Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Tom Brake

Tuesday 2nd July 2019 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

12. Whether he plans to launch a three-year spending review before the summer recess; and if he will make a statement.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

As the right hon. Gentleman would have heard me say if he had been in his place earlier, I announced in the spring statement that it is the Government’s intention to conduct a three-year spending review, concluding this autumn, subject to a deal with the EU being completed. He asks whether I plan to launch the spending review before the summer recess: I can tell him that Departments have already been commissioned to carry out the work necessary for such a review. It must be for the new Government to decide, in the circumstances, whether it is appropriate to conduct a full three-year spending review or a one-year exercise.

[Tom Brake]

I can assure the Chancellor that I saw him give that response on television earlier. What would be the impact on the comprehensive spending review of either the proposal of the Secretary of State for Foreign and Commonwealth Affairs, the right hon. Member for South West Surrey (Mr Hunt), for a £13 billion cut in corporation tax and a £12 billion increase in defence spending, or the proposal of the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) for a £9 billion higher rate income tax threshold cut, £11 billion national insurance contributions cut and showing the public sector “some love”? Would those unfunded bribes be paid for by tax increases, cuts in services or both?

[Mr Hammond]

I fear that the right hon. Gentleman is manifestly asking the wrong person that question. I literally cannot answer it. The purpose of a spending review is that such matters can be looked at in the round, and the responsible way to do a spending review is first to set the envelope of what is affordable, and then to look at the different bids, which will—I can confidently predict—greatly exceed the available spending power, and prioritise. That is the difficult business of government, and that is why I am not in favour of ad hoc spending commitments or tax cut commitments being made.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Tom Brake

Tuesday 21st May 2019 Commons Chamber

[Mr Hammond]

As far as I am aware, rates is a devolved matter in Northern Ireland; it is a matter for the Northern Ireland Executive, which I very much hope will be back in operation very soon.

[Tom Brake (Carshalton and Wallington) (LD)]

9. What discussions he has had with Cabinet colleagues on the adequacy of Government funding to mitigate climate change.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Tom Brake

Tuesday 5th March 2019 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

T4. Does the Chancellor agree that the £1.6 billion set aside for towns is a pale imitation of the regional growth fund set up under the coalition? Will he look at establishing a Brexit redundancy fund of up to £7.5 billion, to help the 750,000 people who are estimated to lose their jobs in a no-deal scenario?

[Mr Philip Hammond]

As I have told the House many times—I will elaborate more at the spring statement next week—in what I now think is the unlikely event of a no-deal exit, the Government have both fiscal and monetary tools available to them to support the economy. Of course, the likely shock would be on the supply side of the economy, and we would have to be careful that fiscal interventions did not merely stimulate inflation. If we are to find ourselves in that situation, we have the firepower and the clear intent to intervene to support the economy.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Tom Brake

Tuesday 11th December 2018 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

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.

[Mr Hammond]

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.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Tom Brake

Tuesday 3rd July 2018 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

T1. If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

My principal responsibility is to ensure economic stability and the continued prosperity of the British people, both during this period of heightened uncertainty and beyond it, after Brexit. I will do so by building on the plans that I set out in the autumn Budget and the spring statement. The Prime Minister recently announced a five-year NHS funding package that will boost spending on health by more than £20 billion a year in real terms in England alone. She also confirmed that we will stick to our fiscal rules and continue to reduce debt. It is our balanced approach to the public finances that enables us to give households, businesses and our public services targeted support in the near term, as well as to invest in the future of this country and to get debt down to be fair to the next generation.

[Tom Brake]

The Chancellor mentioned the NHS funding package. Will he confirm how much of that extra funding will come from the Brexit dividend, and how much will come from higher taxes for businesses and individuals, and on alcohol and fuel?

[Mr Hammond]

Obviously, the element of funding that can be provided by net savings from contributions to the European Union will depend intrinsically on the deal that we negotiate with the European Union. We will be working to get the very best possible deal that we can for Britain to ensure that that contribution makes up the largest possible proportion of the additional NHS funding.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Tom Brake

Tuesday 22nd May 2018 Commons Chamber

[Tom Brake (Carshalton and Wallington) (LD)]

T1. If he will make a statement on his departmental responsibilities.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

My principal responsibility is to ensure economic stability and the continued prosperity of the British people, and I will do so by building on the plans set out in the autumn Budget and the spring statement. The Government’s balanced approach to the public finances enables us to give households, businesses and our public services targeted support in the near term, and to invest in the future of this country, while also being fair to the next generation by at last beginning to reduce a national debt that is far too large.

[Tom Brake]

On prosperity, Mark Carney has just said that household incomes are now about £900 lower than was forecast in May 2016, before the referendum. How much lower still does the Chancellor estimate household incomes will be when the UK leaves the customs union and the single market? When will he publish his analysis?

[Mr Hammond]

On the publication of Government analysis, I have made it clear on several occasions that once Parliament is being asked to vote on a proposal—on a package—it will be appropriate for the Government to publish the analysis that they have, to make sure that that debate is as informed as possible. The future trajectory of household incomes will depend, in part, on the quality of the deal we negotiate as we exit the EU, and we are focused on getting the very best deal for British jobs, British prosperity and British businesses.