Volumetric Concrete Mobile Plants

Debate between Peter Grant and Jesse Norman

Thursday 22nd June 2023 Westminster Hall

[The Minister of State, Department for Transport (Jesse Norman)]

It is a delight to serve under you in the Chair, Mr Efford. I apologise to the Chamber that the roads Minister, the Under-Secretary of State for Transport, my hon. Friend the Member for North West Durham (Mr Holden), is unavoidably detained, but I was involved with this issue when I was roads Minister, so I hope that I can bring some degree of understanding.

I very much associate myself with the remarks made by the hon. Member for Glenrothes (Peter Grant) in relation to the just announced death of Winnie Ewing, who was by any standards a great politician and a great spokesman for her party and her views.

I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for this motion and for the work he has done on this issue. Let me start by making a fundamental point. In 2017 and 2018, legal changes were made in relation to volumetric concrete mixers in two areas, as he highlighted. One change was to include volumetric concrete mixers in the operator licensing system, which ensures that VCMs are in the same regulatory regime as most large goods vehicles. As far as I understand it, there is no request to revisit that change. The second change concerned the inclusion of volumetric concrete mixers in the annual heavy vehicle roadworthiness testing regime. They were previously exempted, in part because of the difficulty of accommodating large vehicles in testing stations. However, as VCMs are based on a standard HGV chassis, it became clear over time that they could be accommodated on that basis.

It is important to say, however, that no changes were made to the maximum permitted weights for volumetric concrete mixers by regulation. It is also important to see that in context. The right hon. Member for Leeds Central (Hilary Benn) asked whether some of these recent announcements really should be ignored because, as he read it, they were about higher weights. The answer is that no increase to axle weights was announced, and we are principally concerned with axle weights.

Inclusion in the annual heavy vehicle test requires a plate displaying the maximum on-road weight of the vehicle. This displays beyond doubt what is the legally accepted maximum weight on roads of a heavy goods vehicle. That is often different from the maximum weight a vehicle is permitted off-road, or on private land, and which the vehicle chassis can bear.

The Department recognised that there had been a significant period previously of operations on public roads by some volumetric concrete mixers at higher weights than these unchanged maximum on-road weights, a situation that it and others regard as illegal. Therefore, the Department sought views and checked the feasibility of a limited temporary period of operation at higher maximum permitted weights for volumetric concrete mixers. Of course, this is not an uncontested issue. There are other parties—whether they be local authorities, mayoralties, or other players in the relevant market—who have views that may not directly accord with all the views held and discussed in this debate.

Following engagement with parts of the industry and a written consultation, Ministers decided to allow an exceptional temporary weight allowance for volumetric concrete mixers for up to 10 years. Other possibilities were considered, and discussions were held at that time with parts of the industry, but no other exceptions were ever approved by Ministers.

The exceptional temporary weight allowance is a significant adaptation for VCMs, which comes despite the extra wear and tear that they impose on road surfaces. Load modelling done by the Department in collaboration with National Highways—which, at that time, was Highways England—highlighted a particular risk to bridge structures, which affects the durability of this exceptional arrangement. It is therefore not true, as I think was implied in one contribution to the debate, that in some sense National Highways has signed off higher weights. On the contrary, it found in its report that those weights sit outside the bridge load model and therefore are likely to increase wear on bridges.

[Peter Grant]

The Minister mentions the particular issue of bridges that might not be able to sustain a higher weight. Why is a weight limit not placed on individual bridges, so that the heavier vehicles can be allowed on the parts of the road network that can sustain such loads?

[Jesse Norman]

That is a separate question, and, of course, local authorities may or may not choose to do such things. This is about what the view of National Highways was, and as I have said, its view was that there was a particular risk to bridge structures and that that was one of the constraints on the durability and longevity of this arrangement.

An initial assessment into road wear by the Department suggested that increasing the weight limit for four-axle volumetric concrete mixers from 32 tonnes to 38.4 tonnes could increase average road wear by between 110% and 220% per vehicle. The exact impact is heavily dependent on the vehicle’s loading.

The Department recently announced the introduction of longer semi-trailers into general use because many operators run out of trailer space before reaching the permitted maximum gross vehicle weight. These longer semi-trailers are up to 2.05 metres longer than a standard trailer, but are designed to carry the same weight as standard trailers. Therefore, there is no increase in the normal maximum weight or axle weights for vehicles using the longer semi-trailers.

The Department recently announced regulations to implement an increase in weight limits for certain alternatively fuelled or zero-emission vehicles. The weight limit increase is up to a maximum of 1 tonne for an alternatively fuelled vehicle and a flat 2 tonnes for a zero-emission vehicle. In all cases, the maximum weight limit for individual axles—again, the key measure—remains unchanged. The vehicle types that are having their weight limits changed by this regulation include articulated lorries and road train combinations with five or six axles normally limited to 40 tonnes and four-axle combinations normally limited to 36 or 38 tonnes. No additional weight allowance will apply to the heaviest articulated lorry and road train combinations of 44 tonnes or four-axle rigid motor vehicles of 32 tonnes.

