for the future.

I would like to say a huge thank you to all those who have helped me serve the wonderful constituency of Oxford East for 30 years; my family and friends; my neighbours in Blackbird Leys; our party members and supporters; my trade union, the Union of Shop, Distributive and Allied Workers; my office staff and party organisers across the years; and, most of all, my constituents. Thank you.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

I wish you well in your retirement.

[George Kerevan (East Lothian) (SNP)]

May I, too, thank the new hon. Member for Copeland (Trudy Harrison) for such a passionate and entertaining speech? It is good to have a representative of the land of Beatrix Potter here in this Chamber. I listened to her last points about the deficit and her encomium that this Government are bringing it down. I will be slightly wicked in saying that I am sure she knows that the Office for Budget Responsibility is forecasting a rise in Government borrowing this financial year, and she might care to ask why that is the case.

I have one specific question for the Minister on this group, as her introduction notably failed to explain why clause 5 has been withdrawn. That clause deals with the proposed reduction in the dividend income that investors in small companies can take. Are the Government embarrassed by the clause and is that why it is being withdrawn?

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 4 ordered to stand part of the Bill.

Clause 5 disagreed to.

Clause 6 ordered to stand part of the Bill.

Clause 7

Workers’ services provided to public sector through intermediaries

Question proposed, That the clause stand part of the Bill.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Clauses 8 to 15 stand part.

Government amendment 4.

Clauses 48 to 51 and 124 to 127 stand part.

Government motion to transfer clause 127.

Clauses 128 and 129 stand part.

Government amendment 10.

That schedule 1 be the First schedule to the Bill.

Government amendments 11 and 12.

That schedule 2 be the Second schedule to the Bill.

Government amendment 57.

That schedules 16 to 18 and 27 to 29 be schedules to the Bill.

New clause 1—Review of international best practice in relation to tax avoidance and tax evasion—

‘(1) The Chancellor of the Exchequer must, within two months of the passing of this Act, commission a review of international best practice by Governments and tax collection authorities in relation to—

(a) the prevention and reduction of tax avoidance arrangements, and

(b) combatting tax evasion.

(2) A report of the review under subsection (1) must be laid before the House of Commons within six months of the passing of this Act.

(3) In this section, “tax avoidance arrangements” mean arrangements broadly comparable in their effect to arrangements in the United Kingdom which have the obtaining of a tax advantage as the main purpose, or one of the main purposes, of the arrangements.”

[Jane Ellison]

Before I say something about this group, I wish to comment on the maiden speech and on the retirement speech that we just heard. It was a real honour to be here in the Chamber for the maiden speech by my hon. Friend the Member for Copeland (Trudy Harrison). She told us what inspired her, but she also reminded many Conservative Members of how she inspired us to make the journey up to her beautiful constituency in the knowledge that we were supporting an outstanding woman who is rooted in and passionate about her community. She was generous about her predecessor, which was nice to hear. I had many friendly dealings with Jamie Reed when he was a Labour shadow Health Minister and I was in the Department of Health, so I welcome her comments. It was a wonderful maiden speech and I look forward to many more speeches from her in the future, and I wish her and her long-suffering family well for the weeks ahead. She spoke with conviction about the contribution of nuclear power, but I think that in the forthcoming campaign it will be girl power to the fore.

It is always nice to hear Members reflect on their time in this House and the way they have served. As the right hon. Member for Oxford East (Mr Smith) noted, he has had a nice bookending, with a Finance Bill debate at the start and a final contribution on Treasury matters. Of course, he also paid tribute to his constituents. I am sure that in these circumstances one has a bit less time than one thought to do a round of goodbyes, but I am sure he will continue to be active in his community. I congratulate him on his speech and thank him, on behalf of all hon. Members, for his service to the House.

This group deals with the taxation of employment income, and contains some clauses addressing tax avoidance and evasion. There are a number of clauses and schedules in this group, including a new clause from the hon. Member for Aberdeen North (Kirsty Blackman), but I am going to focus my remarks on clause 7 and schedule 1, which refer to workers’ services provided to the public sector through intermediaries and which might be of interest to Members. I will, of course, address any other areas in the course of the debate.

