Mortgage Market

Lindsay Hoyle Excerpts

Tuesday 13th June 2023 Commons Chamber

[Andrew Griffith]

We enjoy, as ever, the hon. Member’s rhetoric, but he did not address what his plan would be. He also did not acknowledge that this has an international factor. Perhaps he or one of his colleagues would like to explain why we have seen similar interest rate increases in the USA, where the 30-year rate—the market is somewhat different there—has increased from 4% at the start of 2022 to more than 6% today.

[Mr Speaker]

In fairness, the right hon. Member for Wolverhampton South East (Mr McFadden) is right honourable. But there we are. I call the Chair of the Select Committee.

[Harriett Baldwin (West Worcestershire) (Con)]

The Government have given the Bank of England the task of targeting inflation at 2%, and our Committee has regularly held the Bank of England Governor’s feet to the fire over its performance on that inflation target. Mortgage rates have been increasing because inflation has been higher for longer than expected. In fact, the Governor said in his evidence to our Committee last November that from now on, our grumpy constituents who are having to pay higher mortgage rates should complain to him rather than to the Government. Will the Economic Secretary endorse the Treasury Committee’s campaign to ask the banks why, instead of just raising mortgage rates on the day the Bank of England raises rates, they do not also increase the savings rates that are paid to our constituents?

[Andrew Griffith]

The independent Governor of the Bank of England is, of course, right. Today we have seen strong print on wage growth, in part due to the 9.7% increase in the national living wage, on which I hope Members will join me in congratulating the Government. My hon. Friend is, as ever, right to highlight the impact on savers. It is important to me and to this Government that savers get a fair deal, which is one of the reasons why National Savings and Investments continues to offer savers an attractive range of products in the market.

[Mr Speaker]

I call the SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

Millions of households are now struggling as their fixed-rate mortgages end and they are moved to much higher variable rates. We also know that only a third of the households that are expected to move from cheap fixed-rate deals have done so, so there is a great deal of pain to go, with 116,000 households a month coming off fixed-rate deals.

Some in the City are suggesting that what we are seeing is a complete reset of the mortgage market, which would imply that there should be a complete reset of the Government’s approach. Given that changes to mortgage rates are driven by changes to the base rate, and that the base rate is the central bank’s primary tool to meet the 2% inflation target handed to it by the Government, what discussions have the Government had with the Governor of the central bank about the effectiveness, or the appropriateness, of an inflation target being the primary target that the central bank works towards?

[Andrew Griffith]

At his spring statement, the Chancellor was very clear about the Bank of England’s continued remit, beyond which it remains operationally independent. It has been a long-standing feature of this House that Treasury Ministers do not tell the Bank of England how to run monetary policy. Three of the Prime Minister’s five priorities are getting the economy growing, reducing debt and halving inflation.

[Mr Speaker]

I congratulate the now Sir Simon Clarke.

[Sir Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

That is very kind, Mr Speaker.

I pay tribute to the right hon. Member for Dundee East (Stewart Hosie) for the previous question, which was extremely interesting and perceptive. Of course, it should escape nobody’s attention that, today, gilt yields are higher than they were when my right hon. Friend the Member for South West Norfolk (Elizabeth Truss) was forced from office in the autumn. I agree entirely with the Minister that it is important to avoid the inflaming of inflation that the Opposition would do, but does he also agree that ultra-low interest rates cannot be seen as the sole benchmark of economic success and that we ought to aspire to higher trend growth as much as low interest rates?

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 9th May 2023 Commons Chamber

[John Glen]

I think the whole House will agree that the hon. Gentleman must be the most effective advocate for his constituents. We will see what happens. There will be a rigorous process, including wide consultation, and we expect to have an outcome that benefits his constituents and people across Northern Ireland.

[Mr Speaker]

I call the SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

The incentives offered by investment zones include 100% business rates relief and enhanced capital allowances. With the exception of reduced national insurance contributions, it is hard to see the difference between an investment zone and an enterprise zone. What additional fiscal support are the Government providing to differentiate these investment zones from enterprise zones?

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[Layla Moran (Oxford West and Abingdon) (LD)]

Inflation is hitting not just individuals and families, but councils and potentially infrastructure projects. Lodge Hill junction on the A34 in Abingdon is one such key piece of local infrastructure, and when completed, will support jobs and housing across Oxfordshire and Science Vale and the economy as a whole. Homes England and the Department for Levelling Up, Housing and Communities say that the final piece of that funding now sits with the Treasury in the brownfield, infrastructure and land fund. Will the Minister meet me so that I can explain why this is such an important piece of funding to be released, and please can the Government supply the last piece of this puzzle so that we can deliver Lodge Hill junction once and—

[Mr Speaker]

Order. That has absolutely nothing to do with the question. It is a bit of a struggle, is it not? Do you think you can answer it, Minister? No. Okay.

[Mrs Pauline Latham (Mid Derbyshire) (Con)]

6. What assessment he has made of the potential impact of disguised employment practices in the hair and beauty sector on tax revenues.

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[John Glen]

Absolutely. It is right that we continue support for the cost of living challenges. I have mentioned the energy price guarantee; we are also sticking to that plan to avoid unnecessary inflationary pressure. [Interruption.] On average this year, as a result of Government decisions made from—[Interruption.]

[Mr Speaker]

Order. Members will have to continue their conversations at another time. Carry on, Minister.

[John Glen]

As a result of Government decisions made from autumn statement 2022 onwards, households in the bottom half of the income distribution will see, in cash terms, twice as much benefit from Government support as households in the top half of the income distribution.

