Oral Answers to Questions Debate

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Department: HM Treasury

Oral Answers to Questions

Lord Hammond of Runnymede Excerpts
Tuesday 11th December 2018

(5 years, 10 months ago)

Commons Chamber
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Peter Heaton-Jones Portrait Peter Heaton-Jones (North Devon) (Con)
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12. What fiscal steps he is taking to support the high street.

Lord Hammond of Runnymede Portrait The Chancellor of the Exchequer (Mr Philip Hammond)
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Budget 2018 announced our plan for the high street, which provides £1.5 billion of support to fund local areas as they make their high streets fit for the future. The plan includes a £675 million future high streets fund, planning reforms, a high streets taskforce, support for community assets and a cut by a third to the business rates bills of independent retailers for two years from April 2019, saving businesses almost £900 million.

Maria Caulfield Portrait Maria Caulfield
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Although I welcome the measures that the Chancellor just mentioned—they are helping high streets greatly—the business rates system is currently not working for high streets. Will the Chancellor therefore consider a type of transaction tax that would level the playing field between online businesses and those based on premises, and also enable businesses such as Starbucks and Amazon to start to pay their fair share of tax?

Lord Hammond of Runnymede Portrait Mr Hammond
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My hon. Friend makes a point that has been raised on many occasions. There is concern about the way the business rates system works. In 2016, we conducted a fundamental review of business rates that agreed that property-based taxes were easy to collect, difficult to avoid and stable. There was no consensus around any replacement for business rates. My hon. Friend will know that separately the Government announced in the Budget a digital services tax to ensure that digital businesses pay tax that reflects the value that they derive from UK users.

Peter Heaton-Jones Portrait Peter Heaton-Jones
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Will the Chancellor join me in congratulating Barnstaple, where the high street has bucked the national trend? We have fewer vacant premises and increasing footfall. Will the Government continue to support retailers, especially the smaller independent businesses that are the backbone of our economy?

Lord Hammond of Runnymede Portrait Mr Hammond
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Yes, I am happy to join my hon. Friend in congratulating Barnstaple on the success of its high street. Of course, there are many successful high streets throughout the United Kingdom, even at a time when the high street overall is under pressure. I am sure my hon. Friend is aware that Devon’s success does not stop at the high street; it has seen a wider economic achievement, with unemployment across Devon down by no less than 57% since 2010 and down by 25% over the past year.

Tracy Brabin Portrait Tracy Brabin (Batley and Spen) (Lab/Co-op)
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A buoyant high street is absolutely vital for communities such as mine in Batley and Spen. The Treasury Committee report released today suggests that northern towns are more exposed to Brexit trade-related risks than others. With that in mind, will the Minister tell us what has been put in place to support communities such as mine that will be hardest hit post Brexit?

Lord Hammond of Runnymede Portrait Mr Hammond
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The answer, of course, is to ensure that we leave the European Union in a way that supports our economy across the United Kingdom. That means a negotiated deal that allows us to have a smooth exit and retain a close trading partnership with our European neighbours in the future.

Tim Farron Portrait Tim Farron (Westmorland and Lonsdale) (LD)
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Some 51,000 shops on the UK’s high streets closed in the past year. Local businesses in even successful places such as Kendal and Windermere struggle because they are forced to pay huge taxes while mega-online retailers get away with paying next to no tax at all. Will the Chancellor give a well-deserved Christmas present to the high street by halving business rates there paid for by taxing internet firms on the basis of their turnover, not just their profits?

Lord Hammond of Runnymede Portrait Mr Hammond
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I am not sure whether the hon. Gentleman was in his place for the Budget, but I did in fact announce a digital services tax based on turnover. I also announced a reduction of one third in the business rates for independent retailers. I am very happy to have a meeting with him and explain the changes in detail.

Baroness Morgan of Cotes Portrait Nicky Morgan (Loughborough) (Con)
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I thank the hon. Member for Batley and Spen (Tracy Brabin) for mentioning the Treasury Committee report published this morning. The Treasury Committee is about more than Brexit, as I hope this House is too, and next week we will be holding a joint Committee session with the Housing, Communities and Local Government Committee on business rates. I am sure that the Financial Secretary is looking forward to his evidence session greatly.

Baroness Morgan of Cotes Portrait Nicky Morgan
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I see the right hon. Gentleman nodding.

Business rates are an issue for retailers, and there are some simple things that could be changed now. Does the Chancellor agree, for example, that, for many retailers, their busiest period is Christmas when they could perhaps agree to pay more in business rates and then pay less in periods when they are less busy, so, overall, the same amount is paid, but there is flexibility in payment?

