Covid-19: Government Support for Business

Lindsay Hoyle Excerpts

Thursday 16th December 2021 Commons Chamber

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

(Urgent Question): To ask the Chancellor of the Exchequer if he will make a statement on economic support for business.

I want to begin by extending my best wishes to my hon. Friend—

[Mr Speaker]

The Minister will answer the question, and then you can say your piece.

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

It is clear that omicron is much more transmissible than other coronavirus variants, which is why, as the Prime Minister announced on Sunday, we are offering every eligible adult a booster dose before the end of the year. To get more jabs in arms, we have taken the proportionate and responsible step of moving to plan B in England to slow the spread of covid-19.

The rapid spread of omicron means this is a challenging time for a number of sectors, including hospitality. The Chancellor will be speaking to UK hospitality representatives this afternoon to understand their concerns. The Government continue to offer considerable support to businesses that might require extra assistance into next spring, as part of the £400 billion of direct economic help that we have provided during the pandemic.

For instance, we have reduced the VAT rate for hospitality and tourism businesses to 12.5% until March. Eligible retail, hospitality and leisure businesses in England are also benefiting from 66% business rates relief until March. And at the recent autumn Budget the Chancellor introduced a further 50% business rates relief for eligible businesses into the 2022-23 tax year.

Businesses can continue to apply for the additional restrictions grant until March 2022, as part of more than £2 billion of discretionary business grant funding during the pandemic. Businesses can benefit from our extension to the recovery loan scheme, which helps small and medium-sized enterprises to build back from the crisis by providing guarantees to lenders on finance of up to £10 million. Firms are also protected from eviction until March 2022 if they fall behind on their rent.

Firms in the arts and culture sector, meanwhile, can access the £2 billion culture recovery fund, the sports recovery package and the film and television production restart scheme until the end of April 2022. And our £800 million live events reinsurance scheme is giving event organisers confidence to plan ahead. Furthermore, the devolved Administrations have received an extra £12.6 billion this year, including an additional £1.3 billion in the autumn Budget.

This Government are helping businesses in every region and nation of the UK during these difficult times. We are speaking to the most affected sectors, and we will continue to respond proportionately to the virus’s changing path to support jobs, businesses and individuals, just as we have since the start of this pandemic.

[John Glen]

I thank the right hon. Gentleman for his questions. The Chancellor has been deeply engaged with business representatives throughout this pandemic and he will continue to be so. He was on a long-planned business trip to the United States, conducting Government business, and he will continue to engage today with other Ministers, with representatives of the hospitality sector and others, to hear their concerns about what further support should be required.

However, I will not be taking lessons from the right hon. Gentleman on some of these measures. Last year, when we put in place the bounce back loans, it was the shadow Chancellor at the time, the hon. Member for Oxford East (Anneliese Dodds), who specifically engaged constructively with the Chancellor to agree the basis for those loans. We have continued to work constructively throughout on a range of interventions for multiple sectors. We put in a package of measures at the Budget offering additional support and as of yesterday the covid additional relief fund will provide £1.5 billion for those in the supply chain to deal with some of the additional challenges. Of course the Government recognise the additional pressures that these measures and this strain of the virus bring, and of course we will engage carefully and listen carefully to those business representatives this afternoon.

[Mr Speaker]

I call the Father of the House, Sir Peter Bottomley.

[Sir Peter Bottomley (Worthing West) (Con)]

The Minister has talked about some of the costs that will be reduced. The problem with the reduction of Christmas cheer, especially in the hospitality and entertainment industries, is revenues.

If I listen to my publicans, restaurateurs and hoteliers, I know they will want to hear after the meeting this afternoon how their revenues can be lifted, how they can treat their staff properly and how the loss of revenue from those events that cannot be postponed will in some way be made up to them. That is what matters most in most constituencies, including mine.

Downing Street Christmas Parties Investigation

Lindsay Hoyle Excerpts

Thursday 9th December 2021 Commons Chamber

[Mr Speaker]

I just say to the Minister that his remarks were meant to take three minutes, not over four minutes. [Interruption.] Just a minute. So I will give some flexibility to the other two Front Benches.

[Fleur Anderson]

Thank you, Mr Speaker, and I thank you, too, for granting this urgent question today. I also thank the Paymaster General for his statement and for giving more information about this investigation.

Trust is vital during a pandemic—trust in the decisions being made and, most importantly, trust in the people making those decisions and the judgment about them. My constituent Sophie wrote to me yesterday to say:

“My mother died of Covid on Christmas Day last year—she was alone and frightened in an isolation room in hospital on 18 December while the alleged party was happening. She was admitted to hospital for a non-Covid related issue and contracted the disease whilst in there. Both of us had followed the rules and it breaks my heart that I was only able to see her a handful of times last year, and couldn’t be with her in her final moments.”

She is angry; people across the country are angry.

I welcome the Prime Minister’s announcement that he has asked the Cabinet Secretary to conduct an investigation. I have asked for this urgent question as there are further urgent questions to be asked about the investigation into the parties—we do not need to call them alleged parties; they were parties—held in a Government Department or by Government Ministers elsewhere. Are there more parties that we need to hear about? Is this investigation just a way of being able to say, “We’re doing something” while pushing it into the long grass, or is it a serious investigation?

The Prime Minster said yesterday:

“I have been repeatedly assured…that there was no party and that no covid rules were broken…But I have asked the Cabinet Secretary to establish all the facts.”—[Official Report, 8 December 2021; Vol. 705, c. 372.]

