Paradise Papers

Nicholas Dakin Excerpts

Monday 6th November 2017 Commons Chamber

[Mel Stride]

The Government are leading the way in exactly that endeavour. As I said earlier, a very important point to note is that we have a multilateral approach to this issue, and we are working hard at delivering on it.

[Nic Dakin (Scunthorpe) (Lab)]

Most people have not heard of dollar-denominated trading, but they look at this matter and see one rule for the rich and powerful and another for the weak and vulnerable. Surely the way to lance this boil is to provide full transparency, which means making information publicly available rather than people having to ask about British overseas territories.

[Mel Stride]

I have explained about the transparency that we need. We need to ensure that HMRC obtains the information that it requires to satisfy itself that the dealings in those territories are being carried out appropriately, and that is exactly the position that we are working towards at present.

Budget Changes

Nicholas Dakin Excerpts

Monday 21st March 2016 Commons Chamber

[Mr Gauke]

My hon. Friend reminds me about 2007 and 2008. There is a distinction between the two Governments: whereas Gordon Brown doubled the tax rate on low earners, we have abolished tax for low earners.

[Nic Dakin (Scunthorpe) (Lab)]

Some £4.4 billion seems to have fallen out of the Budget. Will the Minister confirm that that is the case? When is the Chancellor going to come here and tell us where he is finding the money?

[Mr Gauke]

If the hon. Gentleman is worried about black holes in the public finances, he really ought to have a word with his own Front Benchers.

Oral Answers to Questions

Nicholas Dakin Excerpts

Tuesday 1st March 2016 Commons Chamber

[Dr Roberta Blackman-Woods (City of Durham) (Lab)]

2. What recent assessment he has made of the potential effect on the economy of the UK leaving the EU.

[Nic Dakin (Scunthorpe) (Lab)]

12. What recent assessment he has made of the potential effect on the economy of the UK leaving the EU.

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

My responsibility as Chancellor is for jobs, livelihoods and living standards. It is clear to me that a UK exit from the EU would be a long, costly and messy divorce that would hurt all those things. We have already seen sterling fall, and yesterday HSBC predicted a further 15% to 20% slump in the event of a vote to leave. The finance Ministers and central bank governors of the G20 concluded at the weekend that a British exit would cause an economic shock not just to the UK but to Europe and the world. What people are asking for in this referendum campaign is a serious, sober and principled assessment from the Government setting out the facts. I can announce today that the Treasury will publish before 23 June a comprehensive analysis of our membership of a reformed EU and the alternatives, including the long-term economic costs and benefits of EU membership and the risks associated with an exit.

[Mr Osborne]

Yes, I agree with both the hon. Lady and businesses in the north-east. Of course, the north-east has thrived by attracting big inward investment for car manufacturing and train manufacturing, most recently in Newton Aycliffe. One of the things that those who are advocating exit from the EU have to answer is, for example, what the alternative arrangement is for a large car factory in north-east England. Could it export its cars to mainland Europe without tariffs? It is not obvious that it is possible to do that without paying towards the EU budget and accepting the free movement of people.

[Nic Dakin]

Will the UK steel industry have a brighter future if we remain in the EU or if we leave the EU?

[Mr Osborne]

I believe that the best way to help the UK steel industry is both to take action at home and through being part of a large economic bloc—in other words, the European Union—raising our concerns about, for example, Chinese steel dumping. Frankly, when we make that argument with China, our voice will be amplified if we make it as part of the EU as opposed to making it alone.

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[Harriett Baldwin]

I am aware of the points my hon. Friend has raised in Westminster Hall and obviously I am keen for our system to have a tough set of rules on conduct in the banking system. I would welcome the opportunity to meet him to discuss these specific allegations in more detail.

[Nic Dakin (Scunthorpe) (Lab)]

T10. If the Chancellor believes that a strong steel sector is fundamental to a strong northern powerhouse, what steps is he taking to level the playing field for the steel industry, the foundation of our manufacturing and defence industries, so that it can have a prosperous future to match its prosperous past?

