Oral Answers to Questions Debate

Full Debate: Read Full Debate
Department: HM Treasury

Oral Answers to Questions

Mark Hoban Excerpts
Tuesday 24th April 2012

(12 years, 7 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Dennis Skinner Portrait Mr Dennis Skinner (Bolsover) (Lab)
- Hansard - - - Excerpts

1. If he will consider imposing a further bonus tax on banks to fund job creation for young people who are unemployed.

Mark Hoban Portrait The Financial Secretary to the Treasury (Mr Mark Hoban)
- Hansard - -

The bank payroll tax is a one-off measure, but the Government have gone further by imposing a permanent bank levy that will raise £10 billion over the course of this Parliament. Those funds will help to pay for the youth contract, introduced this month, which will provide up to 500,000 young people with new education and employment opportunities.

Dennis Skinner Portrait Mr Skinner
- Hansard - - - Excerpts

So the answer is no: they are not going to introduce a bank bonus tax that could provide jobs for 100,000 young people and still leave money to spend on providing a training facility at Markham vale, which would serve all the constituencies of south Yorkshire and the north midlands. What an opportunity! If this posh, arrogant Government will not do that, the next Labour Government will do it for them.

Mark Hoban Portrait Mr Hoban
- Hansard - -

We have heard the same old stuff from the hon. Gentleman for the last 42 years. Perhaps it is time for him to help youth unemployment by creating a vacancy. We are providing young people with more help to get into work, with an extra quarter of a million apprenticeship places. I would have thought he would have welcomed the fact that the city of Sheffield enterprise zone is at Markham vale in his constituency. That is the sort of practical action this Government are taking to ensure that jobs are being created.

Harriett Baldwin Portrait Harriett Baldwin (West Worcestershire) (Con)
- Hansard - - - Excerpts

Will the Minister explain to employers—in Bolsover and elsewhere—that as of this month there is a youth contract that will pay them to take on unemployed young people?

Mark Hoban Portrait Mr Hoban
- Hansard - -

My hon. Friend is absolutely right. Some 160,000 wage incentives, worth up to £2,775 each, are available for employers who recruit an 18 to 24-year-old through the Work programme.

Rachel Reeves Portrait Rachel Reeves (Leeds West) (Lab)
- Hansard - - - Excerpts

Can the Minister tell us how many young people have now been out of work for more than six months, and how that compares with the figure of a year ago?

Mark Hoban Portrait Mr Hoban
- Hansard - -

I would have thought the shadow Chief Secretary would have welcomed the fact that youth unemployment fell last month. That demonstrates that the Government are taking action to tackle the scourge of youth unemployment—a problem that did not emerge under this Government, as youth unemployment also rose when her party was in government.

Rachel Reeves Portrait Rachel Reeves
- Hansard - - - Excerpts

The Minister failed to answer my question, so let me tell the House that 170,000 young people have been out of work for more than six months. That is an increase of 114% since just a year ago. Does the Minister think it is fair that families with children are being asked to pay a higher price for deficit reduction than the banks, and if not, will he reconsider reinstating the bank bonus tax to support young people back to work—especially as his Budget has given a tax cut worth £40,000 to 14,000 millionaires?

Mark Hoban Portrait Mr Hoban
- Hansard - -

I just point out to the hon. Lady that the last Labour Government ruled out introducing a bank levy. That levy is raising £2.5 billion, and it will raise £10 billion over the lifetime of this Parliament. I think it is right that banks should pay a fair contribution for the risks they have posed for the UK economy, and I would have thought she would have welcomed both the bank levy and the fall in youth unemployment last month.

Duncan Hames Portrait Duncan Hames (Chippenham) (LD)
- Hansard - - - Excerpts

Youth unemployment is clearly more acute in some parts of the country than in others. Why does the Minister think youth unemployment over the last two years has fallen in over a third of the country, including Bolsover, but not in some constituencies, such as Bradford West, where it has increased by 500?

Mark Hoban Portrait Mr Hoban
- Hansard - -

My hon. Friend makes the important point that the pattern of youth unemployment varies across the country. It is important that the necessary support is in place to help young people looking for work, and the Work programme is likely to help 100,000 young people this year. That is just one of the practical measures we are taking to tackle the problem of youth unemployment—which, as the right hon. Member for South Shields (David Miliband) said, started under the last Labour Government.

Iain McKenzie Portrait Mr Iain McKenzie (Inverclyde) (Lab)
- Hansard - - - Excerpts

With the disgrace of having more than a million young people unemployed up and down this country, does the Minister not now regret scrapping the future jobs fund during the first few months after coming to power?

Mark Hoban Portrait Mr Hoban
- Hansard - -

It was clear that the future jobs fund was not cost-effective in helping young people, and we have found that the work experience programme is 20 times more effective. We have introduced a range of measures to help young people find work. We have already talked about the increase in the number of apprenticeship places, the number of people being helped by the Work programme and the number of wage incentives in place through the youth contract. We are going to see more voluntary work taking place and more job experience. Those are the practical measures needed to tackle youth unemployment.

Tom Brake Portrait Tom Brake (Carshalton and Wallington) (LD)
- Hansard - - - Excerpts

2. What fiscal steps he is taking to encourage investment and growth in the manufacturing sector.

--- Later in debate ---
Andrew George Portrait Andrew George (St Ives) (LD)
- Hansard - - - Excerpts

10. What steps he plans to take to ensure taxes owed are duly collected.

Mark Hoban Portrait The Financial Secretary to the Treasury (Mr Mark Hoban)
- Hansard - -

HMRC has managed both to reduce debt levels and to help businesses through difficult economic times. It offers help to businesses that are in genuine difficulty, including through time-to-pay arrangements. Where appropriate, it is taking faster and firmer action against those who fail to engage with it. The amount of customer debt owed to the Exchequer decreased by about £2.4 billion between February 2011 and February 2012.