Who gave these repeated assurances? If there was no party, why did Allegra Stratton feel the need to resign? Is she taking the fall instead of Government Ministers? If this investigation finds that the Prime Minister has misled the House, will he resign?

I look forward to the publication of the terms of reference for the investigation later today. Will it include all the parties—not just the three but any others that were held? Who went to these parties? Can the Minister confirm that the Cabinet Secretary and the remainder of the legal team that has just been referenced did not go to any of the parties and so are able to conduct the investigation without personal interest? If they happened, who colluded for a year in the cover-up of these parties? When is the deadline for the investigation? How will the outcomes be made public? Is there any limit on the sanctions that will be given to people found to have been in the wrong?

I welcome the assurance from the Paymaster General that the matter will be referred to the police if there is a case to answer. We on the Opposition Benches will be following what happens very closely.

Finally, will the Government just be straight with the British people?

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 7th December 2021 Commons Chamber

[The Financial Secretary to the Treasury (Lucy Frazer)]

The Government’s priority is to keep goods moving and avoid delays at the border. To ensure that, we have set up a new Cabinet Committee on logistics to deal with supply chain issues. I recognise that the new customs controls come in on 1 January. Her Majesty’s Revenue and Customs is supporting traders and hauliers to adjust to their new obligations following the end of the transition period.

[Mr Speaker]

Just for clarification, is that a grouped question?

[Lucy Frazer]

I do not believe it is, Mr Speaker.

[Mr Speaker]

Thank you. I call Chris Elmore.

[Chris Elmore]

I am glad that the Minister is setting up a Cabinet Committee—that is lovely—but let me tell her what is impacting people on the ground. Daniel Lambert Wines, an importer in my constituency, for example, has gone from taking seven to nine days to import wine from the EU to 12 weeks. That is really not acceptable. The national Food and Drink Federation says that it is causing huge problems for the supply chains when it comes to bringing wine into the UK, and Christmas is one of the biggest periods for purchasing. Can the Minister set out what she will do to start tackling the issues around the delays in importing wine, so that everyone can have a sensible tipple over the Christmas period?

[Mr Speaker]

I call the Chair of the Treasury Committee.

[Mel Stride (Central Devon) (Con)]

I am sure that my right hon. and learned Friend and HMRC are working very hard to ensure that the changes to the import processes coming in on 1 January run smoothly and do not result in lots of additional friction at the border. However, the Federation of Small Businesses has estimated that just one in four smaller companies is actually prepared for the changes that are about to happen. Is she aware of that particular issue? If she is, what action is she taking in the short time that remains?

--- Later in debate ---

[Rishi Sunak]

I hope that my hon. Friend will forgive me for not treading on the toes of the Business Secretary, but what she will know is that we allocated £120 million for future nuclear development in the Budget and spending review. I know that the subject is of keen interest to her and that she has long campaigned on it in her area. I am happy to support her in her conversations with the Business Secretary as he decides how to allocate that funding.

[Mr Speaker]

May I welcome Pat McFadden to the Dispatch Box?

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

Thank you, Mr Speaker.

It takes some doing to come up with an inheritance tax aimed at people in the lowest-value properties, but that is exactly what the Chancellor and the Conservatives have done in the way they have designed the social care cap. Even the original author of the policy, Sir Andrew Dilnot, has said that the changes that the Government have made mean that

“the less well off will not gain any benefit from the cap.”

When it comes to tax, we should look at what the Government do, not what they say or the newspapers they brief. Why is the Chancellor imposing a tax rise on almost everyone to pay for a policy that will hurt those with the lowest-value properties in the country?

--- Later in debate ---

[Rishi Sunak]

I am always delighted to meet my hon. Friend and neighbour, and if we could do that in north Yorkshire, it would be fantastic. He is right—as he always is—to champion the need for small and medium-sized enterprises to have access to the finance that they need, and if he has come up with yet another idea to ensure that that happens, I should be delighted to learn more.

[Mr Speaker]

I call the Scottish National party spokesperson, Alison Thewliss.

[Alison Thewliss (Glasgow Central) (SNP)]

The Chancellor likes to talk a good game on the universal credit taper rate and his pretendy living wage, but that only benefits those who are lucky enough to be in work and ignores many people who are disabled, carers or out of work, and those who are still on legacy benefits. Why has he abandoned and forgotten that group when they face a cost-of-living crisis this winter which will often affect them more than the rest of the population?

--- Later in debate ---

[Jason McCartney]

I know the passion of the Chancellor and the Chief Secretary for levelling up, and I welcome the creation of a Treasury campus in the north-east. When the Treasury next relocates, may I encourage my right hon. Friends to look at Huddersfield, Marsden and Slaithwaite in my Colne Valley constituency? They are strategically located on the TransPennine rail route between Leeds and Manchester, and we are set to have millions invested thanks to the integrated rail plan. We have fantastic former mill sites ready for regeneration, and the Chief Secretary and the Chancellor would be welcome to join me on a visit.

[Mr Speaker]

Be careful how you answer, Chief Secretary. There are two more questions to come.

[Mr Clarke]

I thank my hon. Friend the Member for Colne Valley (Jason McCartney) for his invitation, and I look forward to being in Darlington at the Treasury’s northern hub this week.

I am glad to hear of my hon. Friend’s support for the wider investment on the TransPennine rail route, which will improve connectivity between Manchester, Leeds and York, including Marsden and Huddersfield, with benefits starting this decade. Diary permitting, I would be delighted to discuss a visit to see that investment in action.

[Mr Speaker]

What will you say to Karl MᶜCartney?