[Mr Osborne]

The steel industry faces a big challenge at the moment, and that is true in many other countries in the world, as the price of steel has collapsed. We have taken a number of steps to ensure the level playing field that the hon. Gentleman speaks of. First, we have taken the industry out of the energy levies that were imposing additional costs on it. Secondly, we have made sure that local areas that have had redundancies get the support they need. Thirdly, we have changed our procurement rules so that we can make sure we are buying British steel and taking into account the social impact of those steel purchases in making our value-for-money assessments. Fourthly, as I said in reply to an earlier question from him, we are working, through our partners in the EU, to make it clear that we do not and cannot support Chinese steel dumping, and that we need to take action against it.

HMRC and Google (Settlement)

Nicholas Dakin Excerpts

Monday 25th January 2016 Commons Chamber

[Mr Gauke]

My hon. Friend has made an important point. The way in which to change the culture of multinational companies—and, indeed, we have already started to see signs of such a change—is to take the action that we have taken in implementing the BEPS recommendations and introducing a diverted profits tax. Those are the achievements of this Government.

[Nic Dakin (Scunthorpe) (Lab)]

I really cannot believe that the Government see this deal as a major success. Why are they so supportive of sweetheart deals for companies like Google, but so slow and reluctant to address the business rates burden on the steel industry?

[Mr Gauke]

As I have said, we are reviewing business rates, and, in fact, we have cut them by £1 billion in recent years. I should add that there is no sweetheart deal. HMRC does not undertake sweetheart deals. What it undertakes are thorough inquiries, and when companies accept their liabilities, those inquiries can be brought to a conclusion. However, we are ensuring that HMRC succeeds in delivering the revenue that is due under the law.

Oral Answers to Questions

Nicholas Dakin Excerpts

Tuesday 1st December 2015 Commons Chamber

[Nic Dakin (Scunthorpe) (Lab)]

What consideration has been given to doing something about business rates to support the steel industry in line with the outcomes agreed at the steel summit, which was chaired by the Secretary of State for Business, Innovation and Skills?

[Mr Gauke]

My right hon. Friend the Chancellor made it clear that the business rates review, which we have been undertaking in recent months, will be completed next year. Obviously, we are looking at all the representations that we receive in the context of that review.

Spending Review and Autumn Statement

Nicholas Dakin Excerpts

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

I can give my hon. Friend that assurance. I thank him for what he said about the fact that we have had a very constructive dialogue. I have always been prepared to listen to the concerns that my hon. Friend raises, which I always think are heartfelt. On the Humber, we worked together to cut the bridge tolls, to get the enterprise zone, to get the Siemens factory there and to get the new roads to places such as Immingham. On the flood defences, I know that this has taken time, but we are trying to work on a sustainable solution that will protect the businesses of the Humber estuary. I know that he feels very strongly about it, as does my hon. Friend the Member for Cleethorpes (Martin Vickers), his neighbour. Let us work together and see if we can move forward with the Environment Agency. It has a rigorous way of assessing these projects. Let us try and make sure that the scheme meets those assessments.

[Nic Dakin (Scunthorpe) (Lab)]

When the Chancellor says that he will permanently exclude energy-intensive industries such as steel from environmental taxes, is he including the carbon floor tax which the Government unilaterally introduced in previous years?

[Mr Osborne]

The exclusion on the energy bills is for the various tariffs, such as feed-in tariffs. We are announcing at the Budget the results of our long-term consultation on energy taxes—we announced at the Budget earlier this year that it would take place—so we will have an answer for the hon. Gentleman then.

