Management of the Economy and Ministerial Severance Payments

Debate between Lucy Frazer and Anthony Browne

Tuesday 15th November 2022 Commons Chamber

[Lucy Frazer]

I think the hon. Member is forgetting that the UK is projected to have the highest growth rate in the G7 in 2023. I think he is forgetting—or is not aware—that we are seeing inflation across the globe. Germany’s inflation rate is 11.6%, Italy’s is 12.8%, and the eurozone’s is 10.7%. These are obviously issues that are affecting people across the globe. This Government are committed to supporting vulnerable people who need the support that we are providing.

Let me now address some of the points made by the hon. Member for Wigan about homes, home ownership and the shattering of dreams. It will not surprise Opposition Members to learn that we believe home ownership to be an essential component of any long-term issues in our economy. This Government are proud of their track record of helping first-time buyers on to the housing ladder, and we have just expanded first-time buyer relief by raising the level at which first-time buyers start paying stamp duty, from £300,000 to £425,000. I seem to remember that the Opposition voted against that. As the hon. Member mentioned, we are also investing £11.5 billion in affordable homes. She will be aware, I hope, that since 2010 we have delivered 598,000 new affordable homes, and Government-backed schemes have helped more than 800,000 households to purchase a home since 2010.

[Anthony Browne (South Cambridgeshire) (Con)]

I welcome the fact that Labour is joining the Conservatives in championing the desire to own homes, which has traditionally been a strong Conservative party position. Is my right hon. and learned Friend aware that the rate of home ownership in the UK rose throughout the second half of the 20th century, reached a peak just as the last Labour Government came to power, and fell throughout almost the entire period of that Government? It was only as a result of a range of measures introduced by the Conservative Government, on their election in 2010, that home ownership rates started to rise again. Labour may say things, but after its 13 years in power it left home ownership rates plummeting throughout the UK.

[Lucy Frazer]

I am grateful for my hon. Friend and neighbour’s intervention. He is knowledgeable on all these matters and makes an important point about rhetoric and not action, because I also know, as I am sure hon. Members across the House do, that the Labour party did not deliver the building of the same number of affordable houses—social houses—as this Government did.

On house building, the hon. Member for Wigan seemed to suggest that she was not aware that the Levelling Up Secretary had committed to our plans to work towards 300,000 homes a year—[Interruption.] I have heard him commit to that several times since I have been in the Department. To that end, we have already announced £10 billion-worth of investment in housing supply since the start of this Parliament, with those supply interventions ultimately due to unlock over 1 million new homes over the course of this Parliament and beyond.

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[Lucy Frazer]

As an example of the previous operation of this provision, the data published in 2010 indicated that severance payments made to Labour Ministers in that year amounted to £1 million. To ensure transparency, the details of these payments are published in the annual reports and accounts of Government Departments. It is important to point out that a Minister will be entitled to a payment on ceasing to hold office only when they in effect step away from Government and are not reappointed for a period of at least three weeks. Periods of continuous employment, where a Minister might move between roles during the same Administration, do not result in multiple payments.

In this context, I would like to draw Opposition Members’ attention to the fact that my right hon. Friends the Members for South West Norfolk (Elizabeth Truss) and for Spelthorne (Kwasi Kwarteng) served as Ministers for considerable amounts of time before they were made Prime Minister and Chancellor of the Exchequer, and that they therefore have a statutory entitlement. Let me be clear that, although this is a statutory entitlement, that is not to say that Ministers are unable to waive such payments. That is not a matter for the Government; it is entirely a discretionary matter for the individuals concerned. The Government do not regard it as appropriate to make arbitrary demands of individuals in relation to their entitlements. While the Labour party seeks to make cheap political points by denigrating the former Prime Minister and Chancellor, from these Benches I would like to pay tribute to the public service of Ministers of the Crown across the board and as long-standing Members of Parliament.

[Anthony Browne]

I would like to thank my right hon. and learned Friend for making an excellent speech. The Opposition are trying to link economic performance with severance pay. I recall that, back in 2010, the last act of the last Labour Chief Secretary to the Treasury was to leave a note saying:

“Dear Chief Secretary, I’m afraid there is no money.”

And what happened to severance pay then? As my right hon. and learned Friend has said, Labour Ministers took £1 million in severance pay. Also, the four leadership candidates for the Labour party, Ed Miliband, David Miliband, Ed Balls and Andy Burnham all took—