Tributes to Her Late Majesty The Queen

Mel Stride Excerpts

Friday 9th September 2022 Commons Chamber

[Mel Stride (Central Devon) (Con)]

I rise to pay tribute to a very remarkable and wonderful lady, not just on my own behalf but on behalf of the constituents of Central Devon.

Queen Elizabeth II, our longest-reigning monarch, a passionate Head of the Commonwealth for which she did so much, was loved, admired and recognised throughout the world in a life that spanned so much. When she came to the throne, world war two was a very fresh memory, there was still rationing and man had yet to walk on the moon. She reigned through Suez and the Cuban missile crisis; she saw the Beatles, she saw a solitary football World cup victory and she saw Concorde fly; she witnessed industrial unrest on an industrial scale; and in her own family she suffered great personal tragedy. She was there alongside us for the dawn of a new millennium. She joined James Bond for the opening of the London Olympics and Paddington for the jubilee. She said of the Lionesses and their recent triumph:

“You have all set an example that will be an inspiration for girls and women today, and for future generations.”

That could equally be said of her.

Elizabeth, as we have heard, has always been here. She has always been a part of our lives and a part of our world. Perhaps, in essence, that is why she will be so sorely missed. She was certainly with us in Devon and the west country; she would have known my constituency well, as I have no doubt she did all our constituencies. She was a frequent visitor to the south-west and was there as recently as the G7 summit, where for the first time she met President Biden, one of the 13 Presidents of the United States whose acquaintance she made—all of them since Harry S. Truman, with the exception of Lyndon Johnson.

When Her Majesty was 13, she accompanied her family, including her father King George VI, to the Britannia Royal Naval College in Dartmouth. She would remember that as the first time she met a young cadet—her future husband, Prince Philip of Greece and Denmark. That is something of which Devon can be particularly proud. As Queen, she returned to Dartmouth with Prince Philip before the coronation.

Many of us have shared today our personal reflections of our contact with Her Majesty. Mine came as Comptroller of the Royal Household in our Whips Office and briefly as Lord President of the Council. My impression of her in my small number of private meetings with her was that she was sharp; that she was kindly; and that she was humorous—she had a twinkle in her eye. Indeed, when I went to see her for the first time, the equerry turned to me and, to put me at ease, told me a little anecdote about an ambassador who had gone to see her for the first time. On approaching her, to his horror, his phone sprang to life and started ringing, and he looked panicked. After he had turned it off, she turned to him and said, “Perhaps you should have answered it—it might have been something important.”

I thought that perhaps Her Majesty could be a little mischievous on occasion. I did not know her well enough to be sure of that, but I was certain of the fact that she could be great fun—that was something that shone through when meeting her—and wise, of course, based on her huge experience of life and the world. Just as everyone told me, she was someone who put you at your ease—someone it was good to be with. She made you feel special.

It was the honour of my life to spend a little time with her. Queen Elizabeth, thank you—you gave us all so much. Rest in peace. God save the King.

UK Energy Costs

Mel Stride Excerpts

Thursday 8th September 2022 Commons Chamber

[Mel Stride (Central Devon) (Con)]

I rise broadly to welcome these measures. We know that we live in terribly difficult times. Yesterday the Treasury Committee took evidence from the Governor of the Bank of England and other members of the Monetary Policy Committee, and the point was made that the impact of the energy price rises on households is about four times that which occurred in the 1970s. These are truly frightening times, and I am pleased that my right hon. Friend the Prime Minister has come forward with such a bold package of measures for consumers and, critically, for businesses over the next six months, with a review after three months. I was pleased to see the Bank of England liquidity facility for energy businesses totalling £40 billion, which I think will be important for the functioning of the marketplace, as well as the critical commitment to review the way that the pricing of our electricity is determined, whether in relation to gas or to the underlying costs of alternative means of energy production.