[Karl MᶜCartney]

Thank you, and happy Christmas to you, Mr Speaker.

Connectivity is critical to levelling up, which is why I have advocated and secured significant infrastructure improvements in Lincoln since 2010. The recent counterproductive 25% cut in Lincolnshire’s highways maintenance grant is not levelling up, and my right hon. Friend the Chancellor was sitting next to the Prime Minister when I raised this issue at Prime Minister’s questions a fortnight ago.

If the Treasury does not provide the funding to return Lincolnshire’s highways maintenance grant to 2019-20 levels, at the very least, there will be a significant impact on improvements and repairs to the highways network in our county. Will the Chief Secretary agree to return the funding to pre-pandemic levels, or at least to put pressure on our colleagues in the Department for Transport to do so?

--- Later in debate ---

[Hannah Bardell (Livingston) (SNP)]

9. What recent assessment he has made of the effect of his fiscal policies on gender equality.

[Mr Speaker]

Does anybody want a question? Ah, Minister.

[The Chief Secretary to the Treasury (Mr Simon Clarke)]

Our fiscal policies support the Government’s ambition of creating a fairer and more equal society, and women are among those who will benefit the most. For example, women are expected to benefit disproportionately from the Government’s increase to the national living wage to £9.50 for workers aged 23 and above, as well as the rise in the national minimum wage for young people and apprentices.

--- Later in debate ---

[John Glen]

I do not agree with my hon. Friend’s characterisation of the causal relationship, but I recognise that the Bank of England continues to be responsible for monetary policy. My hon. Friend has always held distinct views that represent a particular school of economists, and I will continue to listen carefully to what he has to say to the House.

[Mr Speaker]

We now come to the shadow Minister; welcome to the Front Bench, Tulip Siddiq.

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

There is a cost of living crisis, temperatures are falling and Ministers are ignoring average households, who are struggling to pay enormous bills. Household energy bills have increased by more than £230 since last winter and are set to increase even more early next year, and we have recently seen higher tax receipts from energy bills. Will the Minister back Labour’s policy of using this money to cut VAT on people’s energy bills to zero over the next six months?

--- Later in debate ---

[Rishi Sunak]

As I have said, the new taxpayer protection taskforce at HMRC is expected to recover between £1 billion and £2 billion in the next 12 months, and has already made a good start on that. It is fair to reflect on where we were in spring 2020. I remember being at this Dispatch Box every other day. I remember Members from all parts of the House rightly holding the Government to account for getting money to businesses in a matter of hours and days, not weeks. In fact, I heard from the hon. Member for Oxford East (Anneliese Dodds), the shadow Chancellor at the time:

“We need a full guarantee for…some loans…We are running out of time, so how will the Chancellor ensure that the bounce-back loans get to the businesses that need them?”—[Official Report, 27 April 2020; Vol. 675, c. 110.]

The then shadow Business Secretary, the right hon. Member for Doncaster North (Edward Miliband), said that the Government should:

“urgently look at 100% underwriting of loans and simplified lending criteria.”

Indeed, the hon. Lady herself wrote to me and said that

“the process for SMEs to apply for such loans appears cumbersome.”

I make no apology for making sure—

[Mr Speaker]

Order. He might want to apologise now—we cannot take so long on the first two questions from either Front Bench.

[Lucy Allan (Telford) (Con)]

T5. I thank the Chancellor for his hugely successful plan for jobs. I recently visited an organisation in Telford called Teach A Trade, which successfully trains long-term unemployed and older people changing careers to get gas and electrical qualifications, which are in short supply in my constituency. What is his Department doing to work with organisations such as Telford’s Teach A Trade to make these courses more accessible to more students? Can he please tell me what his Department can do to help Telford’s Teach A Trade so that it can expand the excellent work it is doing?

[Mr Speaker]

Order. I appeal to Members that if you all want to get in, you have to help each other. If you are not going to help each other, do not be disappointed when you do not get in. It is not fair, and the same goes for the Front Benchers. Topicals are meant to be quick, short and speedy to keep the business going. We are not being fair. Whoever is answering that question, please do so briefly.

[The Exchequer Secretary to the Treasury (Helen Whately)]

As we build a strong economy, we need to raise skills. That is why we announced in the spending review an increase of £3.8 billion in skills spending over this Parliament. The spending review included funding for a specific 50-plus training scheme to support people like those being helped by Teach A Trade so that they can retrain and stay in work. I am happy to speak further to my hon. Friend about how we can support Teach A Trade and others like it to do what they do.

[Rishi Sunak]

I am glad that our VAT cuts extend all the way to spring. It is a £7 billion tax cut, and next year, as I have said, there is a 50% discount on business rates.

[Mr Speaker]

Well done, Chancellor.

[Dr Jamie Wallis (Bridgend) (Con)]

T7. The recently announced coalition deal between Welsh Labour and Plaid Cymru contains a tourism tax, which is likely to do significant damage to Porthcawl, a seaside town in my Bridgend constituency. Does my right hon. Friend agree that imposing a new tax on a sector already hit hard by Welsh Government restrictions is further evidence that Labour-nationalist coalitions are bad for business, bad for the economy and bad for our United Kingdom?

Northern Ireland Protocol: EU Negotiations

Lindsay Hoyle Excerpts

Thursday 18th November 2021 Commons Chamber

[Mr Speaker]

As the House will be aware, I have previously exercised my discretion regarding the sub judice resolution to allow references to the Northern Ireland protocol on the grounds of national importance. Although there are relevant live legal proceedings, I am further exercising that discretion today in relation to the urgent question.

