(4 days, 23 hours ago)
Commons ChamberI beg to move,
That the Charter for Budget Responsibility: Autumn 2024, which was laid before this House on 22 January, be approved.
It feels like I was in the House only a few moments ago, but I am delighted to be back at the Dispatch Box for this important debate. Sustained economic growth, supported by sound investment, is the only route to improving the prosperity of our country, and, in so doing, the living standards of working people. Growth is the primary mission of this Government.
This debate is timely, as the House knows, given that the Chancellor gave her growth speech only this morning. In her speech, she reiterated that without a stable economy, we cannot hope to attract investment into the UK; that we cannot grow our economy with a black hole in our public finances; and, importantly, that fixing the foundations of the economy starts with the new fiscal rules, which we are voting on here today.
The Chancellor announced in her speech that we are taking difficult decisions in the long-term interests of the country, including, for example, on a third runway at Heathrow airport. As she set out, the Government support and are inviting proposals for a third runway at Heathrow to be brought forward by the summer. Once proposals have been received, we will take forward a full assessment through the airport national policy statement, to ensure that any scheme is delivered in line with our legal, environmental and climate obligations. According to a recent study from Frontier Economics, a third runway could increase GDP by 4.3% over the next 25 years. It is estimated that over half—around 60%—of that boost would go to areas outside London and the south-east, underlining the fact that Heathrow as a hub airport brings prosperity not just to London but to every region and nation of the country.
The Government have also set out further plans to reform our planning system, to provide confidence to investors and builders, and to show that Britain can get building again and that we can deliver on our promises. Confidence starts with stability. Stability is the precondition to a healthy, growing economy, because it gives UK businesses and households the essential confidence that they need to spend and invest, encouraging innovation and boosting our economy. In outlining our new, robust and transparent fiscal framework, the charter for Budget responsibility that we are voting on today provides a vital and stable foundation from which our economy can grow.
What the instability of the last 14 years has given us is clear: low productivity, rising debt levels and declining public services performance. Public sector net debt is 97.2% of GDP, and net financial debt remains close to its highest recorded level as a share of GDP, which was reached in the pandemic. Per capita GDP remains 0.8% below pre-pandemic levels. In contrast, had the UK economy grown at the average rate of OECD economies over the past 14 years, it would be over £150 billion larger than it is today. Public investment in the UK has historically been low and inconsistent. Our public capital stock, as a share of GDP, is the joint lowest in the G7, and more than 10 percentage points below the G7 median.
Underneath all those challenges was a £22 billion black hole of in-year spending pressures that were not disclosed by the previous Government to Parliament, the public or the Office for Budget Responsibility—[Interruption.] My colleague the shadow Chief Secretary to the Treasury, the hon. Member for North Bedfordshire (Richard Fuller), seems to have comments on the £22 billion black hole. I will happily take an intervention from him. [Interruption.] I am told that I cannot take an intervention, Madam Deputy Speaker. That is very sad. But in that context, I look forward to the shadow Chief Secretary outlining in his speech how that £22 billion black hole came into being.
For the record, the Minister can take an intervention if he wishes to. This reminds me of the many years all three of us spent on the Business and Trade Committee, when we could not agree on anything either.
I was always enamoured of your arguments, Madam Deputy Speaker, as I continue to be today. I look forward to the prospect of many interventions from Members across the House as part of this important debate, and I encourage the shadow Chief Secretary to intervene.
The right hon. Member knows that the Labour party takes child poverty seriously. That is why we launched the child poverty taskforce at the start of this Government, co-chaired by the Work and Pensions Secretary and the Education Secretary, to do a root and branch review of the long-term structural causes of child poverty and the interventions the Government could take to reverse those growing trends that none of us across the House wants to see. The taskforce will report in the coming months, but he is right to point out that housing costs and insecure housing have become ever more important drivers of child poverty in recent years. That is why, through the Renters’ Rights Bill introduced to the House by the Deputy Prime Minister, we are taking action in the private rented sector to provide additional protections and support for families in rental accommodation—for example, banning no-fault evictions and giving more security of tenure for people who are renting.