I also want to focus briefly on the macroeconomic issues, which are easy to overlook. This is a huge intervention. The Prime Minister detailed that the Chancellor will come forward with costings at the emergency fiscal event that he is soon to present to the House. Alongside the tax reductions that have been mooted, plus other pressures on the public finance, it means that debt will almost certainly increase, as will the deficit. It has been stated that inflation will be assisted by these measures—that is true; inflation is just a measures of price rises relative to a previous period at a particular point in time. Although downward pressure on the consumer prices index from these freezes will be positive, it will be a stimulus to the economy and, through time, net inflation may increase. That will require a response from our central Bank, which might see interest rates increase in the more medium term, with increased servicing costs for our debt. We must see this very much in the round, and that is where the debate on the windfall tax should at least be considered. The Treasury Committee will be looking at that in some detail.

My final point, in my remaining 30 seconds, is that when it comes to the emergency fiscal event, it is critical that we have an Office for Budget Responsibility independent forecast to take into account all those issues—the great uncertainty we are talking about, and the huge fiscal interventions for which the costings have not yet been presented to us. We must see what the impact of that will be on the public finances in order to reassure the markets.

Health and Social Care

Mel Stride Excerpts

Tuesday 7th September 2021 Commons Chamber

[The Prime Minister]

People in the social care profession, overwhelmingly, are not paid by the Government as the hon. Member knows, but they are the beneficiaries of the living wage, which the Government have increased by record amounts. What we are doing is investing in their training, investing in their careers and making sure that they get the respect and the progression that they need.

[Mel Stride (Central Devon) (Con)]

The devil, as ever, will be in the detail. However, may I initially broadly welcome these proposals, particularly compared with what we were expecting, which was a rise across national insurance as it stands at the moment? This is a much broader-based levy: it includes those who have retired and those who are receiving dividends. It seems to me that that has a very welcome consequence; the broadest shoulders will pay the most. But can my right hon. Friend also address one of the criticisms of what we feared might have been brought forward today, which was the impact on the young in particular and this issue of intergenerational fairness, and how he feels that this approach is going to be useful in that respect?

[The Prime Minister]

I thank my right hon. Friend very much for his support, because it is extremely important, and I think he is completely right. We are trying to make sure that those who can pay the most do pay the most. We are trying to make sure that we address the issue of intergenerational fairness. But there is a bigger point, which I have made repeatedly. This is not something that simply affects one generation, the elderly. There are huge numbers of younger people in care who will benefit from what we are doing and every person in this country has relatives who face the problems that we are trying now to allay or to defeat.

His Royal Highness The Prince Philip, Duke of Edinburgh

Mel Stride Excerpts

Monday 12th April 2021 Commons Chamber

[Mel Stride (Central Devon) (Con) [V]]

Today’s tributes have demonstrated that there are few who have lived a life as full as that of The Prince Philip, Duke of Edinburgh. There are even fewer who have dedicated their life to the service of our country with such resolution and unwavering commitment. His was a long life that saw early service in the Navy in the second world war, where he served with distinction within both the Mediterranean and Pacific fleets. Before that, he graduated as best in class as a naval cadet at the Royal Naval College in Dartmouth, something of which we in Devon are particularly proud.

There could surely be few as active as he in support of both community and country. He was a patron, president or member of more than 800 organisations and he made over 22,000 solo engagements during the reign of Her Majesty the Queen. It was not until the age of 96 that he retired from royal duties. He truly did fill Kipling’s

“unforgiving minute with 60 seconds’ worth of distance run.”

He will be especially remembered for championing the environment, and of course, as we have heard, for the Duke of Edinburgh’s Award, in which hundreds of thousands take part every year, including many young people in my constituency, to develop their skills and mature into more confident, capable and caring people—to give them, as he termed it, a sense of responsibility to themselves and their communities. In my constituency, the Duke of Edinburgh’s Award is offered at all three of my secondary schools and it is embraced with vigour, with around 100 students at Queen Elizabeth’s School in Crediton alone completing an award in a typical year. Dartmoor, which lies at the heart of my constituency, has been the beautiful place of challenge where so many people from all over our country and from a huge diversity of backgrounds have embraced the Duke of Edinburgh’s dream, and millions of young people up and down the United Kingdom and across 140 countries around the world have much to thank him for. He changed lives, and that is a legacy of which to be especially proud.

