Oral Answers to Questions

Mel Stride Excerpts

Tuesday 9th March 2021 Commons Chamber

[Rishi Sunak]

With regard to VAT, I am sure the hon. Lady knows that the majority of businesses in the personal care sector are below the VAT threshold, so they do not actually pay any VAT. What we did do is include that sector in the more generous restart grants, so, depending on their rateable value, businesses in that sector, like those in hospitality, will be able to receive grants of up to £18,000.

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

I very much welcome my right hon. Friend’s announcement in the Budget of the super deduction, which will definitely have a very positive impact on investment. Of course, it will primarily do that by pulling forward what would have been future investment into a more recent time period. What measures is my right hon. Friend looking to, to ensure that that increase in corporate investment in the shorter term is continued into the medium and longer term?

[Rishi Sunak]

I am glad my right hon. Friend recognises the importance of the super deduction. He is right that it will bring forward investment, but I believe it will also increase the amount of investment as well, given the attractiveness of doing so. What I would point him to are a couple of other announcements in the Budget. One is a consultation to reform our research and development tax credits regime, which we hope to conduct over the course of this year to make sure of support for investment in R&D in a way that reflects current R&D practices. Secondly, our freeports agenda contains enhanced capital allowances, and structures and building allowances, which last well beyond the period of the super deduction and will serve as an incentive for capital investment in those areas for years to come.

Oral Answers to Questions

Mel Stride Excerpts

Tuesday 26th January 2021 Commons Chamber

[Rishi Sunak]

As an accountant herself, my hon. Friend knows all too well the fantastic job that these people are doing, under enormous strain, at this current time. I know that, as she said, she warmly welcomes the announcement yesterday by Her Majesty’s Revenue and Customs to waive penalties until the end of February for late filers. She is right to say that we must make sure that everyone is aware of this, and we are doing everything we can, on all our channels of communication, to get this news to businesses. I ask other colleagues across this House to do exactly the same in their constituencies.

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

There is a looming bloodbath for many businesses at the end of March, when the moratorium on commercial landlords taking action against tenants in arrears comes to an end. Does my right hon. Friend recognise that acute danger? What action might he consider taking to avoid it?

[Rishi Sunak]

My right hon. Friend knows that the Secretary of State for Housing, Communities and Local Government is engaged with that issue and has worked with the industry to put in place various codes of practice to encourage good and constructive dialogue between landlords and tenants throughout a difficult situation. There are promising signs that that is happening.

Oral Answers to Questions

Mel Stride Excerpts

Tuesday 1st December 2020 Commons Chamber

[The Chancellor of the Exchequer (Rishi Sunak)]

The economic impacts of coronavirus and the substantial fiscal support provided have meant a necessary increase in our deficit and debt levels this year. That is the right thing to do to combat the pandemic, but once the economic recovery begins and uncertainty recedes, we will return our public finances to a sustainable and strong position.

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

There are reports that the Treasury has created an economic impact analysis, providing significant detail on the effect of coronavirus across the various sectors of the economy. For each sector, this analysis allocates red, amber and green ratings for revenue, jobs and financial stability. Given the vote tonight, may I ask my right hon. Friend why that analysis has not been published?

[Rishi Sunak]

My right hon. Friend will have seen the analysis we did publish, which talked specifically about sectoral impact. In the document, there were specific links to the various places that people can find GVA and employment by sector and, indeed, the financial resilience of local businesses at some stages by sector and by region. It is that analysis, as we have said, that will determine the particular economic impact in an area. That information is all provided in the report for people to look at.

Spending Review 2020 and OBR Forecast

Mel Stride Excerpts

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

I will address all the points made by the hon. Lady in turn, but it is important to note, up front, that despite her criticisms, there is actually a lot that she and her Opposition colleagues should welcome: more funding for public services; a pay increase for NHS workers; support for those on the lowest incomes; a once-in-a-generation investment in infrastructure; a multi-billion pound commitment to support those looking for work; a new schools building programme; and the Prime Minister’s 10- point plan. I could go on, Mr Speaker.