Finance Bill (First sitting)

Nicholas Dakin Excerpts

Thursday 17th September 2015 Public Bill Committees

[Mr Gauke]

I would draw a distinction between a Government who had no reputation for fiscal responsibility seeking to obtain such a reputation by passing such legislation and a Government who have a record of controlling income tax by increasing the personal allowance and not increasing rates, notwithstanding the challenges we face in the public finances. The clause underlines the Government’s commitment not to increase taxes, and income tax in particular, on the British people, because that is the wrong response. That is consistent with what we have done in office. The problem the last Labour Government had was that, in response to the fiscal crisis, rather than coming forward with clear proposals to reduce the deficit or even to accept a need to get to grips with that deficit, they simply sought to pass legislation. That was the wrong response then, whereas this is the right response now.

[Nic Dakin (Scunthorpe) (Lab)]

It is a pleasure, as always, to serve under your chairmanship, Sir Roger. The logic of the Minister’s argument does not really stack up. If the country has confidence about the Government’s fiscal responsibility, there is no need to pass legislation. I am totally confused by his argument.

[Mr Gauke]

We fought the last general election saying that we would introduce this legislation. We won that general election, which suggests that the British people had confidence in the overall package of our fiscal policies. If Labour Members are worried about fiscal confidence, perhaps they should look somewhat closer to home.

Budget Resolutions and Economic Situation

Nicholas Dakin Excerpts

Monday 13th July 2015 Commons Chamber

[The Exchequer Secretary to the Treasury (Damian Hinds)]

In every part of our country this Budget is helping working people meet their aspirations. It will deliver security, stability and prosperity. It will help us in our goal to become the most prosperous major economy in the world by the 2030s.

We build on a strong record: employment up; wages up; living standards rising; the deficit down; and the strongest economic growth expected of any of the major economies—for the second year in a row. As the Chancellor said, the only way to have a strong health service, strong schools, and a strong defence is to build a strong economy, and the British economy today is fundamentally stronger than it was five years ago. But there is much more to do, because for far too long we have struggled under the burdens of low productivity and an economy that is too regionally imbalanced and too skewed towards its capital city. In this Budget we have set out how we will change all that.

London is one of the greatest cities of the world. What we now need is a better settlement for the rest of the UK, one which boosts the rest of the UK while maintaining London’s strength—a regional rebalancing that levels up, not down. That is exactly the settlement we are providing through a combination of greater investment and more devolution, greater powers to Greater Manchester, and progress on devolution deals with the Sheffield city region, the Liverpool city region, the Cornwall and the Leeds, West Yorkshire and partner authorities. There is also a new round of enterprise zones for smaller towns, an extension of the coastal communities fund, major new science, technology and culture projects all over the country, and a roads fund in England funded by vehicle excise duty for the strategic roads our regions need. There is a new statutory body, Transport for the North, to work on bringing the towns and cities of the northern powerhouse closer together, including through Oyster-style ticketing across the north, £13 billion of transport investment in the north, £5.2 billion in the midlands and £7.2 billion in the south-west, and £100 billion of investment in infrastructure in total over the course of this Parliament. There are resurgent cities, a rebalanced economy and thriving communities, and the most ambitious plan in generations for truly one nation growth. This Government are indeed “fixing the foundations”.

Let me reply to some of the specific points Members have raised; with 41 contributions to this debate, I fear I may not manage to respond to all of them, but I did particularly want to mention the seven outstanding maiden speeches, such as that of the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald). Given his constituency name, we are all glad he waited for the installation of the widescreen televisions before making it. He enjoyed the rare distinction of being congratulated on his maiden speech in advance of making it as a result of what he described as the ongoing battle of the Stuarts. He also spoke kindly and appropriately of his predecessor Gregg McClymont, who is missed here, and of the House authorities and staff and how they make the daunting task of arriving here just that little bit less daunting. I am sure that is a sentiment shared across all parts of this House.

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) made a new bid in the auction of youth when he announced he had started fighting his seat at the age of 10. He also paid tribute to his predecessor, and although he made a few jokes some of us did not quite understand, as my hon. Friend the Member for Taunton Deane (Rebecca Pow) rightly said, he will certainly be a feisty and campaigning MP. He will very much make his mark.