Above all, however, our thoughts must be with Her Majesty the Queen and her family. Over 70 years of marriage, the longest serving British royal consort in our history and a long life as a supportive husband to Queen Elizabeth now leave what must be a terribly painful void. Our thoughts are with the Queen and all her family, and the thoughts of my family—of Michelle, Natascha, Ophelia and Evelyn—are with her, too. May the Duke of Edinburgh rest in peace.

Budget Resolutions and Economic Situation

Mel Stride Excerpts

Wednesday 3rd March 2021 Commons Chamber

[Mel Stride (Central Devon) (Con) [V]]

I broadly welcome this Budget, although I say that being aware that the devil is always in the detail of Budgets. We very much look forward to welcoming my right hon. Friend the Chancellor to the Treasury Committee on Thursday next week to look at that detail in more detail.

I totally applaud the measures that the Chancellor has taken in extending the bridge of support—the bridge between the crisis and the recovery. I think the measures he has taken around furlough, support for the self-employed and the extension of the VAT reduction, business rate relief and so on are all most welcome. I also very much welcome, as I and the Treasury Select Committee have been pressing for them for some time, the targeted elements that he has introduced.

As we come through this recovery, there is no doubt that certain parts of the economy will pick up quicker than others. Some businesses will do better than others, so I welcome the 30% turnover threshold that my right hon. Friend has introduced, so that he can more accurately target the relief where it is needed. That goes also for what I understand of his announcements on grants, and of course the VAT reduction extension that will help particularly hard-pressed sectors. I also welcome the investment that he has announced in areas of the country, many of which will have suffered particularly during the crisis. I think that is also welcome targeting.

        If I could turn briefly to the so-called excluded—those who have fallen through the gaps of support hitherto—I am a little disappointed not to have heard something by way of support for those directors working through their own limited companies, paying themselves by way of dividend, yet not having those dividends counted towards their entitlement for furlough. There have been new ideas explored by the Committee, and I would hope, even at this late stage, that the Chancellor will consider some of those ideas with the Committee next week. I was, however, extremely pleased to see that the new self-assessment tax information that has been taken on board—right up until, I think the Chancellor said, last night—will be taken into account in helping many of those who would otherwise have fallen through the gaps in support, some 600,000 in total.

I want to focus on three important areas for business and jobs, and comment on what the Chancellor had to say in that respect. The first is corporate debt. The situation is that the data shows that larger businesses have a great deal of cash in the bank, and it is perhaps not surprising that they have been cautious, that they have received quite a lot of support from Government and, of course, that a lot of them have not been investing. However, among small and medium-sized enterprises the picture is less clear. I have a concern that many of those businesses will struggle with the level of the debt that they have, that they will not be growing when we want them to be creating the jobs of the future and that they will be focusing on de-leveraging their balance sheets. I would like to see something from the Chancellor as to how that particular problem might be addressed. If it is not, the risk is that many of these SMEs will go out of business and markets will become more concentrated and less competitive as a consequence.

Secondly, on investment, I was hugely encouraged by what my right hon. Friend said about the super deduction. My own view was that there should be an increase in the annual investment allowance. It seems to me that this goes significantly beyond that. The devil will be in the detail, but certainly, if the kind of projections for investment that he has just outlined by way of the OBR’s figures are correct, as I understood them, this will be a huge shot in the arm for corporate UK and very welcome. I welcome the three-year loss carry-back arrangements—also something the Committee has pressed for.

My third point is around skills. I have been very impressed with all the announcements that have been made around encouraging apprenticeships, and there was more in the Budget statement just now. On the kickstart scheme, it is imperative that we get this right and that we maximise the efficiency of the transfer of parts of the labour force from those parts of the economy and businesses that are contracting to those that are expanding. I think the Treasury needs to play a very proactive role in making sure that those schemes are successful.

One of the big tests I set in my mind for my right hon. Friend’s Budget was to what degree he navigated successfully the requirement not to put up taxes too early and choke off growth, but at the same time making it very clear to the markets that he and the Government are serious about dealing with the deficit and debt in the more medium term. I have to say that, once again, I have been pretty impressed with what I have heard. I want to see the detail. However, it seems to me that the tax increases and the threshold freezes that my right hon. Friend has announced do not kick in straightaway but he has charted a clear road map for how those taxes and thresholds will be dealt with between now and the end of this Parliament.