It is right that the hon. Lady should provide challenge, but I think, even if she does not, that the British people will judge this spending review as a reflection of their priorities: protecting jobs, defeating coronavirus, strengthening our public services and upgrading our infrastructure. If there is any politics here at all, surely it is unifying, and I think that, deep down, she will recognise that.

Let me address the specific points. The hon. Lady asked about pay and the importance of consumption, and I agree that of course there is an impact on consumption from pay. She will know that the marginal propensity to consume is obviously greater the lower down the income spectrum you go, which is why, in particular, we have protected the incomes of those on lower incomes.

Anyone in the public sector earning less than the UK median salary of £24,000 will receive a pay rise of £250 or more. Taken together with all the other things we have done, including giving a pay rise for those who work in the NHS, this will mean that the majority of public sector workers will see an increase in their pay next year. Also, pay progression and promotions—all of that—will carry on. We have increased wages for those on the national living wage: an extra £345 a year, as the wage rate goes up to £8.91. That, again, will help to drive consumption.

The hon. Lady rightly talked about delivery. We believe very firmly in making sure we can deliver the change we promised the British people. The Chief Secretary to the Treasury, my right hon. Friend the Member for North East Cambridgeshire (Steve Barclay) and I chair something called project speed, which is already delivering benefits, with plans for the landmark A66 upgrade shortened in time and reduced in cost, so we can get on with delivering what the people want on time and on budget, making a difference in their communities.

The hon. Lady asked about the levelling up fund and, I thought rather bizarrely, seemed to suggest that local Members of Parliament were not a good reflection on their local communities and able to articulate the local needs of their communities. I say to colleagues on the Opposition Benches that I am more than happy to hear from them and their local areas about the needs that they want met, because this Government will meet the needs of local communities up and down the country.

The hon. Lady talked about support for businesses during coronavirus. We have already put in place support through this winter period. The local restrictions grants we announced a while ago are paid monthly and they work. If your business has been closed, you will receive a grant of up to £3,000 per month depending on your rateable value. If you are a hospitality, leisure or accommodation business in a tier 2 area, where obviously the restrictions have an impact on your ability, you will receive a grant of 70% of that value up to £2,100. Those amounts mean that the business can help to cover the fixed costs of rent. They, of course, have access to the furlough scheme right the way through winter.

That comes on top of the other recent support announced for businesses. Today, I announced major reforms to the way the apprenticeship system works, giving businesses what they have long asked for: the flexibility to spend unused apprenticeship levy funds down the supply chain with small and medium-sized enterprises, and the ability to frontload payments for training. We are also looking at ways to introduce even more flexibility for some professions. We also recently announced an extension of the annual investment allowance for a further year up to £1 million, giving 98% of small and medium-sized businesses the ability to write off investments in full next year, which will help to drive their recovery.

The hon. Lady talked about welfare. Again, I stand proud of this Government’s and previous Conservative Governments’ record on this issue since 2010: hundreds of thousands fewer people in absolute poverty; several hundred thousand fewer children living in workless households; and income inequality lower coming into this crisis than when we first came into office.

This Government care greatly about those who are most vulnerable. We have demonstrated that during this crisis by the support we have put in place. The evidence shows that those on the lowest incomes have been protected the most by this Conservative Government. And that does not stop. The temporary uplift in universal credit runs all the way through to next spring, providing security for those families. Of course we will look, when we come to next spring, at the best way to support people and their families when we have a better sense of where the economy is and where we are with the virus, but we are providing extra support for next year: £670 million to help struggling families meet their council tax bills, worth about £150 each for families up and down the country. We also said we will maintain the £1 billion increase in the local housing allowance that we instituted this year into next year, providing support for many millions of families. We are also making available further funds, as the House knows, to provide extra support for food and meals for children throughout the holidays next year.

The hon. Lady talked about support for local authorities. Perhaps she has not seen it yet in the document—that is fair enough—but we announced over £3.5 billion of extra support for local authorities next year specifically to deal with coronavirus. That comes on top of their core spending power increasing at decade-level highs of 4.5%. That £3.5 billion is there to help to meet the shortfall in sales fees and charges, and the unrecoverable losses in business rates and council tax that they have experienced this year, as well as £1.5 billion for general pressures. Let no one say that we are not standing behind our local authorities at this difficult time.