The hon. Member for Wirral West (Margaret Greenwood) spoke powerfully, and in the best traditions of maiden speeches took us on a tantalising tour of her constituency, and told us all that is great about it from Incredible Edible to short-eared owls via Zorb ball, the Open golf championship and knitwear-clad lampposts.

My hon. Friend the Member for Somerton and Frome (David Warburton) is, I believe, a former composer and he certainly showed how to hold an audience, and how he achieved the strongest swing to the Conservatives in the country. In maiden speeches, we often talk about having big boots to fill; he exceeded that when he announced that one of his former constituents was Walter Bagehot.

My hon. Friend the Member for Chippenham (Michelle Donelan) talked passionately about education and it is clear that she is going to be fighting hard in this place for her constituents. She follows in an impressive line of MPs who first came to prominence through a Conservative party conference speech in their teens. Before her election, she was also a trustee of Help Victims of Domestic Violence, and I am sure she will bring important knowledge of that subject to this House, too.

I am particularly pleased to welcome my hon. Friend the Member for Southampton, Itchen (Royston Smith) to his place, because I spent a little time in his beautiful constituency during the election—they were among the hillier days of it. He already has an enviable reputation for the tireless work he does on behalf of his constituents, and he reminded us of the area’s long association with the military, from being Henry V’s setting-off point for Agincourt to being the place where the Spitfire was designed. He also spoke with praise of his predecessor, John Denham, who is also missed and who is now embarked on a career in academia in our county of Hampshire.

My hon. Friend the Member for Erewash (Maggie Throup) paid tribute to our friend Jessica Lee and said that although Erewash does not exist as a place, it makes almost everything—that is a real tribute to UK engineering. My hon. Friend will bring to the House knowledge of biomedical science and extensive experience of the voluntary sector. I first met her in Rwanda, where she undertook one of her many voluntary work activities.

I wanted to respond to the Chairman of the Select Committee, the hon. Member for Hartlepool (Mr Wright), on apprenticeships. Let me say to him that there will be a formal agreement with business over the coming period and further details at the spending review, and the system will be based on an employer’s pay bill. Both he and the hon. Member for Birmingham, Selly Oak (Steve McCabe) asked about exports, where a lot more support has been going in from UK Trade & Investment to help exporters, including prospective exporters, to get that first step made.

A number of hon. Members rightly talked about productivity, where we face a long-term challenge—there will be no quick solutions. That is why it is right that the productivity plan goes through the whole range of infrastructure, skills, planning, finance for investment, and making sure that cities have the governance and powers they need to succeed.

More generally, these debates sometimes have a pattern whereby Opposition Members say that they welcome certain bits of the Budget and then say they reject all the others. Of course often all the others are the difficult things we have to do in order to be able to do those first things. We do not deny that there are still difficult things that have to be done to get our country back to where it needs to be, and they include things such as some of the welfare changes and public sector pay restraint. All those things have to be seen in the context of a deficit that is still 5% and that needs to come down further if we are to protect departmental spending and continue to have the brilliant national health service that we all so value.

I will have to write to the hon. Members for South Down (Ms Ritchie), for North Antrim (Ian Paisley) and for Leicester South (Jonathan Ashworth), and to my hon. Friend the Member for North West Leicestershire (Andrew Bridgen). I think I can provide some comfort on the things that they raised but, unfortunately time is against us right now. The same applies to what my hon. Friend the Member for Congleton (Fiona Bruce) said about some of the measures on bringing local plans forward.

I wanted to take the opportunity to say to the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) that this is the second time in a few days that she has suggested that the majority of the increase in employment has been in self-employment but that is just not right. Three quarters of that increase has been in employees, and while we are here I might also mention that three quarters of it has also been in full-time employment.