--- Later in debate ---

[Michael Ellis]

We are pursuing a negotiation and the hon. Lady will have to wait and see.

[Mr Speaker]

Finally, but certainly not with the least of questions, I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Speaker. You are most kind. The good wine always comes last.

I thank the Paymaster General for his answers to the urgent question. Back in July, the Government published a paper in which they stated clearly that conditions to trigger article 16 had already been met. He referred to M&S, which has indicated this week that extra costs and extra bureaucracy on products crossing the border will cost it £9 million. Speaking as the MP for Strangford, who has got his feet clearly on the ground and knows what is happening and what the people are saying, I want to put it on the record that some businesses face going to the wall as a result. The Prime Minister repeated that assertion recently. He said that time was of the essence and that, if the current negotiations with the EU failed to arrive at an agreed outcome in a short period, the Government would move and must move immediately to take decisive action to remove the barriers to trade between Great Britain and Northern Ireland. I urge the Paymaster General to do just that: initiate article 16 and remove the barrier.

[Mr Speaker]

I like hearing from the hon. Gentleman, but his questions have to be shorter. If he wants to make speeches, I am sure that he will catch the eye of somebody in the Chair later.

[Michael Ellis]

The hon. Gentleman is right, Mr Speaker; you have saved the best till last.

[Mr Speaker]

Or longest till last.

[Michael Ellis]

The hon. Gentleman is right that Marks & Spencer makes a powerful point. Time is of the essence. Her Majesty’s Government will move to remove barriers if necessary. The article 16 application has already been met and we are alive to the time sensitivity involved.

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 2nd November 2021 Commons Chamber

[Lucy Frazer]

I am sure the hon. Lady will have seen the net zero strategy, which was published the week before the Budget. I am sure she will also know about the significant progress that the Chancellor has made on bringing other countries together to increase the international effort on climate finance. Yesterday, we set out our commitment to increase our international climate finance by £1 billion by 2025, on top of the £11 billion that we have already announced. The Chancellor, together with other Finance Ministers, is making sure that we help to reduce to net zero emissions through a number of measures. I am very happy to—

[Mr Speaker]

Order. I call Alison Thewliss.

[Alison Thewliss (Glasgow Central) (SNP)]

COP26 is under way in my constituency, and the Scottish Government have set an ambitious target to reach net zero by 2045. In contrast, the Minister has completely failed to justify the cut to air passenger duty on internal flights while allowing the already eye-watering price of train tickets to rise again at the turn of the year. This is no pro-Union policy, as the Government like to pretend, because 62% of Scots think that cutting APD is entirely the wrong priority. So, in this week of COP, will the Minister do her bit for the planet and scrap this climate-damaging policy once and for all?

Budget: Pre-announcement of Provisions

Lindsay Hoyle Excerpts

Tuesday 26th October 2021 Commons Chamber

[Mr Speaker]

Before we come to the urgent question, I have a short statement to make. I have repeatedly stated in the clearest possible terms that important announcements should be made by the Government first in this House rather than outside it. I did so again yesterday in relation to the briefings issued to the media about the Budget. I was therefore disappointed to see more stories in the media today with apparently very well-briefed information about what will be in tomorrow’s Budget. The Government do not just have to take my word for this; their own ministerial code says:

“When Parliament is in session, the most important announcements of Government policy should be made in the first instance, in Parliament.”—

in this House.

As I said yesterday, I do not have to give a reason for my decisions about urgent question applications, but in this case I want the House, and especially the Government, to be clear that if the Government continue to treat this House in this discourteous manner, I will do everything in my power to ensure that Ministers are called here at the earliest opportunity to explain themselves. I personally have nothing against the Minister and I feel sorry for the person who has to answer at the Dispatch Box but, once again, this House will not be taken for granted. It is not right for everybody else to be briefed. It is not more important to go on the news in the morning; it is more important to come here. Let us get the message across that these elected Members represent this United Kingdom. It is not done through Sky TV.

--- Later in debate ---

[Mr Speaker]

That is a matter of judgment.

[Alison Thewliss (Glasgow Central) (SNP)]

I do not know whether to congratulate the Minister on his promotion, as he has come here to give us the Budget a day early. What he has not given this House is an apology. He should not be announcing things on Twitter; we should be waiting for the Budget to see the full detail. This has been going on since September—it is not new. There have been daily announcements drip-feeding the entire Budget ahead of time. Of course, the Government hold all the cards, along with the Office for Budget Responsibility, because we cannot tell what the detail actually means. For Scotland, we cannot tell what the Barnett consequentials —if, indeed, there are any—will be.

We know what is going to be in the Budget speech and we know what is not going to be in it, because the Government have not done things such as carbon capture and storage in Scotland. Of course, none of it is what the Government and the Chancellor should be doing in the Budget speech. They should be reinstating the £20 universal credit cut; scrapping the national insurance tax on jobs; tackling the spiralling cost-of-living crisis; and supporting hospitality and tourism with a VAT cut to see them through the winter months and into next year.

If the Government cannot be responsible with the powers that they hold and if they cannot be trusted to give us the actual truth on Budget day tomorrow, all the financial powers—I call for this again—should be given to the Scottish Parliament so that we can make the decisions that are right for the people of Scotland.

--- Later in debate ---

[Mr Clarke]

I thank my right hon. Friend for his question. He is absolutely right that levelling up is a core theme of this Government. It is something of which I am very proud, as a north-eastern MP, to have the chance to help deliver, and it is going to be one of the golden threads of the Budget and spending review tomorrow. I wish that I could start plucking rabbits out of the hat for him now, but he will have to wait just a few more hours to get some, hopefully, very welcome news.