If I could just say, on the issue of corporation tax, that it is quite a hike from 19% to 25%. However, we still will remain internationally competitive, and I believe that President Biden, during his campaign for the presidency, suggested US rates might rise from 21% to 28%. So I think, on balance, this is a reasonable move, given that none of the possibilities is particularly palatable, and I welcome the carve-out for small businesses through the small profit rate.

It was pleasing to hear from my right hon. Friend that the OBR’s current projections have improved, and that we are hopefully going to get back to pre-pandemic levels of economic output six months earlier than was thought in November. But of course we still, as he has identified, face a huge challenge going forward, not just around covid, but with the issue that we will have a smaller economy and less taxes that will be able to be raised. Of course, we have demographic pressures going way into the future, with an increasingly elderly population and the pressures that will put on our finances. My right hon. Friend knows that it is critical that we deal with these pressures in a timely manner, or interest rates will rise—and, as he has stated, a 1% rise would mean an eye-watering £25 billion increase in the cost of servicing our debt.

That brings me to the principles that my right hon. Friend has set out today: not borrowing to fund day-to-day expenditure at some point in the future; and having an eye to seeing the level of debt as a percentage of GDP decreasing over time. Those are welcome signals from my right hon. Friend.

I want to turn briefly to an issue that I think is an underestimated threat that has not been discussed enough in an economic context: a return of inflation. Andy Haldane, the Bank of England’s chief economist, has pointed to this risk recently. We know that if inflation increases and spikes, the Bank of England would need to tighten monetary policy to try to keep inflation under control. We would have bond markets in which the Government and the Bank of England were potentially both sellers, with increased upward pressure on interest rates and all that would follow.

Inflation might come through increased friction in global trade, and we have seen increased friction in trade with the EU27 as a consequence of Brexit. It could come through the exchange rate, although recent movements have been in a positive direction, as the virus is being clamped down on and our prospects have improved relative to other economies. Inflation could also come through increases in energy costs and the price of oil, or indeed the unwinding of some of the tax cuts, for example those relating to VAT.

But inflation could also come through the interplay between the supply and demand sides of the economy as we recover. On the supply side, it remains uncertain how quickly companies will bounce back. We know that many of them have been severely damaged. On the demand side, it is also the case that we will not know at this stage the extent to which consumers will re-engage with the economy in the way they did before the pandemic, even though the virus is diminishing. We also do not know what will happen to the huge amount of effectively enforced savings as people have been unable to engage in the economy in the usual fashion—perhaps up to £200 billion or £300 billion by the summer, the Bank of England has suggested. If a lot of that goes back into the economy quickly, it will have a huge stimulus effect. If very little does, clearly the opposite will be the case.

It is therefore absolutely right that my right hon. Friend is ready and prepared to use the fiscal levers as appropriate over the coming months. If he comes back to the House of Commons many times to do so, I think that should be seen as a position of strength, rather than weakness. I wish him well. The Treasury Committee will continue to be critical of him where appropriate, but also supportive in our common endeavour of putting the economy back on track.

In conclusion, I broadly welcome this Budget. It comes against the backdrop of one of the worst economic crises outside of wartime. Yet there is hope that springs from the past, and the strength that we held going into this crisis, of strong and stable financial institutions, record levels of employment, and hard-won improvements in our public finances. But now hope springs also, it seems to me, from the future: from the thousands of men and women—our scientists, health workers and volunteers—who appear to be on the brink of little short of a miracle, the wholesale turnaround in our country’s fortunes due to vaccination. Therefore, in broad terms I welcome my right hon. Friend’s Budget today, but I conclude by supporting each and every one of them.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Before I call the leader of the Scottish National party, I should give a slight warning that there will be an initial time limit on Back-Bench speeches of seven minutes, but that will quite soon be reduced to five minutes, and quite soon after that to three minutes, if we are to have a chance of allowing everyone to speak. For the moment, it will be seven minutes.