We heard excellent speeches throughout this debate. The right hon. Member for Wolverhampton South East (Mr McFadden) talked about some of the themes in the years ahead, speaking about opportunities for youth, Britain’s place in the world and prosperity for all parts of the UK. I think all Government Members would agree very much with that. My hon. Friend the Member for Bedford (Richard Fuller) reminded us that changes needed to be made so that we could live within our means, and he challenged the Labour party to face up to that reality. My hon. Friend the Member for Bromley and Chislehurst (Robert Neill) reminded us of the fate of Charles X when he did not face up to the reality and was expecting the good people of France just to come round to the idea that the revolution had all been a terrible mistake. My hon. Friend the Member for Spelthorne (Kwasi Kwarteng) talked about the progress already made on tackling the deficit—as my hon. Friend the Member for Cannock Chase (Amanda Milling) said, Britain is very much back in business.

My hon. Friend the Member for Congleton talked about the importance of work in tackling poverty and in driving life chances. My hon. Friends the Members for Havant (Mr Mak) and for Fareham (Suella Fernandes) talked about the whole range of business support measures in the Budget, and of course it is businesses that create jobs.

We heard a lot about the different priorities in different parts of the country, ranging from what my hon. Friend the Member for Portsmouth South (Mrs Drummond) said about the southern powerhouse to the discussion of the Tisbury loop in Wiltshire. My hon. Friends the Members for Rugby (Mark Pawsey) and for Cleethorpes (Martin Vickers) talked about the importance of the role of mayor, not only as a democratically accountable institution, but as a figurehead for bringing inward investment. My hon. Friend the Member for Worcester (Mr Walker) talked about the beneficial impact of the fuel duty freezes we have had. It was good to see my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile) back in his place, and my hon. Friend the Member for Newton Abbot (Anne Marie Morris) brought all sorts of good news from the south-west in her inimitable fashion—it is good news that will in future no doubt be brought at 140 mph on the Dawlish line or various newly improved A roads.

This Budget offers Britain a fresh settlement. Up and down the country, families will have the security of lower taxes and a national living wage. Our regions will have greater investment flowing to them and more control over their destiny. Our businesses will have the confidence to invest. There will be more jobs, more apprenticeships, higher wages, greater economic security, resurgent cities, more prosperous regions and a northern powerhouse. This is what the people of this country deserve and it is what we are providing. Britain is back in business and we will keep it that way.

Ordered, That the debate be now adjourned.—(Simon Kirby.)

Debate to be resumed tomorrow.

[Nic Dakin (Scunthorpe) (Lab)]

On a point of order, Mr Speaker. At business questions on Thursday, the Leader of the House promised to bring forward changed amendments to the Standing Orders for English votes for English laws so that the whole House could have good sight of them before the general debate on Wednesday. My understanding is that these have not yet been brought forward.

Sixth-Form Colleges (VAT)

Nicholas Dakin Excerpts

Tuesday 17th December 2013 Westminster Hall

[Lisa Nandy]

Absolutely. I am grateful to my hon. Friend for raising that point. There is also a wider point: sixth-form colleges benefit not only their students but the wider community. I know from my constituency that they are institutions rooted in the wider community, and they play a much more beneficial role across our town than it would appear from looking only at their core activities.

It is galling for my sixth-form colleges that while they are struggling with the impacts of the cumulative funding cuts, the Government are creating new free schools and academy sixth forms, with which they are required to compete but which are VAT exempt. Many people contacted me before the debate to point out, rightly, that a market does not function if competition is not fair. Many new free school sixth forms are struggling to fill their places, yet those places are funded too. Ministers are paying for places in new institutions to lie empty while successful and established sixth-form colleges are struggling to afford the students that they have.

[Nic Dakin (Scunthorpe) (Lab)]

I congratulate my hon. Friend on securing this debate and putting the case so strongly. She puts her finger on it: new institutions are being funded for phantom students who are not there, while existing institutions are not only not being funded for this year’s students but taking a 17.5% cut in funding for next year’s students, based on an existing 20% difference in funding. VAT is yet another anomaly. Does she not agree?

