Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(1 month ago)
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Mr Speaker
As this is his farewell question time, let us now come to the shadow Chancellor.
Jeremy Hunt (Godalming and Ash) (Con)
This are indeed our final exchanges in the House, so before tomorrow’s fireworks I wish the Chancellor well for the future in her role. There has been a lot of common ground between us. For example, before the election she said that raising employers’ national insurance was a jobs tax that would take money out of people’s pockets. I very much agree with her on that; does she agree with herself?
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(2 months, 3 weeks ago)
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Jeremy Hunt (Godalming and Ash) (Con)
When the Chancellor was sitting on the Opposition Benches she repeatedly attacked cronyism, so will she tell the House whether she told the Treasury permanent secretary that Ian Corfield had made a donation to her before she got him appointed as a director in the Treasury—yes or no?
Public Spending: Inheritance
Debate between Lindsay Hoyle and Jeremy Hunt(4 months ago)
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Jeremy Hunt (Godalming and Ash) (Con)
I thank the Chancellor for advance sight of her statement, and I echo her thoughts for the people and emergency services of Southport.
Today, she will fool absolutely no one with a shameless attempt to lay the grounds for tax rises that she did not have the courage to tell us about—[Interruption.]
Mr Speaker
Order. I want the Cabinet to act like a Cabinet, not like a rabble that is trying to shout at the shadow Chancellor.
Jeremy Hunt
The Chancellor says that the information is new, but she told the Financial Times:
“You don’t need to win an election to find”
out the state of public finances, as
“We’ve got the OBR now.”
Paul Johnson of the Institute for Fiscal Studies has said:
“The state of public finances were apparent pre-election to anyone who cared to look”
which is why he and other independent figures say that her argument is not credible and will not wash.
Those public finances were audited by the OBR just 10 weeks before the election was called. We are now expected to believe that, in that short period, a £20 billion black hole has magically emerged, but for every single day in that period—in fact, since January, in line with constitutional convention—the right hon. Lady had privileged access to the Treasury permanent secretary. She could have found out absolutely anything she needed. Will she confirm to the House that she did have meetings with the permanent secretary of the Treasury before the election? Will she tell the House whether they discussed public finances? Will she tell the House whether they discussed any of the pressures that she is talking about today? If so, why are we only hearing today what she wants to do about them? That is why today’s exercise is not economic—it is political.
The Chancellor wants to blame the last Conservative Government for tax rises and project cancellations that she has been planning all along. The trouble is, even her own published numbers expose the fiction behind today’s announcement. Just four days ago, she presented to the House the Government’s estimates of spending plans for the year. Those estimates are a legal requirement. The official guidance manual is clear that Departments are responsible for ensuring that estimates are consistent with their “best forecast of requirements”. They are signed off by the most senior civil servants—the accounting officers—in every Department. Yet, four days on, she is saying that those estimates are wrong. Who is right: politically neutral civil servants or a political Chancellor? If she is right, will she ask the cabinet secretary to investigate those civil servants and apologise to the House for laying misleading estimates? Of course not, because she knows that those civil servants are right and today’s black hole is spurious, just like when she says that she inherited the
“worst set of economic circumstances”
since the second world war. When BBC Verify asked a professor at the London School of Economics about that claim, he responded:
“I struggle to find a metric that would make that statement correct.”
The metrics speak for themselves. Inflation is 2% today —nearly half what it was in 2010 when we had to clear up the mess inherited from a Labour Government. Unemployment is nearly half what it was then, with more new jobs than nearly anywhere else in Europe. So far this year, we are the fastest growing G7 economy. Over the next six years, the IMF says that we will grow faster than France, Italy, Germany and Japan.
Just two days before the election was called, the managing director of the IMF praised the previous Government’s handling of the economy, and said it was in a good place. This week, the Institute for Fiscal Studies said that it was
“not a bad situation to take charge of”
and certainly not comparable to the 1940s or 1970s. If the right hon. Lady is in charge of the economy, it is time to stop trash talking it. What is the point of going to New York or Brazil to bang the drum for more investment if she comes home with a cock and bull story about how bad everything is? She should stop playing politics with Britain’s reputation and get on with running the economy.
When it comes to public finances, will the Chancellor confirm to the House that, far from being broke and broken, as Downing Street briefed the media, the forecast deficit today is 4.4%, compared with 10.3% when Labour left office in 2010? In other words, when Labour was last in office, we were borrowing double the current levels. Will she confirm another difference between today and 2010? The Conservatives came to office then, honest about our plans and saying straightforwardly that we needed to cut the deficit. She has just won an election telling us repeatedly that taxes will not go up. How many seats were won on the back of commitments not to raise tax, while she is quietly planning to do the exact opposite?
On the details that the Chancellor has announced today, will she confirm that around half of today’s fictitious black hole comes from discretionary public sector pay awards—in other words, not something that she has to do, but something where she has a choice? Will she confirm to the House that, apart from the teachers recommendation, none of the other pay review body recommendations was seen by the last Government, as they arrived after the election was called? Today she has chosen to accept those recommendations, but before doing so, was she advised by officials to ask unions for productivity enhancements before accepting above-inflation pay awards, to help to pay for those awards, as the last Government did? If she was advised to do that, why did she reject that advice and simply tell the unions, “Here’s your money, thanks for your support”? Will she confirm—[Interruption.] I know Labour Members do not like the truth, but here it is. Will she confirm that one of the reasons for her funding gap is that she has chosen to backdate a 22% pay award to junior doctors, to cover the time when they were striking?
We are just three months into the financial year, so why did the Chancellor not mention today that, at the start of the year, the Treasury had a reserve of £14 billion for unexpected revenue costs, and £4 billion for unexpected capital costs? Additionally, why has she not accounted for the Treasury’s ability to manage down in-year pressures on the reserve—last year alone by £9 billion? Why has she apparently not accounted for underspends—typically £12 billion a year? Has she totally abandoned the £12 billion of welfare savings planned by the last Government? If so, will she confirm that to the House? Has she also abandoned £20 billion of annual productivity savings planned by the last Government? If not, why are they not in her numbers? Finally, for someone who claims continuously the mantle of fiscal rectitude, will she confirm that in order to pay for her public spending plans, she will not change her fiscal rules to target a different debt measure, so she can increase borrowing and debt by the back door?
Every Chancellor faces pressures on public finances. After a pandemic and an energy crisis, those pressures are particularly challenging, which is why in autumn 2022, the previous Government took painful but necessary decisions on tax and spend. But we knew that, if we continued to take difficult decisions on pay, productivity and welfare reform, we could live within our means and start to bring taxes down. She, on the other hand, knew perfectly well that a Labour Government would duck those difficult decisions. She has caved in to the unions on pay, left welfare reform out of the King’s Speech and soft-pedalled on our productivity programme. That is a choice, not a necessity.
That choice means that taxes will have to go up and the right hon. Lady chose not to tell us before the election. Instead, in 24 days—just 24 days—she has announced £7.3 billion for GB Energy, £8.3 billion for the national wealth fund and around £10 billion for public sector pay awards. That is £24 billion in 24 days: around £1 billion for every day she has been in office, leaving taxpayers to pick up the tab for her profligacy.
Doing it this way, she makes the first major misstep of her time as Chancellor, because that great office of state depends more than any on trust—[Interruption.] In her first big moment, she breaks that trust with an utterly bogus attempt to hoodwink the public about the choices she has. Over 50 times in the election, Labour told us it had no plans to raise taxes. Now, in a U-turn that will forever shame this Labour Government, she is laying the ground to break her word. When she does, her first Budget will become the biggest betrayal in history by a new Chancellor. Working families will never forgive her.
Rachel Reeves
The shadow Chancellor had an opportunity this afternoon to admit what he had done, the legacy he had left. Instead, he takes no responsibility. The word the country was looking for today was sorry. He could not find those words; no wonder the Conservative party so definitively lost the trust of the British people at the election three and a half weeks ago. We say never again. [Interruption.] Never again should a party that plays fast and loose with the public finances be in charge of the public finances—[Interruption.]
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(6 months, 3 weeks ago)
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Jeremy Hunt
What it shows is that we took very difficult decisions in the pandemic to speed up access to PPE for frontline workers, who were literally dying at the time—but there should be no hiding place whatsoever for anyone who commits fraud on taxpayers, which is why there have been over 100 arrests.
Jeremy Hunt
Further to that point of order, Mr Speaker. The hon. Lady may have misunderstood me. What I said was that economic inequality had fallen since the last Labour Government.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(8 months, 2 weeks ago)
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Mr Speaker
Order. These are topical questions, and I want to get to the Members who have not yet been called.
Jeremy Hunt
I thank my hon. Friend for her excellent question. She is right that it is not just the lowest effective tax rate for someone on average earnings since 1975, but the lowest headline tax rate and the lowest tax rate in the G7. That is the fundamental divide in British politics: taxes have gone up, and on the Government Benches we do not think that we have to accept the status quo; on the Opposition Benches they do. Why is that? Because lower taxes mean higher growth.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(9 months, 3 weeks ago)
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Jeremy Hunt
As my right hon. Friend knows, as Health Secretary I campaigned for extra money for the NHS to make sure that we could pay NHS staff fairly, but I do believe that junior doctors have had a very fair offer—one that is higher than was recommended by the independent pay review body and is about double the rate of this year’s predicted inflation. I know that the Health Secretary is willing to talk about anything else that could help make their working conditions better.
Jeremy Hunt
I am sure the hon. Lady understands that I cannot talk about what will be in the Budget ahead of the Budget because no decisions have been made. I celebrate with her that the UK recently became the first major economy in the world to decarbonise by more than 50%, ahead of France, Germany, Japan and the United States.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(11 months, 2 weeks ago)
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Jeremy Hunt
I am happy to join my hon. Friend in thanking all those involved in promoting the Anglesey freeport, which we think may create 5,500 jobs. We are working closely with the Welsh Government to agree on how the 10-year window to claim reliefs can be extended across freeports in Wales. I pay tribute to my hon. Friend, who has done more than anyone to put Ynys Môn on the map.
Jeremy Hunt
I am grateful to my hon. Friend for asking that question, because the UK, and London in particular, has become the global crypto hub. To make sure that the market can really take off in the way that was intended—in a responsible way—we need to regulate it, which is why we have introduced regulations on stablecoins and on the promotion of crypto services. My hon. Friend the Economic Secretary to the Treasury would be more than happy to meet her.
Mr Speaker
Order. We had this last time with you. I’m sorry, but I am trying to be generous because it is Christmas. Do not take advantage of other Members; I still have others to get in. It is just not fair, and it is very selfish to carry on when I have asked you not to. I do not find it acceptable. I look forward to the apology shortly. Would someone like to answer that question, briefly?
Jeremy Hunt
I thank my right hon. Friend for his question and for his campaigning on these issues. I just note that on electric vehicle manufacturing alone, the Society of Motor Manufacturers and Traders says that in the past year we have had more investment pledged for UK electric vehicles than in the previous seven years combined.
Autumn Statement
Debate between Lindsay Hoyle and Jeremy Hunt(1 year ago)
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The Chancellor of the Exchequer (Jeremy Hunt)
I come today with good news: it is my wife’s birthday and, unlike me, she is looking younger every year.
I turn to the statement. After a global pandemic and energy crisis, we have taken difficult decisions to put our economy back on track. We have supported families with rising bills, cut borrowing and halved inflation. Rather than a recession, the economy has grown. Rather than falling as predicted, real incomes have risen. Our plan for the British economy is working, but the work is not done. Others proposed a more short-term approach, but we have not made unaffordable pay offers to the unions, we have not stopped new oil and gas exploration, and we have not increased borrowing by £28 billion a year. That would have pushed inflation up just when we need to bring it down. Instead, under this Prime Minister, we take decisions for the long term.
In today’s autumn statement for growth our choice is not big government, high spending and high tax, because we know that that leads to less growth, not more. Instead, we reduce debt, cut taxes and reward work. We deliver world-class education, we build domestic sustainable energy, and we back British business with 110 growth measures. Do not worry; I am not going to go through them all—[Interruption.] Well, I will if you like! In summary, they remove planning red tape, speed up access to the national grid, support entrepreneurs raising capital, get behind our fastest-growing industries, unlock foreign direct investment, boost productivity, reform welfare, level up opportunity to every corner of the country, and cut business taxes.
The Office for Budget Responsibility says that the combined impact of these measures will raise business investment, get more people into work, reduce inflation next year and increase GDP, but Conservatives also know that a dynamic economy depends on the energy and enterprise of people more than any diktats or decisions by Ministers, so today’s measures do not just remove barriers to investment; they reward effort and work. I will go through the measures in three parts. In the first, I will use updated OBR forecasts to show the progress that we are making against the Prime Minister’s economic priorities. The second part will set out growth measures to back British business. Finally, I will conclude with measures to make work pay.
Before I start with the forecasts, I want to express my horror at the murderous attack on Israeli citizens on 7 October and the subsequent loss of life on both sides. I will remember for the rest of my life, as I know many other hon. Members will, being taken to Auschwitz by the Rabbi Barry Marcus and the remarkable Holocaust Educational Trust. I am deeply concerned about the rise of antisemitism in our country, so I am announcing up to £7 million over the next three years for organisations such as the Holocaust Educational Trust to tackle antisemitism in schools and universities. I will also repeat the £3 million uplift to the Community Security Trust. When it comes to antisemitism and all forms of racism, we must never allow the clock to be turned back.
I now move on to the OBR’s economic and fiscal forecasts, and I thank Richard Hughes and his team for their sterling work in preparing them. Three of my right hon. Friend the Prime Minister’s five pledges at the start of the year were economic: to halve inflation, grow the economy and reduce debt. Today I can report to the House that we are delivering on all three.
Let’s start with inflation. The shadow Chancellor did not mention it in her conference speech. My conference speech was before hers, so all she had to do was a bit of copying and pasting, which I have heard she is good at. But it speaks volumes that during the worst global inflation shock for a generation, it did not even get a mention. Well, if controlling inflation isn’t a priority for Labour, it is for us.
When the Prime Minister and I took office, inflation was at 11.1%; last week, it fell to 4.6%. We promised to halve inflation and we have halved it. Core inflation is now lower than in nearly half of the economies in the EU, and the OBR says that headline inflation will fall to 2.8% by the end of 2024, before falling to the 2% target in 2025. I will not take risks with inflation, and the OBR confirms that the measures I take today make inflation lower next year than it would otherwise have been. I thank the independent Bank of England Monetary Policy Committee for its crucial role in bringing inflation down, and we will continue to back it to do whatever it takes until the job is done. But as we do, we will continue to support families in difficulty, and today I add four further measures to help with the cost of living.
First, for those on the lowest incomes, I understand the concerns some have about the effect on work incentives of matching benefit increases to inflation, and I know there has been some speculation that we would increase benefits next year by the lower October figure for inflation. But cost of living pressures remain at their most acute for the poorest families, so instead the Government have decided to increase universal credit and other benefits from next April by 6.7%, in line with September’s inflation figure, an average increase of £470 for 5.5 million households next year—vital support to those on the very lowest incomes from a compassionate Conservative Government.
Secondly, because rent can constitute more than half the living costs of private renters on the lowest incomes, I have listened closely to many colleagues as well as the Institute for Fiscal Studies, the Resolution Foundation, Citizens Advice UK and the Joseph Rowntree Foundation, who said that unfreezing the local housing allowance was an “urgent priority”. I will therefore increase the local housing allowance rate to the 30th percentile of local market rents. This will give 1.6 million households an average of £800 of support next year.
Thirdly, although I am going to increase duty on hand-rolling tobacco by an additional 10% above the tobacco duty escalator, I know that for many people going to the pub has become more expensive. I have listened closely to the persuasive arguments on alcohol duties from my hon. Friend the Member for Moray (Douglas Ross) and my right hon. Friend the Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), fierce champions of the Scotch whisky industry. I have also listened to defenders of the great British pint such as my right hon. Friend the Member for Vale of Glamorgan (Alun Cairns) and my hon. Friend the Member for Buckingham (Greg Smith), to Councillor Jane Austin who is a big supporter of the Jolly Farmer pub in Bramley in my constituency, and indeed to The Sun newspaper. So as well as confirming our Brexit pubs guarantee, which means the duty on a pint is always lower than in the shops, I have decided to freeze all alcohol duty until 1 August next year; that means no increase in duty on beer, cider, wine or spirits.
