Oral Answers to Questions

Patrick Grady Excerpts

Tuesday 2nd July 2019 Commons Chamber

[Elizabeth Truss]

I am incredibly proud of our record, as a Government, of reducing inequality. Income inequality is now lower than it was in 2010. We have also cut taxes for basic rate taxpayers by £1,200 a year and put an extra £630 into universal credit for working families.

[Patrick Grady (Glasgow North) (SNP)]

2. What discussions he has had with the Secretary of State for Scotland on the economic effect on Scotland of the UK leaving the EU.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

I regularly discuss EU exit with the Secretary of State for Scotland and other members of the Cabinet. The Government remain committed to securing a deal that works for the entire United Kingdom.

[Patrick Grady]

There might be two people competing to be Prime Minister, but I think there are at least five who think they will be the next Chancellor, so perhaps the right hon. Gentleman should just get to stay in post and then they will all be equally disappointed. He seems to be concerned that they are somehow going to ruin his deal dividend, but is not the truth that there is no real dividend from any Brexit, that the best possible deal for Scotland and the rest of the UK is the one we already have, which is membership, and that that is the case that he and other sensible Government Members should have the courage to be making?

[Mr Hammond]

I have consistently made the case and explained to this House that there is fiscal headroom within the current fiscal rules. If we have a smooth exit from the European Union through a transition that will remove the economic uncertainty that is hanging over our economy, it will then be safe to release that headroom and make it available for additional public spending or, at the choice of the next Government, to reduce taxation. Either way, we have the headroom available once we have removed the Brexit uncertainty.

--- Later in debate ---

[Mr Philip Hammond]

We made an announcement this morning about our plans for green finance. Over the coming months and years, it will be essential to demonstrate how we are able to mobilise our capital markets and the instruments of a market economy to deliver on this huge enterprise. If we do not demonstrate how the market economy can provide solutions to decarbonising our economy, there are others with alternative solutions to present.

[Patrick Grady (Glasgow North) (SNP)]

T4. During the Department for International Development estimates debate yesterday, there was a clear consensus across the House that the 0.7% of GDP aid commitment should remain and, for that matter, that DFID should remain an independent Department. Will the Chancellor restate that that remains the whole of Government policy, and does he believe that it should continue to be Government policy after 24 or 25 July?

[Mr Philip Hammond]

As I think the hon. Gentleman knows, that position is enshrined in statute, and only this House of Commons could change it.