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[Victoria Atkins]

I hope my hon. Friend has been listening to what the Chancellor said at spring Budget and in speeches since then about the need for fiscal responsibility. We have to be fiscally responsible; we have acknowledged that. We have had to make some very difficult decisions along the way, but we are clear that halving inflation, tackling our debt and growing the economy will enable us to make the sorts of tax cuts that he and I both want to see so much.

[Mr Speaker]

I call the shadow Minister.

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

Tens of thousands of people have been affected by the loan charge, with some having faced well-documented distress and harm as a result of HMRC’s approach. At the same time, HMRC has been issuing fewer than two fines a year against the architects and enablers of failed tax avoidance schemes. It is absolutely right that disguised remuneration schemes are tackled fairly and effectively, so how on earth can the Conservative Government justify such a light-touch approach for the promoters of such schemes, while many of those caught up in them face such a nightmare?

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[Victoria Atkins]

I am interested that the hon. Gentleman dismisses these incredibly successful unicorn start-ups in the UK economy. I hope that he will not dismiss their continuing success as we continue to support them through the various tax reliefs we are offering them and investment, including our most recent research and development tax reliefs. I would also point out to him that of course Scotland will benefit from some 73 trade deals secured with non-EU countries—benefits that include control of our fishing waters, something that I know is a matter of great concern to Scottish residents.

[Mr Speaker]

We now come to the shadow Minister.

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

I am never quite clear why, if we do not like trade barriers, the answer is to erect even more of them. The Government said that through the Retained EU Law (Revocation and Reform) Bill, they would get rid of 4,000 laws built up during our time in the EU. The Prime Minister even got his shredder out to show us what this would look like, and the Government said there would be a sunset clause to make sure all this happened by the end of the year. Voices from both business and the trade unions have said that this could cause even more chaos and uncertainty and undermine workers’ rights, in breach of the promises made by Ministers at the time of the referendum. Can the Minister confirm whether, after marching their troops up to the top of the hill and getting the Back Benchers very excited, the Government are keeping the sunset clause to have all this done by the end of the year?

[Victoria Atkins]

I do not know whether I can speak on behalf of the Secretary of State for Business and Trade, who is the portfolio holder for that piece of legislation. What I do know is that the Bill is currently before the House of Lords, and will no doubt be scrutinised very carefully by their lordships. I can also reassure the House that we are taking a careful and considered approach to the benefits—the regulations, the laws—that Brexit presents to us, and we know from our discussions with businesses that business certainty is something that we all want to strive for and achieve. I am sure that once this Bill has been scrutinised by the House of Lords—[Interruption.]

[Mr Speaker]

Order. I have got another question to come. The Minister should not worry; there will be another chance.

[Mr McFadden]

I think business certainty might be improved by an answer to the question.

Inflation is at 10%, the highest in the G7, and food inflation is at 19%. The former Prime Minister—the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), to avoid confusion, because there are a few former Prime Ministers—promised us that

“there will be no non-tariff barriers to trade”,

but we already know that many small businesses are giving up exporting to the EU altogether because of costs and delays. With inflation already at those levels, the Government have picked this moment to impose a new system for checks on EU goods that is estimated to add £400 million a year to the cost of goods coming into the UK. Can the Minister tell us why the Government are picking this of all moments to add these new costs and price rises to UK consumers who are already struggling to make ends meet because of the biggest cost of living crisis in decades?

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[John Glen]

Our priority was clear throughout the covid crisis, and that was to get PPE to the frontline as quickly as possible. Due diligence was carried out on all companies that were referred to the Department. Despite all those steps being taken, some instances of fraud did occur with unscrupulous suppliers taking advantage of the situation. This Government take that fraud seriously, and the Department of Health and Social Care is exploring every available option to bring those who commit fraud to account. We have also made a number of other interventions, including investment in the taxpayer protection taskforce to normalise higher compliance activity in HMRC, alongside other measures to deal with fraud elsewhere in some of the emergency schemes that we set up to help this economy and this country get through covid.

[Mr Speaker]

I call the shadow Minister.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

Last week, the Public Accounts Committee revealed that our country lost £9 billion-worth of tax revenue during the pandemic because HMRC redeployed 4,000 staff members whose jobs were to chase down tax avoiders. The Prime Minister was Chancellor at the time and presumably signed off that decision. Can the Minister tell me whether the Prime Minister did that as a deliberate act to give the green light to tax avoiders, or is it just another example of Tory incompetence?

[John Glen]

I think that is a ridiculous suggestion, to be honest. HMRC received £863 million to modernise the tax system, and that included £136 million invested over the spending period to deliver improvements in terms of a single customer record and account. On what happened over covid, I have already set out the investment we made, including the £100 million in the taxpayer protection taskforce. We take fraud very seriously. Now it is about HMRC looking at financial records of excessive trading to come to terms with those businesses that used some of those schemes fraudulently. We will continue to work on that.

[Mr Speaker]

I call Carla Lockhart. She is not here.

[Ashley Dalton (West Lancashire) (Lab)]

T2. If he will make a statement on his departmental responsibilities.

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[John Glen]

I could not agree more. Responsible public spending is at the core of getting our economy into a state where it can grow, and the £90 billion of unfunded spending pledges made by Opposition Members will be scrutinised very carefully, I am sure, by many in the months ahead.

[Mr Speaker]

I call the shadow Chancellor.

[Rachel Reeves (Leeds West) (Lab)]

The Conservatives have now had 13 years in office—wages lower, the weekly food shop astronomical, energy bills unprecedented, 24 Tory tax rises and the national debt has ballooned —so can I ask: after 13 years of Conservative Government, does the Minister think that people feel better off, or worse off?