Finally, pensioners. The triple lock has helped to lift 250,000 older people out of poverty since it was instituted by a Conservative Government in 2011 and has been a lifeline for many during a period of high inflation. There have been reports that we would uprate it by a lower amount, to smooth out the effect of high public sector bonuses in July, but that would have been particularly difficult for 1 million pensioners whose only income is from the state.
So instead, today we honour our commitment to the triple lock in full. From April 2024, we will increase the full new state pension by 8.5% to £221.20 a week, worth up to £900 more a year. That is one of the largest ever cash increases to the state pension, showing that a Conservative Government will always back our pensioners.
Including today’s measures, our total commitment to easing cost of living pressures has risen to £104 billion. That includes paying around half the cost of the average energy bill since last October and amounts now to an average of £3,700 per household. We are able to do that only because we reduced the deficit by 80% ahead of the pandemic, which the Labour party might reflect on, having opposed us every step of the way.
Next, I turn to my right hon. Friend the Prime Minister’s pledge to reduce debt. Before I took difficult decisions at last year’s autumn statement, debt was predicted to rise to almost 100% of GDP by the end of the forecast. Since then, the economy has outperformed expectations and I have taken difficult decisions to reduce borrowing. As a result, headline debt is now predicted to be 94% of GDP by the end of the forecast.
The OBR today forecasts that underlying debt will be 91.6% of GDP next year, 92.7% in 2024-25 and 93.2% in 2026-27, before declining in the final two years of the forecast to 92.8% in 2028-29. That is lower in every year compared with forecasts in the spring. We therefore meet our fiscal rule to have underlying debt falling as a percentage of GDP in the final year of the forecast, with double the headroom compared with the OBR’s March forecast. We will continue to have the second lowest Government debt in the G7—lower than the United States, Canada, France, Italy or Japan.
I turn to borrowing. The right hon. Member for Leeds West (Rachel Reeves) said that when it comes to borrowing, she “will take it up” by £28 billion a year. Indeed, she has opposed every decision we have made to reduce our borrowing. The Government will bring borrowing down, because, as the late Lord Lawson said, borrowing is just a deferred tax on future generations.
I see the Leader of the Opposition shaking his head. In fact, we have something in common: both he and I wanted to make a Jeremy Prime Minister. In fairness, his party and mine are probably equally relieved that we failed but, whereas this Jeremy is growing the economy, his Jeremy would have crashed it.
The numbers show the contrast. According to the OBR, borrowing is lower this year and next, and on average across the forecast by £0.7 billion every year compared with the spring Budget forecasts. It falls from 4.5% of GDP in 2023-24 to 3.0%, 2.7%, 2.3%, 1.6% and 1.1% in 2028-29. That means we also meet our second fiscal rule that public sector borrowing must be below 3% of GDP, not just by the final year, but in almost every year of the forecast.
Some of that improvement is from higher tax receipts from a stronger economy, but we also maintain a disciplined approach to public spending. As I set out in the spring Budget, resource spending will increase by 1% a year from 2025-26 in real terms, and we are sustaining the record 2020 increase in capital spending in cash terms until the end of the forecast. Within this, we will meet our NATO commitment to spend 2% of GDP on defence—critical at a time of global threats to the international order, most notably from Putin’s evil war in Ukraine.
We also support a group of people to whom we owe our freedom: our brave veterans. I will extend national insurance relief for employers of eligible veterans for a further year, and provide £10 million to support the Veterans’ Places, Pathways and People programme. I thank our excellent Minister for Veterans’ Affairs, my right hon. Friend the Member for Plymouth, Moor View (Johnny Mercer), for his championing of their cause.
We have shown that we are prepared to increase funding for vital public services, with record numbers of police officers, doctors, nurses and teachers. We are nearly doubling the numbers of doctors and nurses we train, having given the NHS its first ever long-term workforce plan, as I promised a year ago. We are also tackling the biggest single preventable cause of mortality that the NHS has to deal with by bringing forward plans for a smokefree generation.
However, alongside extra funding and support, we need to see reform. We need a more productive state, not a bigger one. That is why I want the public sector to increase productivity growth by at least half a percent. a year—the level at which the size of our state starts to reduce as a proportion of GDP. I have already announced plans to cap and reduce the size of the civil service to pre-pandemic levels. I pay tribute to the excellent former Chief Secretary to the Treasury, my right hon. Friend the Member for Salisbury (John Glen), who started our brilliant public sector productivity programme. That will now be pursued by his formidable successor, my hon. Friend the Member for Sevenoaks (Laura Trott), who has already been with me to meet police, fire and ambulance personnel to understand why bureaucracy is holding them back.
Through that vital work, we will ensure that, over time, the growth in public spending is lower than the growth in the economy, while always protecting the services that the public value. I will also provide His Majesty’s Revenue and Customs with the resources it needs to ensure that everyone pays the tax they owe, raising an additional £5 billion across the forecast period.
My right hon. Friend the Prime Minister also promised to grow the economy. Since 2010, despite inheriting what was then the worst recession since the second world war, Conservative Administrations have presided over faster growth than many of our major competitors, including Spain, Italy, France—[Interruption.] Well, the Opposition do not like to hear this, but let me tell them the list: Spain, Portugal, France, Italy, Netherlands, Austria, Germany and Japan. We have grown faster than all of them since 2010.
However, all those countries have faced a pandemic and an energy shock. As a result, last autumn the OBR forecast a recession in which the economy would shrink by 1.4% this year. Instead, it grew—in fact, it has grown faster than the euro area. Revised numbers from the Office for National Statistics now say that the economy is 1.8% larger than it was pre-pandemic. Looking ahead, the OBR expects the economy to grow by 0.6% this year and 0.7% next year. After that, growth rises to 1.4% in 2025, then 1.9%, 2%, and 1.7% in 2028.
If we want those numbers to be higher, we need higher productivity. The private sector is more productive in countries such as the United States, Germany and France because it invests more—on average 2 percentage points more of GDP every year. The 110 measures that I take today help to close that gap by boosting business investment by £20 billion a year. They do not involve borrowing more and ramping up debt, as some advocate. Instead, they unlock investment, with supply-side reforms that back British business in the following areas.
First: skills. No economy can prosper without investing in the potential of its people. Despite strong opposition, we took the difficult decisions to reform our schools. England’s nine to 10-year-olds are now the fourth best readers in the world, and since 2015, our 15 to 16-year-olds have risen seven places in the OECD rankings for maths— not least thanks to the efforts of my brilliant right hon. Friend the Member for Bognor Regis and Littlehampton (Nick Gibb). However, 9 million adults in England still have low basic literacy or numeracy skills, so last month the Prime Minister set out the new advanced British standard to ensure that all school leavers reach minimum standards in maths and English.
While the Labour party wants to reduce the number of apprentices, we want to increase it. Following engagement with Make UK and others, I am announcing a further £50 million of funding over the next two years to pilot ways to increase the number of apprentices in engineering and other key growth sectors where there are shortages. [Hon. Members: “Is that it?”] There are 110 of these measures, so be patient, folks.
I will move on to planning. It takes too long to approve infrastructure projects and business planning applications. Many businesses say that they would be willing to pay more if they knew their application would be approved faster. Therefore, from next year, working with the Secretary of State for Levelling Up, Housing and Communities, I will reform the system to allow local authorities to recover the full costs of major business planning applications in return for being required to meet guaranteed faster timelines. If they fail, fees will be refunded automatically, with the application being processed free of charge—a prompt service or your money back, just as would be the case in the private sector.
Many planning applications are for house building. The Leader of the Opposition told us that he wanted to be a builder, not a blocker. That did not last long: just a few months later, Labour blocked reforms to the rules on nutrient neutrality, shamelessly preventing 100,000 houses from being built. Conservatives, on the other hand, are the builders, with more homes being completed in 2021-22 than in any single year of the last Labour Government.
Today, we take further decisions to unlock the building of more homes. We will invest £110 million over this year and next to deliver high-quality nutrient mitigation schemes, unlocking 40,000 homes. We will invest £32 million to bust the planning backlog and develop fantastic new housing quarters in Cambridge, London and Leeds, which will lead to many thousands of additional dwellings. We will allocate £450 million to the local authority housing fund to deliver 2,400 new homes, and we will consult on a new permitted development right to allow any house to be converted into two flats provided the exterior remains unaffected.
It is also taking too long for clean energy businesses to access the electricity grid, so after talking to businesses such as National Grid, Octopus Energy and SSE, we today publish our full response to the Winser review and the connections action plan. These measures will cut grid access delays by 90% and offer up to £10,000 off electricity bills over 10 years for those living closest to new transmission infrastructure. Taken together, those planning and grid reforms are estimated to accelerate around £90 billion of additional business investment over the next 10 years.
Next, on foreign direct investment, I am extremely grateful to Lord Harrington for his excellent report on how to increase foreign direct investment. We accept all his headline recommendations. In particular, we will put in place a concierge service for large international investors modelled on the best such services offered by our competitors, and we will increase funding for the Office for Investment to deliver it.
I now turn to reforms to pension funds that will increase the flow of capital going to our most promising growth companies in a way that also improves outcomes for savers. I will take forward my Mansion House reforms starting with measures to consolidate the industry. By 2030, the majority of workplace defined contribution savers will have their pension pots managed in schemes of over £30 billion, and by 2040 all local government pension funds will be invested in pools of £200 billion or more. I will support the establishment of investment vehicles for pension funds to use, including through the LIFTS competition—the long-term investment for technology and science competition, a new growth fund run by the British Business Bank—and by opening the Pension Protection Fund as an investment vehicle for smaller defined benefit pension schemes.
I will also consult on giving savers a legal right to require a new employer to pay pension contributions into their existing pension pot if they choose to do so, meaning that people can move to having one pension pot for life. These reforms could unlock an extra £75 billion of financing for high-growth companies by 2030 and provide an extra £1,000 a year in retirement for an average earner saving from 18. Alongside this, I am proposing further capital market reforms to boost the attractiveness of our markets and make sure the UK remains one of the most attractive places to start, grow and list a company. As part of this, I will explore options for a NatWest retail share offer in the next 12 months, subject to market conditions and achieving value for money. It’s time to get Sid investing again.
I now turn to measures to support our most innovative industries. In the last decade under the Conservatives, we have grown to become the third largest technology sector in the world—double the size of Germany and three times the size of France. We have the biggest life sciences industry in Europe, and we are Europe’s third largest generator of renewable electricity after Germany and Norway, and the eighth largest manufacturer in the world. When it comes to tech, we know that artificial intelligence will be at the heart of any future growth, and I want to make sure that our universities, scientists and start-ups can access the compute power they need. As such, building on the success of the supercomputing centres in Edinburgh and Bristol, I will invest a further £500 million over the next two years to fund further innovation centres to help make us an AI powerhouse.
Our creative industries already support Europe’s largest film and TV sector. This year’s all-Californian blockbuster “Barbie” was filmed in the constituency of my hon. Friend the Member for Watford (Dean Russell)—where, of course, the sun always shines. Even more could be invested in visual effects if we increased the generosity of the film and high-end TV tax credits, so I will today launch a call for evidence on how to make that happen.
British-discovered vaccines and treatments saved more lives across the world during the pandemic than those from any other country, and I am incredibly proud of our life sciences industry. To further support research and development, I am creating a new, simplified R&D tax relief that combines the existing R&D expenditure credit and small and medium-sized enterprise schemes. I will also reduce the rate at which loss-making companies are taxed within the merged scheme from 25% to 19%, and lower the threshold for the additional support for R&D-intensive loss-making SMEs that I announced in the spring to 30%, which will benefit a further 5,000 SMEs. And because 2028 marks the centenary of the invention of penicillin by Alexander Fleming, I am giving £5 million to Imperial College and Imperial College Healthcare NHS Trust to set up a Fleming centre to inspire the next generation of world-changing innovations.
International investors say that the biggest thing we could do for our advanced manufacturing and green energy sectors is announce a longer-term strategy for their industries, so with the Secretaries of State for Business and Trade and for Energy Security and Net Zero, I am today publishing those plans. I confirm that we will make available £4.5 billion of support over the five years to 2030 to attract investment into strategic manufacturing sectors. That includes: £2 billion of support for zero-emission investments in the automotive sector, which has been warmly welcomed by Nissan and Toyota; £975 million for aerospace, building on decades of success from firms such as Airbus and Rolls-Royce; and £520 million for life sciences, building on the strength of world-class British pharma companies such as AstraZeneca and GSK. We will also provide £960 million for the new green industries growth accelerator, focused on offshore wind; electricity networks; nuclear; carbon capture, utilisation and storage; and hydrogen. Those targeted investments will ensure that the UK remains competitive in sectors where we are already leaders, and innovative in sectors where we are not. Taken together, that support will attract an estimated £2 billion of additional investment across our fastest-growing innovation sectors every year over the next decade.
One reason why we support our manufacturing and clean energy sectors is that they help to level up growth across the United Kingdom, so I now turn to further levelling-up measures. In the spring, I announced that we would deliver 12 new investment zones—12 mini Canary Wharfs—where Government, industry and research institutes will collaborate across the UK. Since then, the Exchequer Secretary, my hon. Friend the Member for Grantham and Stamford (Gareth Davies), has done outstanding work across Government to bring that vision to fruition. Following tenacious representations from my hon. Friend the Member for Ynys Môn (Virginia Crosbie)—no Chancellor’s speech would be complete without a mention of my hon. Friend—and from the unstoppable Mayor of Tees Valley, I have today decided to extend the financial incentives for investment zones and the tax reliefs for freeports from five years to 10 years. I will also set up a £150 million investment opportunity fund to catalyse investment into that programme.
On Monday, I confirmed that there will be a new investment zone in West Yorkshire. Today, having listened to representations from the west midlands salesman-in-chief Andy Street, as well as my hon. Friends the Members for Mansfield (Ben Bradley) and for Bury North (James Daly), I am announcing three further investment zones focused on advanced manufacturing in the west midlands, east midlands and Greater Manchester. Together, local partners expect that those investment zones will help catalyse over £3 billion of private investment and 65,000 new jobs. Having listened to my hon. Friends the Members for Wrexham (Sarah Atherton) and for Clwyd South (Simon Baynes), I can announce a second investment zone in Wales in the fantastic region of Wrexham and Flintshire, which I will visit tomorrow.
We are publishing new devolution deals with four areas, including Hull and East Yorkshire, and offering devolved powers to even more county areas. One of those areas will be the leafiest and most charming county in the country, namely Surrey, where of course the Leader of the Opposition grew up—we do not get everything right. On Monday, we saw the announcement of £1 billion of funding through round 3 of the levelling-up fund, supporting projects following the campaigning efforts of Members from Keighley, Dewsbury, Doncaster, Scunthorpe—and of course, Mr Speaker, Chorley. I can also confirm that we will proceed with over £50 million of funding for high-quality regeneration projects in communities such as Bolsover, Monmouthshire, Warrington and Eden Valley, all of which have particularly effective local MPs as their champions. Because we are proudly the Conservative and Unionist party, I am announcing £80 million for the new levelling-up partnerships in Scotland, £500,000 to support the Hay festival in Wales, and £3 million of additional funding to support the successful tackling paramilitarism programme in Northern Ireland.
I turn next to small businesses—I ran my own for 14 years, and have always known that every big business was a small business once. The Federation of Small Businesses says that the biggest thing I could do to help its members is end the scourge of late payments. We passed the Procurement Act 2023, which means that the 30-day payment terms that are already set for public sector contracts will automatically apply throughout the subcontractor supply chain, but from April 2024 I will also introduce a condition that any company bidding for large Government contracts should demonstrate that it pays its own invoices within an average of 55 days. That number will reduce progressively to 30 days.
Any small business will also say that the biggest frustration it faces is the tax it pays before making a penny of profit, not least business rates. The Government have already taken a third of properties completely out of rates through small business rates relief. We have frozen the tax rate for the last three years, at a cost of £14.5 billion; we have removed downwards caps from transitional relief; and for retail, hospitality and leisure businesses, we have introduced a one-year 75% discount on business rates up to £110,000. Those measures have saved the average independent shop over £20,000. It is not possible to continue with temporary support measures forever, but while the standard multiplier—which applies to high-value properties—will rise in line with inflation, I have today decided that we will freeze the small business multiplier for a further year.