[Lisa Nandy]

Absolutely. I pay tribute to the work done by my hon. Friend and many of the other Members present. The fact that there are so many Members here for such a short debate should tell the Minister that there is huge strength of feeling throughout the House on this issue.

All of this would make more sense if the sector were failing, but taken as a whole, sixth-form colleges are not only lean and efficient institutions, according to the National Audit Office; they are also among the best existing provision for 16 to 19-year-olds. Some 80% of them are rated as good or better, and they consistently rate higher than other types of provision in terms of added value. I know that St John Rigby college in my constituency does tremendous work with young people from deprived backgrounds and outdoes almost every other type of provision in getting those young people to university.

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[Mr Gauke]

I think that is probably a fair description, historically. Schools have been treated one way, in part, because of the relationship with local authorities and funding at local authority level, whereas other elements of the public sector do not get funding for VAT in the way that local authorities do. Sixth-form colleges and further education colleges are examples of that.

[Nic Dakin]

rose—

[Mr Gauke]

I give way to someone who knows a lot about this subject.

[Nic Dakin]

The Minister and I have exchanged words on this matter many times. The historical record is quite interesting. When colleges were incorporated, they had the same VAT rights as schools, because they came from the same part of the womb, as it were, but that was changed at the point of incorporation. Given the way that the landscape of education has changed, it is odd that new provisions, such as university technical colleges or 16 to 19 free schools, are entitled to the VAT, whereas sixth-form colleges are not. That anomaly was created on this Government’s watch. It would be better if it were not so.

[Mr Gauke]

It should be acknowledged—and it was, in earlier interventions—that notwithstanding the points that the hon. Gentleman makes, this is a long-standing issue.

Let me turn to the Government’s position. The academies VAT refund scheme is set up for a specific policy purpose, which is to remove a financial disincentive for maintained schools to convert to academies. As the purpose is specific, the Treasury has no plans to extend the scheme to colleges. Many other providers of public services are expected to cover their VAT costs from their funding allocations. This funding model is applied to bodies delivering—

Finance Bill

Nicholas Dakin Excerpts

Tuesday 2nd July 2013 Commons Chamber

[Catherine McKinnell]

The Government clearly do not support that approach because one of the first things they did when they came to power was increase VAT and the costs for ordinary families up and down the country. We have said all along that we would not have taken those decisions. We would not have chosen to give a tax cut to those on the highest incomes. We would not have slapped a 2.5% charge on poor families who are struggling to make ends meet. We have made that very clear, but the Government have ignored that call. We think the Government should be taking action now to try to stimulate the economy and put some money back into very hard-pressed families’ hands.

[Nic Dakin (Scunthorpe) (Lab)]

My hon. Friend is stating the case for this new clause very clearly. Does she agree that the increase in VAT took a lot of individuals’ spending power out of the economy and also took out a lot of confidence, and that that is what has led to the decline in growth?

[Catherine McKinnell]

Yes, it was a huge blow for families across the country to see costs spiral overnight. This Government seem incredibly complacent about the impact their spending decisions have had, not only on families but on economic growth. We need to look at the facts. The Chancellor promised growth of 6% in 2010. He also promised that he had asked the country for all he would ask for and would not come back for more, but there he was last week, planning for more cuts in 2015 and completely failing to recognise both that his economic plan has resulted in 1% growth, not the 6% he promised, and that his increase in VAT was very much a part of the reason for that.