Like me, the right hon. Member will have had lots of casework where hard-working families, who are just trying to make ends meet and to provide security of income and a roof over their head for them and their families, are failed by a market in which house prices to buy and rent are out of reach and the rate at which we build affordable and social housing is not meeting the demand of the people who need it. That is why we increased funding at the Budget by half a billion pounds to build more affordable and social housing, which we know can be delivered quickly.
On a visit last week to Erewash, I visited social housing developments supported by Homes England and learned from the company building those homes for emh Homes, the east midlands housing association, that it takes only 14 to 16 weeks from laying the foundations through to giving the key to the person moving in. That reminds us why our reform agenda is so important, because the time involved in building—planning, consenting, infrastructure and financing deals—has been significantly holding back the rate of development of social and affordable housing across the country. Those are exactly the sorts of issues where Government have the ability to make a difference, which is why we are committed to accelerating our plans to build 1.5 million homes a year, but, crucially, to tilting that towards more affordable and social housing to support people across the country.
The Government are resetting the welfare cap, given that the previous one was repeatedly breached, and we are doing so based on the latest Office for Budget Responsibility forecast. That will set a new target for 2029-30, alongside our action to control welfare spending and to help people who deserve the assistance. The Government have demonstrated that they will not shy away from doing what is needed to put welfare spending on a more sustainable path—for example, with different decisions such as targeting winter fuel payments to those who need them the most and reclaiming £4.3 billion of public money lost to fraud and error in the welfare system in 2029-30, and £9.2 billion over five years.
We have also announced steps to tackle inactivity through the “Get Britain Working” White Paper and will set out further proposals in the health and disability Green Paper later in spring. Progress against the cap will be monitored by the Treasury and the Department for Work and Pensions. That will include a strengthened accountability framework and the DWP publishing an annual report on welfare spending. By strengthening the accountability of the welfare cap, getting more people into work and reforming the welfare system for long-term sustainability, we are taking the necessary steps to keep spending under control. But crucially, we are also serving the people of this country by ensuring that people who for too long have been at home unable to be seen in the NHS or to get access to mental health services, who have been unable to get the training or support they need to take advantage of the jobs available in our country, and who have been unable to find jobs near where they are, see hope in their futures and know they have a Government on their side who will support them to get back into work. That outcome is better for them, their family finances and their futures, but it also supports us in ensuring fiscal stability.
The reforms to the fiscal framework outlined in the new charter for Budget responsibility will ensure a more stable approach to tax and spend, as well as better transparency and accountability for our Government and future Governments. That stability is inseparable from our plans for growth. Alongside that growth, restoring stability means the Government can pay for increased funding to repair, reform and modernise our public services and to invest in the infrastructure needed to rebuild Britain. For those reasons, I commend the motion to the House.
To clear up any confusion, this is the debate and motion on the charter for Budget responsibility. The next motion and debate will be on the welfare cap. I call the shadow Minister.
(4 days, 23 hours ago)
Commons ChamberThe right hon. Member has been down this path before because it was his Government who went down it and blocked all these developments over the past 14 years. This Government are working on reforms to the planning system, looking at national policy statements, thinking about skills and infrastructure supply chains, and unlocking private capital because we are a Government who want to get Britain building again, and not block the projects that were stalled for years under the previous Administration.
I call Dr Jeevun Sandher, a member of the Select Committee.
Investment is what makes us more prosperous; it produces more work, it gets wages rising and it creates good jobs. I am an East Midlands MP, and we have some of the lowest investment rates in the country, the least transport infrastructure and some of the lowest private investment. That is why I welcome the announcement today of £1 billion going to the manufacturing and logistics hub at East Midlands airport. I especially welcome the 2,000 extra jobs that will benefit my constituents in Loughborough, Shepshed and Hathern. Will the Chief Secretary assure me that this is just the beginning of the investment we can expect in the region and for my constituents?