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

I hope the hon. Gentleman knows that we are spending record amounts on the NHS. We are also mindful that non-doms pay some £7.9 billion in UK taxes on their UK earnings and have invested some £6 billion since 2012. So we are mindful of the very real impact that they make on our revenues, but we have managed to tighten the rules around non-dom status, and that is why—

[Mr Speaker]

Order. I call Jonathan Gullis.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

Day one on the job and Labour in Stoke-on-Trent talk about cancelling the £56 million of levelling-up funding, which is UK-leading, going to the great city of Stoke-on-Trent. Will the Chief Secretary to the Treasury confirm that the Conservative Government will have the backs of the people of Stoke-on-Trent and deliver this important levelling up?

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 21st March 2023 Commons Chamber

[Jeremy Hunt]

Let me gently say to the hon. Member that the freeze in alcohol duty which we introduced in the autumn of 2021, and which will continue until August this year, has constituted a £2.7 billion tax cut over four years. We do everything we can to help the vital Scottish whisky industry.

[Mr Speaker]

I call the Chair of the Select Committee.

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[Andrew Griffith]

I thank my right hon. Friend for his comments. The Government join the Bank of England in welcoming the comprehensive set of actions taken yesterday by the Swiss authorities to ensure financial stability. It would not be for me to talk from the Dispatch Box about the treatment of creditors, but the UK’s bank resolution framework has a clear statutory order in which shareholders and creditors would bear losses in a resolution or insolvency scenario.

[Mr Speaker]

I call the shadow Minister.

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

The Conservative party wants to pretend that last September’s mini-Budget and its impact on mortgages was all a bad dream, but it is more than a bad dream for the 4 million households who will face a mortgage rise this year on either fixed or variable rates. The average two-year fixed rate deal is now around £2,000 a year more than it cost in August last year. That is real money and real costs. What is the Government’s estimate of the total cost of September’s mini-Budget to UK homeowners?

[Andrew Griffith]

The hon. Member—[Interruption.] Forgive me, the right hon. Member will be aware that interest rates have been increasing globally. Interest rates in the UK are now lower than the equivalent in the US and are lower than they were last autumn. The Government have a range of measures to help hard-pressed mortgage payers, but above all else, our strong stewardship of the economy is bringing down interest rates and means that we are on track to halve inflation this year.

[Mr Speaker]

I call Mr McFadden.

[Andrew Griffith]

The OBR has confirmed that the UK economy will avoid a technical recession and was the fastest growing economy in the G7 for the past two years.

[Mr Speaker]

Minister, when I am moving on, I want you to move with me.

[Mr McFadden]

The Minister either does not know or will not say what the total cost was. Is it not interesting that it is always someone else’s fault? One of the first things that the Prime Minister did when he took office was to give in to his Back Benchers on house building targets. The Home Builders Federation now says that the supply of new housing is likely to fall to its lowest level since the second world war—less than half the Government’s target. How will building fewer homes as a result of a back-stairs deal inside the Conservative party help young people in our constituencies who dream of owning their own home and getting on the property ladder?

[Andrew Griffith]

We share the aspiration of young people to own their own home, but the best way to help them do that is to have a vibrant, growing economy. We are on the side of doing that. We are taking actions that will restore the economy to growth. Every Labour Government who have ever taken office have left unemployment at a higher rate than when they came in.

[Mr Speaker]

I call the Scottish National party spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

Last August, there were 75,000 mortgage approvals. That number halved by December. We are all aware of the reports from late last year of the number of mortgage products that were removed and the troubling reports of mortgage offers being withdrawn. Before we even get to the issue of support for mortgage holders, what is the Treasury doing to ensure the availability of mortgages, a good range of mortgage products and an end to offers being withdrawn unless there is a very, very good reason to do so?

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[James Cartlidge]

My hon. Friend’s constituency is an island, and she is its rock—there is no doubt about that; she champions these issues consistently. I am assured that the Chief Secretary to the Treasury is giving careful consideration to her proposition, and that just underlines that she has been a champion for her constituency. By delivering on our green plans, we can generate green jobs and green investment in every part of the United Kingdom, including Wales.

[Mr Speaker]

I call the shadow Minister.

[Abena Oppong-Asare (Erith and Thamesmead) (Lab)]

As my hon. Friend the Member for Portsmouth South (Stephen Morgan) just said, the Institute of Directors has warned that

“the UK will find itself left behind in the accelerating race to lead the green economy.”

The Confederation of British Industry says that we are investing five times less in green industries than Germany—five times less. Meanwhile, the United Nations issues warnings of a climate disaster. Where is the urgency and action from the Conservatives to decarbonise our economy and win the global race for green jobs?

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[The Chief Secretary to the Treasury (John Glen)]

I am grateful to my hon. Friend, who has met me on a number of occasions to make the case for the Dartford crossing. Obviously, in the current difficult circumstances with inflationary pressures, we have had to make some tough choices, but I want to be very clear with my hon. Friend: we remain committed to delivering it. This is a two-year delay on construction, not a cancellation, and I will continue to update him in due course.

[Mr Speaker]

I call the shadow Chancellor.

[Rachel Reeves (Leeds West) (Lab)]

Confidence has been shaken by the recent bank failures and stock market falls across the world. Is the Chancellor confident that our ringfencing regime is adequate to protect taxpayers and depositors, when we have seen how fast these problems can spread? Can the Chancellor reassure the House that there are no other UK banks or subsidiaries that are vulnerable, and in light of recent developments, is he confident about the Financial Stability Board, or does it need to widen the number of banks regarded as systemically important?