[Mr Speaker]

Sky TV tomorrow.

[Dame Angela Eagle (Wallasey) (Lab)]

Thank you, Mr Speaker, for granting this urgent question. It has taken me nearly 30 years, but I now find that I agree with the right hon. Member for Wokingham (John Redwood) in his question. This is serious. As an Opposition, we cannot look in detail at the slew—the blizzard—of Budget announcements that have been going on week after week, because we do not have the OBR report and we do not have the detail. This is treating parliamentary democracy with utter contempt and the Minister should be completely ashamed of himself. He should have come to this House and apologised. His boss should have come to this House and apologised.

--- Later in debate ---

[Mr Clarke]

I thank the hon. Gentleman, who is of course one of the most assiduous Members of this House. Clearly we all look to make sure that the Budget documentation is as full and as frank as possible—we have the work of the independent Office for Budget Responsibility as well—to make sure precisely that the Budget debate that follows can be as fully informed as possible as to the full implications of all the measures that are announced.

[Mr Speaker]

Can I just ask for a little clarification from the Minister? He has made an announcement to the House that I am not sure is correct: he said that it is a five-day debate, but I thought it was only four days.

[Mr Clarke]

My apologies, Mr Speaker: it is a four-day debate.

[Mr Speaker]

At least we have heard it in the House first.

Working People’s Finances: Government Policy

Lindsay Hoyle Excerpts

Tuesday 21st September 2021 Commons Chamber

[Alison Thewliss]

My hon. Friend is absolutely right to point that out. That is an unfairness in the system that the Government have shown no compulsion to tackle at all. We must look at that unfairness, particularly for those in the most rural parts of Scotland who find it hardest to afford their energy bills.

I seek an assurance from the Government that those who have money sitting in their energy accounts just now will see that swiftly transferred over to any new company, as people tend to pay in more over the summer to meet their bills in the winter. In his statement yesterday, the Secretary of State for Business, Energy and Industrial Strategy could not guarantee that the warm home discount would be paid to customers transferring. I also want to know what assistance will be possible for those transferred customers who are living with existing arrears. It is an uncertain and very worrying time for them all.

As an aside, my hon. Friends the Members for Kilmarnock and Loudoun (Alan Brown) and for Aberdeen South (Stephen Flynn) have been pursuing the ridiculous transmission charging regime, which makes it more expensive for us to connect the clean, green energy produced on our doorstep in Scotland to the national grid. It feels as if Ministers could not be less interested in fixing that disproportionate scandal.

We all know households that already struggle to pay their energy bills. Households relying on electricity for their energy needs pay £600 more on average than households with both gas and electricity. In the areas that are off the gas grid completely, particularly those relying on liquefied petroleum gas, those costs can be even higher.

In addition to food banks, fuel banks are springing up around the country to meet this need, but given the soaring fuel prices we face, it will just not be enough. The price of food in the shops is also going up. Inflation stood at 3.2% in August, which I understand is the highest month-on-month increase since records began in 1997. Some have predicted that it might reach 4.5% by November. The Bank of England target is 2%. That means that goods in the shops will get ever more expensive. There is the prospect, too, of the national insurance hike being passed on to consumers. The Institute of Chartered Accountants in England and Wales has suggested that companies may try to cover the increase on employers’ costs by passing it on to consumers, so as well as being a tax on jobs, this is a tax at the till.

In addition to having an impact on people’s food bills and their ability to feed themselves, this cost increase is having an impact on charities that are already trying their best to support those in need. Audrey Flannagan at the Glasgow South East food bank in my constituency tells me that food donations to it are down 30%, at a time when she is planning for an influx of people due to the cuts to universal credit. I say “cuts” because, for many who claimed benefits for the first time during the pandemic, they have known nothing else. Audrey tells me that people she has spoken to have been horrified to receive a letter from the Department for Work and Pensions informing them that their money is getting cut, because for them it is not an uplift; it is quite simply what they have been managing on for months now.

The Minister talked about living wages, but his living wage is not a real living wage, as set by the Living Wage Foundation; it is a pretendy living wage. It is not enough for people to live on, and it is not available to everyone. As he knows well, age discrimination is baked into the living wage. Younger people, who face the same bills at the checkout and on their energy and rent, are getting short changed by this Government through their pretendy living wage.

The impact on families of this cut has been well repeated, but I would like to mention the impact on single people. Twenty pounds is around a third of a single person’s income on universal credit. Glasgow South East food bank has seen a significant drop in single people coming for emergency food assistance in this past year, from 601 people in January to March 2020, to just 151 people in the same period this year. Audrey Flannagan believes that the additional £86 per month—UC is paid monthly—was enough to make a difference to those people. It pays for the gas and electric, it puts food on the table, and without that £86 a month, many will return to her service in just a few weeks’ time.

Many people have been in touch with me, as they have with my colleagues, to protest the cut to universal credit, but I want to read this email from John, because he puts it so well. He says:

“I wanted to write you a short note to tell you that cutting back on the U.C. uplift is going to have a very hard consequence on me. I was laid off at the start of the pandemic when the company I was working for closed down. With the uplift I’m receiving about £300 to last me nearly 5 weeks! The government talks like this was a favour done us! Firstly, I and all those on Universal Credit are not responsible for a pandemic! Secondly, the pandemic is not over yet! There could be further strains and further lockdowns! What then for people like me! Also benefits did not go up before the uplift for years and years, while prices and the cost of living have. This therefore is actually a benefit cut! It will be the difference for me between just getting by and crushing poverty!”