I thank my hon. Friend, who is a strong advocate for the economy in the East Midlands and for his constituency. He will know that I visited the region last week and met businesses and investors with our Mayor, Claire Ward. The region is doing a brilliant job of securing inward investment, and there is huge untapped potential in the East Midlands. I am pleased that the Chancellor was able to make those announcements today, and we very much look forward to hearing about more business cases and more potential so that we can unlock growth in the East Midlands.
I thank the Chief Secretary for his statement about investment and growth. Does he agree with me about the role that new towns will play in tackling our country’s housing crisis and how important it is that, alongside the homes in the new towns, we see the delivery of new social infrastructure? Can he outline how those plans will work?
I thank my hon. Friend. As I informed the House recently, our infrastructure strategy, which will be published in June, will for the first time align social infrastructure plans for schools, GP surgeries and other public service facilities with those for housing and economic infrastructure. For the first time, we will be making strategic decisions about the places where people live.
On the house building target—I met tenants who will be moving into new social homes in Erewash last week—we talk about 1.5 million homes and about economic growth, but in every one of those buildings is someone’s life, their opportunities and the dreams they want to fulfil. This Government are delivering on economic growth, and we are doing so because the people at the heart of all these decisions are the people we need to get the economy moving and Britain doing well in the future.
I thank my hon. Friend the Chair of the Transport Committee for her question. I think it alludes to the fact that this is the announcement not just of a runway, but of a project which we must make sure is optimised for delivering growth for the whole of the United Kingdom, as I made clear in my statement. That means that we need to work with regional airports and look at how the slots are allocated at Heathrow, to make sure that Heathrow’s business model optimises opportunities for regional airports and the whole of the United Kingdom. That is a commitment that the Government have made very clear today.
Hopefully the Minister can meet that enthusiasm.
I thank my hon. Friend, who has campaigned tirelessly for this investment in the region since he has been the House. As he will know, the Government are in negotiations with partners for the development. Unfortunately, I cannot update the House at this stage, but I look forward to doing so in due course.
I am pleased to announce to the House today the Government’s commitment to build, baby, build. We will deliver that for this country. My hon. Friend is right to point out the difference that a change in Government can make. This Labour Government are getting on with the job of dealing with planning regulations and blockers, bringing forward investment and delivering for the country, whereas the Conservative party promised the earth and delivered nothing.
I call Dr Kieran Mullan—I assume you have a lot to say.
I thank my hon. Friend for his question and congratulate him on his upcoming paternity leave. He knows that the Government are committed to protecting the environment but also to cutting red tape. We have shown that that can be done in a win-win way, through the nature fund announced by the Environment Secretary recently. We will be doing further work on this issue in the coming months to ensure that we can deliver for Britain and for the natural economy.
The Chief Secretary has been on his feet for nearly an hour and a half. He has a long visit list, and obviously he will want to visit Sussex Weald first and foremost.
(2 months, 1 week ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
I am proud of the unity that this House has shown in its support for Ukraine. This support has been steadfast since the onset of Russia’s illegal full-scale invasion in February 2022, regardless of the party in office, and it remains so today. We in this House recognise that while Ukraine is on the frontline, it is fighting for democracy and security across Europe. I want to make it clear that this Government stand, and will continue to stand, in unwavering support of Ukraine with our G7 allies.
On 22 October, my right hon. Friends the Chancellor of the Exchequer and the Defence Secretary announced that the UK would contribute £2.26 billion to the G7 extraordinary revenue acceleration loans to Ukraine scheme, the ERA. This landmark agreement will provide Ukraine with a total of $50 billion in vital additional funding, allowing it to continue to fight back against Putin’s war machine. Crucially, these funds will be repaid not by Ukraine, but from the extraordinary profits made on sanctioned Russian sovereign assets held in the European Union.
This Bill simply provides the spending authority for the UK to contribute to the ERA scheme, enabling us to begin disbursing funds to Ukraine. It is another important demonstration of the UK’s commitment to backing Ukraine for as long as it takes. It will unlock our £2.26 billion contribution to the ERA, funding which is additional to all previous commitments.