Lord Hammond of Runnymede Portrait Mr Hammond
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If my right hon. Friend is asking whether there is anything that local authorities can do to help with the cash-flow challenges of seasonally based businesses, I am very happy to take that away and look at it and see whether there is anything that we can do to help in that way. The challenge, of course, is that business rates raise £25 billion a year and are a vital part of our overall tax system. If we are to change them, we must find a sustainable way of replacing them.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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The Chancellor does not like it when I use what he calls my “synthetic passion”, so, very quietly, may I beg him to take very seriously indeed where we are as a nation? It looks like we are heading for financial meltdown: people are losing their confidence in this country—[Interruption.] People are losing their confidence. My high street retailers—the big people and the small people—have their heads in their hands, and householders see a real likelihood of a 30% drop in their home value. Will he do something to stop this madness?

Lord Hammond of Runnymede Portrait Mr Hammond
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There are a couple of points there. First, I should just say to the hon. Gentleman that I was actually congratulating him the other day on his display of synthetic anger, which is one of the best in the House. On the wider point, the high street is facing challenges because of the uptake of online retailing across the UK at a faster rate than in any other large economy. That means that our high streets will have to adapt. The Government cannot save the high street from the need to change. What they can do is support it as it goes through that process of change.

Mark Menzies Portrait Mark Menzies (Fylde) (Con)
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22. I am currently working with Fylde Borough Council and St Anne’s Town Council on a package of measures to regenerate the town of St Anne’s in my constituency. Will the Chancellor of the Exchequer meet me briefly in order to talk through how we can best take advantage of the excellent package of measures that he put forward in his Budget?

Lord Hammond of Runnymede Portrait Mr Hammond
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I would be very happy to meet my hon. Friend. My hon. Friend the Exchequer Secretary is the expert on this matter and he might find a meeting with him more fruitful, but either one of us is very happy to meet him.

John McDonnell Portrait John McDonnell (Hayes and Harlington) (Lab)
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Many of the shops and firms located on the high street are represented by the Federation of Small Businesses. Has the Chancellor seen what the FSB has said about the current Brexit position? Its chair has said:

“Planning ahead has now become impossible for a lot of firms as we simply don’t know what environment we’ll be faced with in little more than 100 days’ time…the economic warning signs are now flashing red.”

The Chancellor knew full well in our debate last week that the Prime Minister’s deal was not going to receive the support of the House. Is it not only right that he is straight with her by telling her that businesses cannot face any more uncertainty and that a decision on the deal cannot be delayed and put off until late January, as some around her are suggesting?

Lord Hammond of Runnymede Portrait Mr Hammond
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I would be the first to agree that businesses need an end to uncertainty and clarity about the future, but frankly I think that the shadow Chancellor is probably the last person who should give us that lecture, because his policy agenda has been designed to create uncertainty and a lack of clarity for business in the future. What the Prime Minister is doing—absolutely rightly—is making a last attempt to see whether she can get further concessions from our partners in the European Union, which is clearly the desire of this House. She will come back and report to the House when she has done so.

John McDonnell Portrait John McDonnell
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Both sides of the House have to address the seriousness of the situation we face. The director general of the British Chambers of Commerce has said:

“Firms are looking on with utter dismay at the ongoing saga in Westminster”.

Today’s Treasury Committee report is devastating in its criticisms of the way in which the Government have sought to assess options not even on the table. A month ago, the Chancellor committed his support to a deal that guaranteed frictionless trade with the EU. Will he now be absolutely straight with the Prime Minister and tell her that unless she comes back with a deal that does fulfil his promise of frictionless trade, it will not succeed in protecting our economy and could not be supported?

Lord Hammond of Runnymede Portrait Mr Hammond
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The right hon. Gentleman can practise his synthetic concern at the Dispatch Box, but the remedy lies in his hands. There is a deal on the table that will end the uncertainty and allow this country to move on, and our polling shows that that is exactly what the British people want. All he has to do is get behind it, vote for the Prime Minister’s deal and we can all move on.

John Bercow Portrait Mr Speaker
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I say very gently to the Chancellor, to whom I have been listening with great care, that it is quite difficult to vote for something if there is not a vote. I am only trying to help him; it is a point that is so blindingly obvious that I am surprised that I have to state it, but manifestly I do.

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Priti Patel Portrait Priti Patel (Witham) (Con)
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5. What criteria his Department uses to approve funding for major infrastructure projects.