Clause 7 and schedule 1 reform the off-payroll working rules—also known as the intermediaries legislation, or IR35—for individuals working in the public sector. The tax system needs to keep pace with the different ways in which people are working. As the Chancellor set out at both the autumn statement and the spring Budget, the public finances face a growing risk from the cost of incorporations. Indeed, the Government estimate that by 2021-22 the cost to the Exchequer from people choosing to work through a company will be more than £6 billion. A not insignificant part of that cost comes from people who are working through their own personal service company but who would be classed as employees if it were not for that company. The off-payroll working rules are designed to ensure that where individuals work in a similar way to employees, they pay broadly the same taxes as employees. However, non-compliance with these rules is widespread, and Her Majesty’s Revenue and Customs estimates that less than 10% of those who should operate these rules actually do so. As a result, more than £700 million is lost each year across the economy, of which about 20% relates to non-compliance in the public sector. This is neither sustainable nor fair, and we believe that public authorities, in particular, have a responsibility to taxpayers to ensure that the people working for them are paying the right amount of tax.

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[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

That schedule 19 be a schedule to the Bill.

New clause 2—Review of VAT treatment of the Scottish Police Authority and the Scottish Fire and Rescue Service—

“(1) The Chancellor of the Exchequer must, within two months of the passing of this Act, commission a review of the VAT treatment of the Scottish Police Authority and the Scottish Fire and Rescue Service, including but not limited to—

(a) an analysis of the impact on the financial position of Police Scotland and the Scottish Fire and Rescue Service arising from their VAT treatment, and

(b) an estimate of the change to their financial position were they eligible for a refund of VAT under section 33 of the VAT Act 1994.

(2) A report of the review under subsection (1) must be laid before the House of Commons within six months of the passing of this Act.”

[Jane Ellison]

No VAT is charged for the buying of an adapted vehicle by or on behalf of a disabled wheelchair user. Unfortunately, this scheme, which supports disabled wheelchair users to live independently, has been fraudulently abused by unscrupulous individuals who make purchases under this relief and then sell the vehicles on for additional profit. For example, HMRC discovered that one person purchased 30 BMWs under the scheme in one day, while another individual bought 100 vehicles that I would describe as high-performance sports cars and the like in under two years. This is clear abuse of the scheme, and its integrity is being brought into question by such behaviour.

Clause 57 will tackle abuse of the relief, while ensuring that it remains available for those with disabilities. The changes made by clause 57 will restrict the number of vehicles that an individual, or someone on behalf of that individual, may purchase under the scheme to one every three years. That will stop fraudsters from purchasing multiple vehicles in one day, or over a prolonged period. The legislation recognises that, in some circumstances, a replacement vehicle may genuinely need to be purchased within the three-year period. In addition, the clause makes it mandatory for vehicle dealers to submit a declaration of eligibility for each car purchased under the scheme to HMRC and applies penalties to those found to abuse the scheme.

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[Kirsty Blackman]

I absolutely agree with my colleague.

In June 2016, it was reported that, since it was formed three years previously, Scotland’s single police force has paid £76.5 million in VAT, and it remains unable to reclaim that tax. The UK Government have created exemptions for other bodies that they see as important. Why do they see London Legacy and Highways England as more important than Scottish police and Scottish fire? We again ask the UK Government to change that.

Question put and agreed to.

Clause 57 accordingly ordered to stand part of the Bill.

Clause 58

IPT: Standard Rate

Question proposed, That clause 58 stand part of the Bill.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

With this it will be convenient to consider clause 59 stand part.

[Jane Ellison]

Clause 58 legislates for the increase in the standard rate of insurance premium tax from 10% to 12% as the Chancellor announced in the autumn statement 2016. This change will be effective from 1 June this year. Clause 59 will make minor changes to anti-forestalling provisions, so that insurers cannot artificially avoid paying the new rate of insurance premium tax by adjusting contract dates.

The Government remain committed to our fiscal mandate of eliminating the deficit. Much has already been achieved. The Government are forecast to reduce the deficit by more than two thirds by the end of this year, and in 2018-19, debt will fall for the first time in 16 years. However, we cannot be complacent. The Office for Budget Responsibility’s recent fiscal sustainability report highlights the challenges posed by an ageing population, projecting debt almost trebling to 234% over the next 50 years, if no further action is taken.

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[George Kerevan]

I have two points. First, I reiterate to the Minister, who artfully shifted to saying that there was a 2% rise in the tax, that there is a two percentage point rise. It is a 20% rise in the tax. I asked the Minister how she justified that massive, excessive increase relative to inflation. She did not reply—I suspect because, as a Conservative tax cutter, she is embarrassed. I have a further question for the Minister. Will she rule out extending the provision of IPT to reinsurance? Clearly, IPT has been hit on by the Government because it is one of the few things that they have not yet legislated not to increase as a form of taxation. That will doubtless change in the Conservative manifesto. But as long as this is the tax that the Government are hitting on because it is the one they have left, will the Minister state that they will not in future years extend IPT to the reinsurance market, which would net them even more money?