The UK has long been at the forefront of support for Ukraine. Our total military, humanitarian and economic support pledged since February 2022 already stands at £12.8 billion. We have often been the first mover on military support in particular, which ranges from training over 47,000 Ukrainian military personnel to providing a squadron of Challenger 2 main battle tanks. Earlier this year, the Government announced that the UK would continue to provide guaranteed military support of £3 billion per year to Ukraine for as long as it takes.
But while we can be proud of what the UK has already done for Ukraine, Members of the House need no reminding that Ukraine’s military, budgetary and humanitarian needs continue to be grave. Existing support is not enough; we must go further still to ensure that Ukraine wins this war. We must do this alongside our allies. The ERA is an ambitious scheme, and represents a united G7 pledge, with contributions from the United States, the European Union, Canada and Japan. Our £2.26 billion constitutes a fair and proportionate contribution to the scheme based on the UK’s GDP share in the G7 and EU.
Each lender will now negotiate a bilateral loan with Ukraine to govern how the funds are distributed and spent within a collective framework agreed by the G7. Repayments from the profits on immobilised Russian assets will be redistributed to the G7 lenders from the EU in proportion to our contributions. The EU regulation providing for this is already in place.
The Government have assessed that Ukraine’s most pressing need is for military support. The UK’s contribution to the ERA is therefore earmarked for military procurement to bolster Ukraine’s capacity for self-defence. This support will help ensure that Ukraine can continue to withstand Russian aggression and fight back against it. The UK is committed to ensuring value for money for both the UK and Ukraine, including through exploring the use of existing UK-enabled procurement channels for Ukraine to purchase the equipment that it needs. Our funding will be delivered in three tranches over three financial years, with the first tranche intended to be delivered in early 2025.
The Bill has one simple purpose: to unlock the UK’s contribution to the ERA. It consists of one substantive clause, which seeks the authority of Parliament to spend the money on the UK’s contribution and make good on our commitment. The Bill is not intended to be used for any purpose beyond that, and it will not be used to spend above the £2.26 billion figure that has been announced. Our figure has been agreed with the G7 and caps have been built into the scheme at a G7 level through the EU repayment mechanism.
Although slim, this Bill is essential. Royal Assent is required before we can begin disbursing funds to Ukraine, and before we can receive any repayments from the profits being held in the European Union. It is therefore vital that we pass this Bill as quickly as possible, so we can begin disbursement this winter, as Ukraine’s needs are immediate. I hope that I can count on the support of the House to achieve this, and help us get this vital money into Ukraine’s hands as quickly as possible.
The $50 billion collectively delivered through the ERA lays down a marker to show that we will continue to stand with Ukraine for as long as it takes. Collectively, we will pursue every available means of making Russia pay for the damage it has done in Ukraine. I am proud to present the UK’s contribution to the scheme today, which will make an immediate tangible difference to Ukraine’s capacity to defend itself. This Bill facilitates that contribution, and I commend it to the House.
(1 year, 8 months ago)
Commons ChamberThe story overnight came from written submissions to my Committee’s inquiry on the future of battery manufacturing in the UK. Stellantis will be here in Parliament next Tuesday to give further evidence. The Minister will know two things: that she and her departmental officials are in ongoing negotiations with other car manufacturers in the UK beyond Stellantis, and that all the car companies are raising exactly the same issues and are asking for a step up in activity from the Government and an end-to-end industrial strategy to show that the UK is serious about the future of UK production of electric vehicles. Will the Minister confirm for the record that those assertions—that the Department is in negotiations right now with other car manufacturing companies and that they are raising exactly the same issues as Stellantis—are indeed correct?
I am grateful to the Chair of the Select Committee for being here. I was once on his Committee. Overnight, I went through the transcript and some of the submissions to that inquiry, and I noticed the submission from Nissan. I know that nobody wants to pick out all the positive things that were said, but there was a great point on page 4:
“The UK has strong promise as an EV battery production location due to strong demand, a skilled workforce, and attractive manufacturing sites.”