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[The Chief Secretary to the Treasury (John Glen)]

Further to that point of order, Mr Speaker. I can confirm that we have always been ready to sign the MOU, from two years ago—[Interruption.] Well, we have made it very clear to the EU that we are ready to sign. It is a matter for it to come to the table, and we very much hope it will be able to do that. What happened was that as the Financial Secretary came to the Dispatch Box she did not quite hear exactly what I said, and for that I apologise on behalf of the Government. It was my fault.

[Mr Speaker]

I think that clears it up. The answer was no.

Silicon Valley Bank

Lindsay Hoyle Excerpts

Monday 13th March 2023 Commons Chamber

[The Economic Secretary to the Treasury (Andrew Griffith)]

With your permission, Mr Speaker, I will make a statement on the steps His Majesty’s Government have taken to limit risks to our tech and life sciences sector.

Following the rapid deterioration of Silicon Valley Bank, and working in concert with the Bank of England, early this morning we facilitated the purchase of the UK subsidiary of Silicon Valley Bank by HSBC. Serving 39 million customers globally, and headquartered and listed here in the UK, HSBC is Europe’s largest bank. Those affected are now secure in the knowledge that their deposits are protected and that they can bank as normal. Customers should not notice any changes, while the wider UK banking system remains safe, sound and well capitalised.

Using stabilisation powers granted by the Banking Act 2009, which afforded us the ability to safely manage the failure of banks, we have forestalled disruption in the tech sector and supported confidence in the UK financial system. The resolution action was taken by the Bank of England in consultation with HM Treasury, using its powers to transfer the UK business of SVB to a private sector purchaser. As required by the Act, the Bank of England consulted the Treasury, the Prudential Regulation Authority and the Financial Conduct Authority on its assessment that all required conditions for that transaction had been met.

We have been able to achieve this outcome—the best possible outcome—in short order without any taxpayer money or Government guarantees. There has been no bail-out, and the actions taken are a win for customers, taxpayers and the banking system. The transfer of SVB UK to a buyer has allowed the Treasury to limit the risk to public funds by ensuring that shareholders and creditors, rather than depositors, bear losses. To help achieve that result, the Bank of England has made a related instrument bringing about a mandatory reduction of capital instruments in SVB UK, restoring it to viability. It is my view that in this situation, the system worked as we would hope.

In order to ensure that the sale could proceed, the Government are using their powers under the Banking Act to provide HSBC with an exception to certain ringfencing requirements. That was crucial to ensuring that a successful transaction could be executed, that the bank has the liquidity it needs, and that deposits and public funds are protected.

The outcome will provide security for some of the UK’s most innovative, fast-growing firms. The UK’s tech and life sciences sectors are world leading, hundreds of thousands of people are employed in them, and they make a very substantial contribution to the economy as a whole. My right hon. Friends the Prime Minister and the Chancellor have been clear throughout that we will look after our high-tech sectors, and that is what we have done. The Bank of England has confirmed that, as a result of the swift, decisive action we have taken, depositors will be able to access their accounts. It is worth reiterating that, as the Governor has said, the wider UK banking system remains safe, sound and well capitalised.

In concluding, I place on record my sincere thanks to my fellow Ministers across Whitehall, to officials at the Treasury and to regulators. They worked tirelessly through the weekend to grip the situation, to deliver this solution and to prevent real jeopardy to hundreds of the UK’s most innovative companies.

[Mr Speaker]

I call the shadow Minister.

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[Andrew Griffith]

I think concealed within that was grudging support, and I am sure that the hon. Lady would like to add her voice to those of so many in the sector who have welcomed this announcement today, which provides the important confidence and stability that are needed. She raised the point that SVB UK has a separate banking licence, and it is precisely because of that mechanism that our regulators and the Treasury have been able to take the action we have taken over the weekend.

I think the hon. Lady understands the disruption and volatility in the sector, but she should be reassured that the Governor of the Bank of England has confirmed that this is not indicative of systemic risk. I can confirm that, in order that the Silicon Valley Bank, now within HSBC, can provide the broad range of services that our life sciences and tech sector value so much, the exemption from the ring-fencing requirements will be permanent.

The hon. Lady asked about a systemic review. Of course, these are always opportunities for us to learn and look again, but, as I said in my opening remarks, the system has worked as intended.

Finally, and with the greatest of respect, we on the Conservative side of the House need no lessons on patient capital. We are unlocking capital for our important tech and life sciences. Only last week, the Under-Secretary of State for Pensions, my hon. Friend the Member for Sevenoaks (Laura Trott), brought to this House regulations to remove the charge cap and to allow our pension funds to invest in some of the fastest-growing sectors of our economy.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Harriett Baldwin (West Worcestershire) (Con)]

May I put on the record my gratitude to the Minister, his colleagues and officials, and to people at the Bank and in the City in general, who have obviously worked flat out all weekend to deliver what turns out to be the best possible outcome in these difficult circumstances?

On the importance of the sector to the UK economy, did the Minister and the Bank treat this situation any differently because of the sector in which SVB was operating, or would they have tried for the same sort of solution for a bank in any sector? Was the Minister as concerned as I was about reports that investors required the firms that they were funding to put money into the bank as a condition for investment? Finally, given that other banks have collapsed in the US—other small banks, including one that specialised in crypto—does he think that crypto is in any way contributing to financial instability?

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[Mr Speaker]

I call the SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

One of the key lessons of the 2008-09 financial crash was that the conduct of business and liquidity issues could very quickly morph into systemic risk with contagion across a variety of transmission channels, so I very much welcome the speedy way in which the SVB UK issue was resolved over the weekend. However, that bank’s business model—and it is not alone—involved it holding a large number of low-interest-bearing bonds at a time of rising bond yields. It was required to sell those at a loss, which exacerbated the liquidity problems that it had. Would it not be prudent now to ensure that our regulators have another look at UK banks to ensure that comparable low-interest-bearing assets are stringently priced and marked to market to ensure that tier 1 capital is just that, and of sufficient quantity and quality that any liquidity problem does not morph into an insolvency and system risk problem?