Lord Hammond of Runnymede Portrait The Chancellor of the Exchequer (Mr Philip Hammond)
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All public spending proposals, including those for major infrastructure projects, are appraised against five key considerations: the strategic case for change, the net value to society of the intervention, the affordability of the proposal, the robustness of delivery plans, and whether a realistic commercial deal can be struck to deliver the proposal. As I announced in the Budget, there will be a zero-based review of capital spending at the spending review next year.

Priti Patel Portrait Priti Patel
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The Chancellor will know that Essex is a gateway for infrastructure and trade from around the world, but he will also know that we sorely lack major infrastructure investment across the county, despite having some very compelling business cases. What will he do to ensure that we can get the investment in for the A12, the A120, and the great eastern main line?

Lord Hammond of Runnymede Portrait Mr Hammond
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First, I acknowledge my right hon. Friend’s tireless work in campaigning to improve infrastructure and boost productivity in the Essex region, including her chairing of the Great Eastern Mainline Taskforce. We expect about £47.9 billion to be spent on the railway nationally between 2019 and 2024. I very much look forward to hearing the outcome of the Great Eastern Mainline Taskforce study. Regarding the A120, the Government are carefully considering Essex County Council’s proposals for a new dual carriageway to ensure that a robust plan is ready should that project secure funding in RIS 2—the second road investment strategy.

Catherine McKinnell Portrait Catherine McKinnell (Newcastle upon Tyne North) (Lab)
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“State of the North 2018”, a report published by the Institute for Public Policy Research North earlier this month, highlighted the fact that public spending in the north of England fell by £6.3 billion since 2009-10 while spending in the south-east and the south-west was up by £3.2 million in the same period. Does this not demonstrate that the northern powerhouse is nothing but a vacuous slogan? What does the Chancellor assess will be the infrastructure funding available once we leave the EU?

Lord Hammond of Runnymede Portrait Mr Hammond
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We have had this one before. The Institute for Public Policy Research consistently publishes these figures and they are consistently wrong. I would urge the hon. Lady to look at the Infrastructure and Projects Authority’s figure. The problem with the IPPR is that it needs also to look at central Government funding to the regions. When we look at central Government funding to the regions, we will see a very different picture.

Lord McLoughlin Portrait Sir Patrick McLoughlin (Derbyshire Dales) (Con)
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One of the most important things for long-term infrastructure spending is knowing what the long-term programmes are going to be. These are not projects that can be put together in a year or two years. What reassurance can the Chancellor give us that he is making sufficient capital available so that the big infrastructure companies involved in our roads, railways and power operations have the knowledge that those funds are going to be available?

Lord Hammond of Runnymede Portrait Mr Hammond
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We are doing two things. First, we are investing more public capital than ever before under the previous Labour Government, but we have also put in place the National Infrastructure Commission to develop a transparent pipeline of projects both publicly and privately funded so that investors in infrastructure projects can have that visibility of future projects available.

Dan Jarvis Portrait Dan Jarvis (Barnsley Central) (Lab)
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While accepting that it is not a simple matter, the criteria used tend to favour infrastructure development in the south, rather than the north. What more can the Government do to support major infrastructure development, particularly when it comes to transport, in the north of England?

Lord Hammond of Runnymede Portrait Mr Hammond
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I reject the hon. Gentleman’s accusation. The methodologies we use are designed to be fair and equitable in the distribution of infrastructure funding, but if he would like to meet me and my hon. Friend the Exchequer Secretary, I am happy to go through the whole issue. We are as concerned as he is to make sure that infrastructure investment decisions are made on a transparent and equitable basis.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
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6. What assessment his Department has made of whether value for money has been achieved by the sale of public assets.

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Antoinette Sandbach Portrait Antoinette Sandbach (Eddisbury) (Con)
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9. What progress he has made on reducing the amount of income tax that people pay.

Lord Hammond of Runnymede Portrait The Chancellor of the Exchequer (Mr Philip Hammond)
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The Government are committed to ensuring that working people can keep more of what they earn. At Budget 2018, I announced that the Government will increase the personal allowance to £12,500 and the higher rate threshold to £50,000 from April 2019, delivering on our manifesto promise one year early. This is a tax cut for 32 million people that will save a typical basic rate taxpayer a further £130 a year in tax. In the north-west and Merseyside, 196,000 of the lowest paid will have been taken out of income tax since 2015, leaving more of their hard-earned money in their pockets. The typical basic rate taxpayer across the UK will pay £1,205 less in 2019 than he or she did in 2010.