Following extensive discussions with the FSB and many colleagues in this House, I have also decided to extend the 75% business rates discount for retail, hospitality and leisure for another year. This will save the average independent pub over £12,800 next year and, at a cost of £4.3 billion, is a large tax cut that recognises the role of pubs and high street shops in our communities. I thank my hon. Friends the Members for Stockton South (Matt Vickers), for Barrow and Furness (Simon Fell) and for East Devon (Simon Jupp) for their tenacious campaigning on this issue.
Finally, I turn to the smallest of all businesses—those run by the self-employed. These are the people who literally kept our country running during the pandemic: the plumbers who fixed our boilers in lockdowns, the delivery drivers who brought us our shopping and the farmers who kept food on our plates. As part of our plans to grow the economy, I want to reform and simplify taxes paid by the self-employed, so today I am announcing a major reform of one of those taxes. It is one most people have not heard of, but it is a big deal for those who have to pay it.
Class 2 national insurance is a flat-rate compulsory charge, currently £3.45 a week, paid by self-employed people earning more than £12,570, which gives state pension entitlement. Today, after careful consideration and in recognition of the contribution made by self-employed people to our country, I can announce that we are abolishing class 2 national insurance all together, saving the average self-employed person £192 a year. Access to entitlements and credits will be maintained in full and those who choose to pay voluntarily will still be able to do so, but this change simplifies and cuts tax for nearly 2 million self-employed people, while protecting the interests of those on the lowest pay.
Because we value their work, I am also taking one further step for the self-employed. They also pay class 4 national insurance at 9% on all earnings between £12,570 and £50,270. Today, I have decided to cut that tax by one percentage point to 8% from April. Taken together with the abolition of the compulsory class 2 charge, these reforms will save around 2 million self-employed people an average of £350 a year from April.
We are backing small businesses by freezing their business rates, extending retail, hospitality and leisure relief, abolishing compulsory class 2 national insurance payments and reducing class 4 national insurance by one percentage point in today’s autumn statement for growth. Small businesses work so hard for us, and a Conservative Government today are working hard for them.
I turn now to my final measure to back British business. As I have said, since 2010 we have seen the second highest growth in investment of any G7 country. However, if we are to raise productivity, we need to increase business investment further. In 2021, my right hon. Friend the Prime Minister introduced the super-deduction for large businesses to further stimulate business investment, and this spring I introduced full expensing for three years. This means that for every £1 million a company invests, it gets £250,000 off its tax bill in the very same year.
The CBI, Make UK, the British Chambers of Commerce, Energy UK and 200 other business leaders from companies including BT Openreach, Siemens and Bosch, have said that making this measure permanent would be the “single most transformational” thing I could do for business investment and growth. The Centre for Policy Studies says it would
“maximise business investment, boost productivity and deliver…higher levels of GDP”.
But because it costs £11 billion a year, I made it clear that I would only do so when it was affordable. Well, with inflation halved, borrowing down and debt falling, today I deliver on that promise: I will today make full expensing permanent. That is the largest business tax cut in modern British history. It means we have not just the lowest headline corporation tax rate in the G7, but its most generous capital allowances.
The OBR says this will increase annual investment by around £3 billion a year and a total of £14 billion over the forecast period. We on this side of the House know that the way to back British business is not to borrow more or subsidise more, but to increase the incentives to invest. We do that today by introducing one of the most generous tax reliefs anywhere in the world, with a huge boost to British competitiveness in an autumn statement for growth—skills, planning and infrastructure reform, pension fund reform, support for innovation industries, levelling up, backing small business and full expensing.
Under Labour, business investment was 9.3% of GDP in real terms. Since 2010, it has been 9.8% of GDP. But today we go further because, taken together, the overall impact of today’s growth measures will be to increase business investment in the UK economy by around £20 billion a year within the decade—nearly 1% of GDP at today’s level. This is the biggest ever boost for business investment in modern times, a decisive step towards closing the productivity gap with other major economies, and the most effective way we can raise wages and living standards for every family in the country.
As well as backing business, Conservatives know that you need to back the people without whose effort no businesses can succeed: the entrepreneur taking risks, the builder working weekends, the nurse working nights, and the jobseeker leaving benefits behind. I will therefore conclude with three further supply-side reforms designed to improve the incentives to work in a modern, dynamic economy.
I begin with welfare, and I want to start by thanking the outstanding Work and Pensions Secretary for his help in developing these reforms. He builds on the work of my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who introduced universal credit. Those reforms helped reduce unemployment, which has fallen by over 1 million, but Opposition Members, to their shame, voted against them 30 times. They think compassion is about giving money; we think it is about giving opportunity.
However, post pandemic, we still have over 7 million adults of working age, excluding students, who are not working, despite there being 1 million vacancies in the economy. Many can and want to work, but our system makes that too hard. In the spring Budget, I announced 30 hours of free childcare for working parents of one and two-year-olds. That plan, still opposed by the party opposite, starts rolling out in April. It will help tens of thousands of parents return to work without having to worry about damaging their career prospects.
Today, we focus on helping those with sickness or disability and the long-term unemployed. Every year, we sign off over 100,000 people on to benefits with no requirement to look for work because of sickness or disability. That waste of potential is wrong economically and wrong morally. So with the Secretary of State for Work and Pensions, last week I announced our back to work plan. We will reform the fit note process so that treatment rather than time off work becomes the default, we will reform the work capability assessment to reflect greater flexibility and availability of home working after the pandemic, and we will spend £1.3 billion over the next five years to help nearly 700,000 people with health conditions find jobs. Over 180,000 more people will be helped through the universal support programme, and nearly 500,000 more people will be offered treatment for mental health conditions and employment support.
Over the forecast period, the OBR judges that these measures will more than halve the flow of people who are signed off work with no work search requirements. At the same time, we will provide a further £1.3 billion of funding to offer extra help to the 300,000 people who have been unemployed for over a year without any sickness or disability. But we will ask for something in return. If, after 18 months of intensive support, jobseekers have not found a job, we will roll out a programme requiring them to take part in mandatory work placement to increase their skills and improve their employability. If they choose not to engage with the work search process for six months, we will close their case and stop their benefits.
Taken together with the labour supply measures I announced in the spring, the OBR says we will increase the number of people in work by around 200,000 by the end of the forecast period, permanently increasing the size of the economy. I know that some on the Opposition Benches would prefer to fill those vacancies in a different way; they hanker after a more liberal immigration regime or even dream of bringing back free movement. But Conservatives say that we should unlock the potential we have right here at home. We do that with the biggest set of welfare reforms in a decade in today’s autumn statement for growth.
If we are to incentivise work, we must also tackle low pay. People who get up early, put in the hours and work hard for their families deserve to be paid fairly. Since 2010, those on the minimum wage—now the national living wage—have seen their hourly wage go up from £5.80 an hour to £10.42 an hour. That is a real-terms increase of more than 20%. Because we have also doubled the threshold at which they pay tax or national insurance, their after-tax income has gone up not by 20%, but by 25%—more than for any other income group.
Today, I confirm that we will go further and accept the Low Pay Commission’s recommendation to increase the national living wage by 9.8% to £11.44 an hour. That is the largest-ever cash increase in the national living wage, worth up to £1,800 for a full-time worker. Since the national living wage has been introduced, the proportion of people on low pay—defined as earning less than two thirds of national median hourly income—has halved, but at the new rate of £11.44 an hour it delivers our manifesto commitment to eliminate low pay altogether. That means that by next year someone working full time on the national living wage will see their real take-home, after-tax pay go up not by 25%, but by 30% compared with 2010.
And that is the difference: the Labour party tried to reduce poverty by tinkering with benefits and tax credits—they wanted to move people from just below the poverty line to just above it—but Conservatives know that the best way to tackle poverty is through work. By reforming the welfare system, reducing the number of workless households and tackling low pay, we have helped lift 1.7 million people out of absolute poverty since 2010, because a central part of our plan for growth is to make work pay.
I move to the final supply-side measure in today’s autumn statement for growth. Because of the difficult decisions that we have taken in the last year, today’s OBR forecast shows that borrowing will be lower than forecast in the spring, debt as a proportion of GDP will be lower than forecast in the spring, inflation will continue to fall and our fiscal headroom has doubled. I said I would cut taxes when we could, but only responsibly and only in a way that did not fuel inflation. The OBR today confirms that I can deliver a package that does that.
For businesses, I have today delivered the biggest business tax cut in modern British history, with the most competitive investment allowances of any large economy. For the self-employed, I have simplified and reformed their taxes by abolishing the compulsory class 2 charge and cutting class 4 national insurance. But high employment taxes on 27 million people working in the public and private sectors also disincentivise the hard work that we should be encouraging. On top of income tax at 20%, they pay 12% national insurance on earnings between £12,570 and £50,270. That is a 32% marginal tax rate. If we want people to get up early in the morning, if we want them to work nights, and if we want an economy where people go the extra mile and work hard, we need to recognise that their hard work benefits us all.
So today I am going to cut the main 12% rate of employee national insurance. If I cut it by one percentage point to 11%, that would be an extra £225 in the pockets of the average worker every year. But instead I am going to go further and cut the main rate of employee national insurance by two percentage points, from 12% to 10%. That change will help 27 million people. It means that someone on the average salary of £35,000 will save over £450. For the average nurse, it is a saving of £520. For the typical police officer, it is a saving of £630 every single year. I would normally bring in such a measure for the start of the new tax year in April, but instead I will tomorrow introduce urgent legislation to bring it in from 6 January, so that people can see the benefit in their payslips at the start of the new year.
The OBR says that reducing a tax on work means more people in work, and it says that today’s measures on national insurance alone will lead to the equivalent of 94,000 full-time employees in our economy, because lower tax means higher growth. That is the difference between those of us on this side of the House and those on that side. In 13 years, Labour raised taxes in every single Budget, but Conservatives cut taxes when we responsibly can, and today we do just that. We cut taxes to help bigger businesses invest. We cut taxes to help smaller businesses grow. We cut taxes for the self-employed who keep our country running, and from January we cut taxes for 27 million working people whose hard work drives our economy forward.
The best universities, the cleverest scientists and the smartest entrepreneurs have given us Europe’s most innovative economy, but we can be the most prosperous too. In the face of global challenges, we have halved inflation, reduced our debt and grown our economy. As a country, we are sticking to a plan that is working. This autumn statement for growth will attract £20 billion of additional business investment a year in the next decade, bring tens of thousands of people into work and support our fastest growing industries, in a package that leaves borrowing lower, leaves debt lower and keeps inflation falling. We are delivering the biggest business tax cut in modern British history, the largest ever cut to employee and self-employed national insurance, and the biggest package of tax cuts to be implemented since the 1980s. It is an autumn statement for a country that has turned a corner; an autumn statement for growth. I commend it to the House.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(1 year ago)
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Jeremy Hunt
My hon. Friend is right to say that our food industry is very important to food security. We need to keep the priorities constantly under review. Nature is a very important part of that, but so too is food production.
Jeremy Hunt
I thank my hon. Friend and, indeed, my hon. Friend the Member for Scunthorpe (Holly Mumby-Croft) for their extensive lobbying on this very important issue. I have had meetings with him and her, and with many others, to discuss it. I reassure him that we are absolutely committed to steel production in the United Kingdom, and to making sure that any changes that are necessary support the local communities that depend on steel production.
Jeremy Hunt
I thank my hon. Friend for raising the support we give to small businesses. As he will know, supporting small businesses, particularly by rolling over the retail, hospitality and leisure business rates discount of 75%, was a major feature of the autumn statement. We will continue to keep under review anything that we can do to help our small businesses.
Jeremy Hunt
I am answering a lot of the topical questions today because I have a new team. I want to reassure the hon. Lady that we are very aware of the financial pressures that local authorities are under. I am having extensive discussions with the Communities Secretary.
Jeremy Hunt
Because we attract wealth creators from all over the world—and this may be uncomfortable for those on the Opposition Benches—we generate huge amounts of tax revenue. Financial services pay for half the cost of running the NHS. I am in favour of getting everyone to pay their fair share of tax, but I will not make reforms that mean less tax revenue for the NHS.
David Linden (Glasgow East) (SNP)
The Westminster-made cost of living crisis is having a devastating impact on household incomes, particularly in Broomhouse, where many young homeowners are seeing mortgage prices soaring. Will the Chancellor use the autumn statement to introduce mortgage interest tax relief to help people across Glasgow to deal with the cost of living crisis?
Jeremy Hunt
As the hon. Gentleman knows, we have taken enormous steps over the past year to help families throughout Scotland to deal with cost of living pressures. If he really thinks that people in Scotland believe that this was a “made in Westminster” problem, when we have experienced an invasion of Ukraine and a global pandemic, I simply say to him in return that after 16 years of SNP rule, GDP per head in Scotland is lower, productivity is falling, employment is lower, and inactivity is higher—[Interruption.]
Mr Speaker
Members need to give me a good reason not to bring them in at the end again: be careful! Let us come to the statement—[Interruption.] Angus, you’ll find the door, I think, in a minute.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(1 year, 2 months ago)
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Jeremy Hunt
I thank my right hon. Friend for her question. Thanks to the excellent work of the Economic Secretary to the Treasury, we have repealed 100 EU rules and regulations in the financial services sector, and we will look very closely at the opportunities when it comes to tokenisation.
Tulip Siddiq (Hampstead and Kilburn) (Lab)
Last week, the Government admitted that their planned introduction of food import checks from the EU would lead to an increase in inflation, hitting the pockets of ordinary people during the worst cost of living crisis in our lifetimes. In the Labour party, we believe that a bespoke veterinary agreement would cut red tape from business and avoid pushing costs on to ordinary people. Are the Government planning to negotiate a veterinary agreement, and if not, why not?
Jeremy Hunt
I gently say to the hon. Lady, who I have a lot of time for, that the last thing business wants is the upheaval of a huge renegotiation of our trading arrangement with the EU, which is the largest tariff-free free trade deal by volume in the world.
Jeremy Hunt
I very much wish my hon. Friend’s local pubs the best of luck in that competition, second only to my desire to encourage South West Surrey pubs to do well. I want to reassure him that we believe that pubs are central to our national life. That is why we have provided relief on business rates of up to 75% for pubs, and as we heard earlier, the Brexit pubs guarantee helps on their duty pricing.
Rachel Reeves (Leeds West) (Lab)
Last week, thousands of parents were told that their children’s schools were unsafe and at risk of collapse. The defining image of 13 years of Conservative government: classrooms propped up to stop the ceilings from falling in. Capital budgets have halved in real terms since 2010, with warnings ignored and repair programmes slashed. Do this Conservative Government take any responsibility for any of this?
Jeremy Hunt
Let me start by reassuring the right hon. Lady that the vast majority of pupils in the 156 schools affected are at school normally, and we are acting fast to minimise the impact on the rest.
Let me answer the more general question that the right hon. Lady raised. Yes, we made cuts in spending in 2010 because, as she knows well, the last Labour Government left this country with an economic crisis. Despite that crisis, the Department for Education budget has gone up by 15% in real terms, and overall capital spend—
Mr Speaker
Order. This is topicals. All your colleagues on both sides of the House want to get in. Topicals are meant to be very short, not a full debate between both sides. I say to everybody: think about others. I think we can move on. I call Rachel Reeves.
Mortgage Charter
Debate between Lindsay Hoyle and Jeremy Hunt(1 year, 5 months ago)
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The Chancellor of the Exchequer (Jeremy Hunt)
Mr Speaker, last week the Bank of England increased interest rates to 5% as the UK, like other countries, grapples with high inflation. We are steadfast in our support for the independent Monetary Policy Committee as it takes whatever action is necessary to return inflation to the 2% target in the medium term.
None the less, I know that higher inflation and interest rates cause anxiety and concern for many families. That is why the Government are already supporting families with one of the largest support packages in Europe, worth £94 billion, or £3,300 per household on average. As interest rates rise, I will not take action that undermines the Bank of England’s monetary objectives, but where we can take non-inflationary measures to relieve the anxiety faced by families, we will do so. That is why on Friday, I met the UK’s principal mortgage lenders, alongside senior representatives from the Financial Conduct Authority and UK Finance, to agree new support for people struggling with their mortgage payments. At that meeting, I secured agreement from lenders to a new mortgage charter that sets out what support customers will receive, which we are publishing today. The charter has been signed by lenders covering 85% of the UK market, and provides support for two groups of people in particular.
The first group is those who are worried about their mortgage repayments. If they want to switch to an interest-only mortgage or extend their mortgage term to reduce their monthly payments, they will be able to do so, with the option of switching back to their original mortgage deal within six months without any affordability check or credit score impact. For most people, the right course of action will be to continue to make payments on their current mortgage. That will always be the best option, and will always mean that they pay less interest overall. However, this new measure means that people will be able to opt for a lower-cost approach for six months with full reversibility, giving them the peace of mind of knowing they can try out a new approach and still change their mind later.