Question put and agreed to.

Clause 58 accordingly ordered to stand part of the Bill.

Clause 59 ordered to stand part of the Bill.

Clause 60

Landfill tax: taxable disposals

Question proposed, That the clause stand part of the Bill.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

With this it will be convenient to consider the following:

Clauses 61 to 64 stand part.

Amendment 1, in clause 65, page 73, line 4, leave out subsection (2).

Clauses 65 to 70 stand part.

New clause 3—Review of oil and gas corporation tax rates and investment allowances—

“(1) The Chancellor of the Exchequer must, within two months of the passing of this Act, commission a review of the corporation tax rates and investment allowances applicable to companies producing oil and gas in the UK or on the UK continental shelf.

(2) A report of the review under subsection (1) must be laid before the House of Commons within six months of the passing of this Act.”

New clause 4—Review of tax regime relating to decommissioning of oil and gas infrastructure—

“(1) The Chancellor of the Exchequer must, within two months of the passing of this Act, commission a review of the ways in which the tax regime could be changed to increase the competitiveness of UK-registered companies in bidding for supply chain contracts associated with the decommissioning of oil and gas infrastructure or the development of new fields in the UK continental shelf.

(2) In undertaking the review under subsection (1), the Chancellor of the Exchequer must consult—

(a) the Department for Business, Energy and Industrial Strategy;

(b) the Oil and Gas Authority;

(c) Scottish Ministers; and

(d) such other stakeholders as the Chancellor of the Exchequer thinks appropriate.

(3) A report of the review under subsection (1) must be laid before the House of Commons within six months of the passing of this Act.”

[Jane Ellison]

I plan to focus my comments in this part of the debate on alcohol duties, which I anticipate will be of greatest interest to hon. Members. Other clauses within the group provide for other duty changes, and a new clause has been tabled by the hon. Member for Aberdeen North (Kirsty Blackman) on the oil and gas decommissioning regime, which we may come to.

Clause 65 sets out changes to alcohol duty rates that took effect on 13 March 2017. We announced in the 2017 Budget that the duty rates on beer, cider, wine and spirits will be kept flat in real terms, uprating by retail price index inflation. This is in line with policy and previous forecasts. As hon. Members will probably be aware, the public finances assume that alcohol duties rise by RPI inflation each year, so there is a cost to the Exchequer from freezing or cutting alcohol duty rates. If alcohol duty rates had been frozen or cut at Budget 2017, the Government would instead have had to raise taxes in other areas of the economy, to cut public spending or to increase the public deficit. Consumers and businesses continue to benefit from the previous alcohol duty changes, which initial estimates suggest will save them around £3 billion in duty between fiscal years 2013 and 2017. I will now briefly set out how past duty changes and other Government policies have affected different drinks and the sector.

I will start with spirits duty. The Government recognise the important contribution that Scotch whisky makes to the economy and local communities. The Scotch Whisky Association, which I had a meeting with and had the chance to hear from directly, estimates that Scotch whisky adds over £5 billion overall to the UK economy and supports more than 40,000 jobs, some 7,000 of which are in the rural economy. Distilleries provide an important source of employment in rural communities. The Scotch Whisky Association estimates that exports to nearly 200 countries in every continent were worth nearly £4 billion last year and accounted for about 20% of all UK food and drink exports. Single malt Scotch whisky exports exceeded £1 billion for the first time last year, and more Scotch whisky is sold in France in just one month than cognac in an entire year.

The Government are committed to supporting this great British success story. Scotch whisky was one of the first food and drink products to feature in the GREAT campaign, giving it high visibility internationally in key markets. More recently, the Scotch Whisky Association joined my right hon. Friend the Prime Minister on her trade mission to India last year. Scotch whisky is currently just 1% of the Indian spirits market, but it has the potential to grow to 5% with the right trade agreement. That would be equivalent to a 10% increase in the current global trade in Scotch.

The spirits duty escalator was ended in 2014, and the tax on a bottle of Scotch whisky is now 90p lower than it would otherwise have been. The hon. Member for Aberdeen North has tabled an amendment to reverse the uprating as applied to spirits. To be clear, that would not help exports, because the £4 billion of exports a year are unaffected by the duty change, as no duty is paid on exported spirits. Instead, it would help those selling in the UK market. The amendment would cost the Exchequer, and so increase the deficit by, around £100 million this year. For the reasons I have indicated—not least the bottom line scorecard cost—the Government reject the amendment, which would not help exporters of whisky or other spirits and which is unfunded. Clause 65 will keep spirit duty rates flat in real terms, so consumers will continue to benefit from the previous change to spirit duty rates.