Antoinette Sandbach Portrait Antoinette Sandbach
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Some 37,000 constituents in Eddisbury have had an income tax cut and 738 pay no tax at all, but many will pay another tax on their income, which is national insurance. What steps is the Chancellor taking to reduce the burden of national insurance on the lowest paid?

Lord Hammond of Runnymede Portrait Mr Hammond
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The Government do consider national insurance contributions and income tax together to ensure an overall progressive tax system in which those earning the most pay the most. However, when we are looking at national insurance thresholds, it is important for us to remember that national insurance payments provide access to social security benefits: they build individuals’ entitlements to contributory benefits, including the state pension, as well as helping to fund the NHS. It is probably worth my mentioning that on average, in 2019-20, households in the lowest income decile will receive over £4 in public spending for every £1 they pay in tax.

Gregory Campbell Portrait Mr Gregory Campbell (East Londonderry) (DUP)
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Will the Chancellor bear the whole issue of national insurance in mind, both now and when it comes to his Budget, in that people on low wages, who understand they will begin to pay national insurance much earlier than they pay tax, should retain more of their hard-earned money in net terms?

Lord Hammond of Runnymede Portrait Mr Hammond
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I hear the hon. Gentleman’s point, but I repeat what I have just said. We have to remember that people coming into national insurance at a lower rate also means people coming into entitlement to contributory benefits at that rate. We have a contributory principle in our benefits system, and national insurance is the key to it.

Richard Bacon Portrait Mr Richard Bacon (South Norfolk) (Con)
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When income tax was first introduced, it was supposed to be temporary. Can the Chancellor of the Exchequer update us on his plans finally to get rid of this tax, or will it, like the backstop, be with us for the next 200 years?

Lord Hammond of Runnymede Portrait Mr Hammond
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When I was in Brussels the other day, I was reliably informed that the kingdom of Belgium was originally intended to be a temporary construct, but it still seems to be with us. The world has moved on since the Napoleonic wars, as my hon. Friend may or may not celebrate, and I have to tell him that the Government have no plans to abolish income tax.

John Bercow Portrait Mr Speaker
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None the less, we are better informed as a result of what the Chancellor has just told us, on two points: Belgium and then the subsequent point. We are grateful to him for that.

Stewart Malcolm McDonald Portrait Stewart Malcolm McDonald (Glasgow South) (SNP)
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The lowest paid members of the armed forces stationed in Scotland pay less in tax than their counterparts elsewhere in the UK, so why will the Chancellor not stand up for the lowest paid members of the armed forces, either by giving them a tax cut to match their counterparts in Scotland or by giving them a proper pay rise?

Lord Hammond of Runnymede Portrait Mr Hammond
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My understanding is that my right hon. Friend the Secretary of State for Defence has put in place special measures to ensure that those members of the armed forces who are disadvantaged by Scotland’s higher income tax rates are compensated, in order to avoid a situation where they regard postings to Scotland as hardship postings.

Alison Thewliss Portrait Alison Thewliss (Glasgow Central) (SNP)
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10. What discussions he has had with the Secretary of State for Scotland on the economic effect on Scotland of the UK leaving the EU customs union and single market.

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Layla Moran Portrait Layla Moran (Oxford West and Abingdon) (LD)
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T1. If he will make a statement on his departmental responsibilities.

Lord Hammond of Runnymede Portrait The Chancellor of the Exchequer (Mr Philip Hammond)
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My principal responsibility is to ensure economic stability and the continued prosperity of the British people, and at this juncture the best way to achieve this objective is to back the Prime Minister’s Brexit deal, ensuring a smooth and orderly departure from the EU, delivering on the decision of the British people, securing a close economic partnership with our most important trading partners and protecting the jobs and living standards of our people. The deal will allow us to come together again and assure Britain of the brighter future it deserves.

Layla Moran Portrait Layla Moran
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Modern universities will be hit hard by the unexpected changes to the teacher pension scheme. In fact, one is predicting a 5% reduction in its workforce, including around student support. Can the Chancellor give any assurances to universities struggling to cope with this change?