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[John Pugh]

I will try to say something positive about new clause 10. It is quite laudable, in a way, because it would link spending to taxation and get us to engage in retrospective analysis, and frankly we do not do enough of that in this place. We talk about policy a great deal, but the long-term effects are often hidden from us. It can be quite counter-intuitive. We had an interesting debate yesterday on the 50% tax rate, the Laffer curve and the effect that such a rate might or might not have. There are plenty of other examples where the effect of taxation needs to be adequately scrutinised. In Committee we debated what tax avoidance measures would do to people’s behaviour, what petrol taxation would do to people’s behaviour and to the revenue we get, what landfill tax would do to councils’ behaviour, and what the video games industry would make of the various changes that will affect it.

My problem with what the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) is saying is that I think Parliament should do what she is suggesting. It seems to me that Parliament does not have enough good, accessible data and that we make no real effort to examine the whole business of tax revenue yields in any systematic, thorough, regular or routine way. When it comes to spending, there is a very similar picture. There is no real scrutiny of spending in this place. The scrutiny we do is not even as good as that which might be found in a local council. We have the big events, such as the announcement of the spending review, but there is no detailed examination of expenditure.

If Members do not believe me, they should come along to estimates day tomorrow and see the examination of estimates that is imposed in this place. The last time we had an estimates day, I was actually ruled out of order by the Deputy Speaker—not you, Madam Deputy Speaker—for talking about the estimates, which was thought improper.

We do not examine the non-controversial, everyday departmental expenditure that goes on from year to year and the errors that occur in it. The Public Accounts Committee does a very good job of looking at the controversial stuff, but there is no rigorous, effective or ongoing examination of expenditure. We do not do enough of that and we do not know enough about what tax policy actually does, how Departments spend and what the profile of a Department is on a day-to-day, month-to-month and year-to-year basis.

Arguably, somebody in the basement of the Treasury knows the spending profile of Departments, but they would probably be unable to give the hon. Lady the answer she wants in three months, and probably not in six months. I think she has to recognise that she is making a hard ask and, in my view, probably a futile one, because if we do not do any real scrutiny of taxation in this place—we scrutinise policy, but certainly not outcomes—beyond headline figures and big grandstanding days such as the announcement of the spending review, then what we are essentially doing with the Government finance is firefighting.

What takes place in this place is not effective financial scrutiny. We do not look at the boring, pedestrian, routine and important spending, which is massive. The new clause asks the Treasury to mark its own work, and I am sure that it would be perfectly happy in some contexts to do so, but what we really need is to get Parliament to do the work and to give us an answer that would satisfy us, including the hon. Lady.

[Nic Dakin]

It is a pleasure to follow the hon. Member for Southport (John Pugh), who began by underscoring how important it is to have retrospective analysis, which is exactly what the new clause asks for. It is difficult to see how it can be argued against. It says:

“The Chancellor shall publish, within six months of Royal Assent, a review of the impact on revenue from rates and measures in this Act, resulting from the Spending Round 2013.”

That would assist good governance and assist the people out there whom we come here to represent. Indeed, so far the arguments have been supportive, although there has been useful interrogation of the issues as the debate has progressed, which everybody has welcomed.

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[John Pugh]

Every Budget begins with the Chancellor giving a résumé of the implications of his policies. I cannot remember that ever being greeted with wholesale acclamation from all parties. What the hon. Gentleman is asking for is more of the same, is it not?

[Nic Dakin]

The hon. Gentleman makes a good point. Chancellors sometimes glance back at the effect of their Budgets with rose-tinted glasses instead of seeing the real effects of their economic policies, including the decisions made in 2010, 2011 and 2012.

I congratulate the Government on moving their rhetoric to the right place: suddenly, words such as “growth” and “investment” are as prominent in their lexicon as they always should have been. However, as my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) has pointed out, their promise on infrastructure spending is to spend tomorrow—most of it in 2014, 2015, 2016 and even 2017—rather than now. It is spending decisions taken now that will have an impact on the lives of people today, rather than waiting and hoping for things that may happen at a future date.