European Union (Future Relationship) Bill

Mel Stride Excerpts

2nd reading & 2nd reading: House of Commons
Wednesday 30th December 2020 Commons Chamber

[Mel Stride (Central Devon) (Con) [V]]

It has been quite a journey from the gridlock of the last Parliament to our consideration of this legislation on a new deal with the European Union today. I welcome it, and I join others in congratulating the Prime Minister on quite an extraordinary achievement.

Overall, this deal ticks all the boxes of zero tariffs on goods and zero quotas, and it brings back our sovereignty and control of our money and our borders. But as is always the case, it is in the detail that we will find the imperfections and the questions to be asked, and the Treasury Committee will be very active over the coming weeks and months in carrying out that scrutiny. We will look at questions around the level playing field and the issue of regulatory divergence. It remains to be seen how the mechanisms in this agreement will ultimately set the balance between fair competition and the pursuit of legitimate competitive advantage or allow for appropriate Government support for the sectors that we wish to develop further.

There are questions around the rules of origin. It has been pointed out that zero tariffs only apply provided the rules of origin are met. The fact that we have bilateral cumulation between the EU and the UK is welcome, but are these rules of origin too restrictive, and are the transitions around them—particularly, for example, for electric vehicles—adequate for the adjustments that will be required? There are questions around sanitary and phytosanitary regulations and around our access to services, which, on the face of it, looks pretty good in this agreement, but there are many annexes setting out exceptions.

There is also the critical issue of access for our financial services, which are such an important part of our economy. We await the memorandum of understanding with great interest and expectation. This is about not only the nature of how equivalence is set but whether the European Union has the ability to withdraw those arrangements and that equivalence at short notice, which could be so damaging to the sector. The Governor of the Bank of England will appear before the Treasury Committee before the recess is out to discuss those issues. Finally, there will be issues around trade frictions and how prepared or otherwise we are to deal with those over the coming weeks and months.

Today we move on. If we play it right, this will lead to better, not worse, relationships with our European neighbours. With that in mind, let us not lose hold of at least the vision of the EU’s founding fathers: that a continent that had been the crucible of two world conflagrations should live together in peace, co-operation and friendship. Let us never forget that. It is still a vision for all of us to live by.

Covid-19 Update

Mel Stride Excerpts

Monday 2nd November 2020 Commons Chamber

[The Prime Minister]

I am happy to provide all the scientific data on which these decisions have been made, but I think that the House will appreciate that for any particular human activity, one can always find an arguable exemption from these measures—or from many of them. The difficulty is that to be consistent and have a package that works, we need a thoroughgoing series of measures of the kind that we have described. I bitterly regret that we have to curtail for 28 days football clubs and sporting activities in the way that we are—I bitterly, bitterly regret it—but I believe that that is necessary to get the R down.

[Mel Stride (Central Devon) (Con) [V]]

This lockdown will inevitably have very serious consequences for our economy, and for the livelihoods of millions of people up and down the country, for many years to come. My right hon. Friend has rightly stated that he does not wish to see the NHS overwhelmed, but, equally, we do not wish to see the UK economy overwhelmed. Will he therefore agree that perhaps we need a more balanced debate about lockdown, involving both scientists and economists more prominently? With that in mind, would he consider the Government’s chief economic adviser—or similar economic expert—joining the Government’s scientific experts for the No. 10 press briefings?

[The Prime Minister]

I am grateful to my right hon. Friend for that point. I am not sure that I want to put the Government’s chief economic adviser through the experience of the press briefings, but we are always aware of the economic consequences and the downsides of what, alas, we are forced to do at the moment. That is why it is vital that we work together and get the R down below 1 again; it is only just above 1, and I do believe that we can do it by 2 December. We can then open up the economy again in the way that I know both he and I would like to see.

Covid-19

Mel Stride Excerpts

Tuesday 22nd September 2020 Commons Chamber

[The Prime Minister]

The comparisons with other European countries are actually illuminating, because the furlough scheme is far more generous than that of either Germany or France, or virtually any other country in Europe. What we will continue to do, as I have said repeatedly to the House, is to put our arms around the workers of this country to make sure that we help people throughout the crisis, but also, as I said before, to do everything we can to keep our economy moving and keep people in work wherever we can.

