Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jacob Rees-Mogg

Tuesday 18th April 2017 Commons Chamber

[Mr Hammond]

As we have said on many previous occasions from this Dispatch Box, we recognise that alternative arrangements will have to be put in place. We will no longer be making large subscriptions—payments—into the European Union, but on the other side of the equation we will no longer be receiving some of the funding that we have been receiving for many years, including the structural funds. That places the opportunity back in the hands of this House—this Parliament—to decide how we should use our taxpayers’ funding to achieve the objectives of the UK Government and to achieve economic development in the way that is most appropriate for the UK.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Does my right hon. Friend look forward to getting net £10 billion a year into the Exchequer, and does he note that the claims for tens of billions of euros from our friends in Brussels merely illustrate the financial incontinence on the continent?

[Mr Hammond]

Any Chancellor would always welcome any net tens of billions of pounds, or even any net billions of pounds, from pretty much any source whatsoever. In terms of the numbers bandied around in Brussels relating to the so-called exit charge, we should recognise them for what they are: an opening gambit in what will be a long and complicated negotiation—nothing more, nothing less.

Class 4 National Insurance Contributions

Debate between Lord Hammond of Runnymede and Jacob Rees-Mogg

Wednesday 15th March 2017 Commons Chamber

[Mr Hammond]

I am grateful to the hon. Lady for her comments. It is important to separate the two issues involved: the substantive underlying issue about the way in which national insurance contributions and entitlement to contributory benefit work, and the equally important but separate issue of the way in which manifesto commitments work. The review that we will conduct will look specifically at the differences between the self-employed and the employed, and the access of the self-employed to contributory benefits, so her suggestion is beyond the scope of that particular piece of work. However, as she especially will be aware, all these things are routinely reviewed by the Treasury in the run-up to fiscal events.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

May I thank my right hon. Friend for his wisdom in being open to changing his mind, which shows the serious-mindedness of Her Majesty’s Government; and for his propriety in telling this House first and doing it himself, not sending someone else on his behalf? May I also commend him for his singular achievement of converting a number of desiccated socialists to support for lower taxation?

[Mr Hammond]

I am grateful to my hon. Friend, but what I see on the Opposition Benches these days is very often not so much desiccated socialists as dedicated opportunists.

Autumn Statement

Debate between Lord Hammond of Runnymede and Jacob Rees-Mogg

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

I did not, because to do so would be to give away our negotiating cards in what will be a very complex negotiation. With respect to the hon. Lady, even if I or the Prime Minister set out precisely our objectives, our tactics and our strategy for the negotiations, that will not remove the uncertainty because the outcome will depend on the negotiation itself. As the Prime Minister has said, a negotiation is a process of give and take between the parties to get to a mutually acceptable outcome, and that is what will be embarked upon.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

May I congratulate the Chancellor on his excellent statement? I draw his attention to page 96 of the OBR report, which sets out the assumptions in relation to Brexit. It seems to me that there are two problems with those assumptions. First, they assume that we will apply tariffs on the same basis as we do inside the European Union, which the Chancellor will know he will be able to remove. Secondly, they are particularly gloomy on the prospects for financial services. Might we be able to take a slightly more optimistic tone and, with the freedoms that we have outside the customs union and the single market, be able to solve the productivity problem?

[Mr Hammond]

As my hon. Friend will know, the OBR is mandated to report by Parliament and I am mandated to respond on behalf of the Government to the OBR’s findings. It is an independent body. It does receive representations, and I suggest that my hon. Friend makes his concerns known to the OBR.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jacob Rees-Mogg

Tuesday 19th July 2016 Commons Chamber

[Mr Speaker]

In the hope that the hon. Gentleman will provide a masterclass in the asking of a question, I call Mr Jacob Rees-Mogg.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Thank you, Mr Speaker. I congratulate my right hon. Friend on his appointment. I accept that that is not a question but a statement. May I go on to point out to him that Brexit provides a great opportunity? The £24 billion purchase of ARM by SoftBank is a sign of that. The trade deals that are being offered are a sign of that. Will he grasp this fantastic opportunity and lead us through to the “broad, sunlit uplands”?

[Mr Hammond]

My hon. Friend rightly points to the fundamental strengths of the UK economy. Britain is still one of the most attractive places in the world to do business, to start a business and to invest money, and it is right that we should focus on those positive aspects. But it is also right that we are conscious of the short-term turbulence that we will inevitably experience and of the need to manage that carefully over the next 18 months.

European Affairs

Debate between Lord Hammond of Runnymede and Jacob Rees-Mogg

Thursday 25th February 2016 Commons Chamber

[Mr Hammond]

The hon. Lady is exactly right. The Danish agreement has been in place for 23 years and continues to serve Denmark extremely well.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Will my right hon. Friend give way?

[Mr Hammond]

I am going to make a little progress now.

The second area we set out to address was Europe’s impact on competitiveness. We have achieved a commitment to completing the European single markets in services—a key area for Britain given the importance and competitiveness of our services sector—in digital; in energy, to ensure greater competition and lower energy bills for British households; and in capital, ensuring greater access to sources of finance for our entrepreneurs. We have also delivered a clear commitment to prioritising international trade agreements with the largest and fastest-growing economies across the globe, with the potential to boost our economy by billions of pounds a year; and agreement to cut the burden of EU regulation on business, with specific targets to be set for key sectors. That builds on a programme of work that the Commission is already undertaking, which has already slashed by 80% the pipeline of regulatory proposals, and bakes the deregulatory approach into the DNA of the European Union.

