Oral Answers to Questions

Lucy Frazer Excerpts

Tuesday 7th December 2021 Commons Chamber

[Chris Elmore (Ogmore) (Lab)]

1. What recent steps he has taken with HMRC to help prevent disruption at UK ports during the Christmas 2021 period.

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

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

[Mr Speaker]

Just for clarification, is that a grouped question?

[Lucy Frazer]

I do not believe it is, Mr Speaker.

[Mr Speaker]

Thank you. I call Chris Elmore.

[Chris Elmore]

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

[Lucy Frazer]

The hon. Member will know that it is important to have committees to work across Government, because the supply chain issues affect all Departments. He will know of some of the actions that we have taken—30 actions to tackle HGV issues to increase efficiency in the supply chain. We have temporarily extended drivers’ hours, relaxed late-night delivery restrictions, and deployed the Ministry of Defence’s driving examiners to increase HGV testing capacity. Yesterday, the policy director of Logistics UK said that she saw a number of signs of improvement.

[Mel Stride (Central Devon) (Con)]

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

[Lucy Frazer]

My right hon. Friend makes an important point. The Government and HMRC have taken significant action to ensure that hauliers and carriers are ready. HMRC has weekly meetings with strategic operators. It has conducted webinars for well over 1,000 haulage businesses and it sends monthly emails to more than 14,000 hauliers on the next steps. I appreciate that it might be that big businesses are more ready than small businesses, but we have done work there as well. I am very pleased to have met the Federation of Small Businesses about two weeks ago to discuss these issues.

[Rachel Hopkins (Luton South) (Lab)]

2. What recent steps he has taken to help reduce economic inequality.

--- Later in debate ---

[Saqib Bhatti (Meriden) (Con)]

4. What progress his Department has made on supporting young people into high-skilled jobs.

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

Through our plan for jobs, more than 100,000 young people have started kickstart jobs, including more than 9,300 in the west midlands, but that is not all that we have done. The spending review provides for investment of £1.6 billion in high-quality education, £554 million in the national skills fund, £2.7 billion in apprenticeships, and £60 million in the youth offer to help young jobseekers find lasting work.

[Saqib Bhatti]

Last month when I presented awards at the Crimson Academy apprenticeship awards event, I met some incredibly talented apprentices who were raring to go and get into the world of work. Will my right hon. and learned Friend join me in congratulating them, and will she confirm that apprenticeships are a great way for young people to obtain high-skilled jobs that can help to bridge the UK skills gap?

[Lucy Frazer]

I do of course join my hon. Friend in congratulating those apprentices. The Government are continuing to invest in high-quality technical education and to reform the skills system so that it is employer-led, to give young people the right skills and training to enable them to succeed in life. More than 100,000 apprentices have been hired under our new incentive payment scheme, 75% of whom were under 25. Skills boot camps are upskilling people into high-growth sectors, including the digital sector.

[Carla Lockhart (Upper Bann) (DUP)]

5. What recent assessment he has made of the potential effect of the planned tax changes to red diesel fuel on (a) employment and (b) profitability within the UK construction industry.

--- Later in debate ---

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

Can the Minister confirm that the £1,000 a year tax cut delivered through changes to the universal credit taper rate will begin to be seen in people’s bank accounts this side of Christmas?

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

Yes.

[Sarah Green (Chesham and Amersham) (LD)]

T4. The Government have confirmed that eight people facing the loan charge have lost their lives to suicide. One of my constituents recently told me that they are a totally nervous wreck and have contemplated ending their life on numerous occasions. In the light of the heavy toll that the loan charge is taking on the lives of those facing it, will the Government commit to a fresh and independent review of the loan charge?

[Lucy Frazer]

The hon. Member will know that an independent review has already been carried out by Lord Morse, and the Government accepted all but one of its recommendations. HMRC does have a helpline, but it is important to continue to ensure that we look after those who are most vulnerable.

--- Later in debate ---

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

May I advise my right hon. and learned Friend that the Government’s step in the Budget last month to cut business rates by 50% for retail, hospitality and leisure companies, which means that 90% of all eligible businesses will see a cut of at least 50%, has been warmly welcomed across my Borough of Bexley? It will help many business to not only survive, but flourish.

[Lucy Frazer]

I am very grateful to my right hon. Friend for mentioning that. We have business rates relief of almost £1.7 billion next year for retail, hospitality and leisure, which is part of a package of £7 billion over the next five years.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

T8. I understand that the Department for Transport made an autumn spending review funding application for the western rail link to Heathrow, but it was rejected by the Treasury. Given that the Government made a solemn pledge back in 2012 to build it, can the Chancellor please advise me on when it will finally be built—or will this be yet another broken Tory promise?