[Mel Stride (Central Devon) (Con) [V]]

I very much welcome the balanced and proportionate set of measures that my right hon. Friend has put together and recognise that these are very finely balanced and very difficult decisions for him to take. But lockdowns, as I think he recognises, destroy jobs and also personal wellbeing. The fact that lockdowns have damaged our economy means that in the years ahead a smaller economy will probably have serious impacts on the health of millions of people up and down our country. Does he recognise that, yes, we should listen very carefully to the epidemiologists, but we must also listen very carefully to the Treasury, to businesses and to economists?

[The Prime Minister]

My right hon. Friend is spot on. That is why we have to take action now to avoid the risk of having to take more drastic action later on that would do greater economic damage. That is the key point of what we are doing today.

Budget Resolutions

Mel Stride Excerpts

Wednesday 11th March 2020 Commons Chamber

[Mel Stride (Central Devon) (Con)]

There is no doubt that this Budget has been framed against one of the most challenging moments in this country’s economic history. As the Chancellor set out, many fundamentals of our economy are strong: record levels of employment; the lowest level of unemployment since 1974; low and stable inflation; and real wages that have risen over a two-year period. Nevertheless, the Chancellor was equally right to point to the huge challenges that lie ahead. He did not mention the trade deal that we are negotiating with the European Union, or—at least explicitly—the many accelerating challenges around climate change. Instead, he rightly and substantially focused on the challenge of coronavirus.

These challenges often emerge without much warning. In 2013, the then newly appointed Governor of the Bank of England, Mark Carney, was asked by the Treasury Committee about what he saw as the main challenges over the coming years, and he did not mention one of the three external challenges that I have just presented. These things come at us pretty fast and are sometimes very unexpected, and the Chancellor is to be congratulated on looking closely at those challenges, and coming up with robust responses.

None the less, at the heart of this Budget hangs an important question: are the fiscal rules to which we are working robust enough, and do the spending and taxation proposals in the Budget—we will, of course, pick over them in some detail over the coming hours and days— stack up in terms of maintaining the fiscal responsibility that the markets expect of us? I think the Chancellor said that he was fundamentally sticking to the rules in the Conservative party manifesto to ensure that day-to-day spending is in balance over a three-year horizon. I think the Chancellor also suggested that, given the OBR’s forecasts, in about 2022-23 the head- room around those rules would be something in the order of £12 billion. That is all well and good—that is a reasonable level of firepower—but he also pointed out that the impact of coronavirus will not, because the cycle of the Budget forecasting by the OBR will have had a cut-off about two weeks or more ago, have been taken fully into account. I suspect that one of the key questions we will be putting to the Chancellor of the Exchequer, when he appears before our Treasury Committee this time next week, will be to probe the figures around the headroom that is assumed in those particular numbers.

[John Redwood (Wokingham) (Con)]

Does my right hon. Friend not accept that in these very exceptional circumstances the rules have to be flexed for the temporary expenditure on the virus consequences, just as even the EU has said it to Italy, where Italy obviously has a very difficult problem?

[Mel Stride]

My right hon. Friend is absolutely right that we flex the rules to accommodate the circumstances. My point is that when we talk about headroom within our fiscal rules, we have to make sure that the number we are focused on is as accurate as possible. Given what is happening with coronavirus and the fact that the OBR struck its forecasts some time ago, the current forecasts are almost certainly already out of date.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Once again the OBR figures show a downgrade, so do today’s Budget announcements not mask a decade of failure of economic policy by the British Government?

[Mel Stride]

Quite the reverse. I began by pointing out that the fundamentals of the economy are strong. They certainly were not strong in 2010. We inherited something of a mess from the Labour party.

[Sir Desmond Swayne (New Forest West) (Con)]

Will my right hon. Friend reflect on the significant temptation that the Government can now borrow for 10 years at 0%?

[Mel Stride]

My right hon. Friend intervenes exactly as I am about to move on to just that point. I assume that the Chancellor is adhering to the rules set out in the manifesto. In other words, we will borrow up to 3% of GDP, subject to a cap in the event that the interest on that borrowing meets or exceeds 6% of the Government’s revenues. It seems to me, from what I have quickly scribbled on the back of a piece of paper, that the kind of figures for public sector net investment he envisages rolling out—I think he gave a figure of £110 billion by 2024-25—probably pushes us right up against that 3% level. I am looking at the Chancellor and he is kind of nodding, slightly at least, so I am assuming that that is broadly correct. The Select Committee will want to probe how sustainable that is, particularly in light of possible recasting of forecasts going forward.