Finally, the hon. Lady asked about green issues. I think she compared us with France and Germany and questioned this Government’s and the Prime Minister’s ambition. Let me say this about our plans. They are, I believe, among the most comprehensive and ambitious of any developed economy. She talked about France and Germany, but in this country we are phasing out certain vehicles in 2030; in France, it is 2040. In this country, we are phasing out coal in 2025; in Germany, it is 2038. She talked about the billions of pounds being spent by our friends, but it is important when we make these international comparisons that we understand the detail of what the other countries promise. The German numbers include the subsidies for renewables; ours do not. That happens separately outside our plan and is worth £44 billion, supporting renewable energy in this country through the tariff system, which is what Germany alluded to. The German numbers also include support for public transport, which ours of course do not, because that is something we do just in the ordinary course of business. I am proud of this Conservative Government’s record. We are the first major economy in the world to legislate for net zero, and our economy has decarbonised faster than any other in the last 20 years. This Conservative Government will deliver the Prime Minister’s plans to get us to net zero, and that is something that I hope the whole House can welcome and support.

In conclusion, this spending review puts the full force of the Government behind the priorities of the British people, and while we may have many disagreements with the Opposition, I am confident that, in private at least, they will recognise the significant investment we are making to protect jobs, strengthen our public services and improve our infrastructure. We in this House are all answerable to the people we represent, and it is in their interests that we serve. Today, we have made some difficult choices to fulfil that responsibility, but with the positive news about the development of vaccines, the winter covid plan being announced by the Prime Minister and the very real hope that we are finally entering the final stages of our fight against coronavirus, now is the time for us to come together. The British people have been through so much this year, as have right hon. and hon. Members, and it is my belief that, with this spending review and the fresh hope given by medical advances, we can finally begin our recovery. Now, difficult decisions and all, we must deliver on the priorities of the British people.

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

I very much welcome many of the positive measures that my right hon. Friend has just announced. However, he has inevitably revealed some of the more difficult decisions that he has to make around a reduction in overseas development aid and the freezing of public sector pay next year—not across the board but on a selective basis—and there will be many difficult decisions of that type around spending and taxation in the future. Does he agree that, in terms of dealing with the deficit, it is not just about spending and taxation but also very much about growth? Does he also agree that we should look to private sector businesses and entrepreneurs to provide that growth? Can he set out how he is going to ensure that, as we come out on the other side of the crisis, businesses and entrepreneurs are given every possible support and freedom to power our economy forward over the years ahead?

[Rishi Sunak]

I completely agree with my right hon. Friend that we will build our recovery through the dynamism of the private sector, and he is right about the power of entrepreneurship. Probably the most important thing we can do in that regard is to make it as easy as possible for businesses to take on new people. He will have heard about the unemployment numbers. We want to get as many of those people back into work as quickly as possible, so we will be looking at how we can make that as easy as possible for those dynamic businesses that are growing. At a very micro level in this spending review, we have also announced more funding for our start-up loan scheme, which provides discounted Government-backed loans of up to £50,000 for budding entrepreneurs to start their new businesses at the smallest level. I hope that that is something that he will support.

Economy Update

Mel Stride Excerpts

Thursday 5th November 2020 Commons Chamber

[Rishi Sunak]

I thank the hon. Lady for her questions. The claim that our action was too late is, in the words of the Government’s own medical advisers, a misapprehension, because there is no perfect moment at which to enact measures that have far-reaching and damaging consequences for the people and businesses of our country. We should only enact such measures when it becomes truly unavoidable. It is also entirely false of Labour Members to claim that things would somehow be different if only we did what they suggested, because they could not actually explain what their position was. At first, it was a circuit breaker for two weeks. Then it was an intervention that might last longer—I think yesterday we heard three weeks—and then it was something that would need to be reimposed again and again and again. That is not a plan that would support the businesses and people of this country.