[Andrew Griffith]

I thank the right hon. Gentleman for his recognition of the speed and decisiveness with which the whole Government have come together, worked together and acted to deliver this outcome—that is kind of him and it is appreciated. If I may, we should not conflate some of what we read about the balance sheet in the US with the regulated balance sheet in the UK, which was a separately regulated balance sheet. Again, on the business model in the UK and the backing, and the bonds and collateral that were being held, I am not aware that their forced sale, and the losses on it, were a contributory factor. The reality is that we saw a withdrawal of deposits. The Bank had the ability, because of the relatively ringfenced balance sheet, to protect the bank and take the necessary action. Had the Bank not done so, we could have been in a very different situation, so we were right to act as we did.

[Mr Speaker]

I call the Chair of the Science and Technology Committee.

[Greg Clark (Tunbridge Wells) (Con)]

I strongly welcome the decisive intervention that has been described, which has saved many UK tech businesses and jobs. Will my hon. Friend consider how the responsiveness of UK regulation, which was demonstrated overnight, combined with the strength of the City of London and our tech sector, provides an opportunity to attract more businesses to do their financing in the UK and means that they do not need to go overseas to get the financing that they require to start up and grow?

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 7th February 2023 Commons Chamber

[Steven Bonnar]

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

[Mr Speaker]

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

[Jeremy Hunt]

Thank you for correcting me, Mr Speaker.

[Mr Speaker]

It’s for Barry’s benefit. [Laughter.]

[Jeremy Hunt]

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

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

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

Question 5, Mr Speaker.

[Mr Speaker]

Four would be even better.

[Catherine West]

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

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

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

[Mr Speaker]

Question 23.

[Victoria Atkins]

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

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

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[Victoria Atkins]

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

[Mr Speaker]

I call the shadow Minister.

[James Murray]

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

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

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

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[James Cartlidge]

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

[Mr Speaker]

I call SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

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

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

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

[Mr Speaker]

Correct!

[James Cartlidge]

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

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

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

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

[Mr Speaker]

Yes or no.

[Andrew Griffith]

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

--- Later in debate ---

[John Glen]

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

[Mr Speaker]

I call the shadow Minister.

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

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

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

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

--- Later in debate ---

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

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

[Mr Speaker]

I call the shadow Chancellor of the Exchequer.

[Rachel Reeves (Leeds West) (Lab)]

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

--- Later in debate ---

[James Cartlidge]

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

[Mr Speaker]

I think we have got it, Minister.

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

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

--- Later in debate ---

[James Cartlidge]

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

[Mr Speaker]

I call the Chair of the Select Committee.

[Harriett Baldwin (West Worcestershire) (Con)]

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

Digital Pound

Lindsay Hoyle Excerpts

Tuesday 7th February 2023 Commons Chamber

[The Economic Secretary to the Treasury (Andrew Griffith)]

Before I give my statement, may I add my voice to those in the previous statement on the Turkey and Syria earthquake? My heart goes out to all the people affected by that.

With permission, Mr Speaker, I will make a statement about the steps the Government are taking to consider the future role of a potential digital pound. His Majesty’s Treasury is today publishing and laying in Parliament a consultation paper jointly with the Bank of England, “The digital pound: a new form of money for households and businesses?”. This paper aims to open a national conversation about the future of money in the United Kingdom.

The way money is used in the UK is changing, as it is across the world. Cash will remain important, but banknotes, issued by the Bank of England, are being used less frequently by households and businesses. New technologies are allowing for the emergence of new forms of digital money, and new ways and devices to pay for goods and services with it. International developments have the potential to affect the UK domestically and our position as a global leader in finance. Ensuring that public trust in money remains high, and that forms of money and payments meet the evolving needs of individuals and businesses, are fundamental responsibilities of the Government on which Parliament must have its say.

We are determined that the UK should remain at the forefront of innovation in money, payments and financial services. This is part of the Government’s vision for a technologically advanced, sustainable and open financial services sector—a sector that is globally competitive and acts in the interests of communities and citizens, creating jobs, supporting businesses and powering growth across all parts of the UK.

A UK digital pound would be a new form of digital money for use by households and businesses for their everyday payment needs. The digital pound would be a new form of sterling, similar to a digital banknote and issued by the Bank of England. For people and businesses, the experience of using a digital pound would be very similar to using other forms of digital money. For example, it would be accessible online via smartphones and computers, as well as through cards that could be used at point-of-sale terminals.

I want to be clear that the Government are legislating to protect access to cash and ensuring that the UK’s cash infrastructure remains sustainable long term. Therefore, as part of the wider landscape of money and payments, the digital pound would sit alongside, and not replace, cash —a digital counterpart to familiar, trusted banknotes and coins, and subject to rigorous standards of privacy and data protection. It would be denominated in sterling, and digital pounds would always have the same value as, and be interchangeable with, the equivalent physical banknote. Unlike cryptoassets and stable coins, the digital pound would be a central bank digital currency; sterling currency issued by the Bank of England, not the private sector.

A digital pound would help to ensure that money issued by the central bank—which is currently available only as cash—remains available and useful in an ever more digital economy. Knowing that there is an ultimate backstop to convert our money—money in our bank or e-money account—into cash or a CBDC at any time is the foundation of confidence in all forms of money, both day to day and in a crisis.