Boosting growth and living standards this year and next year would bring in more tax revenues and reduce the scale of the cuts needed in 2015. Taking action now to boost economic growth—by, for example, bringing infrastructure plans forward so that they happen now rather than tomorrow—would make a real difference. That is why the new clause would be helpful: it would test the impact of the spending round on tax receipts and, as my hon. Friend has said, do so in time to make any necessary adjustments to improve not only the economy, but people’s lives and living standards.

The figures revealed by the Government last week showed another cut of 1.7%—or nearly £1 billion—to capital investment in 2015-16. One would not have thought that to be the case on hearing the announcement, but having looked at the plans I know that that is what they reveal. Capital spending is down by 1.7% in education, by 2.3% in defence and by 17.6% in the Home Office. In the Department for Communities and Local Government, including housing, it is down by a massive, staggering 35.6%, and by 57.6% in the Department for Culture, Media and Sport. Those are large figures and we need to know whether their impact on the economy’s behaviour will be beneficial or, as I fear, not.

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

The coalition has more or less mirrored the capital spending plans of the former Labour Chancellor, the right hon. Member for Edinburgh South West (Mr Darling), so is the hon. Gentleman saying that he was wrong in his allocation of capital spending?

[Nic Dakin]

If we move away from the rhetoric and look at the facts, we will see that in their first three years this Government have spent £5.6 billion less in capital investment compared with the plans they inherited from Labour. That amounts to a £5.6 billion cut to spending that would have taken place had this Government continued with the plans they inherited from the previous Government. What has happened illustrates the importance to the health of the economy of continuity in large infrastructure projects. It is difficult to get that right between the parties, but we must recognise that there are plans for infrastructure spending so that the tap cannot be turned off easily, as the Government did with the Building Schools for the Future programme. If that programme had been carried forward, it would have assisted economic development, as well as continuing to revolutionise the learning environment of children up and down the land.

In the three months to April 2013, output in the construction industry was 4.7% lower than in the same period a year earlier. Construction output is down by 11.2% since the 2010 spending review. Construction—that energetic sector that drives the economy—continues to struggle. That is why we need to check, three months down the line, the effect on the economy of the decisions that are being made today to ensure that we are moving in the right direction.

The volume of new construction orders fell by 10% between quarter 4 of 2012 and quarter 1 of 2013. That is a massive dip. The number of new orders for infrastructure fell by 49.8% over the same period—the largest fall since 1987. The value of public sector infrastructure orders fell by £2 billion between quarter 4 of 2012 and quarter 1 of 2013. Those are significant contractions of demand in the economy.

That clearly has an impact on jobs. At the end of the day, jobs are what transform people’s lives. There is unanimity about that across the Chamber. The construction sector has lost 84,000 jobs since the Government came to power. That has an impact on the well-being and quality of life of individuals, as well as on the economy and the livelihoods of people beyond the construction industry.

There is much more that I could say, but I will return to the essence of this simple, helpful, concise new clause. I can see no argument for the Government not accepting it. It would help us all if they accepted it gracefully so that we can move forward together in harmony.

[Debbie Abrahams]

It is always a pleasure to follow my hon. Friend the Member for Scunthorpe (Nic Dakin). I agree with him totally and will speak in support of new clause 10.

The points made by the Institute for Fiscal Studies last week when the comprehensive spending review was published support what we are trying to do with the new clause:

“The documentation and explanation accompanying yesterday’s spending review announcements was woeful”.

It went on to say:

“Publishing such a small amount of information with little explanation is not an exercise in open government.”

That warning says it all. It reflects the Government’s total incompetence on the economy.

Last week’s spending review was further evidence that the Government’s economic policies are failing. They were warned by my right hon. Friend the Member for Morley and Outwood (Ed Balls) that cutting too far and too fast would smother growth, and that is just what has happened. The Chancellor promised that he would deal with the deficit by 2015. That will not happen. He promised that his emergency Budget and his first comprehensive spending review in 2010 would deal with the nation’s finances and put the country on the road to recovery. Again, that has not happened.