While we are on spirits, I should touch on another great British success: the UK gin industry. When I met the Wine and Spirit Trade Association, it informed me that, in 2016, gin sales exceeded £1 billion for the first time in the UK. I suspect that many of us will be partaking of a number of these products in the weeks ahead. [Interruption.] I said many of us. We will be partaking perhaps in celebration or perhaps for sustenance —who knows what reason. It is good that we put these British success stories on record.

I was also told that the number of gin brands has more than doubled since 2010. [Interruption.] Yes, doubles all round. The price of a typical bottle of gin remains 84p lower than it would have been now that we have ended the spirits duty escalator. As with Scotch whisky, no UK duty is payable on exported gin.

As well as ending the spirits duty escalator, we also ended the beer duty escalator to help pubs. Pubs play an important role in promoting responsible drinking, providing employment and contributing to community life—that sentiment is expressed regularly on both sides of the House. Brewers also make an important contribution to local economies. The increase in the number of small breweries in recent years has increased diversity and choice in the beer market. By promoting interest in a larger range of beers, that has benefited all brewers.

The clause will not undo the previous beer duty cuts or freezes. The Government cut the tax on a typical pint by one penny at Budgets 2013, 2014 and 2015 and then froze duty rates last year. As a result, drinkers are paying 11p less in tax on a typical pint this year than they otherwise would have paid.

On wine duty, the Government are committed to supporting the UK wine industry. The first joint industry and Department for Environment, Food and Rural Affairs wine roundtable last year resulted in a set of industry targets, including to increase wine exports tenfold and to double production to 10 million bottles by 2020. The wine sector will continue to benefit from the previous changes to wine duty rates.

Cider makers, too, play an important role in rural economies, using over half the apples grown in the UK. The duty on a typical pint of cider remains around half the duty on a typical pint of beer. The tax on a typical pint remains 3p lower than it would otherwise have been, as a result of the Government’s changes to cider duty rates since Budget 2014.

To conclude, we fully recognise the importance of the alcohol industry to the economy and local communities. I have talked with and met various representatives from across the industry, and I will, of course, continue to engage with them. The cuts and freezes in duty rates since the ending of the alcohol duty escalators continue to deliver great benefits. They will save consumers and businesses around £3 billion in duty between fiscal years 2013 and 2017. However, allowing alcohol duties to fall every year in real terms would be unsustainable in the long term. If alcohol duties had been frozen or cut at Budget 2017, the Government would instead have had to raise taxes in other areas of the economy, cut public spending or increase the public deficit. The clause simply increases duties in line with inflation, as assumed in the fiscal forecasts. This is not a return to the real-terms increases year after year imposed by the alcohol duty escalator. I therefore suggest that the clause stand part of the Bill.

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Question proposed, That the clause stand part of the Bill.

[The Chairman of Ways and Means (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Clauses 72 to 75 stand part.

Amendment 2, in clause 76, page 81, line 15, leave out paragraph (a).

Amendment 3, page 81, line 20, leave out subsection (2).

Clauses 76 to 107 stand part.

That schedules 20 to 23 be schedules to the Bill.

[Jane Ellison]

Clauses 71 to 107 contain provisions for a new tax called the soft drinks industry levy to be introduced from April 2018. This is a key pillar in the Government’s childhood obesity plan, and it has been welcomed by a wide range of public health experts and campaigners. Tackling obesity is a national challenge—indeed, an international challenge. The UK has one of the highest obesity rates in the developed world, and childhood obesity in particular is a major concern. Today nearly a third of children aged two to 15 are overweight or obese, and we know that many of these children will go on to become obese adults. Obesity drives disease, as we are reminded at the moment as we come through Westminster underground station by the Cancer Research UK posters. It increases the risk of heart disease, type 2 diabetes, stroke, and some cancers. The NHS spends over £6 billion a year across the UK in dealing with obesity-related costs, and the overall costs to our economy are estimated at between £27 billion and £46 billion a year. This cannot go on.