The measure will take effect in the next few weeks. It means that a homeowner with a £200,000 property with £100,000 outstanding on their mortgage over 15 years can change their payments—with no immediate impact on their credit rating—by extending the mortgage term by 10 years, which could save over £200 a month, or moving to interest-only payments, which could save over £350 a month.
A further measure for this group of customers means that if they are approaching the end of a fixed-rate deal, they will be offered the chance to lock in a new deal with the same lender up to six months ahead. However, they will still be able to apply for a better like-for-like deal with the same lender, with no penalty if they find one, until their current deal ends. That will provide people with more flexibility and optionality to find the best deal for their circumstances.
The second group of people we are supporting is those who are at real risk of losing their home because they fall behind in their mortgage payments. Mortgage arrears and defaults remain at historically low levels, with under 1% of residential mortgages in arrears in 2023, and are at a level lower than just before the pandemic. None the less, for the families involved it is extraordinarily distressing to lose their house, so we will do all we can to support people who find themselves in such a challenging financial position.
As part of our strong regulatory framework for mortgage holders, banks and lenders already provide tailored support for anyone who is struggling and deploy highly trained staff to help such customers. Support offered includes temporary payment deferrals and part-interest part-repayment, as well as extending mortgage terms or switching to interest-only payments. To supplement that, we have agreed as part of the mortgage charter that in the extreme situation in which a lender is seeking to repossess a home, there will be a minimum 12-month period from the first missed payment before there is a repossession without consent. Anyone at all who is worried that they could be in this situation should know they can call their lender for advice without any impact whatsoever on their credit score. Lenders will also provide support to customers who are up to date with payments to switch to a new mortgage deal at the end of their existing fixed rate deal without another affordability test, and provide well-timed information when their current rate is coming to an end.
Taken together, these measures should offer comfort to those who are anxious about the impact of higher interest rates on their mortgages, and provide support to those who do get into any extreme financial difficulties. The mortgage market itself remains robust, and the average homeowner remortgaging over the last year had close to 50% loan to value, indicating that most people have considerable equity in their homes.
Tackling inflation is the Prime Minister’s and my No 1 priority. We said we would halve inflation not because it was an easy thing to do, but because it is the right thing to do, and we will not flinch in our resolve, because we know getting rid of high inflation from our economy is the only way that we can ultimately relieve pressure on family finances and on businesses. That is why we will seek to remove inflationary pressures in our economy, not stoke them. That is what the measures I have set out today will help to do, and I commend this statement to the House.
Jeremy Hunt
As so often, my right hon. Friend is absolutely right and it is in supply-side measures that we see the long-term solution to the inflation problem that we and many other countries face. That is why the Budget was focused on labour supply measures such as a massive reduction in the cost of childcare—a reduction of up to 60% for families with young children—and it is why my right hon. Friend the Chief Secretary to the Treasury is launching the very productivity review my right hon. Friend the Member for Wokingham (John Redwood) has called for many times, to make sure we are getting better value for public money spent.
Jeremy Hunt
The Bank of England Governor himself has been very open about the fact that the Bank’s inflation forecasting has not been accurate, and it is conducting an independent review to see how it can do that better. It is clear that there have been some issues with how that process has worked, but what I would say to my right hon. Friend—
Jeremy Hunt
Mr Speaker, you are absolutely right to correct me on that point. What I would say to you about the point raised is simply that in my dealings with the Bank of England, I have never once had any reason to question its resolve to hit the target, but we need to ensure that the forecasting is better.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(1 year, 5 months ago)
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Jeremy Hunt
No one in Rossendale and Darwen could have a more doughty champion than my right hon. Friend, and I listen to what he says carefully, but I think he will understand that those schemes that involve injecting large amounts of cash into the economy right now would be inflationary. So much as we sympathise with the difficulties and will do everything we can to help people seeing their mortgage costs go up, we will not do anything that would mean we prolonged inflation.
Jeremy Hunt
My hon. Friend always speaks extremely wisely on financial matters, and he is absolutely on the money when he talks about the opportunity that would present itself by unlocking £3 trillion of pension fund assets, many of which would get a better return for pensioners if they were invested more in our high-growth businesses, as well as that being a good outcome for the London stock market. All I will say is: watch this space.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(1 year, 8 months ago)
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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.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(1 year, 9 months ago)
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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.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(1 year, 11 months ago)
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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.
Autumn Statement
Debate between Lindsay Hoyle and Jeremy Hunt(2 years ago)
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The Chancellor of the Exchequer (Jeremy Hunt)
In the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the future, so today we deliver a plan to tackle the cost of living crisis and rebuild our economy. Our priorities are stability, growth and public services. We also protect the vulnerable, because to be British is to be compassionate and this is a compassionate Conservative Government.
We are not alone in facing these problems, but today we respond to an international crisis with British values. We are honest about the challenges and we are fair in our solutions. Yes, we take difficult decisions to tackle inflation and keep mortgage rates down, but our plan also leads to a shallower downturn, lower energy bills, higher growth, and a stronger NHS and education system.
There are three priorities then today: stability, growth and public services. I start with stability. High inflation is the enemy of stability. It means higher mortgage rates, more expensive food and fuel bills, businesses failing and unemployment rising. It erodes savings, causes industrial unrest and cuts funding for public services. It hurts the poorest the most and eats away at the trust upon which a strong society is built.
The Office for Budget Responsibility confirms that global factors are the primary cause of current inflation. Most countries are still dealing with the fallout from a once-in-a-century pandemic. The furlough scheme, the vaccine roll-out and the response of the NHS did our country proud, but they all have to be paid for. The lasting impact on supply chains has made goods more expensive and fuelled inflation. This has been worsened by a made-in-Russia energy crisis.
Putin’s war in Ukraine has caused wholesale gas and electricity prices to rise to eight times their historic average. Inflation is high here, but higher in Germany, the Netherlands and Italy. Interest rates have risen here, but faster in the US, Canada and New Zealand. Growth forecasts have fallen here, but fallen further in Germany. The International Monetary Fund expects one third of the world’s economy to be in recession this year or next.
So the Bank of England, which has done an outstanding job since its independence, now has my wholehearted support in its mission to defeat inflation and I today confirm we will not change its remit. But we need fiscal and monetary policy to work together, and that means the Government and the Bank working in lockstep. It means, in particular, giving the world confidence in our ability to pay our debts. British families make sacrifices every day to live within their means, and so too must their Government because the United Kingdom will always pay its way.
I understand the motivation of my predecessor’s mini-Budget and he was correct to identify growth as a priority, but unfunded tax cuts are as risky as unfunded spending, which is why we reversed the planned measures quickly. As a result, Government borrowing has fallen, the pound has strengthened and the OBR says today that the lower interest rates generated by the Government’s actions are already benefiting our economy and public finances. But credibility cannot be taken for granted and yesterday’s inflation figures show we must continue a relentless fight to bring it down, including a rock solid commitment to rebuild our public finances.
Richard Hughes and his team at the OBR today lay out starkly the impact of global headwinds on the UK economy, and I am enormously grateful to him and his team for their thorough work. The OBR forecasts the UK’s inflation rate to be 9.1% this year and 7.4% next year. It confirms that our actions today help inflation to fall sharply from the middle of next year. It also judges that the UK, like other countries, is now in recession. Overall this year, the economy is still forecast to grow by 4.2%. GDP then falls in 2023 by 1.4%, before rising by 1.3%, 2.6% and 2.7% in the following three years. The OBR says higher energy prices explain the majority of the downward revision in cumulative growth since March. It also expects a rise in unemployment from 3.6% today to 4.9% in 2024, before falling to 4.1%.
Today’s decisions mean that, over the next five years, borrowing is more than halved. This year, we are forecast to borrow 7.1% of GDP, or £177 billion; next year, 5.5% of GDP, or £140 billion; then by 2027-28, it falls to 2.4% of GDP, or £69 billion. As a result, underlying debt as a percentage of GDP starts to fall from a peak of 97.6% in 2025-26 to 97.3% in 2027-28.
I also confirm two new fiscal rules. The first is that underlying debt must fall as a percentage of GDP by the fifth year of a rolling five-year period. The second is that public sector borrowing over the same period must be below 3% of GDP. The plan I am announcing today meets both rules.
Today’s statement delivers a consolidation of £55 billion, and means inflation and interest rates end up significantly lower. We achieve this in a balanced way. In the short term, as growth slows and unemployment rises, we will use fiscal policy to support the economy. The OBR confirms that, because of our plans, the recession is shallower and inflation is reduced. Unemployment is also lower, with about 70,000 jobs saved as a result of our decisions today. Then, once growth returns, we increase the pace of consolidation to get debt falling. This further reduces the pressure on the Bank to raise interest rates, because as Conservatives we do not leave our debts to the next generation.
So this is a balanced path to stability, tackling inflation to reduce the cost of living and protect pensioner savings, while supporting the economy on a path to growth. But it means taking difficult decisions. Anyone who says there are easy answers is not being straight with the British people. Some argue for spending cuts, but that would not be compatible with high-quality public services. Others say savings should be found by increasing taxes, but Conservatives know that high-tax economies damage enterprise and erode freedom. We want low taxes and sound money, but Conservatives know that sound money has to come first, because inflation eats away at the pound in people’s pockets even more insidiously than taxes. So with just under half of the £55 billion consolidation coming from tax, and just over half from spending, this is a balanced plan for stability.
I turn first to our decisions on tax. I have tried to be fair by following two broad principles: first, we ask those with more to contribute more; and secondly, we avoid the tax rises that damage growth. Although my decisions today do lead to a substantial tax increase, we have not raised headline rates of taxation, and tax as a percentage of GDP will increase by just 1% over the next five years.
I start with personal taxes. Asking more from those who have more means that the first difficult decision I take on tax is to reduce the threshold at which the 45p rate becomes payable from £150,000 to £125,140. Those earning £150,000 or more will pay just over £1,200 more in tax every year. We are also taking difficult decisions on tax-free allowances. I am maintaining at current levels the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years, taking us to April 2028. Even after that, we will still have the most generous set of tax-free allowances of any G7 country.
I am also reforming allowances on unearned income. The dividend allowance will be cut from £2,000 to £1,000 next year, and then to £500 from April 2024. The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year, and then £3,000 from April 2024. Those changes still leave us with more generous allowances than countries such as Germany, Ireland, France, and Canada.
Because the OBR forecasts that half of all new vehicles will be electric by 2025, to make our motoring tax system fairer, I have decided that from then electric vehicles will no longer be exempt from vehicle excise duty. Company car tax rates will remain lower for electric vehicles, and I have listened to industry bodies and will limit rate increases to 1 percentage point a year for three years from 2025.
The OBR expects housing activity to slow over the next two years, so the stamp duty cuts announced in the mini-Budget will remain in place but only until 31 March 2025. After that, I will sunset the measure, creating an incentive to support the housing market, and the jobs associated with it, by boosting transaction during the period when the economy most needs it.
I now turn to business taxes. Although I have decided to freeze the employers national insurance contributions threshold until April 2028, we will retain the employment allowance at its new higher level of £5,000. That means that 40% of all businesses will pay no NICs at all. The VAT threshold is already more than twice as high as the EU and OECD averages. I will maintain it at that level until March 2026.
My right hon. Friend the Prime Minister successfully negotiated a landmark international tax deal to make sure that multinational corporations, including big tech companies, pay the right tax in the countries where they operate. I will implement those reforms, making sure that the UK gets our fair share. Alongside further measures to tackle tax avoidance and evasion, that will raise an additional £2.8 billion by 2027-28.
I have also heard concerning reports of abuse and fraud in research and development tax relief for small and medium-sized enterprises, so I have decided today to cut the deduction rate for the SME scheme to 86% and the credit rate to 10% but increase the rate of the separate R&D expenditure credit from 13% to 20%. Despite raising revenue, the OBR has confirmed that those measures will have no detrimental impact on the level of R&D investment in the economy. Ahead of the next Budget, we will work with industry to understand what further support R&D-intensive SMEs may require.
I turn next to windfall taxes. I have no objection to windfall taxes—[Hon. Members: “Ah!”]—if they are genuinely about windfall profits caused by unexpected increases in energy prices. But—[Interruption.] I know that Opposition Members are getting excited at the talk of windfall taxes. Can I just say that any such tax should be temporary, not deter investment and recognise the cyclical nature of energy businesses? So, taking account of that, I have decided that from 1 January until March 2028 we will increase the energy profits levy from 25% to 35%. The structure of our energy market also creates windfall profits for low-carbon electricity generation, so we have decided to introduce, from 1 January, a new, temporary 45% levy on electricity generators. Together, those measures will raise £14 billion next year.
Finally, I turn to business rates. It is an important principle that bills should accurately reflect market values, so we will proceed with the revaluation of business properties from April 2023, but I will soften the blow on businesses with a nearly £14 billion tax cut over the next five years. Nearly two thirds of properties will not pay a penny more next year and thousands of pubs, restaurants and small high street shops will benefit. That will include a new Government-funded transitional relief scheme, as called for by the CBI, the British Retail Consortium, the Federation of Small Businesses and others, benefiting around 700,000 businesses.
Our plan for the cost of living delivers lower inflation, lower mortgage rates, a shallower downturn and lower unemployment, but it also involves public spending discipline, so I turn next to how we protect public services through a challenging period. The Prime Minister’s vision for the country has at its heart a strong NHS and world-class education. We know that a strong economy depends on strong public services, so we will protect them as much as we can as we deliver our plan for stability and growth.
We do have to take difficult decisions on public finances, so we are going to grow public spending, but we are going to grow it more slowly than growth in the economy. For the remaining two years of the spending review, we will protect the increases in departmental budgets that we have already set out in cash terms and then grow resource spending at 1% a year in real terms in the three years that follow. Although Departments will have to make efficiencies to deal with inflationary pressures in the next two years, this decision means that overall spending in public services will continue to rise in real terms for the next five years.
Before I turn to our plans for schools and the NHS, I start with two other areas of spending. The Department for Work and Pensions has a critical role in supporting people into work, and I am proud to live in a country with one of the most comprehensive safety nets anywhere in the world. But I am also concerned that we have seen a sharp increase in economically inactive working-age adults of about 630,000 people since the start of the pandemic. Employment levels have yet to return to pre-pandemic levels, which is bad for businesses who cannot fill vacancies and bad for people missing out on the opportunity to do well for themselves and their families, so the Prime Minister has asked the Work and Pensions Secretary to do a thorough review of issues holding back workforce participation, to conclude early in the new year.
Alongside that, I am also committed to helping people already in work to raise their incomes, progress in work and become financially independent. So we will ask over 600,000 more people on universal credit to meet with a work coach so that they can get the support that they need to increase their hours or earnings. I have also decided to move back the managed transition of people from employment and support allowance on to universal credit to 2028, and will invest an extra £280 million in the DWP to crack down on benefit fraud and error over the next two years. The Government’s review of the state pension age will be published in early 2023.
Our security at home depends on our security overseas, so I turn next to defence and other international commitments. The privilege of being this country’s Foreign Secretary showed me first-hand the enormous respect in which this country is held, because the United Kingdom is and has always been a force for good in the world. Nothing sums that up more than the courage of our armed forces; men and women risk their lives every day in defence of our territory and our belief in freedom. Alongside them, I salute the citizens of another country right on the frontline of that fight today: the brave people of Ukraine. The United Kingdom has given them military support worth £2.3 billion since the start of Putin’s invasion, the second highest contribution in the world after the United States, which demonstrates that our commitment to democracy and open societies remains steadfast. In that context, the Prime Minister and I both recognise the need to increase defence spending. But before we make that commitment, it is necessary to revise and update the integrated review, written as it was before the Ukraine invasion. I have asked for that vital work to be completed ahead of the next Budget and today I confirm that we will continue to maintain the defence budget at at least 2% of GDP to be consistent with our NATO commitment.
Another important international commitment is to overseas aid. The OBR’s forecasts show a significant shock to public finances, so it will not be possible to return to the 0.7% target until the fiscal situation allows. We remain fully committed to that target, and the plans I have set out today assume that official development assistance spending will remain around 0.5% for the forecast period. As a percentage of GNI, we were the third highest donor in the G7 last year, and I am proud that our aid commitment has saved thousands of lives around the world. I look forward to working closely with the Minister of State, Foreign, Commonwealth and Development Office, my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell), now rightly back in his place in Cabinet, to make sure that we continue to play a leadership role in tackling global poverty.