As cash is less and less used, the importance of a digital pound to provide that constant access to Bank of England-issued money could rise. It will safeguard the UK’s monetary sovereignty in a changing global financial system. It could provide a platform for private sector innovation, promoting further choice, competition, efficiency and innovation in payments.

On the basis of our work to date, the Bank of England and HM Treasury judge that it is likely that a digital pound will be needed. It is too early to commit to build the infrastructure for one, but we are convinced that further preparatory work is justified. A future digital pound would be a major piece of national infrastructure, which would take several years to complete. It would need to be safe and secure, and the legal basis for the digital pound would be determined alongside consideration of its design. Its launch would require deep public trust in this new form of money—trust that their money would remain safe, accessible and private.

The journey towards issuing any digital pound, therefore, necessarily involves an open national conversation about the future of our money, in parallel with important detailed technical consideration by experts across UK public authorities, and be informed by evolving market trends. The consultation we have published today will be open for four months. It opens that conversation and seeks to build the foundation of public trust. It sets out our vision of why a digital pound may be needed alongside our vision of how a digital pound could work, should we decide to issue one.

Like a physical banknote, no interest would be paid on the digital pound. Privacy, user control and use of data in line with UK data protection laws are of paramount importance. So I want to reassure the House that our vision for a digital pound would have the same privacy protections as bank accounts, debit cards or cheques. Neither the Government nor the Bank would have access to digital pound users’ personal data, except for law enforcement agencies under limited circumstances, prescribed by Parliament in law and on the same basis as applies to other digital payments. The digital pound would not be anonymous because the ability to identify and verify users is needed to prevent financial crime.

Drawing on the feedback we receive in the consultation, we are committed to move to the next phase of work. That will inform a future decision on whether to progress to building and launching a digital pound. I assure hon. and right hon. Members that a further update to Parliament will be made prior to that. It will also inform our current proposal for its form and function, decisions on which will be taken forward in the next stage. At this exciting time of change in money and payments, this consultation is a vital step in positioning the UK to act decisively, should we choose to introduce a digital pound.

[Mr Speaker]

I call the shadow Minister.

IMF Economic Outlook

Lindsay Hoyle Excerpts

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

The right hon. Lady talks about 13 years of failure. Let me just repeat the facts of the matter. Since 2010, the UK has grown faster than France, Japan and Italy. She talks about the next two years. As I have said, the forecast from the IMF says:

“Cumulative growth over the 2022-24 period is predicted to be higher—

in the UK—

“than in Germany and Japan, and at a similar rate to the US.”

I am grateful to the shadow Chancellor for quoting the IMF, because I, too, wish to quote the IMF. Let us go to the IMF press conference at about 3am this morning, which, Mr Speaker, I am sure you were eagerly watching, and quote the economic counsellor Pierre-Olivier Gourinchas who said:

“Let’s start with the good news: the UK economy has actually done relatively well in the last year. We’ve revised”—

growth—

“upwards to 4.1%...that’s one of the highest growth rates in Europe, in that region, for that year”—

2022.

The shadow Chancellor did make a passing reference to the pandemic, but it is usually Labour’s habit to airbrush out of history completely the fact that we as a Government have overseen two of the greatest challenges in the country’s history: a pandemic followed by the invasion of Ukraine. [Interruption.] I know why the shadow Chancellor does not want to talk about the pandemic. Back in December 2021, when the Labour Welsh Administration wanted to lock down in the face of omicron, we took the brave decision as a Government not to lock down in England. Let us remember what the shadow Health and Social Care Secretary said at the time. He said that plan B was “insufficient” and that there were additional measures that were “necessary”. Labour would have kept us locked down for longer. We took the decision to keep our country open. We did so because of the vaccine that we brought forward, which is something that Labour would not have done.

The crucial issue, as I said, is bearing down on inflation, which will give us the best chance of restoring sustainable growth. A key facet of dealing with inflation is fiscal discipline. We have heard from the shadow Chancellor recently that Labour is suddenly the party of sound money. Since the speech—I think it was two weeks ago—in which the leader of the Labour party promised to put away the great big Government cheque book, Labour has made £45 billion of unfunded spending commitments. We all know where that ends. Labour starts writing blank cheques, and it ends with a letter from its Chief Secretary to the Treasury to the rest of the country saying, “There’s no money left.”

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Harriett Baldwin (West Worcestershire) (Con)]

Will the Minister take this opportunity to reflect on last year when, despite the headwinds of the coronavirus, the invasion of Ukraine, huge hikes in energy costs, rising interest rates and high inflation in this country, UK businesses managed to generate more than 4.1% of economic growth—twice that of the United States, 25% higher than China, and higher than the eurozone?

[James Cartlidge]

The Chair of the Select Committee is spot on. Instead of talking down our economy, she makes the key point that, despite all those challenges, we had strong growth last year because of British enterprise. That is why, on Friday, the Chancellor, himself a former entrepreneur—there are not many of those on the Opposition Benches—said that we will back advanced manufacturing in the high-growth sectors to ensure that we continue to live with that level of growth in the future.

[Mr Speaker]

I call the SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

I suppose that it is apposite that there is an urgent question on a potential recession on the third anniversary of Brexit.

The IMF has said that the economy of the UK—the only G7 country facing recession—would face a downgrade reflecting, it says, tighter fiscal and monetary policies and the still high energy retail prices weighing on household budgets. There is no getting away from it: with even sanctioned Russia forecast to grow, that is a gloomy prognosis. Given that the Government expect to meet their own new fiscal rule on public sector net debt by a paltry £9 billion in 2027-28, according to the Office for Budget Responsibility, the Government’s own strictures mean that there is no fiscal headroom to provide more support. Is this not the time, therefore, to reduce the energy companies’ investment allowance, which allows them to reduce the tax that they pay by 91p in the pound, to start to generate a meaningful windfall tax that is required to further support households and small and medium-sized enterprises—two of the main drivers of the IMF forecast for the economy—which will otherwise see their energy costs rocket this year?