We somehow seem to be forgetting all the positive things that are said in submissions by the automotive sector.
We are working with those in the sector, as I have said. I meet them regularly and was with them just this week to deal with a number of challenges, whether to do with the Inflation Reduction Act or gigafactories. I can, of course, confirm that we are working with industry to do everything we can to ensure that there is greater commitment to gigafactories here in the UK.
(1 year, 10 months ago)
Commons ChamberI rise today to give a statement on behalf of the Business, Energy and Industrial Strategy Committee in respect of our memorandum of understanding with the Government on scrutiny of the use of powers contained in the National Security and Investment Act 2021. I am grateful to the Backbench Business Committee for giving me the time to do so.
As the House knows, the National Security and Investment Act established a new statutory regime for Government scrutiny of, and intervention in, investments for the purposes of protecting national security. The Act applies to a wide range of sectors, which themselves are broadly defined, and—unlike in other countries—covers all transactions, not just those involving foreign investment. The investment security unit was then established within the Department for Business, Energy and Industrial Strategy to operationalise the Act. At that stage, the Secretary of State for Business, Energy and Industrial Strategy was the decision maker.
When the Bill was going through the House, the Government confirmed their preference that scrutiny of the use of these powers should be done by my Committee. There was a debate in this House and in the other place about whether a departmental Select Committee had sufficient processes, people and protections in place to scrutinise secret information, and right hon. Members from the Intelligence and Security Committee understandably argued that their Committee was best placed to do that work. However, the Government were not minded to accept amendments for a statutory regime of scrutiny in the Bill, nor to change their position on which Committee should have oversight of the regime. As such, Ministers committed to entering into a memorandum of understanding with my Committee to set out how information would be made available to allow us to do our work.
While negotiating that memorandum, my Committee established a new National Security and Investment Sub-Committee and appointed special advisers. We are also grateful to the House for providing us with national security subject specialist staff with relevant levels of security clearance. In addition, we undertook a short study visit to the United States to understand how congressional oversight of that country’s equivalent regime is conducted.
I am pleased to inform the House that the memorandum of understanding between the Government and my Committee has now been agreed, and that we have published it today in our report. I will not test the patience of the House by reading out the whole memorandum, but I will just make two points. First, it has been agreed that scrutiny will largely be done in private and, in so far as it relates to individual transactions, will be done retrospectively following any appeal or legal challenge. This was agreed to prevent actual or perceived political interference in quasi-judicial decision making, and means that we operate in line with our counterparts in the United States. Secondly, the bulk of our work will focus on the effect of the legislation on investment in the United Kingdom and the effectiveness of Government operations.
When the Committee decides that it wants to understand individual transactions in more detail, we will be able to request information from the Government via a private explanatory memorandum, which we will not publish. If the Committee wishes to see more sensitive information that is not contained in the explanatory memorandum, I as Chair of the Committee will be able to request access to such information, and will be briefed on equivalent to Privy Council terms or by notification under the Official Secrets Act. Lastly, while the recent machinery of Government changes have resulted in the investment security unit moving to the Cabinet Office and the decision maker now being the Chancellor of the Duchy of Lancaster, the Government have confirmed that they still intend for scrutiny of the Act to be undertaken by my Committee and, soon, its successor Committee on the basis set out in today’s report and the letter from the Minister received by other relevant Committees.
I welcome this report, especially paragraph 11. We have always welcomed scrutiny of our decisions. As the hon. Member rightfully pointed out, the investment security unit has left the Department for Business, Innovation and Skills, but I am still responsible and we now sit in the Cabinet Office. Obviously, we want to support businesses to ensure that investment in the UK continues, while also protecting our national security.