The United Kingdom has also been a global leader on climate change, cutting emissions by more than any other G20 country. But with the existential vulnerability we face, now would be the wrong time to step back from our international climate responsibilities, so I also confirm that, despite the economic pressures, we remain fully committed to the historic Glasgow climate pact agreed at COP26, including a 68% reduction in our own emissions by 2030.
I turn to education. Being pro-education is being pro-growth. But providing our children with a good education is not just an economic mission, it is a moral mission, one to which my right hon. Friend the Prime Minister has always been deeply committed. Thanks to the efforts of successive Conservative Education Ministers, in particular my right hon. Friends the Members for Surrey Heath (Michael Gove) and for Bognor Regis and Littlehampton (Nick Gibb), we have risen nine places in the global league tables for maths and reading in the last seven years.
I still, however, have concerns that not all school leavers get the skills they need for a modern economy. But for the first time ever, this country has a Conservative Education Secretary, my right hon. Friend the Member for Chichester (Gillian Keegan), who left school at 16 to become an apprentice, and knows first-hand why good skills matter. There are many important initiatives in place, but as Chancellor I want to know the answer to one simple question: will every young person leave the education system with the skills they would get in Japan, Germany or Switzerland? So, I have appointed Sir Michael Barber to advise me and my right hon. Friend the Education Secretary on the implementation of our skills reform programme.
As we raise the skill levels of our school leavers, I want also to ensure that, even in an economic crisis, the improvement in school standards continues to accelerate. Some have suggested putting VAT on independent school fees as a way of increasing core funding for schools, which would raise about £1.7 billion. But according to certain estimates, that would result in up to 90,000 children from the independent sector switching to state schools, giving with one hand only to take away with another.
So instead of being ideological, I am going to be practical: because we want school standards to continue to rise for every single child, we are going to do more than protect the schools budget—we are going to increase it. I can announce today that next year and the year after, we will invest an extra £2.3 billion per annum in our schools. Our message to heads, teachers and classroom assistants is: thank you for your brilliant work. We need it to continue, and in difficult economic circumstances, a Conservative Government are investing more in the public service that defines all our futures.
The service we depend on more than any other is the NHS. As a former Health Secretary, I know how hard people are working on the frontline and how much they are struggling after the pandemic. The biggest issues are workforce shortages and pressures in the social care sector, so today I address them both.
On staff shortages, the former Chair of the Health and Social Care Committee put forward the case for a long-term workforce plan. He even wrote a book about it, which I have read. [Laughter.] I have listened carefully to his proposals and I believe that they have merit, so the Department of Health and Social Care and the NHS will publish an independently verified plan for the number of doctors, nurses and other professionals we will need in five, 10 and 15 years’ time, taking full account of the need for better retention and productivity improvements.
I have also listened to extensive representations about the challenges facing the social care sector. It did a heroic job looking after children, disabled adults and older people during the pandemic. Its 1.6 million employees work incredibly hard, but even outside the pandemic, the increasing number of over-80s is putting massive pressure on their services.
I also heard the very real concerns from local authorities, particularly about their ability to deliver the Dilnot reforms immediately, so I will delay the implementation of this important reform for two years, allocating the funding to allow local authorities to provide more care packages. I also want the social care system to help free up some of the 13,500 hospital beds that are occupied by those who should be at home, so I have decided to allocate for adult social care additional grant funding of £1 billion next year and £1.7 billion the year after. Combined with savings from the delayed Dilnot reforms and more council tax flexibilities, this means an increase in funding available for the social care sector of up to £2.8 billion next year and £4.7 billion the year after. That is a big increase.
How we look after our most vulnerable citizens is not just a practical issue but one that speaks to our values as a society, so today’s decision will allow the social care system to deliver an estimated 200,000 more care packages over the next two years—the biggest increase in funding under any Government of any colour in history.
The NHS budget has been increased to record levels to deal with the pandemic, and today I am asking the NHS to join all public services in tackling waste and inefficiency. We want Scandinavian quality alongside Singaporean efficiency, and both better outcomes for citizens and better value for taxpayers. That does not mean asking people on the frontline, often exhausted and burned out, to work harder, which would not be possible or fair, but it does mean asking challenging questions about how to reform all our public services for the better. So with respect to the NHS, I have asked the former Health Secretary and chair of the Norfolk and Waveney integrated care system, Patricia Hewitt, to help me and the Health Secretary to achieve that by advising us on how to make sure that the new integrated care boards, the local NHS bodies, operate efficiently and with appropriate autonomy and accountability. I have also had discussions with NHS England about the inflationary pressures on their budgets.
I recognise that efficiency savings alone will not be enough to deliver the services we all need, so, because of difficult decisions taken elsewhere today, I will increase the NHS budget, in each of the next two years, by £3.3 billion. The chief executive of NHS England, Amanda Pritchard, has said that this should provide sufficient funding for the NHS to fulfil its key priorities. She has said that it shows the Government are serious about their commitment to prioritise our NHS. With £3.3 billion for the NHS and £4.7 billion for social care, there is a record £8 billion package for our health and care system. That is a Conservative Government putting the NHS first.
The NHS and schools in Scotland, Wales and Northern Ireland face equivalent pressures, so the Barnett consequentials of today’s decisions mean an extra £1.5 billion for the Scottish Government, £1.2 billion for the Welsh Government, and £650 million for the Northern Ireland Executive. That means more resources for the schools and hospitals in our devolved nations next year, the year after and every year thereafter.
Our support for public services means that despite needing to find £55 billion in savings and tax rises, we are protecting the amount going into public services in real terms over the five-year period; but if we are to sustain our public services and avoid a doom loop of ever higher taxes and ever lower dynamism, we need economic growth, so I now turn—[Interruption.] Opposition Members have never been interested in growth, but we on this side of the House are. [Interruption.]
Mr Speaker
Order. I want to get to the end of the autumn statement, like the rest of the people of this country.
Jeremy Hunt
Let us start with a difficult message for the party opposite: you cannot borrow your way to growth. Sound money is the rock upon which long-term prosperity rests; but it is not enough on its own. Our plan is designed to build a high-wage, high-skill economy that leads to long-term prosperity. In his Mais lecture, my right hon. Friend the Prime Minister identified the keys to doing that: people, capital and ideas. Today’s increase in the education budget demonstrates our commitment to people and skills, and I will now outline three further growth priorities: energy, infrastructure and innovation.
Cheap, low-carbon, reliable energy must sit at the heart of any modern economy, but Putin’s weaponisation of international gas prices has helped to drive the cost of our national energy consumption right up. This year we will be spending an extra £150 billion on energy compared to pre-pandemic levels, the equivalent of paying for an entire second NHS through our energy bills.
In 2019, a third of global emissions came from energy supply, so unless we act radically to change our approach, we will both bankrupt our economy and harm our planet. Over the long term, there is only one way to stop ourselves being at the mercy of international gas prices: energy independence combined with energy efficiency—energy independence so neither Putin nor anyone else can use energy to blackmail us, and energy efficiency to reduce demand and climate impact as much as possible.
Britain is a global leader in renewable energy. Last year, nearly 40% of our electricity came from offshore wind, solar and other renewables. Since 2010, our renewable energy production has grown faster than any other large country in Europe. But we need to go even further, with a major acceleration of home-grown technologies like offshore wind, carbon capture and storage, and, above all, nuclear. This will deliver new jobs, industries and export opportunities, and secure the clean, affordable energy we need to power our future economy and reach net zero. So today I can announce the Government will proceed with the new nuclear power plant at Sizewell C.
Subject to final Government approvals, the contracts for the initial investment will be signed with relevant parties, including EDF, in the coming weeks. This will create 10,000 highly skilled jobs and provide reliable, low-carbon power to the equivalent of 6 million homes for 50 years. Our £700 million investment is the first state backing for a nuclear project in over 30 years and represents the biggest step in our journey to energy independence.
But energy efficiency is just as important, so today we set our country a new national ambition: by 2030 we want to reduce energy consumption from buildings and industry by 15%. Reducing demand by this much means, in today’s prices, a £28 billion saving from our national energy bill, or £450 off the average household bill. This must be a shared mission, with families and businesses playing their part—but so will the Government play our part.
In this Parliament, we are already planning to invest in energy efficiency a total of £6.6 billion. Today I am announcing new funding, from 2025, of a further £6 billion —doubling our annual investment to deliver this new national ambition. Our commitment to the British people is, over time, to remove this single biggest driver of inflation and volatility facing British businesses and consumers. My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy will publish further details on our energy independence plans and launch a new energy efficiency taskforce shortly.
If a modern economy needs secure, clean and affordable energy, it also needs good roads, rail, broadband and 5G infrastructure. Such connections matter because they allow wealth and opportunity to spread to every corner of the country. That is why infrastructure is our second growth priority. Thanks to decisions by this Conservative Government, right now workers right across the country are building or maintaining thousands of miles of roads and railways, installing mobile masts and broadband cables to connect the remotest parts of rural Britain, building and repairing hospitals, and constructing new wind turbines in the North sea.
When looking for cuts, capital is sometimes seen as an easy option, but doing so limits not our budgets but our future. So today I can announce that I am not cutting a penny from our capital budgets in the next two years, and I am maintaining them at that level in cash terms for the following three years. That means that although we are not growing our capital budget as planned, it will still increase from £63 billion four years ago to £114 billion next year and £115 billion the year after, and will remain at that level—more than double what it was under the last Labour Government.
Smart countries build on their long-term commitments rather than discarding them, so today I confirm that because of this decision, alongside Sizewell C, we will deliver the core Northern Powerhouse Rail, HS2 to Manchester, East West Rail, the new hospitals programme and gigabit broadband roll-out. All these and more will be funded as promised, with over £600 billion of investment over the next five years to connect our country and grow our economy.
Our national Conservative mission is to level up economic opportunity across the country. That, too, needs investment in infrastructure, so I will proceed with round 2 of the levelling-up fund, at least matching the £1.7 billion value of round 1. We will also drive growth across the UK by working with the Scottish Government on the feasibility study for the A75, supporting the advanced technology research centre in Wales and funding a trade and investment event in Northern Ireland next year.
But to unlock growth right across the country, we need to make it easier for local leaders to make things happen without banging on a Whitehall door. Our brilliant Mayors such as Andy Street and Ben Houchen have shown the power of civic entrepreneurship. We need more of this inspirational local leadership, so today I can announce a new devolution deal that will bring an elected Mayor to Suffolk, and deals to bring Mayors to Cornwall, Norfolk and an area in the north-east to follow shortly. We are also making progress towards trailblazer devolution deals with the Greater Manchester Combined Authority and the West Midlands Combined Authority, and soon over half of England will be covered by devolution deals. Taken together, that £600 billion investment in our future growth represents the largest investment in public works for 40 years, so our children and grandchildren can be confident that this Conservative Government are investing in their future.
Along with energy and infrastructure, our third growth priority is innovation. We have a national genius for innovation. Britain is the land of Newton, Darwin, Fleming, Faraday, Franklin, Gilbert and Berners-Lee, the home of three of the world’s top 10 universities, and the country with the largest life sciences and technology sectors in Europe. Thanks to successive Conservative Governments, we remain a science superpower. I salute the work of the former Chancellor George Osborne, of my right hon. Friend the Member for Tunbridge Wells (Greg Clark) and of the Science Minister, my hon. Friend the Member for Mid Norfolk (George Freeman), for laying the vital foundations to make this possible.
21st-century economies will be defined by new developments in artificial intelligence, quantum technologies and robotics, but we need to be better at turning world-class innovation into world-class companies. As a former entrepreneur—I had to get that in somewhere—I want to combine our technology and science brilliance with our formidable financial services to turn Britain into the world’s next silicon valley.
We learned from the success of Nigel Lawson’s big bang in 1986 that smart regulatory reform can spur investment from all over the world, so today, using our Brexit freedoms, I confirm the next steps in our supply-side transformation. By the end of next year, we will decide on and announce changes to EU regulations in our five growth industries: digital, life sciences, green industries, financial services and advanced manufacturing. I have asked the chief scientific adviser Sir Patrick Vallance, who did such a brilliant job in the pandemic, to lead our work on how to do this.
The second lesson of Nigel Lawson’s big bang is that the most important driver of global success is not tax subsidies but competition, so we will legislate to give the Digital Markets Unit new powers to challenge monopolies and increase the competitive pressure to innovate. To further spur competition, I have listened to requests from businesses, and today I am removing import tariffs on over 100 goods used by UK businesses in their production processes, from car seat parts to bicycle frames.
I will also change our approach to investment zones, which will now focus on leveraging our research strengths by being centred on universities in left-behind areas, to help to build clusters for our new growth industries. My right hon. Friend the Levelling Up Secretary will work with Mayors, devolved Administrations and local partners to achieve this, with the first decisions announced ahead of the spring Budget.
I have heard some speculation that we might cut the research and development budget today, but I believe that that would be a profound mistake. In our 2017 manifesto, we announced a target to invest 2.4% of our GDP in R&D; the latest Office for National Statistics data suggests that the UK is close to meeting that target. I want to go further, so today I am protecting our entire research budget and confirming that we will increase public funding for R&D to £20 billion by 2024-25 as part of our mission to make the United Kingdom a science superpower.
Nigel Lawson’s big bang inspires us today, but nearly 40 years on we must stay true to its mission to make the UK the world’s most innovative and competitive global financial centre, so to further support investment across our economy, I also announce that we are publishing our decision on Solvency II, which will unlock tens of billions of pounds of investment for our growth-enhancing industries.
Our three priorities for growth are energy security, investment in infrastructure, and a plan to turn the United Kingdom into the world’s next silicon valley, transforming British intellectual genius into British commercial success. But alongside British genius, we must remember another great national quality: British compassion. The final part of our plan protects the most vulnerable, and it is to that that I now turn.
Strong public finances are not just to make accountants happy. It is because we took difficult decisions in 2010 that we could afford record funding increases for the NHS, the landmark furlough scheme and now the energy price guarantee. Today, the discipline that we have shown means that we can provide targeted support to help our most vulnerable citizens with the cost of living.
One of the biggest worries for families is energy bills. I pay tribute to my predecessor, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), and to the former Prime Minister, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss), for their leadership in this area. This winter, we will stick with their plan to spend £55 billion to help households and businesses with their energy bills—one of the largest support plans in Europe. From April, we will continue the energy price guarantee for a further 12 months at a higher level of £3,000 per year for the average household. With prices forecast to remain elevated throughout next year, this will mean an average of £500 of support for every household in the country.
At the same time, for the most vulnerable, we will introduce additional cost of living payments next year of £900 to households on means-tested benefits, £300 to pensioner households and £150 for individuals on disability benefit. We will also provide an additional £1 billion of funding to enable a further 12-month extension to the household support fund, helping local authorities to assist those who might otherwise fall through the cracks. For those households that use alternative fuels such as heating oil and liquefied petroleum gas to heat their homes, I am today doubling the support from £100 to £200, which will be delivered as soon as possible this winter. Before the end of this year, we will also bring forward a new targeted approach to support businesses from next April.
But I want to go further to support the people most exposed to high inflation. Around 4 million families live in the social rented sector—almost one fifth of households in England. Their rents are set at 1% above the September inflation rate, which means that on current plans they are set to see rent hikes next year of up to 11%. For many, that would just be unaffordable, so today I can announce that this Government will cap the increase in social rents at a maximum of 7% in 2023-24. Compared with current plans, that is a saving for the average tenant of £200 next year.
This Government introduced—[Interruption.] I thought they cared about the most vulnerable! This Government introduced the national living wage, which has been a giant step in eliminating low pay, so today I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7%. This means that, from April 2023, the hourly rate will be £10.42, which represents an annual pay rise worth over £1,600 to a full-time worker. It is expected to benefit over 2 million of the lowest-paid workers in our country, and it keeps us on track for our target to reach two thirds of median earnings by 2024. It is the largest increase in the UK’s national living wage ever.
There have been some representations on keeping the uplift to working-age and disability benefits below the level of inflation given the financial constraints we face, but that would not be consistent with our commitment to protect the most vulnerable, so today I commit to uprating such benefits by inflation, with an increase of 10.1%. That is an expensive commitment, costing £11 billion, but it means that 10 million working-age families will see a much-needed increase next year, which speaks to our priorities as a Government and our priorities as a nation. On average, a family on universal credit will benefit next year by around £600. To increase the number of households that can benefit from this decision, I will also exceptionally increase the benefit cap by inflation next year.