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Peter Dowd Portrait Peter Dowd (Bootle) (Lab)
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The merely synthetic construct that is before the House has nothing to do with the real concerns of my right hon. Friend the Member for Hayes and Harlington (John McDonnell) and my hon. Friend the Member for Huddersfield (Mr Sheerman). It is the dodgy deal—the tuppence-ha’penny Brexit deal—of the Prime Minister. I am led to believe that the Chancellor has ostensibly, but forlornly, attempted to mitigate the Prime Minister’s disastrous handling of Brexit. If that is the case, will he continue his endeavours by using the powers in section 31 of the Taxation (Cross-border Trade) Act 2018 to maintain the UK in a customs union with the EU?

Lord Hammond of Runnymede Portrait Mr Hammond
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It is not the Government’s policy to maintain a permanent customs union with the European Union. Opposition Front Benchers often offer a customs union as if it were a magical solution, but it will not deliver us frictionless borders; it will introduce regulatory friction at our borders with the European Union, and it will introduce regulatory friction between Northern Ireland and the Republic of Ireland.

Peter Dowd Portrait Peter Dowd
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The Chancellor’s answer shows that, just like Parliament yesterday, we have been treated with contempt by him, and he has been treated with contempt by the Prime Minister and brushed aside. Let me ask him again: in the national interest—not the Tory party’s interest, or his own interest—at what point will he break cover and use the powers in section 31 of the Act which he initiated and which his Ministers guided through Parliament? Or is this just another Tory parliamentary sham?

Lord Hammond of Runnymede Portrait Mr Hammond
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Those powers are there specifically to deal with the customs union that we will need to create with the Crown dependencies, not for the purpose that the hon. Gentleman is suggesting.

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Helen Goodman Portrait Helen Goodman (Bishop Auckland) (Lab)
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T2. Further to the answer that the Chancellor just gave my hon. Friend the Member for Bootle (Peter Dowd), may I point out that the Father of the House, the right hon. and learned Member for Rushcliffe (Mr Clarke), pointed out last week that if we were to be in a customs union, we would need to have the same regulatory standards as the Europeans? That is true, because they fear unfair competition through a regulatory race to the bottom. If the Prime Minister does not succeed today, will the Chancellor revisit that option?

Lord Hammond of Runnymede Portrait Mr Hammond
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I am very confident that my right hon. Friend the Prime Minister will succeed in the mission that she is undertaking today, and I look forward to her reporting to the House on the progress that she has made.

Priti Patel Portrait Priti Patel (Witham) (Con)
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T8. Lower taxes and a simplified tax system are crucial to long-term economic growth and competition. Will the Chancellor consider introducing new tax reforms in the future, including a combination of income tax and national insurance, to improve the efficiency of our tax system?

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Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
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T5. I met the travel association ABTA this morning and it had two requests for the Chancellor: first, that he rules out no deal, because implementing no deal preparations potentially puts its smaller members out of business; and secondly, to hear from the Chancellor and Government when the immigration paper will be available, because without it ABTA members can make no business plans.

Lord Hammond of Runnymede Portrait Mr Hammond
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I think I have been perfectly clear and consistent in expressing the view that no deal would be a very bad outcome for this country, and I will do everything I can to make sure that that is not an outcome we face.

A White Paper on the Government’s future migration policy will be published shortly.

Lord Goldsmith of Richmond Park Portrait Zac Goldsmith (Richmond Park) (Con)
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When criticising a Labour Budget in 2005, my right hon. Friend the Chancellor said that the taxpayer

“is entitled to be protected from retrospective or retroactive legislation.”—[Official Report, 7 June 2005; Vol. 434, c. 1139.]

but through the 2019 loan charge, that is precisely what HMRC is now doing to thousands of people who acted in good faith and in accordance with the rules at the time. May I urge my right hon. Friend once again not to backdate the charge to before 2017?

Graham P Jones Portrait Graham P. Jones (Hyndburn) (Lab)
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T6. IPPR North’s analysis has shown that in the south £326 per head is spent on infrastructure, while only £156 per person is spent in the north, and small towns like those in my constituency have been hit the hardest, with lack of infrastructure and the withdrawal of public sector services. We now find out this week that there will be a third bailout for Crossrail 2, costing £2.1 billion; the Government are simply going to give it a cheque. When is the north-west going to get a £2.1 billion equivalent?

Lord Hammond of Runnymede Portrait Mr Hammond
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First, I should make it clear that the additional support we are providing to Crossrail is in the form of a loan that will be repaid to the Government by London, so it is London taxpayers and London farepayers who will meet the cost of the overrun. The north-west is now the second-highest region in the UK for transport investment: per capita investment has risen from £648 per year between 2006-07 and 2009-10 to £1,129 a year between 2014-15 and 2017-18.

