Autumn Statement

Owen Thompson Excerpts

Wednesday 23rd November 2016 Commons Chamber

[Mr Hammond]

It is a fair question, and the answer is that the Ministry of Defence, unusually among Government Departments, has the ability, and does in practice use the ability, to hedge currency risk, because so much of its capital expenditure programme is denominated in US dollars. So it does have a degree of protection over the coming years; that protection will not last forever, and if sterling’s current relative weakness against the US dollar persists, we will have to revisit this. But I would hope and expect that, as the cloud of uncertainty around the British economy disperses in due course, and people are able to see the strong prospects for this economy in the future, we will see sterling gradually finding its feet again.

[Owen Thompson (Midlothian) (SNP)]

I welcome the fact that the Edinburgh south-east Scotland city deal is still in today’s autumn statement, but the local authorities involved in this process have been making plans for it for more than two years. In June, they were expecting sign-off by December, but we have not seen anything come forward yet. Can the Chancellor confirm when the city deal will finally get sign-off?

[Mr Hammond]

No, I cannot. We are committed to, and engaged in, the process, and I have just confirmed that today, but, obviously, there are things that have to be agreed between the parties. I am not into the details of the negotiation on Edinburgh, but we clearly have to get to a conclusion as quickly as possible to see that the benefits are delivered to the people of Edinburgh. I hope the hon. Gentleman will urge the city council to engage enthusiastically in getting this done.