Finally, I have talked a lot about the British values of compassion, hard work, dignity and fairness, but there is no more British value than our commitment to protect and honour those who built the country we live in, so to support the poorest pensioners I have decided to increase pension credit by 10.1%, which is worth up to £1,470 for a couple and £960 for a single pensioner in our most vulnerable households, but the cost of living crisis is harming not just our poorest pensioners but all pensioners.
Because we have taken difficult decisions elsewhere today, I can also announce that we will fulfil our pledge to the country to protect the pension triple lock. In April, the state pension will increase in line with inflation, an £870 increase, which represents the biggest ever increase in the state pension. To the millions of pensioners who will benefit from this measure, I say: “Now and always, this Government are on your side.”
There is a global energy crisis, a global inflation crisis and a global economic crisis, but the British people are tough, inventive and resourceful. We have risen to bigger challenges before. We are not immune to these headwinds but, with this plan for stability, growth and public services, we will face into the storm. There may be a recession made in Russia, but there is a recovery made in Britain, and we commit to our plan today with British resilience and British compassion.
Because of the difficult decisions we take today, we will strengthen our public finances, bring down inflation, protect jobs and build the first state-backed nuclear power station in 30 years. We will continue with the biggest programme of capital investment in 40 years, protect standards in schools, cut NHS waiting times, fund social care, cap energy bills and support those on benefits. We will protect workers with the biggest ever increase in the national living wage, and we will protect our pensioners with the tiple lock and the biggest ever increase in the state pension.
This is a balanced plan for stability, growth and public services. It shows that you do not need to choose either a strong economy or good public services. With the Conservatives, and only with the Conservatives, you get both. I commend this statement to the House.
Jeremy Hunt
Today, we have announced tax rises and spending cuts of £55 billion. We can debate the reasons, but to govern is to choose and the shadow Chancellor did not answer the simplest of questions: does she back the need for a package of this size to bring down inflation? If Labour cannot answer, it is not fit to govern.
The shadow Chancellor says that it is the Government’s fault, but with a made-in-Russia recession, a once-in-a-century pandemic, higher inflation in Europe, bigger cuts to growth in Germany, bigger interest-rate hikes in America, to blame this on a mini-Budget that was cancelled in three weeks is just not credible. Nor are her facts right. She said that the Government are making the recession worse. Well, today, the independent Office for Budget Responsibility says that we are making it shallower, saving 70,000 jobs.
The shadow Chancellor says that this is austerity 2.0, but, in the 2010 Parliament, spending fell about 3% a year. In this Parliament, even in the next two years, it will rise 3% a year. There is £11 billion for the NHS and schools. It is not just more for our public services; it is massively more than she has ever promised. Then she talked about our record over 12 years, so let us do that: growth higher than Germany, France, Italy or Japan; the lowest unemployment for nearly 50 years; good or outstanding schools up by a quarter; and 4 million more patients in good or outstanding hospitals. In other words, growth up, employment up, school standards up and NHS funding up. Because she will not back this package, the British people today know that, under Labour, it is inflation worse, cost of living worse, unemployment worse and competitiveness worse. If we want stability, growth and funding for public services, the choice is plan or no plan. We have a plan. Where is hers?
Harriett Baldwin (West Worcestershire) (Con)
It is good to see the return of the forecast from the official Office for Budget Responsibility. We all remember why a Conservative Government had to set it up. We will have the OBR in front of our Committee next Tuesday, when we can question the underlying assumptions of the forecast.
I welcome the fact that the Chancellor confirmed today that his announcements go with the grain of what the Bank of England is trying to do in bringing down inflation. That surely is the most important economic challenge for our country at the moment. But can he elaborate a bit more on his thinking? He has tasked the Secretary of State for Work and Pensions with helping back into work those who have left the workforce and he has announced welcome support for those on the welfare system of £900 next year. Can he talk us through his thinking on some of those cliff edges and incentives to work?
Jeremy Hunt
I welcome my hon. Friend to her chairmanship of the Select Committee; I know she will do a brilliant job. She makes an important point. It is essential that we work hand in glove with the Bank of England to bring down inflation. Today, the OBR confirmed that inflation is lower because of the decisions we take. She is right to focus on the worrying increase in the economically inactive, which is not just causing supply chain problems for businesses, but driving inflation. That is why we are lucky to have an excellent Work and Pensions Secretary who will make this his top priority in the work he is doing for the Prime Minister and who will bring his conclusions to this House as soon as possible.
Jeremy Hunt
I actually remember the Parliament from 2010 to 2015 because I was Health Secretary for quite a big chunk of it. I apologise to the hon. Lady, given the important role she plays in this House, for not being able to do that kind of maths in my head, but I can tell her that in that period, the NHS budget went up by 0.1% a year, and this is a lot more than that.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(2 years ago)
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Jeremy Hunt
I can reassure the hon. Gentleman that I have had extensive discussions with our excellent new Work and Pensions Secretary about how we support people on low incomes—precisely the vulnerable people that he is talking about. He will have to wait until Thursday for the details of our plan, but we have said that, in a very difficult time, protecting the most vulnerable will be our top priority.
James Murray (Ealing North) (Lab/Co-op)
Two years ago, in a video entitled “Rishi Explains: Green Home Grants”, the current Prime Minister enthusiastically took credit for the green homes grant scheme. Six months later, the scheme collapsed and £1 billion was cut from its budget. The truth is that we have the draughtiest homes in Europe, but when it comes to insulating homes, the Government are nowhere to be seen. If the Government had followed our plan last year, 2 million of the coldest homes could already have been upgraded, saving households more than £2 billion on energy bills this year alone. Home insulation should be a no-brainer. Will the Chancellor explain why the Government will not follow Labour’s plans and get on with it?
Jeremy Hunt
There are all sorts of bigger reasons why we do not want to follow Labour’s plans, not least because they would bankrupt the economy. On the scheme to help people to insulate their homes, the picture that the hon. Gentleman presents is not correct. We are spending billions of pounds to help hundreds of thousands of families up and down the country to insulate their homes. We completely recognise that that is a vital part of our long-term energy policy.
Jeremy Hunt
I hear what the hon. Gentleman says. It is going to be a very difficult announcement on Thursday, because we are going to be asking everyone to contribute more. But we will be asking people who have more to contribute even more, and that will be reflected in our decisions on council tax and every other tax as well.
The Chancellor of the Exchequer (Jeremy Hunt)
I will be speaking for rather a long time on Thursday—
Jeremy Hunt
May I start again and say that, subject to your agreement, Mr Speaker, I may be talking for rather a long time on Thursday, so I will be brief today? I will just say that, despite the difficulty of the package I will be announcing, I will sadly not be drinking any whisky as I do so.
Rushanara Ali
I thank the Chancellor for the work he is doing and congratulate him on his new post. We hope that he lasts the week, or maybe the fortnight. The Government scandalously allowed organised criminals and fraudsters to take billions of pounds of public money through covid loan fraud as a result of the lack of proper checks. Estimates suggest that that has cost taxpayers £33 billion. Why should hardworking people pay for the Prime Minister’s fraud failures when he was Chancellor, and for the mini-Budget fiasco of the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), who crashed the—
Mr Speaker
Order. These are topical questions and are meant to be brief.
Jeremy Hunt
Of course, there are lessons to be learned about the way those schemes were administered, but I am very proud that unemployment remains at a 50-year low because of the decisions that the Prime Minister took on the furlough scheme and Government-backed loans. That was the right thing to do.
Jeremy Hunt
That is what Conservatives are all about so I am happy to give him that assurance. It is not just words; it is action: the halving of business rates for most retail, hospitality and leisure businesses; the freezing of the multiplier on business rates; the furlough scheme; the Government-backed loans and the energy price support that we are giving businesses. All that is because this Government back business.
Economic Update
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 1 month ago)
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The Chancellor of the Exchequer (Jeremy Hunt)
Mr Speaker, the central responsibility of any Government is to do what is necessary for economic stability. Behind the decisions we take and the issues on which we vote are jobs that families depend on, mortgages that have to be paid, savings for pensioners, and businesses investing for the future. We are a country that funds our promises and pays our debts. When that is questioned, as it has been, the Government will take the difficult decisions necessary to ensure that there is trust and confidence in our national finances. That means decisions of eye-watering difficulty, but I give the House and the public this assurance: every single one of those decisions, whether reductions in spending or increases in tax, will be shaped through core compassionate Conservative values that will prioritise the needs of the most vulnerable. That is why I pay tribute to my predecessors for the energy price guarantee, for the furlough scheme and, indeed, for earlier decisions to protect the NHS budget in a period in which other budgets were being cut.
I want to be completely frank about the scale of the economic challenge that we face. We have had short-term difficulties, caused by the lack of a forecast from the Office for Budget Responsibility alongside the mini-Budget, but there are also inflationary and interest pressures around the world. Russia’s unforgivable invasion of Ukraine has caused energy and food prices to spike. We cannot control what is happening in the rest of the world, but when the interest of economic stability means that the Government need to change course we will do so, and that is what I have come to the House to announce today.
In my first few days in the job, I have held extensive discussions with the Prime Minister, Cabinet colleagues, the Governor of the Bank of England, the OBR, the head of the Debt Management Office, Treasury officials and many others. The conclusion I have drawn from those conversations is that we need to do more more quickly to give certainty to the markets about our fiscal plans and to show through action and not just words that the United Kingdom can and always will pay our way in the world. We have therefore decided to make further changes to the mini-Budget immediately rather than waiting until the medium-term fiscal plan in two weeks’ time, in order to reduce unhelpful speculation about those plans.
I am very grateful for your agreement, Mr Speaker, about the need to give the markets an early brief summary this morning, and I welcome the opportunity to give this House details of those decisions now. We have decided on the following changes to support confidence and stability. First, the Prime Minister and I agreed yesterday to reverse almost all the tax measures announced in the growth plan three weeks ago that have not been legislated for in Parliament. We will continue with the abolition of the health and social care levy, changes to stamp duty, the increase in the annual investment allowance to £1 million and the wider reforms to investment taxes, but we will no longer be proceeding with the cuts to dividend tax rates, saving around £1 billion a year; the reversal of the off-payroll working reforms introduced in 2017 and 2021, saving around £2 billion a year; the new VAT-free shopping scheme for non-UK visitors, saving a further £2 billion a year; or the freeze on alcohol duty rates, saving around £600 million a year. I will provide further details—[Interruption.]
Mr Speaker
Order. Let’s just sort this telephone out. Has it been switched off all right? It is off. I am sorry, Chancellor, carry on.
Jeremy Hunt
I will provide further details on how alcohol duty rates will be uprated shortly.
Secondly, the Government are currently committed to cutting the basic rate of income tax to 19% in April of 2023. It is a deeply held Conservative value, a value that I share, that people should keep more of the money they earn, which is why we have continued with the abolition of the health and social care levy. But at a time when markets are asking serious questions about our commitment to sound public finances, we cannot afford a permanent discretionary increase in borrowing worth £6 billion a year. I have decided that the basic rate of income tax will remain at 20%, and it will do so indefinitely until economic circumstances allow for it to be cut. Taken together with the decision not to cut corporation tax and restoring the top rate of income tax, the measures I have announced today will raise about £32 billion every year.
The third step I am taking today is to review the energy price guarantee. That was the biggest single expense in the growth plan and one of the most generous schemes in the world. It is a landmark policy for which I pay tribute to my predecessor, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng), and it will support millions of people through a difficult winter, reducing inflation by up to 5%. I confirm today that the support we are providing between now and April next year will not change, but beyond next April the Prime Minister and I have reluctantly agreed that it would not be responsible to continue to expose the public finances to unlimited volatility in international gas prices. I am announcing today a Treasury-led review into how we support energy bills beyond April of next year. The review’s objective is to design a new approach that will cost the taxpayer significantly less than planned while ensuring enough support for those in need. Any support for businesses will be targeted at those most affected and a new approach will better incentivise energy efficiency.
There remain, I am afraid, many difficult decisions to be announced in the medium-term fiscal plan on 31 October when, I confirm, we will publish a credible, transparent and fully costed plan to get debt falling as a share of the economy over the medium term based on the judgment and economic forecasts of the independent Office for Budget Responsibility. I would like to thank the OBR, whose director, Richard Hughes, I met this morning, and the Bank of England, whose Governor, Andrew Bailey, I have now met twice. I fully support the vital independent roles that both institutions play, which give markets, the public and the world confidence that our economic plans are credible and rightly hold us to account for delivering them.
I also want more independent expert advice as I start my journey as Chancellor, so today I am announcing the formation of a new economic advisory council to do just that. This council will advise the Government on economic policy, with four names announced today: Rupert Harrison, a former chief of staff to the Chancellor of the Exchequer; Gertjan Vlieghe from Element Capital; Sushil Wadhwani of Wadhwani Asset Management; and Karen Ward of J.P. Morgan.
We remain completely committed to our mission to go for growth, but growth requires confidence and stability, which is why we are taking many difficult decisions—starting today. But while we do need realism about the challenges ahead, we must never fall into the trap of pessimism. Despite all the adversity and challenge we face, there is enormous potential in this country, with some of the most talented people, three of the world’s top 10 universities, the most tech unicorns in Europe, one of the world’s great financial centres, and incredible strengths in the creative industries, science, research, engineering, manufacturing and innovation.
All that gives me genuine optimism about our long-term prospects for growth, but to achieve that, it is vital that we act now to create the stability on which future generations can build. The reason the United Kingdom has always succeeded is because, at big and difficult moments, we have taken tough decisions in the long-term interests of the country, and in a way that is consistent with compassionate Conservative values, that is what we will do now. I commend this statement to the House.
Jeremy Hunt
I thank the hon. Lady for her questions, and I am sorry that, given the speed with which things moved at the weekend, I have not had time to sit down with her one to one as would normally be the practice before parliamentary exchanges.
I understand the role Opposition parties play—I have stood at that Dispatch Box myself—but behind the rhetoric, and I was listening very carefully, I do not think the hon. Lady disagreed with a single one of the decisions I announced to Parliament, and that is important for the country and markets to know. I think there is also agreement on the process of policy making. I support the independence of the Bank of England, introduced by Gordon Brown, and I know the hon. Lady supports the independence of the Office for Budget Responsibility, set up by George Osborne. The whole Government support the independence of those two important institutions.
I fully accept—I do not think I could have been clearer—that we have had to change some decisions made in the last few weeks, but I reject wholeheartedly the hon. Lady’s broader narrative about Conservative economic management. Let me remind her that the UK’s unemployment rate is the lowest since 1974; it is lower than that of France, Italy, Canada, Belgium, Sweden, Spain and the Netherlands and is massively lower than in 2010. Let me remind her that since 2010 our growth rate has been the third highest in the G7 —[Interruption.] She may not want to hear this, but these are the economic facts. Our growth rate since this party came into power has been higher than that of Germany, France, Italy and Japan and has been faster than that of any G7 country this year. Looking to the future, we have the largest technology sector in Europe and more foreign direct investment than anywhere in Europe bar one country. That is a legacy to be proud of.
I was listening carefully for some questions about the measures I announced, but the hon. Lady did not ask any and I think she agrees with them. I will pick her up on one point, however. She talked about the NHS; let me tell her—[Interruption.] Maybe they do not want to listen about the NHS. She talked about the NHS: because of the global financial crisis, which happened on her party’s watch, the NHS went through one of its most difficult periods ever, yet this party protected the NHS budget, and then in 2017 we were able to give it its biggest single increase in funding, because of the difficult decisions we took and the hon. Lady’s party opposed.
In conclusion, we inherited the financial crisis, we dealt with the global pandemic, and we have led the world in support of Ukraine, all possible because of difficult decisions taken over the last 12 years, each and every one opposed by the party opposite. So if the hon. Lady is preaching today the need for fiscal credibility, which I warmly welcome, may I just tell her this: the true test will be in two weeks’ time, to see whether she supports public spending restraint? I have showed Conservatives can raise taxes; will she show Labour is willing to restrain spending?