--- Later in debate ---

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is it not time that the Minister told the truth to my constituents? The truth is that the Government have hollowed out not only our defence capacity but our economy. Will he explain to my constituents why, on the ship of shame that is the Government Benches, where there is no captain, first mate or crew, the captain’s cabin boy has been sent to answer questions on this, the most vital topic at the moment?

[Mr Speaker]

Order. The hon. Gentleman is an elder statesman of this House. I am sure he can be pleasant if he really tries. I do not think that kind of question does this Chamber any good.

[James Cartlidge]

The hon. Gentleman mentions defence, but he might want to explain to his constituents why, at the last general election, he backed the right hon. Member for Islington North (Jeremy Corbyn), whose policy would have had us leave NATO and undermine the nuclear deterrent.

We have stood by the people of Ukraine in the face of a real war. We have not deployed into the theatre, but we have done everything possible short of that, including training the Ukrainian army since 2015. So yes, I will tell the hon. Gentleman’s constituents the truth: they should be proud of what this country is doing for the people of Ukraine.

--- Later in debate ---

[James Cartlidge]

The hon. Lady makes a very good substantive economic point, which is that when inflationary pressures are higher, as they are at the moment, it is discretionary consumption that comes under pressure—and that means, for example, demand in pubs and shops and so on. I can confirm that we have taken huge steps to support hospitality, as we did in the pandemic. We recently announced that the 50% reduction in business rates would be extended by another year and go up to 75%. I announced in December a six-month extension to the freeze in alcohol duty, but hospitality is an important sector that is creating jobs, and we want to see what more we can do to support it.

[Mr Speaker]

To complete the urgent question, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his answers to the urgent question. Being the only G7 country, according to the forecast, to have an economy set to shrink this year, will the Minister consider increasing spending power in the United Kingdom by focusing on help for SMEs, which are the backbone of our economy and the job creators, and in particular businesses in Northern Ireland, which are hit harder by the costs associated with the reprehensible Northern Ireland protocol?

Wagner Group: Sanctions Regime

Lindsay Hoyle Excerpts

Wednesday 25th January 2023 Commons Chamber

[James Cartlidge]

My hon. Friend the Chair of the Foreign Affairs Committee speaks with great expertise on these matters. She makes some points that are for other Departments to consider, but I will ensure that they are fed back. On the point about the specific process in relation to OFSI, I will not comment on the individual case, but there is a general point about seeking clarification. I can confirm that we will undertake an internal review to see how such cases are considered in the future, and we will say more on that in due course.

[Mr Speaker]

I call the Scottish National party spokesman.

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

Despite the Minister’s gymnastics on this issue, it is clear that there are still serious and systemic links between the UK Government and Russian political elites. In 2021 the operations, tactics and human rights abuses of the Wagner Group were well known, and the EU and the UK imposed sanctions on Yevgeny Prigozhin, as the Wagner Group leader, for that reason. These revelations present a serious and immoral disregard for human rights obligations and due process at the heart of the Minister’s Government, and all this took place on the current Prime Minister’s watch, as he was Chancellor at the time.

Will the Minister tell us what advice, legal or otherwise, prompted the Treasury to make Prigozhin’s activities possible? It is not beyond his capability—legal or otherwise—to tell us who made the decision to override that. What actions will his Government now take to ensure, as a result of these revelations, that the Prime Minister’s promised

“integrity, professionalism and accountability at every level”

will be followed through?

--- Later in debate ---

[James Cartlidge]

This is not a loophole in relation to the Wagner Group. We are clear on all the issues about the Wagner Group. We have acted against it in so much as it is part of the military effort in Ukraine and we have supported Ukraine as far as we are able to, in supporting that military effort. What we are talking about here is a specific point, which is that there is a right to legal representation, so we have a process in place under the sanctions regime to consider applications to use frozen assets to fund legal fees, but as I have said, we will be reflecting on that and reviewing that process.

[Mr Speaker]

That completes that urgent question. Those who need to leave, please do so before I start the next one.

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 20th December 2022 Commons Chamber

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

The structure of the electricity market means that the price of electricity is tied to the wholesale gas price. Russia’s invasion of Ukraine triggered an unprecedented increase in gas prices, driving energy prices to eight times their historic levels. As a result, many energy generators’ profits are well above pre-crisis levels. As announced at the autumn statement, the Government are introducing a temporary 45% tax on extraordinary returns made by some UK electricity generators from 1 January.

[Mr Speaker]

I call Wendy Chamberlain, whose birthday it is today. Happy birthday.

[Wendy Chamberlain]

Thank you, Mr Speaker.

Shell announced worldwide profits of £8.2 billion and £9 billion for the three-month period between July and September and the three months to June. BP announced more than double its profits for the same period. They have increased their dividend payments and spent billions buying back their own shares from the market. Shell says that it does not expect to pay any windfall tax at all this year and BP said that it would pay £678 million. Does the Minister agree that, if the Government had implemented a proper windfall tax that captured these things, we could be supporting offshore customers such as my own in North East Fife?

[James Cartlidge]

Obviously, the hon. Lady knows that we do not comment on the commercial decisions of individual companies. What I can confirm is that the specific levy to which she refers—the energy profits levy—will contribute £40 billion to the Exchequer. We must remember that that £40 billion will play a key part in enabling us to afford the support that we are giving to constituents throughout the United Kingdom this winter and next year, which will total, for businesses and households, more than £100 billion, and the Office for Budget Responsibility has already found that that will help to reduce inflation overall.