Health experts have identified sugary drinks as one of the biggest contributors to childhood obesity and a source of empty calories. A 330 ml can of full-sugar cola typically contains nine teaspoons of sugar. Some popular drinks have as many as 13 teaspoons. This can be more than double a child’s daily recommended added sugar intake in just a single can of drink. The Government recognise that this is a problem, and so have many others, with over 60 public health organisations calling for a tax on sugary drinks and many thousands signing a petition in favour. I am delighted that this issue has also received a high level of cross-party support.

Indeed, some soft drinks producers had recognised that sugar levels in their drinks were a problem too, and had started to reduce the sugar content, move consumers towards diet and sugar-free variants, and reduce portion sizes for high-sugar beverages. Nevertheless, reducing the added sugar in soft drinks is now a public health priority, and this new levy is needed to speed up the process. It is specifically designed to encourage the industry to move faster. We gave the industry two years to make progress on this before the levy begins, and we can see that it is already working. Since the Government announced the levy last March, a number of major producers have accelerated their work to reformulate sugar out of their soft drinks and escape the charge. These include Tesco, which has already reformulated its whole range of own-brand soft drinks so that they will not pay the levy. Similar commitments have come from the makers of Lucozade and Ribena, and the maker of Irn-Bru, A. G. Barr. In fact, we now expect more than 40% of all drinks that would otherwise have been in scope to have been reformulated by the introduction of the levy. We see international action too. In recent months, countries such as Ireland, Spain, Portugal, Estonia and South Africa have brought forward similar proposals to our own.

As a result of such reformulation before the levy begins, we now expect the levy to raise around £385 million per year, which is less than the £520 million originally forecast—but we are clear that this is a success. The Government will still fund the Department for Education’s budget with the £1 billion that the levy was originally expected to raise over this Parliament, including money to double the primary schools sports premium and deliver additional funding for school breakfast clubs, and £415 million to be invested in a new healthy pupils capital programme. The devolved Administrations will receive Barnett funding in the usual way. The Secretary of State for Education has made recent announcements about how some of the money will be spent, particularly on the healthy pupils capital programme.

The levy has shown that the Government mean business when it comes to reducing hidden sugar in everyday food. That willingness to take bold action underpins another major part of our childhood obesity plan, namely Public Health England’s sugar reduction programme, which is a groundbreaking programme of work with industry to achieve 20% cuts in sugar by 2020 across the top nine food categories that contribute the most to children’s sugar intake. It has been acknowledged, not least by industry, that that is a challenging target, but one that industry is committed to working with Government to achieve. The sugar reduction programme will cover some of the drinks products that are not part of the levy, such as milk-based drinks. The programme is already bearing fruit: there have been announcements and commitments to reduce the levels of sugar in some of the products.

I know that some would like the levy to go further. In particular, the hon. Member for Aberdeen North (Kirsty Blackman) has tabled amendments 2 and 3, which would remove the exclusion from the levy of high milk content drinks containing at least 75% milk. We oppose those amendments. Milk and milk products are a source of protein, calcium, potassium, phosphorous and iodine, as well as vitamins B2 and B12. One in five teenage girls do not get enough calcium in their diet, and the same is true for one in 10 teenage boys. It is essential for children’s health that they consume the required amount of those nutrients, which aid bone formation and promote healthy growth as part of a balanced diet. Health experts agree that the naturally occurring sugars in milk are not a concern from an obesity perspective, and they are not included in the definition of free sugars, which Public Health England now applies.

Of course, we want milk-based drinks to contain less added sugar, so they will be part of Public Health England’s sugar reduction programme. Producers of the drinks will be challenged and supported to reduce added sugar content by 20% by 2020. Public Health England has committed to publishing a detailed assessment of the food and drink industry’s progress against the 20% target in March 2020, and today I make a commitment to the House that we will also review the exclusion of milk-based drinks in 2020, based on the evidence from Public Health England’s assessment of producers’ progress against their sugar reduction targets. In the light of that assurance, I urge hon. Members to reject amendments 2 and 3, and allow us to review the evidence in 2020, two years after the levy has begun, and to decide at that point whether milk-based drinks should be brought within scope.

Obesity is a problem that has been decades in the making and we are not going to solve it overnight. The soft drinks levy is not a silver bullet, but it is an important part of the solution. This Government’s childhood obesity plan, with the levy as its flagship policy, is the start of a journey and it marks a major step towards dealing with our national obesity crisis.

Equitable Life Policyholders: Compensation

Lindsay Hoyle Excerpts

Thursday 23rd March 2017 Commons Chamber

[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. May I tell Members that if they take about 10 minutes, everyone will have an equal time, including for the second debate?