Mel Stride (Central Devon) (Con)
I welcome my right hon. Friend’s statement. It was both frank and bold, and it appears—in the very short term, at least—to have steadied the markets. One point that he raised at the Dispatch Box—although it was absent from his statement earlier today—was his renewed commitment to our financial institutions, and in particular the Bank of England and the Office for Budget Responsibility. He has also brought forward the economic advisory council, a number of whose members have appeared before the Treasury Committee; I think that he has chosen well. Will he reassure the House that the economic advisory council will not in any way conflict with the Bank of England, the Office for Budget Responsibility, the Financial Conduct Authority, the Prudential Regulation Authority or any of our institutions and that it will be there to complement and not work against any of them?
Jeremy Hunt
I thank my right hon. Friend, who in recent weeks has spoken wisely about the difficult issues that we face. I can absolutely give him that assurance. I want, to be frank, to ensure that I am getting advice from fantastic institutions such as the Treasury, the Bank of England and the Office for Budget Responsibility, but also advice that is independent of those institutions, because that is how we will get the best result. Rupert Harrison in particular has enormous experience of running the Treasury under George Osborne over many years, and I think that he will make an important contribution, as will his colleagues on the council.
With respect to the markets, my right hon. Friend is absolutely right to be cautious about what happens. They go up as well as they go down, and no Government can—or should seek to—control the markets. What we can do is the thing that is within our power, which is a very firm and clear commitment to fiscal responsibility.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 4 months ago)
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Jeremy Hunt (South West Surrey) (Con)
May I recommend some scintillating summer reading to the Secretary of State: the study of 4.5 million patients that showed that people who see the same GP over a long period are 30% less likely to go to hospital and 25% less likely to die? Will he, after reading that, consider changing the GP contract to get rid of the micromanagement, and replace it with what doctors and patients want, which is the ability to have a long-term relationship?
Draft Mental Health Bill
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 5 months ago)
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Jeremy Hunt (South West Surrey) (Con)
I commend my right hon. Friend’s courage in talking about his family’s tragedy, which is one of the most difficult things to do in politics. I also thank my right hon. Friend the Member for Maidenhead (Mrs May) for her commitment to mental health, which is unparalleled among any Prime Minister I have known in this place; it made an enormous difference to me when I was Health Secretary.
I support wholeheartedly what the Health Secretary has said today. I hope that he does not mind my saying that in one instance it does not go far enough: there are still 2,000 people with autism and learning disabilities in secure institutions, effectively incarcerated, even though they would be better off in the community. It is a human rights scandal. As part of the remedy, would he consider changing the rules on sectioning so that, after a short period, anyone who wanted to keep someone in a secure unit would have to reapply for sectioning every week or two, so pressure is put on the system to find a better solution?
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 5 months ago)
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Jeremy Hunt (South West Surrey) (Con)
Has the Secretary of State read the study in the British Journal of General Practice that says that people who see the same GP over many years are 30% less likely to go to hospital, 30% less likely to need out-of-hours care and 25% less likely to die? If he has, will he consider changing the GP contract to restore individual patient lists and reverse the change of two decades ago so that everyone has their own family doctor?
Health and Social Care Leadership Review
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 5 months ago)
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Jeremy Hunt (South West Surrey) (Con)
I thank the Health Secretary for this excellent report and commend Sir Gordon Messenger and Dame Linda Pollard for all their work in putting it together. It has some very important recommendations. People who run hospitals are doing one of the most difficult jobs in Britain today, and anything we can do to give them better support in their careers will help all of us.
Does my right hon. Friend agree that the elephant in the room is that one thing that makes their job most difficult: we have more national targets in the NHS than any other health system anywhere in the world? That means not only that there is a risk of patients turning into numbers, but that we remove the autonomy from managers to show the leadership that Sir Gordon is advocating in this report. So as my right hon. Friend implements the recommendations, will he look at the role of national targets in the NHS and whether we need to simplify and reduce them?
North East Ambulance Service
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 6 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Jeremy Hunt (South West Surrey) (Con)
I thank the Minister, who is a practising nurse, for her profound commitment to patient safety. What happened to Peter Coates, Quinn Evie Beadle and others was a terrible tragedy for them and their families. No doubt the paramedics made mistakes, but everyone makes mistakes in the course of their work. What is unforgivable is the cover-up by the North East Ambulance Service, and the fact that we made the families go through such hell to get to the truth.
At the heart of this is that we still make it far too difficult for everyone involved in such cases to distinguish between ordinary human error and gross negligence, with the result that the organisations responsible for people’s care default to a defensive, covering-up position. Will the Minister take this up with the Ministry of Justice to ensure much clearer delineation between the ordinary human errors that we all make and gross negligence, which is never forgivable?
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 7 months ago)
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Jeremy Hunt (South West Surrey) (Con)
The Secretary of State will have read the scandal exposed in The Sunday Times this weekend that six babies are born every month after being exposed to sodium valproate, which has been known for many years to cause disabilities. Last year the Government consulted on putting warning labels on valproate. Is it not time to go much further and ban the prescription of sodium valproate to epileptic pregnant mothers?
Ockenden Report
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 8 months ago)
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Jeremy Hunt (South West Surrey) (Con)
Today’s report goes beyond my darkest fears. When I commissioned it as Health Secretary in 2016, I was approached by 23 families; we have heard today that more than 200 babies might have been alive today if better care had been provided. I thank Donna Ockenden and her team for an incredibly thorough investigation. I also thank the Health Secretary for his compassionate and comprehensive response to the House today.
Donna Ockenden does not use the word “recommendation”; she talks about immediate and essential actions. What is the Secretary of State’s deadline for the implementation of those actions? That is something that every expectant mother in the country desperately wants to know.
May I gently say to the Secretary of State that while I warmly welcome more midwives and more doctors, that approach is not consistent with voting down today the Lords amendment to the Health and Care Bill that would make sure that we never have those shortages again?
Finally, I pay tribute to Richard Stanton and Rhiannon Davies and to Kayleigh and Colin Griffiths. Richard and Rhiannon came to talk to me about their daughter Kate, who died in 2009; Colin and Kayleigh’s daughter Pippa died in 2016, when I was Health Secretary. Because of the blame culture and the culture of fear in the NHS, it was left to them and many other families to fight for justice. Can this be the last time that we put that burden on the shoulders of bereaved families? Can we build a culture in the NHS that is open and transparent and that accepts that things go wrong, but is hungry to learn from mistakes so that we never again repeat the tragedies?
Covid-19 Update
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 10 months ago)
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Jeremy Hunt (South West Surrey) (Con)
At the height of the first wave, the Government had the courage to pre-order 400 million doses of vaccines without even knowing whether they worked. That has laid the foundations for our having the best vaccine programme of any large country, so I welcome today’s announcement. It will not surprise the Prime Minister, though, if I draw his attention to the fact that NHS doctors and nurses are absolutely shattered. He will have seen this week that one in six doctors say that they have had near misses or harmed patients because of exhaustion. If he does not want to accept the Select Committee’s recommendations to address the workforce crisis, what will he do to give hope to our brilliant frontline staff?
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 10 months ago)
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Jeremy Hunt (South West Surrey) (Con)
This morning, the Health Secretary is reported in The Times as saying that the NHS can learn from the way in which academy chains are regulated, but he will know that the education system has no national targets, while the NHS uses more national targets than any healthcare system anywhere in the world. Will he look at the role of targets and the risk that they focus managers on bureaucratic numbers, sometimes at the expense of quality of care for patients?
Covid-19 Update
Debate between Lindsay Hoyle and Jeremy Hunt(2 years, 11 months ago)
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Jeremy Hunt (South West Surrey) (Con)
Disappointing though the statement will be for many people, the Secretary of State has my full and unqualified support. This is not a choice between more and fewer restrictions; it is a choice between taking action early to protect a future lockdown and making such a lockdown inevitable. We all hope that the omicron variant is milder than delta, but if it is not, a failure to act now could cost many lives.
I want to ask the Secretary of State about the social care sector. I know that he will say more about it later this week, but he will have seen the estimate from NHS Providers that 10,000 beds—over 10% of all NHS hospital beds, and more beds than are currently occupied by covid patients—are occupied by people who are fit to be discharged but cannot obtain a care package. Will he provide funds to ensure that all those patients can be discharged, so that the NHS can be ready for any potential spike in new cases?
Sajid Javid
I thank my right hon. Friend for his support for the statement. He is right to emphasise that by taking swift, early and proportionate action now, we can potentially avoid further restrictive measures in the future. As I have said, there will be a statement on social care later this week, but I can also give him the assurance that he seeks: the statement will include further measures to help with the discharge of hospital patients who are clinically ready to be discharged.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(3 years ago)
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Mr Speaker
I call the Chairman of the Health and Social Care Committee, Jeremy Hunt.
Jeremy Hunt (South West Surrey) (Con)
Thank you, Mr Speaker.
The Secretary of State knows that some in Government are worried about the extra cost of training additional doctors, but does he agree that every additional doctor we train means one fewer locums that the NHS has to hire, which is cheaper for the NHS and better for patients?
Covid-19 Update
Debate between Lindsay Hoyle and Jeremy Hunt(3 years ago)
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Jeremy Hunt (South West Surrey) (Con)
I welcome the statement; I absolutely agree with what the Health Secretary has announced.
No one can fault the Government’s political commitment to the vaccine programme, which has had a pretty much unlimited budget and has been a huge priority, but my right hon. Friend will be aware that despite that commitment, we have now fallen behind Spain, Portugal, South Korea, Singapore and other countries in the proportion of adults who have been jabbed twice. I am just worried that our regulators have lost some of their fleetness of foot in decision making. It is great that we are giving boosters to the over-40s, but we must now have the data on the under-40s. It is great that we are giving a second jab to 16 to 17-year-olds, but what about 13 to 15-year-olds?
America has already authorised the Pfizer jab as safe for the over-fives. If we are to have a vaccine-led rather than restrictions-led strategy, we need to be absolutely at the front of the pack with approvals. I fear that we are in the middle of the pack, so what will my right hon. Friend do to turbocharge our regulators and the decisions that they are giving him?
Covid-19 Update
Debate between Lindsay Hoyle and Jeremy Hunt(3 years, 4 months ago)
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Jeremy Hunt (South West Surrey) (Con)
May I start by wishing you and your family a ping-free summer, Mr Speaker? Thank you for upholding the values of this House over the past few months.
The Minister of State will have heard of YouGov, which said this week that a tenth of the people who had the NHS covid app have deleted it, and that a further fifth are considering doing so. Given that he made his living from listening to public opinion, does he not think it is time for the Government to listen to public opinion and immediately scrap the 10-day isolation requirement for double-jabbed people who are pinged, in favour of having to isolate until they take a negative PCR test? Otherwise we risk losing social consent for this very important weapon against the virus.
With your permission, Mr Speaker, I would briefly like to ask you about the issue we were not able to ask Ministers about in the House yesterday, which is the decision on NHS pay. I support the decision to accept the pay review body’s recommendations. It is the right thing to do, but it costs £1.5 billion. Can the Minister confirm it will not be paid for by cuts to other parts of the NHS budget? If it is going to be funded through a new national insurance rise for health and social care, as The Times says today, will he confirm that the funding for social care will be ring-fenced, so that we do not have a situation in which social care, once again, loses out because of pressures in the NHS?
Mr Speaker
The right hon. Gentleman said “you,” but I was not responsible for the decision yesterday.
Covid-19 Update
Debate between Lindsay Hoyle and Jeremy Hunt(3 years, 5 months ago)
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Jeremy Hunt (South West Surrey) (Con)
May I start by saying that I totally agree with your expression of disappointment, Mr Speaker, that in a parliamentary democracy Parliament heard about this news after the media, and much as I respect my right hon. Friend it should be the Prime Minister who is here this evening?
I happen to support these measures and the caution the Government are showing, but may I suggest to my right hon. Friend that one of the reasons for the disappointment many people feel is the use of words like “irreversible”? Tonight, Sir Patrick Vallance said that we will be living with covid for the rest of our lives. If there is a vaccine-busting variant that threatens another 100,000 lives, these measures will not be irreversible, and we have a duty to be completely honest with people about the bumpiness of the road ahead. So may I urge the Health Secretary to be as cautious with the language we use as he rightly is with NHS bed capacity?
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(3 years, 5 months ago)
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Jeremy Hunt (South West Surrey) (Con)
Today, the Health and Social Care Committee published its report on NHS and social care staff burnout, which chronicles the emotional exhaustion and chronic fatigue felt by many frontline staff in the past year. Much support has been put in place; the 50,000 nurse target is welcome, the extra doctors and nurses hired during the pandemic extremely welcome, but still we have shortages in nearly every specialty, leading to a sense of despair. Will my right hon. Friend consider the recommendation that we make today that Health Education England should be given the statutory power to make independent workforce projections, rather as the Office for Budget Responsibility does for Budget forecasts, so that we can at least look doctors and nurses in the eye and say that we are training enough of them for the future?
Vaccine Roll-out
Debate between Lindsay Hoyle and Jeremy Hunt(3 years, 10 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
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This information is provided by Parallel Parliament and does not comprise part of the offical record
Jeremy Hunt (South West Surrey) (Con) [V]
Thank you, Mr Speaker. This week the Office for National Statistics said that prevalence rates nearly doubled during the November lockdown, and today’s REACT—real-time assessment of community transmission—study says that infections are still rising. Is not the reality that these new strains are massively more dangerous and harder to control than many realise? If we are going to bring down the horrific death rates that we are now seeing, should we not secure our border, with quarantine hotels, end household mixing outside bubbles, and follow Germany in mandating FFP2—filtering face piece—masks in shops and on public transport, to give better protection to wearers?
Matt Hancock
We have looked at the question of personal protective equipment with respect to the new variant, and the clinical advice I have received is that the current guidelines are right and appropriate. On international travel, as my right hon. Friend knows, we brought in significant measures last week to close the travel corridors, and we remain vigilant on what we need to do to guard against new variants coming in from abroad. The new variants do change this question, because it is about ensuring not just that we do not get extra cases coming in from abroad—in which case, if an area of a country has a lower case rate than us, there is no more risk than that of people staying in this country—but that new variants that might not be dealt with as effectively by the vaccine do not arrive and that we stop them coming. That is something on which have recently taken significant action, and of course we keep it under very close review.
Covid-19 Update
Debate between Lindsay Hoyle and Jeremy Hunt(3 years, 11 months ago)
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Jeremy Hunt (South West Surrey) (Con)
The news from AstraZeneca is fantastic. The Secretary of State and British science in general deserve enormous credit.
The NHS is now busier than last April; in parts of London it looks like it may fall over. However, back in April, schools were shut, but next week primary schools are due to reopen. In September, we came to regret allowing university students to go back en masse, but some universities will start to go back from next week. Why, in the middle of winter, when the NHS is under such pressure, when we have a dangerous new strain of the virus, are we taking such huge risks? Should not our entire focus for the next eight to 12 weeks be on saving lives, getting the first dose of the vaccine out to every single vulnerable person, stopping the NHS collapsing and putting NHS frontline staff at the front of the queue for the vaccines so that we keep safe the people upon whom our safety depends?
Mr Speaker
Order. Before the Secretary of State replies, may I remind Members who are not in the Chamber that they should have the same dress code even though they are virtual? It is only fair that we treat each other with the same respect.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(4 years ago)
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Jeremy Hunt (South West Surrey) (Con)
This morning, the Select Committee has been hearing about workforce burnout. Witness after witness said that the one thing that would make a big difference to NHS staff is knowing that we are training enough doctors and nurses for the future even if we do not have enough now. Nearly two years on from the NHS 10-year plan, we still do not have the workforce projections published—I know that the Secretary of State is keen to get them published. Can he assure the House that, when they are published, they will be the independent projections and not what the Treasury has negotiated with his Department as part of the spending review?
Points of Order
Debate between Lindsay Hoyle and Jeremy Hunt
Mr Speaker
I am grateful to the hon. Member for giving me notice of her intention to raise this matter. It is very important that Select Committees have access to witnesses to assist them in carrying out their important work, and I am sure representatives of Disney will have heard what she has said. What I would say to Disney is that it is a major corporation, and it is good at communications, so I would expect it to reflect what it does as a business. If witnesses refuse to attend when invited, it is open to Committees to summon them formally. If a witness fails to appeal when summoned, I would expect that to be reported to the House. Consideration could then be given to how the matter could be taken forward. As I understand that the Committee has not yet taken the first step, which only it can do at this stage, it is therefore a matter for the Chair of the Committee. With the hon. Lady’s good offices, I do not think this will rest here today.