I wondered whether the hon. Member could reflect on the fact that the NSI Act is a leading investment screening regime, and that we have good relationships with like-minded partners through which we share best practice and help other countries with similar regimes. Perhaps he could also comment on when I will be in front of him and his Select Committee, because we do not shy away from scrutiny. Finally, perhaps he would like to indulge the House and thank all of the investment security unit staff who worked with us on the unit and on securing this MOU.
I thank the Minister for her question. Of course, for a long time, she was a member of my Committee. She pushed me quite hard to ensure that we got very effective scrutiny of this legislation, so I look forward to working with her collaboratively on the exchange of information as it relates to our interests as a Select Committee.
The Minister invites me to thank her officials, as well as my Clerks on the Select Committee, and I should do so. It took, I think, nearly 13 months to get to this point, sometimes with some frustration, but we got there. However, much of the work has been done and much of the detail has been agreed at length by our officials and Clerks, and we are very grateful to them for their contributions.
As for when the Minister will be summoned to my Select Committee, it is unusual that people are keen to come and be cross-examined by me and my colleagues on the Committee, but we look forward to welcoming her in due course.
(1 year, 10 months ago)
Commons ChamberThe Minister knows that the steel industry is an important customer for critical minerals in this country, so will she confirm for the House the status of the Steel Council in her Department and whether it is actively meeting?
I served with the hon. Gentleman on the Business, Energy and Industrial Strategy Committee for many years. He will be very familiar with the fact that I meet the steel sector and the unions, and I have all the regular meetings, including those with the all-party parliamentary group for steel and metal related industries, which is chaired by the hon. Member for Aberavon (Stephen Kinnock). The meetings are most definitely taking place.
(2 years, 3 months ago)
Commons ChamberI call the Chair of the Business, Energy and Industrial Strategy Committee.
British researchers are desperately waiting for an update on the UK’s association to Horizon Europe. The former science Minister pledged to publish the details for the replacement scheme, should our association not be concluded, before the summer recess, but they have still not been published. When will they be?
It is curious to respond to the Chair of the Select Committee of which I was once a member. We are waiting for the EU to make a decision on our association to Horizon. It is not within our grasp. We are still focused on securing association, but it would be irresponsible not to pivot if that was not forthcoming in the near future. [Interruption.] The hon. Member is gesticulating at me, but he knows very well that we are prepared to pivot and have guarantee schemes in place to help researchers and academics if needed.
(2 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Mr Jones, you arrived a tad late. If you wish to contribute, I am sure we can find time to accommodate you.
That is kind, but I assumed that I would not be called. I am here just to listen.
(4 years, 4 months ago)
Commons ChamberI thank the hon. Gentleman for his question and for his continued work on consumer protection, which I know he advocates for on the Committee that I chair, of which I am grateful he is a member. He will know, and Ministers will know, that we have written to the Secretary of State on the energy efficiency programme brought forward by the Government. The consensus in the citizens assembly report is that we need to take these actions, but that that should be done with clear, strong leadership from the top that puts fairness and equity at the heart while providing the choice that consumers need from providers and different technologies in the home. We also need to ensure that there is protection and enforcement on the end of that, should things go wrong. I know that Ministers are considering those issues. They have brought forward the TrustMark for the energy efficiency programme, and I know that we will continue to ensure that consumer protection and fairness to consumers is at the heart of the Government’s response.
I congratulate the hon. Member on presenting the report today and I look forward to working with him on this on the Select Committee. One of the themes that has come out is that of course the environment is key but so is ensuring that the economy is well managed. Does the right hon. Member—I mean, the hon. Member—agree that covid has had a financial impact on the business sector and that we will need to do more to help businesses to help us to achieve net zero?
I thank the hon. Lady for my elevation to the Privy Council, for which one can only hope. I agree absolutely that the consensus in the report and in our conversations on the Committee is that our economic recovery from the pandemic and our transition to net zero are no longer distinct issues but one and the same. They have to be embedded, and that requires Government to work in partnership with business. Some sectors will be affected more than others, and it will be difficult for some important parts of the British economy to make these changes, but I am confident that we can make them together. I know we will do that work on the Committee and bring forward proposals for the Government to do so.