[Mr Speaker]

I call the shadow Minister.

[Abena Oppong-Asare (Erith and Thamesmead) (Lab)]

May I begin, Mr Speaker, by wishing you, the Minister and the whole House a jolly Christmas?

If the Government had implemented Labour’s windfall tax, they would have raised an additional £16.8 billion. Why have the Government chosen to leave this windfall of war on the table and not put it to use to support families and businesses in the tough winter ahead?

--- Later in debate ---

[John Glen]

I am very happy to look at that question further. The Government previously considered, but rejected, asking Ofgem to implement a relative rather than an absolute price cap in energy markets, which would have similarly prevented energy suppliers from charging those large differentials, because it was judged that it was more likely to distort competition in the fixed-term tariff market. As ever, I am happy to continue the conversation with my hon. Friend and I know he will take the matter up further with the regulator.

[Mr Speaker]

We now come to the SNP spokesperson.

[Stewart Hosie (Dundee East) (SNP)]

Subsequent to the changes to the insurance market to protect people from the loyalty payment, the Chancellor announced his Edinburgh reforms to wider financial services regulation and a great many consultations. At a quick glance, many of them closed very quickly—on 5 February, 17 February, 3 March, 5 March and 17 March. Given that the Treasury Select Committee warned over a decade ago that the Government

“needs to take the time required to get its reform of financial regulation right”,

how can we be convinced that the rather painful lessons of the financial crash have not been forgotten?

--- Later in debate ---

[John Glen]

I can be very open with my hon. Friend today. We are absolutely committed to driving forward productivity across the economy and in the public sector. I will look into the specific question he has not had answered. That will involve conversations with the Secretary of State for Health and Social Care, as well as across the Cabinet.

[Mr Speaker]

I just remind everybody that Members’ letters must be answered when they put requests in, please. We now come to the shadow Minister.

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

I echo the good wishes to you, Mr Speaker, to the Minister and to the whole House for a very happy Christmas.

Last year, the then Prime Minister and the then Chancellor, who is now the Prime Minister, announced a star chamber to crack down on waste and fraud in public expenditure. How often has the star chamber met, and how much of the £6.7 billion estimated to have been lost to covid fraud and error has been recovered?

--- Later in debate ---

[Victoria Atkins]

My hon. Friend has done so much for her constituency through her campaigns, including by securing the investment that her local hospital needs. In relation to her high streets and small businesses, she is right that we are the Government of small business. That is why, although we had to make some difficult decisions in the autumn statement, we were determined to protect our precious high streets and small businesses, particularly in the retail, hospitality and leisure sectors, through the business rates support package, which totalled £13.6 billion.

[Mr Speaker]

We come to the shadow Minister.

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

I echo the consensus about the importance of a merry Christmas. In the last month, I have asked Treasury Ministers three simple questions: whether the Chancellor has considered abolishing non-dom status; whether the Prime Minister was consulted about doing so; and whether, when the current Prime Minister was Chancellor, he recused himself from discussions on the matter. I have asked those questions four separate times, but four times Treasury Ministers have refused to answer or even acknowledge them. Once might be an oversight and twice might be careless, but three times seems deliberate and four times feels like stonewalling. Will the Minister finally show that they have nothing to hide by answering my questions today?

--- Later in debate ---

[Jeremy Hunt]

I am grateful to my hon. Friend for standing up for businesses and charities in Warrington, as he always does so ably. As he knows, this winter the energy business relief scheme is providing £18 billion of support for businesses and charities, and early in the new year we will announce how that support will continue after April. I reassure my hon. Friend that we are particularly concerned about the impact on charities, which see their costs go up but without a corresponding ability to increase their income.

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Harriett Baldwin (West Worcestershire) (Con)]

I wish you, Mr Speaker, your team and the Treasury team a merry Christmas. Has the Chancellor had a chance to read the Treasury Committee’s report, published last week, about the welcome that we give to the cost of living support that he has announced for next winter? Did he also note our points about the potential cliff edges in that £900 support, and the recommendations we made to spread those payments more evenly over the course of next winter?

--- Later in debate ---

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

The Government have announced cost of living support worth £26 billion in 2023-24. More than 8 million of the most vulnerable households across the UK will continue to be supported through to next winter via additional cost of living payments. In my hon. Friend’s constituency, that equates to 11,600 households who will be eligible for £650 of extra support this year through the means-tested benefits cost of living payment. I urge all colleagues across the House to look at the help for households website—helpforhouseholds.campaign.gov.uk —which can signpost people to the various funds and ways in which they can get support.

[Mr Speaker]

I call shadow Minister, Pat McFadden.

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

The end of the year is a moment for reflection, so let us look at the Government’s report card: a Tory mini-Budget that crashed the economy, waiting lists and times at record highs, trains delayed and cancelled all over the place, billions wasted on dodgy contracts, and a reshuffle policy that means everyone in the Conservative party gets to be famous for 15 minutes. Why is it that when nothing is working under the Tories, even at this time of seasonal gift giving, they still insist on making everyone else pay the price for their Government’s failures?

Russia: UK Companies

Lindsay Hoyle Excerpts

Wednesday 7th December 2022 Commons Chamber

[Mr Francois]

On a point of order, Mr Speaker—

[Mr Speaker]

Order. It cannot come now. It has to come after the next statement.

[Mr Francois]

It is just something that we wanted the Business Secretary to hear.

[Mr Speaker]

Well, we cannot change the rules. There are more Members than you with points of order—that is my problem. I would be opening a can of worms. I would love to, but I dare not.