Jeremy Hunt (South West Surrey) (Con)
On a point of order, Mr Speaker. The suggestion has been raised on the Floor of the House this week that in the current pandemic we should have a special coronavirus Select Committee. I thought it would be helpful for hon. Members to know that the Science and Technology Committee and the Health and Social Care Committee are together embarking on a large inquiry into all aspects of the pandemic and all the lessons that need to be learned. On the issue of whether we should have lockdowns and what their scientific basis is, we will be having a session later this month to which we will be inviting the Secretary of State for Health and Social Care.
Mr Speaker
Once again, let me thank the right hon. Gentleman for giving me notice of his point of order. As he knows, it is not really a point of order for the Chair, but it is now on the record. Quite rightly, he has made his point, which follows Monday’s point of order. I do not want to get into a debate between the two—it is a matter for the House, not a matter for the Chair—so I think we will leave it at that, but I thank him for giving me notice.
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for three minutes.
Covid-19 Update
Debate between Lindsay Hoyle and Jeremy Hunt(4 years, 1 month ago)
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Mr Speaker
Just to help the House, I will finish the statement at 5.50 pm, so let us help each other.
Jeremy Hunt (South West Surrey) (Con)
This morning, it was announced that the routine testing of asymptomatic NHS staff in hotspot areas would start. This has been long advocated by the Health and Social Care Committee, and I thank the Prime Minister for the progress on it.
We all want to avoid a second national lockdown, which would be devastating for jobs. Does my right hon. Friend agree that the evidence from China, Korea and Italy is that the best way to avoid that is to have earlier, decisive, localised interventions, however difficult and unpalatable, and that today’s difficult decision is not, therefore, about a trade-off between jobs and health, but ultimately the best way to secure both?
Coronavirus
Debate between Lindsay Hoyle and Jeremy Hunt(4 years, 2 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Jeremy Hunt (South West Surrey) (Con)
A week ago today, the Secretary of State told the Health and Social Care Committee that he expected to have this problem solved in two weeks. Since then, in my constituency, two Farnham residents have been sent to Bristol for their tests, a councillor has been sent to the Isle of Wight for her test and a teacher who tested positive had to wait a week for her results. Is the Secretary of State, given the efforts that his Department is making, still confident that in a week’s time we will have this problem solved?
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(4 years, 2 months ago)
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Jeremy Hunt (South West Surrey) (Con)
The ongoing problems in maternity units in Shrewsbury, Telford and east Kent hospitals have shown that independent, blame-free investigations into baby deaths have never been more important. Will the Secretary of State confirm that it is still the Government’s intention to put the healthcare safety investigations branch on to a statutory footing, and that those plans will remain in the Queen’s Speech later this year?
Covid-19: R Rate and Lockdown Measures
Debate between Lindsay Hoyle and Jeremy Hunt(4 years, 5 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Jeremy Hunt (South West Surrey) (Con)
The Prime Minister’s testing turnaround target does not apply to postal tests. Given that the majority of infections can happen less than a week after the person who gives someone the virus develops symptoms, will the Secretary of State consider replacing postal testing with same-day delivery and collection of testing? If it is good enough for Amazon Prime, it should be good enough for NHS test and trace.
Covid-19 Response
Debate between Lindsay Hoyle and Jeremy Hunt(4 years, 6 months ago)
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Mr Speaker
We now go across to the Chair of the Select Committee on Health, who I understand is audio only.
Jeremy Hunt (South West Surrey) (Con) [V]
Thank you, Mr Speaker. I would like to ask the Secretary of State for three pieces of data, all of which are essential for this strategy. First, what level of new daily infections do we need to be down to before contact tracing happens for all new infections? Secondly, how many daily tests will the test and trace system need? Thirdly, if we are going to introduce weekly testing for all NHS and care-home frontline staff, when will our testing capacity be sufficient to deliver that on top of test and trace?
Matt Hancock
With 21,000 contact tracers now employed, we think that that is capacity for the current level of new cases that have been demonstrated by the Office for National Statistics surveys, but I am perfectly prepared to hire more to make sure that we have spare capacity within contact tracing.
On the number of tests needed daily to service test and trace, it depends on exactly how many new cases there are. It depends on the relationship between the symptoms and the number of positive cases. There are many more people with symptoms than there are positive coronavirus cases, but the number is falling because we are moving away—well away now—from the flu season, and at this time of year the number of positive symptoms, including coughs and fever, tends to fall, because other non-coronavirus communicable diseases such as flu are falling. There is not a specific answer to that question, because it changes over time. On weekly tests, we are looking to put together a plan to ensure that we cut in-hospital transmission, which will include appropriate, regular testing of the right staff in the NHS. I shall write to my right hon. Friend with more details as and when that policy is fully announceable.
Oral Answers to Questions
Debate between Lindsay Hoyle and Jeremy Hunt(4 years, 6 months ago)
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Jeremy Hunt (South West Surrey) (Con) [V]
Test, track and trace is possible only with a mass testing programme, so I offer many congratulations to the Health Secretary on achieving such a challenging expansion in our testing capacity. He has always said that he follows the science in the decisions he takes, but does he appreciate that, Zoom or no Zoom, it is very difficult for us as MPs to scrutinise such decisions if he does not also publish the advice of the Scientific Advisory Group for Emergencies that he receives at the same time as he makes those decisions?
Covid-19 Response
Debate between Lindsay Hoyle and Jeremy Hunt(4 years, 7 months ago)
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Mr Speaker
I hope we can speed up the answers a little. I think that answer was twice as long as the question. I know you want to make sure you are thorough, Secretary of State, but we have quite a few questions to get through.
I now call the Chair of the Health and Social Care Committee, Jeremy Hunt.
Jeremy Hunt (South West Surrey) (Con) [V]
The World Health Organisation says that one of the six essential criteria for lifting a lockdown is that we should be able to track and trace every single new covid case in the community. Will that be place in the next two weeks, so that when the Cabinet come to consider whether they can lift the lockdown, they will be able to do so in a way that is compliant with what the WHO is recommending? Will the Secretary of State appoint a big hitter from outside frontline politics to make sure that happens within a short period, as he has very sensibly done with Lord Deighton on PPE?
Junior Doctors’ Contracts
Debate between Lindsay Hoyle and Jeremy Hunt(9 years, 1 month ago)
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Mr Hunt
I am happy to deal with that. We went into the election in May saying that on the back of a strong economy we were prepared to commit £10 billion extra to the NHS in real terms over the course of this Parliament. That was £5.5 billion more than the hon. Lady’s party was prepared to commit. In the last Parliament, when the increase in NHS spend was half that amount, we increased the number of doctors by 9,000, so we are increasing the number of doctors, but as we do so we need to ensure that we give the right care to patients.
I want to give a word of caution to the shadow Secretary of State. The tragedy of John Moore-Robinson, the gentleman I have mentioned, happened not only on a Saturday, but at Mid Staffs. The last time the House discussed the difference between excess and avoidable deaths was under a Labour Government, when they tried to brush the problems at Mid Staffs under the carpet, saying that we should not take the figures on excess deaths too seriously because they were a statistical construct and different from avoidable deaths. I would have hoped that the Labour party learned the lessons of Mid Staffs and would not make the same mistakes again. [Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Member for Islington South and Finsbury (Emily Thornberry) may shake her head, but I expect voices in the Chamber to be a little quieter. I want to hear the Secretary of State, and I think all our constituents do. I understand that you might not agree.
Mr Hunt
Let us look at some of the facts. What is the most important thing for people admitted to hospital at the weekend? It is that they are seen quickly by a consultant. Currently, across all key specialties, in only 10% of our hospitals are patients seen by a consultant within 14 hours of being admitted at the weekend. Only 10% of hospitals provide vital diagnostic services seven days a week. Clinical standards provide that patients should be reviewed twice a day by consultants in high-dependency areas but, at weekends, that happens in only one in 20 of our hospitals across all key services.
Mr Hunt
I thank my hon. Friend for his consistent support for his local hospital. It has had many troubles, but it is beginning to show signs of turning a corner. If we want to turn things around, we must first be honest about the problem.
I welcome the shadow Health Secretary to her place. Her predecessor tried to minimise the care problems that took place under a previous Labour Government, and he described our attempts to put them right as trying to “run down the NHS”. I hope that she does not do the same. Labour used to be the party that stood up for ordinary men and women; it cared enough about them to set up the NHS, so that no one had to worry about getting good medical care, whatever their circumstances. People need to know that they can depend on our NHS seven days a week. Instead of making mischief about a flawed doctors contract that was introduced by a Labour Government in 2000, the hon. Lady should stand with us as we sort out this problem. Be the party not of the unions but of the patients who depend on high quality care, day in, day out. Professor Bruce Keogh talked about the moral and professional case for concerted action. Surely in that context, she might reconsider this rather ill-judged attempt to make party political capital out of a very real problem.
Everyone who cares about the NHS should want the same thing. The hon. Lady should tell the BMA to get around the negotiating table, something she conspicuously failed to do. In doing so she would stand alongside the many independent voices calling on the BMA to return to the table and discuss a solution with the Government—the Royal College of Surgeons, the Royal College of Physicians, NHS providers and the Academy of Medical Royal Colleges. If she does not do that, the British people will draw their own conclusion about which party is backing the NHS with the resources it needs, which party is supporting hospitals to become safer at the weekends, and which party is standing four-square behind doctors and nurses in their ambition to deliver high quality standards of care for patients. There is only one party that can be trusted, one true party of the NHS, and that is the Conservative party.
Mr Deputy Speaker (Mr Lindsay Hoyle)
There will be a four-minute limit on Back Bench speeches.
Accident and Emergency Waiting Times
Debate between Lindsay Hoyle and Jeremy Hunt(11 years, 5 months ago)
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Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. [Interruption.] Mr Karl Turner, thank you for your advice, but we can manage without it today. I make this appeal to both sides: I want to hear what the Secretary of State has to say, just as I wanted to hear what the Opposition had to say.
Mr Hunt
Thank you, Mr Deputy Speaker.
I repeat: it was one of the poorest speeches ever given by an Opposition on the NHS, and I predict that the right hon. Member for Leigh (Andy Burnham) will bitterly regret choosing to make an issue of A and E pressures, because the root causes of the problem have Labour’s fingerprints all over them.
The right hon. Gentleman was right on one thing, however: there is complacency on this issue—not from the Government, who have been gripping it right from the start, but rather from Labour, which still does not understand why things went so badly wrong in the NHS on its watch.
Labour’s narrative has, I am afraid, a single political purpose at its heart: to undermine public confidence in one of our greatest institutions—an institution which, in challenging circumstances, is performing extremely well for the millions of vulnerable people who depend on it day in, day out.
Labour’s story today is a totally irresponsible misrepresentation of reality. One million more people are now going through A and Es every year than in 2010, which creates a lot of pressure, so how are A and E departments actually performing? The latest figures show performance, against the 95% target, of 96.7%. The week before it was 96.5%, then before that 96.3%, 96.6% and 95.6%. Yes, we had a difficult winter and a cold Easter, and I will come to the causes of the problems we had then, but, thanks to the hard work of NHS doctors and nurses, our A and E departments are performing extremely well.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We want a little more calm. Mr David, you are getting far too excited. It is not good for you and it is not good for the Chamber—[Interruption.] Order. I do not want you to repeat your point. I have just explained to you that I need you to be a little calmer. It is up to the Secretary of State whether he wishes to give way and at the moment he is not doing so. It is his choice and shouting will not make any difference whatsoever.
Mr Deputy Speaker
That is not a point of order, but the right hon. Gentleman has certainly made his clarification for the record.
Mr Hunt
I thought that the shadow Health Secretary might try to do that, so let me give him the figures. I have the figures provided by the Department of Health finance department, based on the latest GDP deflators, as published at the Budget. Spending in the NHS—not the budget—in 2009-10 was £99.7 billion and for 2012-13 it is forecast to be £106.6 billion. That is a cash increase of £6.9 billion and a real-terms increase of £0.6 billion, so there is a real-terms increase in the NHS budget. The shadow Secretary of State does not agree with the real-terms increase of £600 million in the NHS today; there would be a Labour cut in NHS spending and I suggest that he might want to correct the record, as I am afraid he has got this wrong.
NHS Funding
Debate between Lindsay Hoyle and Jeremy Hunt(11 years, 11 months ago)
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Mr Deputy Speaker
Order. I do not think we can have “hypocrisy” either, so we will have the Secretary of State instead.
Mr Deputy Speaker
Order. I am sure that the hon. Member for Broxbourne (Mr Walker) is not going to walk out after his intervention and will stay a little longer.
Mr Hunt
The right hon. Lady’s party has been saying that spending has been cut, and it had the foolishness to call an Opposition day debate on the basis of a letter from Andrew Dilnot that states that, broadly speaking, spending has remained unchanged. That is why, at its heart, the motion is bogus.
The sad fact is that this is not the debate that the Opposition planned to have, two years into this Parliament. The right hon. Gentleman dreamed of coming to the House to remonstrate about an NHS that was on its knees and that was not delivering for the public. He wanted to argue about waiting times, but they have gone down, with fewer people waiting a long time for an operation than at any time under Labour. He wanted to argue about treatments, but there are more people getting new hips and knees and many other treatments than under Labour. [Interruption.] Opposition Members should listen to this. He wanted to argue about cancer, but 23,000 people are now getting drugs under the cancer drugs fund that Labour refused to set up.
Today, the right hon. Gentleman has tabled a motion criticising the decisions taken by the coalition and my right hon. Friend the Member for South Cambridgeshire (Mr Lansley) on NHS spending in our first two years in office. This is also about how we spend the money, as many of my hon. Friends have said. What are the decisions that the right hon. Gentleman is criticising? They are precisely the decisions that mean that the NHS is now performing at record levels, and vastly better than at any time under Labour.
Let us look at those decisions. There was the decision to reduce the number of managers by 7,000 and transfer resources to the front line. There was also the decision to cancel Labour’s disastrous attempt to embrace the technology revolution that cost billions and set the NHS back by years. Then there was the decision to end the wasteful consultancy spend, which has now been cut by 39%. [Interruption.] The right hon. Gentleman needs to listen to this. There was the decision to stop the scandal of unsustainable private finance initiative projects that left the NHS with a £73 billion debt and £1.6 billion-worth of repayments every year. [Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. Christmas is coming. Let us show a little bit more Christmas spirit towards each other. Members on both sides of the House want to hear the Secretary of State.
Mr Hunt
I could not agree with you more, Mr Deputy Speaker. I am trying to give the House some good news, but it is difficult for the Opposition to take it in.
There was also the decision, championed by both coalition parties, to transfer that money to the front line, so we now have more clinical staff, including 5,000 more doctors; better access to drugs, including £600 million invested in the cancer drugs fund; 500,000 more elective admissions every year than under Labour; over 3 million more out-patient appointments every year than under Labour; nearly 1 million more going through accident and emergency every year than under Labour; and 1.5 million more diagnostic tests every year than under Labour. On top of all that, we have 60,000 fewer people waiting longer than 18 weeks than under Labour; 90% fewer people waiting more than a year than under Labour; clostridium difficile down more than a third compared with under Labour; MRSA halved compared with under Labour; and the number of people facing the indignity of mixed-sex wards down by 98% compared with under Labour.
Of course the NHS faces huge challenges with an ageing population and increasing demand, but we are now facing up to those challenges with ambitious plans to tackle dementia, to reduce mortality rates for the big killer diseases to the lowest in Europe, to embrace the technology revolution—but getting it right this time—and to improve the quality of care which, in parts of the system, has been allowed to become shockingly poor for far too long. All those priorities were ignored by Labour in office and, even worse, they have been rejected by Labour today as a “meaningless list”. Those were Labour’s words. Well, tell that to the 157,000 people who die from cancer every year, or the 800,000 people who have dementia, or the people whose families suffer from the poor care that we read about every week in the newspapers.
None of the improvements to the NHS, and none of the ambitions for our NHS, would be possible without the extraordinary dedication of our doctors, nurses and front-line professionals, to whom I pay tribute today. But none of them would have been possible either if we had not increased the NHS budget and NHS front-line spend, contrary to what Labour intended and wanted. Labour’s plans would have meant less spending in real terms on the NHS, and vastly less spending on the NHS front line. No clever fiddling with baselines can obscure the harsh reality that Labour’s policy towards the NHS is a mass of contradictions that fools nobody—certainly not the brilliant doctors, nurses and professionals who have given their lives to saving and improving the lives of others. I urge the House to reject this ridiculous motion.
Several hon. Members