Neil O'Brien Portrait Neil O'Brien (Harborough) (Con)
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It is very welcome that today’s figures show that wages are rising, unemployment is falling and we have a record number of people in work, but we still need more good jobs in Leicestershire. So, when the Leicestershire industrial strategy comes forward with exciting plans to boost the life sciences and small satellite manufacturing, will the Treasury look closely at getting behind it?

Lord Hammond of Runnymede Portrait Mr Hammond
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The Treasury will look closely at that.

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
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T9. At our border, we need to ensure that we have security while securing freedom of movement of goods and people as well as gaining revenue. The head of HMRC has said that it will be almost impossible to do all those things if we crash out without a deal. The Chancellor keeps talking about a deal, but we are just over 100 days away from potentially crashing out, so what conversations is he having to ensure that we are not hit in the pocket as a result of a lack of revenue?

Lord Hammond of Runnymede Portrait Mr Hammond
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We have made it clear that we will first prioritise the security of the UK, and that we will then prioritise the flow of trade. We will not prioritise the collection of customs tariffs. The hon. Lady will be aware that these are tariffs that we are not currently collecting; they would be additional revenues. We will treat that as something that we can do in slower time, if the situation arises.

James Heappey Portrait James Heappey (Wells) (Con)
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Later today the House will debate fuel poverty. Does the Chancellor agree that the greatest lever that we can pull to alleviate the challenge of fuel poverty is to incentivise home energy efficiency? Will he look at what the Treasury can do to address that?

Lord Hammond of Runnymede Portrait Mr Hammond
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That is certainly one of the levers that we can pull, and I am happy to look again at how we support home energy efficiency.

Gareth Thomas Portrait Gareth Thomas (Harrow West) (Lab/Co-op)
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When will the Government bring forward proposals to allow well-funded credit unions to provide low-cost credit cards and low-cost car loans, and to invest in other social programmes such as energy co-operatives and housing schemes?

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Jim Cunningham Portrait Mr Jim Cunningham (Coventry South) (Lab)
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What impact will Brexit have on our universities, particularly in Coventry? More importantly, our universities do projects with Europe and also work closely with the manufacturing industry, including companies such as Jaguar Land Rover. What are we going to do about that?

Lord Hammond of Runnymede Portrait Mr Hammond
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Our university sector is a vital asset to the UK. Over the past decade we have seen the universities working much more closely with industry, and that relationship is having a positive and advantageous effect on the growth profile and the technology uptake in the economy. As we leave the European Union, it is vital that our universities are able to go on exchanging students and teaching staff with European institutions, and we will do everything we can to ensure that that happens.

None Portrait Several hon. Members rose—
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Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con)
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How many more trees will be planted as a result of investment announced in the recent Budget?

Lord Hammond of Runnymede Portrait Mr Hammond
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A very large number. I will go back to the Treasury and write to my hon. Friend with a precise figure.

John Bercow Portrait Mr Speaker
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Can I politely suggest to the Chancellor that if he were to lodge a copy of his reply with the requisite statistical information in the Library, I do not say that he will be garlanded, but he might come close to it?

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Lord Hammond of Runnymede Portrait Mr Hammond
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Yes. There cannot be strong defence without a strong economy.

Ruth George Portrait Ruth George (High Peak) (Lab)
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In the next two months, the Royal Bank of Scotland will close all but 56 branches in cities across England, leaving banking deserts in towns and rural areas like mine. What is the Chancellor doing to use the Government’s shareholding to exert public pressure on RBS and ensure that we have no banking deserts?

Oliver Heald Portrait Sir Oliver Heald (North East Hertfordshire) (Con)
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Is my right hon. Friend aware that one of the most successful companies in our country, Johnson Matthey in my constituency, is committed to having a fair-deal, not a no-deal Brexit because it feels that it is vital that there should be an orderly retreat, not chaos? Does he agree that the Prime Minister’s deal would achieve that?

Lord Hammond of Runnymede Portrait Mr Hammond
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Yes, and that is indeed the express view of the vast majority of businesses in this country.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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Will the Chancellor work with the Minister for the Cabinet Office and the Secretary of State for Business, Energy and Industrial Strategy to support my ten-minute rule Bill on project bank accounts for Government projects? It will protect small businesses from losses when tier 1 suppliers such as Carillion and Interserve collapse.

Lord Hammond of Runnymede Portrait Mr Hammond
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I am happy to look further at the hon. Lady’s Bill. It is an interesting idea and I know that the Cabinet Office commercial secretariat has been looking at her proposals.