Andrew George Portrait Andrew George
- Hansard - - - Excerpts

I am grateful to the Minister for that answer and I must congratulate the Government on their plans to close loopholes, particularly for the super-rich, including through the gift aid system. Will he ensure that the Government do not weaken their resolve in that regard, and ensure that gift aid genuinely goes to support charitable activities?

Mark Hoban Portrait Mr Hoban
- Hansard - -

I am grateful to my hon. Friend for that support. He is absolutely right. I think that it is unfair that reliefs can be used without limit to reduce tax liabilities so that some taxpayers with very high incomes have very low tax rates, even below the basic rate.

Fiona Mactaggart Portrait Fiona Mactaggart (Slough) (Lab)
- Hansard - - - Excerpts

19. Why has not the Exchequer Secretary given Members of Parliament, or even the House of Commons Library, copies of the figures he released to the press last week suggesting that 330 millionaires are paying less than 10% tax, which he connected directly to charitable giving? Will he make those figures available to Members through the Library?

Mark Hoban Portrait Mr Hoban
- Hansard - -

Well, the hon. Lady makes an important point about the availability of that information. It was released into the public domain last week, and I will ensure that the appropriate figures are laid in the Library.

Gordon Henderson Portrait Gordon Henderson (Sittingbourne and Sheppey) (Con)
- Hansard - - - Excerpts

11. Whether caravans designed and constructed for continuous occupation will remain zero-rated for VAT purposes under his proposals when used as holiday homes.

--- Later in debate ---
Andrew Bingham Portrait Andrew Bingham (High Peak) (Con)
- Hansard - - - Excerpts

16. What steps he is taking to increase the availability of credit to small businesses.

Mark Hoban Portrait The Financial Secretary to the Treasury (Mr Mark Hoban)
- Hansard - -

The Government have announced a range of initiatives to help small businesses access finance from a wide range of sources, including the national loan guarantee scheme and the business finance partnership.

Andrew Bingham Portrait Andrew Bingham
- Hansard - - - Excerpts

I thank my hon. Friend for that answer and welcome the Government’s efforts on this matter. Does he agree that in constituencies such as High Peak, micro-businesses are still having difficulties finding loans, despite the assurances of the banks that they are open for business? What words of support and advice can he offer the small, independent business owners upon whom the recovery depends to such a great extent?

Mark Hoban Portrait Mr Hoban
- Hansard - -

My hon. Friend raises an important point, and having visited his constituency, I know it is very rural. He might encourage businesses in his constituency to apply for the rural economy grant scheme, which is worth £60 million and is open to businesses operating in rural areas in certain markets, including agri-foods, tourism and digital media technology. I would encourage them to do so.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
- Hansard - - - Excerpts

18. What estimate he has made of the revenue which would accrue to the Exchequer from maintaining the additional rate of income tax at 50 per cent in 2013-14.

--- Later in debate ---
Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
- Hansard - - - Excerpts

T2. I welcome the Financial Services Bill, which we debated yesterday. It is a significant step towards re-instilling confidence in the financial services industry, but does the Minister accept that regulators, including the current Financial Services Authority, have an obligation to work with other regulatory bodies that go beyond their competence to bring about negotiated settlements when the product is far more complicated than is covered by their jurisdiction, such as in the Arch Cru affair?

Mark Hoban Portrait The Financial Secretary to the Treasury (Mr Mark Hoban)
- Hansard - -

My hon. Friend raises an important question. There are a number of cases—Arch Cru is one of them—in which different parties are in different jurisdictions. It is important that regulators work together, along with the parties involved, to ensure that a good deal is put in place to help investors.

Lord Mann Portrait John Mann (Bassetlaw) (Lab)
- Hansard - - - Excerpts

T3. A listed building that is dismantled and rebuilt as a new dwelling will be zero rated, but people will not be able to renovate an empty barn for the same price if it is VAT-able at 20%. Is that or is that not a perverse incentive to demolish empty listed buildings?

--- Later in debate ---
Jacob Rees-Mogg Portrait Jacob Rees-Mogg (North East Somerset) (Con)
- Hansard - - - Excerpts

Tomorrow, the European Commission will publish its proposed 2013 budget. Will Her Majesty’s Government do everything they can to ensure that there is no increase in that budget? More importantly, will they use their veto on the multi-annual framework to ensure that there is no increase?

Mark Hoban Portrait Mr Hoban
- Hansard - -

My hon. Friend makes an important point. At a time when Governments across Europe are making difficult decisions to curb spending, it is completely unacceptable for the Commission to propose an inflation-busting increase in its budget and the medium-term financial framework. The Government will work with their allies to tackle those issues.

Stewart Hosie Portrait Stewart Hosie (Dundee East) (SNP)
- Hansard - - - Excerpts

In normal times, the mortgage standard variable rate rises or falls as the base rate goes up or down, but we are aware that some banks—not all—are increasing their standard variable rates now, while the Bank base rate remains near the zero-bound. Will the Chancellor take this opportunity to fire a warning shot across the bows of some of those banks not to increase their standard variable rates and so put more pain on to people likely to have had pay cuts and wage freezes over the past two or three years?

Mark Hoban Portrait Mr Hoban
- Hansard - -

It is important that we stick to the fiscal course to ensure that UK interest rates remain low for as long as possible. However, many banks face increased funding costs, partly because of the turbulence in the eurozone and partly because there is more competition for savings on the high street, and that works its way through to mortgage rates. It is important that banks provide the help they can to their customers to ensure they have the support necessary to deal with higher mortgage interest rates.

None Portrait Several hon. Members
- Hansard -

rose