The Chancellor also raised a very interesting point about how to categorise human capital as between day-to-day spending and investment. I know he will be looking at that very closely. I can assure him that the Treasury Committee will be also be looking at that very carefully to make sure it is a rational and sensible thing to do, and not in any way shuffling the figures around to spend more and break existing arrangements. The announcements on greater spending on housing, green investment, flooding arrangements, roads, rail and the A303—thank you for what you are doing for the south-west, Chancellor—are all important, particularly given our historically low levels of productivity.

[Caroline Lucas (Brighton, Pavilion) (Green)]

There has been plenty of green rhetoric in the Budget for sure, but Treasury decisions continue to drive the climate emergency. There will be a freeze on fossil fuel duty, over £20 billion for new roads, compared to just £1 billion on green transport, and no commitment to removing the climate-destroying duty to maximise the economic recovery of fossil fuels. Does the right hon. Gentleman not agree that when it comes to showing how muddled he is on green issues, the Chancellor is absolutely getting it done?

[Mel Stride]

I am afraid I have to completely disagree. To give them credit, the Government were in the vanguard of making the commitment to net zero by 2050. Indeed, the Chancellor made a very important announcement just now about a huge investment in carbon capture and storage, which could be a part of further revolutionising the production of power and energy in our country, and making sure it is greener.

Turing briefly to the remarks the Chancellor made in respect of the Green Book and how investments are analysed, it is very important that we get that right, not least in encouraging green investment. The Chancellor might want to look at the kind of discount rates we apply to green investment propositions to make sure that the Government are encouraged to invest upfront rather than further back in time. On levelling up, the Green Book needs to accommodate the fact that we need to get away from the natural returns we get in London and the south-east, and get investment out into the regions, particularly the south-west of England. [Interruption.] I see the Chancellor nodding again. That all helps to meet our net zero quest.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I am very grateful to the right hon. Gentleman, a fellow member and Chair of the Treasury Committee, for giving way. Does he agree that while there should be a rebalancing, it is important to recognise that inequality has to be tackled in cities like London as well as in towns and across the country? For instance, my constituency has the highest rate of child poverty in the country. We need a much more nuanced and granular response to inequality. Will he say something about the fact that the Chancellor has left out much-needed investment in local government? The investment in housing is welcome, but it needs to go a lot further to tackle the housing crisis.

[Mel Stride]

On where the investment is going, I have yet to pore over the granular detail, as the hon. Lady suggests, in the Red Book. What I do know, with regard to looking after the less advantaged and the lowest paid in our society, is that important reference was made by the Chancellor to the increase in the national living wage, worth £1,000 a year. Of course, this is a Government who increased the personal allowance, taking millions of people, particularly the lowest paid, out of tax altogether. The changes to the threshold of national insurance contributions to £9,500 will also serve that particular purpose.

Turning to the support that the Chancellor has identified for small and medium-sized enterprises, this is absolutely vital and lies at the core of how we will cope, or otherwise, with what is to follow over the coming weeks and months. We face both a supply and demand-side effect for SMEs. The Bank of England dropped the base rate by 0.5% today, which was clearly co-ordinated with the Budget, and made changes to the counter-cyclical buffers that banks have to hold. That is all well and good and will help banks to put more money into those businesses, but the real issue will be around the fiscal measures that the Chancellor has announced, particularly relating to business rates, time-to-pay arrangements and the deferral of taxation.

I will just say to the Chancellor that the Committee will look at three particular aspects, the first of which is how quickly help can be got out there and whether HMRC is spring-loaded to ensure that businesses are aware of what is available and how to take advantage of it as quickly as possible. I am encouraged by his comments about the helpline. Secondly, is it enough support? That needs to be monitored very carefully. Finally, there is the targeting aspect. Businesses in particular sectors are hurting more than others. We need to make sure that additional help is provided for them, just as we did in similar circumstances in the 2001 foot and mouth crisis, when the agricultural sector needed support. We need to recognise that there are particular types of businesses in that situation.