That choice will be faced by people up and down this country. Every single person in this House has a responsibility to think of each and every one of them when we vote on this issue, because it is the difference between just getting by and crushing poverty, as my constituent John pointed out.

There are global issues, of course, driving the cost-of-living crisis, but the political choices being made by this UK Tory Government are making it worse. Yet again, they have chosen to balance the books on the backs of the poor—to repeat the mistakes of the previous crash by choosing austerity over stimulus. My constituents did not choose this. The people of Scotland did not choose this. Even many Tory voters did not choose this, as those on the Government Benches break promise after promise to their own supporters. The first duty of Government is to protect its people, and this UK Tory Government have failed repeatedly on all counts. There is no Union dividend, only a Union dead end. Scotland needs the full powers of a normal independent country, to look after all of our people and seek a fairer, just and more prosperous recovery for everyone.

[Mr Speaker]

We now come to the maiden speech of Jill Mortimer. I remind people that they cannot intervene.

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 7th September 2021 Commons Chamber

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

1. What recent estimate he has made of the number of people subject to the loan charge who have been declared bankrupt.

[Mr Speaker]

I call the Minister.

[The Financial Secretary to the Treasury (Jesse Norman)]

Good morning to you, Mr Speaker. It is great to be in a Chamber that is 100% full strength after so many months. If I may make a personal note without undue deference, Mr Speaker, I will say that I thoroughly appreciated your remarks about standards within the Chamber.

To date, Her Majesty’s Revenue and Customs has not initiated insolvency proceedings against any taxpayer for a loan charge debt. No estimate can be provided for the number of people who have fallen into debt or who have been declared bankrupt and are subject to the loan charge because, where debts arise, HMRC is not always the only creditor. Some individuals are declared bankrupt as a result of a non-HMRC debt and some may choose to enter insolvency themselves based on their overall financial position.

--- Later in debate ---

[Steve Barclay]

My hon. Friend is right to highlight this issue, which he and I have discussed on many occasions. In July I chaired a roundtable on it across Government, and it is prioritised across Departments. We have a manifesto commitment that the Chancellor and I are committed to delivering on. As my hon. Friend knows, we have a £200 million cost to this that we need to tackle. But at the same time we also need to be true to the manifesto, which was not about tackling those on low incomes who had high pay-offs because of the way their pension benefits were structured and those proprietary claims. We need to differentiate between that and the real ill that he is concerned about, which is those on six-figure salaries who are receiving pay-offs. That is something we are prioritising.

[Mr Speaker]

I am not quite sure if that related to the original question, so we are going to have to watch out for that in future.

[Alison Thewliss (Glasgow Central) (SNP)]

Scottish hospitality and generosity is world-renowned, but could the Minister explain to us why he thinks that Scottish taxpayers should pay for England’s social care crisis?

[Steve Barclay]

It is a slightly odd question, because through the broad shoulders of the United Kingdom, it is Scottish jobs that have been protected through the furlough, it is Scottish businesses that have been supported through the self-employment income support scheme and it is the block grant that has provided additional funding to the Scottish Government. The oddity is that they are choosing not to use those uplifts in the Scottish grant to prioritise the things that they come down to Westminster and say they care about.

[Mr Speaker]

Can I just suggest to the Minister that it might be easier if he speaks through the Chair?

[Alison Thewliss]

It would be good if the Minister answered the question, as well. The Prime Minister’s hike in national insurance has been roundly panned, not least by his own Back Benchers and the Chair of the Treasury Committee, the right hon. Member for Central Devon (Mel Stride). People in Scotland are already feeling the pain of a decade of Tory austerity cuts and the harms caused by Brexit, with the devastation of the £20 a week cut to universal credit still to come, none of which they voted for. Why should my constituents pay for the Prime Minister to break his manifesto pledge with a new poll tax on the poorest who can least afford it?

Oral Answers to Questions

Lindsay Hoyle Excerpts

Tuesday 22nd June 2021 Commons Chamber

[John Glen]

I can commit that we will look very carefully at the evidence on the best possible interventions to make. I am pleased that, as of March 2020, 98% of the population could access free cash within 3 km, but we have to come to terms with the fact that from 2009, when 56% of transactions were by cash, we were down to 17% by last year. We have to come up with appropriate legislation to meet that change.

[Mr Speaker]

We now come to the Chair of the Public Accounts Committee, Dame Meg Hillier.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Thank you, Mr Speaker.

More than 1 million people still use only cash, and approximately 4 million use cash regularly, so it is vital that they have access to it. This is now the second consultation that the Treasury is going through, but as the PAC has seen, all the distribution of cash is in the hands of private providers. Can the Economic Secretary give any indication of the type of legislation that he can introduce to ensure that if people are very poor, they can get cash? That does not mean going to the supermarket and getting it out when they do not even know what is in their own account.

--- Later in debate ---

[Rishi Sunak]

I can assure not just my hon. Friend, but Keith and Dave from the Titanic brewery, that we have consulted industry on the prospect of such a lower rate as part of our ongoing alcohol duty review. The team and my right hon. Friend the Financial Secretary are working closely with HMRC to further understand the practicalities and the cost of the proposals; we will provide further updates in due course. My hon. Friend is right about securing hospitality in the meantime. The temporary VAT cut, the business rates holiday and, indeed, freezing beer duty at the last two Budgets are all helping in the short term.

[Mr Speaker]

Let us welcome the shadow Chancellor to Treasury questions.