The hon. Lady asked about the NHS. We have provided the NHS with tens of billions of pounds to ensure that they can do the very valuable job that they are doing, and they will have our full support over this difficult winter period. She asked about support for local authorities. We have provided just over £1 billion to give local authorities the ability to support their local businesses and economies through the winter period, on top of the direct support that those closed businesses will receive. She also asked about supporting local track and trace efforts. I agree that that is important, which is why we have provided, on a transparent funding formula, almost half a billion pounds to local authorities to ensure that they can carry out enforcement, compliance and local contact tracing at the level that they need.

The hon. Lady called for a six-month plan, yet she and her party have not put forward a six-month plan of their own, and I understand why. It is because they know—as most Members of this House, and most people and businesses in the country, know—that we are dealing with a once-in-a-century event. They know—as most Members of this House, and people and businesses up and down the country, know—that in the face of such an unprecedented crisis, the Government must be flexible to ever-changing circumstances. It is not a weakness to be agile and fast moving in the face of a crisis, but rather a strength; and that will not change.

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

I agree with my right hon. Friend that taking an iterative approach to these problems as circumstances change is a strength rather than a weakness, but may I just focus for a moment on the lockdown itself? As my right hon. Friend will know, the minutes of the SAGE meeting held on 21 September stated:

“Policy makers will need to consider analysis of economic impacts and the associated harms alongside this epidemiological assessment. This work is underway under the auspices of the Chief Economist.”

My right hon. Friend knows that I wrote to him asking that the analysis referred to in those minutes be provided prior to the vote on lockdown that was held in the House yesterday, as this would have helped to inform that debate. The reply that I received did not provide the information requested, so will he confirm that the SAGE minutes are accurate when they state that the Treasury has worked on this analysis under the auspices of its chief economist? If they are accurate, will he confirm that the Treasury will release this analysis without delay?

Lockdown: Economic Support

Mel Stride Excerpts

Tuesday 3rd November 2020 Commons Chamber

[Mr Speaker]

Let us enter Central Devon with the Chair of the Select Committee on the Treasury, Mel Stride.

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

I broadly welcome the new measures that the Government have brought forward to support jobs and, in particular, the increase in support for the self-employed from 40% to 80% under the self-employment income support scheme arrangements. However, as my right hon. Friend will know, the Treasury Committee produced a report earlier this year in which we identified more than a million individuals—the self-employed in particular—who were missing out on support. Will he update the House on whether, under the new measures, any of those identified in the report will receive support where they were not before? If the answer is no, why is that the case?

[Steve Barclay]

My right hon. Friend is right to point to the fact that some were not covered. In fact, that has been an area of much debate within the House. He will understand that there is a distinction to draw between employees who, because their details had not been notified to HMRC at the cut-off point last time, were excluded, and those who because of the furlough extension will be included moving forward, so some of that population cohort are covered.

In respect of the self-employed cohort, my right hon. Friend will be aware that we have so far offered over £30 billion of support to the self-employed, which is generous by international standards. He knows, however, that, within that, there are different cohorts. There is the cohort relating to company directors, where the issue remains the same: what is dividend income and what is not. He will know that another part of that group is those earning above £50,000, and we made a decision to target support below that threshold. He will know that some people are self-employed but that is not the majority of their income—less than 50% is through their being self-employed—and that we targeted funding at those for whom self-employment was their main provision. So there are different cohorts within the excluded population, but those who were employed will be covered by the furlough extension.

Covid-19: Economy Update

Mel Stride Excerpts

Thursday 22nd October 2020 Commons Chamber

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

I welcome my right hon. Friend’s statement. Once again, he has listened to businesses. When it comes to lockdowns—I have to say that I agree with the remarks he has just made about circuit breakers—may I draw his attention to the minutes of the Scientific Advisory Group for Emergencies meeting on 21 September, which state:

“Policy makers will need to consider analysis of economic impacts and the associated harms alongside this epidemiological assessment. This work is underway under the auspices of the Chief Economist.”?