I am conscious of the time that I have taken and the fact that other Members will want to come in, so I will end by touching on a specific measure that the Chancellor raised: entrepreneurs’ relief. He has taken a brave step, and the right step, in that respect. He is absolutely right that making the changes that he suggested—a reduction from £10 million to £1 million—is not about beating up on the self-employed or entrepreneurs; it is about making sure that tax reliefs are fit for purpose. The changes that he has made, including the increase in R&D tax credits, the more generous treatment in the structures and building allowance and the changes in the employment allowance, will be much more meaningful and powerful in supporting small businesses than entrepreneurs’ relief ever was.

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

Does the right hon. Gentleman share my concerns that the Chancellor is not doing enough to tackle the problem of the quality of social care, given that he barely mentioned it in the Budget statement and that 87 people a day die waiting for the care that they need?

[Mel Stride]

The Prime Minister has been consistently clear that we will engage with other parties over the issue of social care, and those discussions will occur. My plea to the House is that people do not seek to take political advantage of the situation and that they engage in a constructive manner.

Finally, the fundamental review of business rates is most welcome. We know why business rates have generally been there—they are easy to collect and it is difficult for tax avoidance and so on to occur—but they are a huge burden on many small and medium-sized enterprises up and down the country. There was no mention in the Chancellor’s remarks of the digital services tax, and I hope I can take that to mean that we are going ahead with that—he is nodding—in the matter of a short few weeks. It is right that we do that.

Google, Facebook and Amazon—those kinds of businesses—need to pay fair taxes in our country. It is not a case of tax avoidance, but of the international tax regime being unfit for the 21st century. We have to get away from attributing tax rights simply to where the bricks and mortar, the people and the intellectual property are, and where management decisions are taken, and look more at where value is created. In the case of those businesses, a huge amount of that value is created here and we must tax it appropriately. I know the Americans will apply quite a lot of pressure and have done so already, but I urge him to stand up to that. We have engaged multilaterally with the OECD and the European Union for the preferred outcome of a multilateral approach, which will avoid double taxation problems and issues associated with going unilaterally, but we have waited too long. We must not, like other countries, step back under pressure. We must go forward with that tax as of the start of the next tax year.

I say to the Chancellor that we in the Committee are his candid friends and we look forward to working with him. Given the kind of pressures and difficulties for our economy and our country at the moment, we are, right across the House, all in this together, and we look forward to him appearing before our Committee on Wednesday next week.

[Several hon. Members rose—]

Oral Answers to Questions

Mel Stride Excerpts

Wednesday 8th January 2020 Commons Chamber

[Mr Jack]

Yes, my hon. Friend makes a good point. Today’s The Herald highlights the fact that accident and emergency waiting times have deteriorated in Scotland to a record low, with record numbers of patients now waiting more than 12 hours to be treated.

[Mel Stride (Central Devon) (Con)]

4. What recent discussions he has had with the Scottish Government on the block grant.

[The Parliamentary Under-Secretary of State for Scotland (Douglas Ross)]

Ministers and officials have regular discussions with the Scottish Government on many issues, including the block grant. The latest spending round gave the biggest funding settlement for the Scottish Government in a decade, with an extra £1.2 billion to help grow the economy and invest in our vital public services across Scotland.

[Mel Stride]

Will my hon. Friend reassure the House that, at the upcoming Budget, Scotland will receive its fair share of funding through the Barnett formula and, further, that the commitments made by the previous Government on the eight city and regional deals will be honoured in full?

[Douglas Ross]

I can reassure my right hon. Friend that Scotland will receive fair funding thanks to the block grant and the Barnett formula, and that will continue. On city and growth deals, we are already investing £1.4 billion across Scotland and we are committed to a deal in every part of the country, including in my own area of Moray, where we agreed to £32.5 million from the UK Government matched by the Scottish Government, making this the highest funded growth deal per head of population anywhere in the country. That is a sign to constituents across Scotland of what Scotland’s two Governments can do when they work together.