[Rachel Reeves (Leeds West) (Lab)]

Thank you, Mr Speaker.

Whether on social care, on Northern Powerhouse Rail or on tackling climate breakdown, there is a growing gap with this Government between what is promised and what is actually delivered. The Treasury’s response to the net zero review was first due to be published in autumn last year, yet it is nowhere to be seen. The COP26 climate summit begins in November. While the UK is hosting, the Government cannot lead with authority, because the fact is that we cannot have a climate strategy without a sustainable economic plan behind it. Will the Chancellor please tell the House on what date he will publish the final report of the net zero review?

--- Later in debate ---

[Jesse Norman]

I congratulate Elddis, and I congratulate my hon. Friend on giving Elddis profile, on fighting the campaign that he has, and on the outcome and its very successful results in this case. I have it on very good authority that the Chancellor would be delighted to visit Elddis, so I am in a position to make a binding commitment from the Government side, and I am sure that he looks forward to it very much.

[Mr Speaker]

I am now suspending the House for three minutes to enable the necessary arrangements for the next business.

0.7% Official Development Assistance Target

Lindsay Hoyle Excerpts

Tuesday 8th June 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Gentleman on bringing the matter forward. The House is very much united behind him. It is not just the scale of the aid cuts, but the speed of the enforced shutdown of operations that is hugely harmful. Aid and development are not a tap that we can turn off and on whenever we like. It is time for the Government, on this occasion, to step up to the spot and make sure that they reinforce the aid budget and increase it back to what it was in the past.

[Mr Speaker]

May I just gently say that we have a lot of speakers and I want to hear from everybody? If you are going to intervene, I am sure that you will understand if you go down the speaking list.

[Mr Mitchell]

The hon. Gentleman is absolutely right. Of course, what he says has been reinforced by every single member of his party who serves in the House, and it is the point that my right hon. Friend the Member for Gainsborough, a former Chairman of the Public Accounts Committee, was making: if we turn this expenditure on and off in this way, the taxpayer does not get proper value for money.

Nor is this about party politics. All 650 of us elected to this House at the last election promised to stand by the 0.7%. The Bill enshrining the 0.7% in law was passed unwhipped in this House, with just six dissenters. Outside the House, in every single constituency in the country, there are people taking action as part of Crack the Crises, the growing environment and development group. Each and every one of us is accountable to those constituents, who are taking action in their local schools, colleges, churches, mosques, charity shops, women’s institute branches, congregations and community groups.

Twelve million people—an average of 15,000 per parliamentary constituency—are supporters of the member organisations of that coalition, and they must be heard. The people who sponsor children through development organisations, the members of churches that are twinned with others in the developing world, the people who were there for Jubilee 2000 and for Make Poverty History—they do not forget when we break our promises to them; they organise.

I can assure the House that, were it not for the covid restrictions, the same people who made the human chain around the Birmingham G8 summit and the quarter of a million people who marched on Edinburgh before the Gleneagles G8 would be preparing today to descend on Cornwall to make their views known at this G7 and to protest this unethical and unlawful betrayal. They would be joined by a whole new generation of young people who are watching this Government break our promise to the world’s poorest. They do not like what they see. This weekend, they may not be on the streets, but they will be watching, and they will remember.

For two decades, the UK has been a development leader, not just because that is morally right and accords with our values, but because it is in our own national interest. By making the countries we seek to help safer and more prosperous, we make life for ourselves here in Britain safer and more prosperous.

--- Later in debate ---

[Mr Speaker]

May I just say that brevity from everybody will allow more Members to get in? Those who intervene will not mind being moved down, because that is the way we are going to help each other.

--- Later in debate ---

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

I cannot help but reflect, given what the Minister has delivered, that in the phrase that is often used, he knows the price of everything and the value of nothing.

Let me begin by commending the efforts of all those who have made it possible to have this emergency debate, including those who requested the debate, led by the right hon. Member for Sutton Coldfield (Mr Mitchell), and you of course, Mr Speaker, for granting time today.

As we know, it has not been an easy task getting to this point—a point where this Government have finally been held accountable for their actions and made to answer for what is a callous cut to overseas aid. Let us be very clear: this Tory Government have been shamed into coming to the House today. Ever since announcing this disgraceful decision to slash aid for the world’s poorest, the Government have been on the run on this issue. For weeks now they have avoided questions and dodged accountability, but they have been dragged to the Dispatch Box today.

As usual with this Government, the person most responsible for the decision to cut aid is the person first to hide and the last to face accountability. On an issue of this importance and a policy this fundamental, it tells us everything we need to know about this Prime Minister that he does not even have the guts to come before this House to justify his Government’s decision to cut support to those most in need. He is a Prime Minister who casually signs off on these devastating decisions, but a leader who always fails to take any responsibility for the consequences of such decisions.

No damaging decision appears to be off limits for this Government. On overseas aid, living up to our legal responsibilities—our legal responsibilities, Minister—to those most in need should unite various strands of political opinion across this Parliament. Instead, the moral mission of 0.7% spending has been shamefully undermined by a morally bankrupt Government.

It is important to put the decision into a broader context, because cutting the aid budget is not only cruel and counterproductive in its own terms, but an isolated act from a UK Government increasingly alone on the world stage. The UK is virtually the only country that has cut its aid spending. Nearly every other wealthy country has recognised the greater necessity of helping those in need at this unprecedented time of a humanitarian crisis.