Will my right hon. Friend update the House on the progress that has been made by the chief economist? Does my right hon. Friend agree that, to ensure a balanced public debate, the chief economist or a similar economic expert should join the epidemiologists for No. 10 covid press briefings?

[Rishi Sunak]

My right hon. Friend is absolutely right. The Opposition referenced the SAGE minutes but seemed to forget about that part of them, which rightly struck a balance between protecting jobs and protecting lives. He can rest assured that the Government will always do that. I may spare the chief economist the pleasure of attending the press conferences, but my right hon. Friend is right to say that that analysis is taking place. I have presented some of it at the press conferences, and I am happy to talk more about it at the Dispatch Box.

Fundamentally, my right hon. Friend knows, as I do, that our economy faces enormous strain. Almost three quarters of a million people have already lost their jobs, and, sadly, more will. That is why a regional, targeted approach is the right one. It allows us both to protect lives and to protect livelihoods.

Oral Answers to Questions

Mel Stride Excerpts

Tuesday 20th October 2020 Commons Chamber

[Rishi Sunak]

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

[Rishi Sunak]

Public Health Restrictions: Government Economic Support

Mel Stride Excerpts

Tuesday 13th October 2020 Commons Chamber

[Steve Barclay]

indicated assent.

[Mel Stride (Central Devon) (Con)]

My right hon. Friend and the Chancellor of the Exchequer have done a great deal to support the economy, but there has to be a careful balance struck between protecting against the virus and avoiding further economic destruction. With that in mind, what scientific evidence has the Treasury received that closing pubs at 10 pm gets that balance right?

[Steve Barclay]

We have to balance the evidence that the Government receive from a range of quarters. My right hon. Friend will recall that when the initial advice from the Scientific Advisory Group for Emergencies was put forward, the Government came forward with a range of measures, such as the rule of six and the curfew. Indeed, if we look at the projections that were made at that time, we see that we could potentially have had 49,000 or so daily cases by 14 October when in actual fact the figure on that date was 12,872. That indicates the fact that the package of measures put in place by the Prime Minister and the Chancellor of the Exchequer have had an influence. However, listening to the SAGE advice, it is recognised that we need to go further and that is why the tiered approach has been set out.

Areas with Additional Public Health Restrictions: Economic Support

Mel Stride Excerpts

Tuesday 6th October 2020 Commons Chamber

[Steve Barclay]

The shadow Chancellor almost implies that the resurgence of the virus is unique to the United Kingdom, yet anyone who looks across the continent will see that many other countries, as we come out of the summer period, are seeing exactly the same trend and are dealing with it in in many of the same ways as we are in the United Kingdom.

The hon. Lady says that support has not been offered to those suffering from economic harm, but that ignores, for example, the announcement that I made in the Chamber some weeks ago about the £1,500 of support for businesses for every three weeks of closure as the result of a local lockdown—[Interruption.] Hon. Members should let me answer, rather than chuntering from a sedentary position.

The hon. Lady also ignores the fact that my right hon. Friend the Chancellor has extended many of the measures that we introduced in our initial response, including the package of loans, the tax deferrals and pay as you grow. Those are universal offers to support businesses, irrespective of whether they are in areas of acute lockdown or otherwise.

As I said at the start, and as my right hon. Friend the Chancellor said yesterday, we will keep listening, and we will keep striving to be creative in response to the challenges that we face. Where we can, he will act. That shows our willingness to adapt. The package of measures that my right hon. Friend the Chancellor brought to the Chamber just a few days ago, with the winter plan, illustrates that willingness to listen, to evolve and to respond to the virus, as the economic needs of the country dictate.

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

Local restrictions are inevitably impairing many thousands of businesses in those areas, but some businesses are not just being impaired: because of the regulations, they are simply unable to trade. I am thinking about many companies in the hospitality sector—events companies, hotels, nightclubs and many more. Would my right hon. Friend recognise that and come forward with a specific set of support packages for those businesses, which the regulations basically stop dead in their tracks? In that way, the many thousands of jobs in those businesses, which are otherwise entirely viable, can be saved.