The third area in which this deal delivers is in ending the abuse of the principle of free movement to work in order to access the benefits of our welfare system, which are paid for by hard-working British taxpayers. We have already ended access to unemployment benefits and social housing for new arrivals and limited their time in which to find a job to six months. The package agreed last Friday gives us new powers to exclude criminals from EU countries, and stops EU nationals dodging British immigration rules to bring family members from outside the EU to live in Britain.

Under this agreement, we can apply our rules, including on minimum income and English language competence. It ends the unfairness of child benefits at British rates being sent to children living in countries with much lower living costs, and it gives us a new seven-year emergency brake to ensure that EU migrants will not have full access to in-work benefits until they have been in the UK for four years, answering the perfectly reasonable question: why should people take out when they have not paid in? Under this new arrangement, they cannot do that—no more something for nothing. Taken together, this is a package that will address the concerns of the British people about abuse of our benefit systems and erosion of our immigration controls.

[Mr Rees-Mogg]

On child benefit, will the Foreign Secretary confirm that the agreement does not meet the promise set out in the Conservative party manifesto, which said:

“If an EU migrant’s child is living abroad, then they should receive no child benefit or child tax credit, no matter how long they have worked in the UK and no matter how much tax they have paid”?

That has not been achieved. It is a failure.

[Mr Hammond]

As I have said before in this House, any reasonable person will look at the package that has been delivered. We have been clear from the outset that tackling abuse of our welfare system is about reducing the pull factor that makes the UK a target for inward migrants because they can get their wages topped up with a variety of benefits. The proof of the pudding will be in the eating. Although my hon. Friend can pick on a specific part of the package, I think that most reasonable people will want to look at it in the round.

--- Later in debate ---

[Mr Hammond]

I am going to make a little progress. I am happy to take interventions, but in doing so I am conscious that I am eating into the time available for debate.

We have also set out to strengthen the powers of this Parliament and of the British people. In the last Parliament, we legislated, through the European Union Act 2011, to ensure that no more powers could be handed to Brussels without the explicit consent of the British people in a national referendum. That Act introduced a vital check on the one-way ratchet of the transfer of powers from Westminster to Brussels.

This deal goes further, breaking the ratchet once and for all, with a new mechanism to return powers from Brussels to national Parliaments. For new legislation, the UK Parliament, working with the other national Parliaments, will be able permanently to block proposed EU legislation that a majority of them do not want, through a red card system.

The declaration, signed by all 28 member states, that we secured at the European Council last Friday is, as I have said, legally binding in international law and has already been registered as a treaty at the United Nations. Authoritative legal opinion is clear on this point. It cannot be undone without the consent of every single member state, including Britain. The agreement commits all member states to changes, in due course, to the EU treaties to enshrine the protections for Britain as a non-member of the eurozone, and to confirm explicitly that ever closer union does not apply to the UK.

[Mr Rees-Mogg]

I am grateful to my right hon. Friend for giving way a second time. He phrases himself incredibly carefully. He says, quite correctly, that the agreement is binding in international law, which is not justiciable, but it is not binding in European law, where it has only to be taken into account by the European Court of Justice. Nor is it irreversible, otherwise section A(7) could not say:

“The substance of this Section will be incorporated into the Treaties at the time of their next revision in accordance with the relevant provisions of the Treaties and the respective constitutional requirements of the Member States.”

If it requires the respective constitutional procedures of the member states, that means that if they are not followed, it will not be implemented.

[Mr Hammond]

In the Rottmann decision, the ECJ itself made clear that it had to take account of a decision of this nature. I say to my hon. Friend and others who repeatedly make points about the legally binding nature of agreements that we are having a substantive debate about the future of Britain, in or out of the European Union. We have a package that has been agreed by all 28 countries and endorsed by their Heads of State and Government. It is not only legally binding, it is a solemn political commitment. I advise colleagues to address themselves to the substantive issues that we are debating, namely Britain’s place in the European Union and what the world would look like from the perspective of a Britain outside the EU.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Jacob Rees-Mogg

Tuesday 9th June 2015 Commons Chamber

[Mr Hammond]

As the Prime Minister made clear yesterday, he has been consistent. Indeed, the comments that he made in his press conference yesterday afternoon were exactly the same as the comments that he made in this House last week. He feels that his previous comments were misinterpreted. He has now clarified the situation and we are able to move on.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

As a sign that Europe is open to reform and is willing to renegotiate, would it not be sensible for Her Majesty’s Government to help Switzerland enforce its referendum result, getting it out of the free movement of people, as a model for British renegotiation?

[Mr Hammond]

On the contrary—what is happening to Switzerland is an important lesson. I have heard many people outside this House and one or two inside it talking about the Norwegian model or the Swiss model, implying that it is possible to partake fully in the single market without having to comply with single market rules. Of course, that is not the experience that the Norwegians or the Swiss have had. Access to the single market has a price, and the price is contributing to the EU budget, complying with all the EU’s rules and having no vote on how those rules are made.