The Government’s timing could not be worse. International opinion on these cuts is crystal clear. It is rightly seen as a disgraceful abdication of the UK’s international responsibilities in a year—in a year, Minister —when we should be showing some international leadership at the G7 and COP26. Let us simply take a look at what some G7 countries are doing in comparison with the UK. This year, Canada’s aid budget will see an increase of 28%, France will contribute a 36% increase and, under the Biden Administration, the US will see a 39.4% increase. Yet this Tory Government think it is somehow morally justified to impose these cuts. It is morally and ethically flawed, it is intellectually flawed and it shames all of us that this is done in our name. But I say this to the Minister: it is not done in the name of the majority who have been sent to this House.

The harsh reality is that this decision will cost lives—it will cost lives, Minister. Brexit Britain is rapidly exposing the future it offers of being out of step and out of influence on the world stage, because one thing is for sure: if the Tory Government dig in their heels and slash the aid budget, they are adding insult to injury to those dwindling few who still desperately cling on to the notion of global Britain.

Digging into the details of these cuts reveals what is at stake if they are allowed to continue. The headline figures are stark enough in themselves, with aid spending amounting to £10 billion this year, compared with £14.5 billion in 2020, but it is the impact of where exactly the cuts will fall that tells the real story and exposes the real damage. Almost unbelievably, conflict zones face some of the worst cuts. Syria, Somalia, the Democratic Republic of the Congo, Libya, Nigeria and Lebanon: all are poised to lose more than half their funding. Is that where we stand? Is that where the Minister stands? Is that where his Government stand?

Children are the next target. The United Nations Children’s Fund faces a cut of 60%. This is harrowing; this is heartbreaking. I ask the Minister: where is the Government’s humanity at a time of need?

Some of the most established and impactful projects are equally at risk, with cuts of £12.5 million to the UN agency that fights AIDS and HIV. That is more than an 80% cut to a programme to fight AIDS, condemning people to an early death that could be avoidable.

Much has already been made of the fact that, by imposing these aid cuts, the Government are brazenly breaking their own manifesto commitment. In particular, I want to draw attention to the fact that they are breaking a very specific commitment that they made to voters about girls’ education right across the globe. It is worth putting that on the record of the House. In 2019, the Conservative party manifesto promised to

“stand up for the right of every girl in the world to have 12 years of quality education”,

and yet that promise has been broken.

Analysis by Save the Children shows that spending on education for girls will be reduced by at least 25%, compared with 2019-20 levels. That is horrific. Not only will these cuts impact now, but the damage will reverberate into the future for those young girls and young women, their hopes and fears crashed on the dogma of the desire to cut UK aid spending. Only this weekend, a letter from 1,700 charities and academics said that families are going hungry and girls are missing school as a direct result of these decisions. I can see that the Minister is nodding. I ask him please to reflect and change the Government’s policy and what they are doing.

Whether the promises are broad or specific, they are apparently all the same to the UK Government, who are telling people that they think their promises are only there to be broken. I acknowledge and give credit to the courage of the many Conservative Back Benchers who have stood against their Prime Minister, who is reneging on the very manifesto that he stood on. Their stance has given us at least a chance to face down the Government on this issue and hopefully force a U-turn.

Frome a Scottish perspective, I cannot hide my genuine disappointment that we cannot count the Scottish Tories among the Conservative Back Benchers with a backbone. For weeks, they have maintained a deafening and shameful silence, but even at this late stage, they have the chance to do the right thing. Whatever our differences, I think they know that cutting international aid during a pandemic does not represent the values of Scotland and our people. That is why the Scottish Government are doing what they can with the powers they have at Holyrood. We have increased international aid spending by 50%—that is what should be done in a pandemic, Minister. The Scottish Conservatives have a choice: either fall in behind their Prime Minister, no matter what he decides, or join us in saying that these cuts to the world’s poorest are not done in our name. If they fail to oppose these cuts, the Scottish Tories should be well warned: it would be not only an inhumane act against the most vulnerable, but an act of sheer hypocrisy.

Today’s debate on aid spending is all the more significant because of the place and the context in which we find ourselves. Morally, we have a responsibility to help protect the most vulnerable around the world. It is also self-evident that if the UK Government were serious about the eradication of covid-19, that must include a commitment to help eradicate covid-19 around the world, because until all of us are safe, none of us is truly safe. These aid cuts are severely undermining that commitment and limit our power in meeting the covid challenge.

There is a broader point, too. As we attempt to emerge from this pandemic, the values we live by and the choices we now make become even more important. Covid has affected every country and every person around the world. We have all faced the same threat; we have all been in it together. If we did not know that before, we should know it now. But the truth is that just because we have experienced the pandemic together does not mean that our challenges are in any way equal. We are privileged. We can live in the hope and expectation that the crisis of the pandemic will pass, but for too many millions in this world, the pandemic is only one more disaster to deal with, in countries that suffer under constant crisis and struggle. Now is not the time to turn our face away from those countries and those people in need. Now is the time to redouble our efforts and our commitment to them.

The World Bank predicts that the pandemic will push an estimated 88 million to 115 million people into extreme poverty, and in the world’s poorest countries, hunger and the causes of malaria are rising. Unless we act now, one crisis will be followed by another, and the cycle will go on—and on, and on. We simply cannot break the poverty cycle by breaking our commitment to overseas aid. This is a choice for the Government; it is the choice for every Member of this House. On these Benches, our choice is clear. It is time to live up to our commitments on aid spending. It is time to live up to our responsibilities to the world’s poorest. It is time to break the cycle.

[Mr Speaker]

If we can try and help each other now with brevity, that would be very helpful.