Finance (No.2) Bill (Fourth sitting)

Debate between Peter Grant and Jesse Norman

Tuesday 27th April 2021 Public Bill Committees

[Jesse Norman]

I thank both colleagues for their contributions. I reassure the hon. Member for Glenrothes that the Government take seriously all such interventions and all our serious interactions with other political parties and hon. Members across the House.

The hon. Members for Ealing North and for Glenrothes both mentioned complexity. When introducing any new regime, let alone one in an area as complex as tax, there is inevitably an impression of complexity and a worry about the initial uptake. However, these concerns can be addressed and are being addressed in the legislation.

I remind the Committee that the reforms have been widely welcomed. The Chartered Institute of Taxation says that it

“welcomes the harmonisation of interest rules…and that HMRC will apply a light-touch…This will allow otherwise compliant taxpayers enough time to adjust to the new rules.”

The Low Incomes Tax Reform Group, which both hon. Members mentioned, says:

“HMRC have consulted on many aspects of the penalty regime in recent years, particularly with a view to ensuring that it is fit for purpose for Making Tax Digital. This is welcome, as is the fact that a number of LITRG concerns have been taken on board.”

It is good to see that; I am glad that the group recognises it, because this has been a carefully considered piece of legislation. An organisation called Buzzacott, which describes itself as a UK top 20 accountancy firm, says:

“This is a big change…but the system ought to be fairer because it takes account of the number of filings a business has to make, and it’s also less likely to excessively penalise a trader…The light touch in the first year is welcome”.

That ought to give colleagues a degree of comfort on the issue of complexity, but of course it is important to raise it, and Ministers and HMRC are aware of it.

The hon. Member for Glenrothes raised the two-year period; I think that he was trying to score a political point about HMRC staffing. I remind him that the SNP was expressing concerns about alleged staffing issues at HMRC before the extraordinary events of the past 12 months, in which HMRC has proven its outstanding ability to deal with the covid schemes and has been through everything that one could imagine in the pandemic.

I do not think there is any serious suggestion that the tax agenda, which antedates any concerns that the SNP has expressed with respect to the two-year period, is seriously being put at risk. The fact is that some people have very complex tax affairs and sometimes, in a small minority of cases, HMRC requires some time to reflect on them before it makes a judgment. As a matter of justice, as well as of combating tax avoidance, the two-year period should allow it a proper process of reflection.

The hon. Gentleman mentioned the idea of removing the first penalty, but as I pointed out the effect would be to remove a great deal of the early energy that incentivises people to comply with their tax obligations, and which is actually rather important. The SNP’s recommendation might have the effect of diminishing the number of people who comply with their tax obligations, because it would remove that initial first penalty, which is a little nudge.

[Peter Grant]

I take the Financial Secretary’s point that what we suggest might make things better or worse than what the Government suggest. Leaving aside the possible practical issue with the timescales of some of the reports that we suggested, does he admit that it would be a good idea to bring back a report at an appropriate juncture to see whether the new regime encourages compliance in comparison with the current regime? Will he agree to table an amendment similar to our new clause 6, but with a different timescale, in due course?

--- Later in debate ---

[Peter Grant]

I do not have any issue with the changes proposed in clause 123 but, like the hon. Member for Ealing North, I think it is important to make clear that, in passing the legislation, Parliament has to give what may appear to be draconian powers to HMRC or other Government agencies to use when they have to. We then have to rely on Ministers to set policy, and sometimes on HMRC or Government Departments, in terms of their operational management decisions, not to use those draconian powers except when they absolutely must.

As we have begun to come out of the covid recession, a lot of individuals and businesses have found that their cash-flow position is as bad as it has ever been—and hopefully as bad as it ever will be. If HMRC manages itself only in terms of its own performance statistics on how quickly it can get the money in, there is a danger that it will do damage to the wider economy; in the longer term, it will do damage to the public finances. If a business is struggling to pay its tax, it is struggling to pay all its bills too. If we move in too quickly to get the tax out of that business, the chances are that it will go down and will no longer have any chance of paying its suppliers, so the suppliers go down as well. We will end up with a domino effect, with several businesses, and possibly three or four times as many jobs, being lost.

It is not a question of saying that there are circumstances where HMRC should say to somebody, “You don’t need to pay your debts,” but there will be times when it will be better for it to say, “We aren’t going to chase you for your debts now, but it’s up to you to get your circumstances sorted out, and then we will expect you to pay your dues.” I say that because I have known instances in constituency casework, as I suspect many Members have, where HMRC did not seem to take that approach. It appeared to have been chasing businesses to the point of liquidation, and individuals to the point of bankruptcy, for amounts of money that, in the grander scheme of things, were completely irrelevant to it, but highly relevant to those individuals and businesses.

I hope that we will get an assurance from the Financial Secretary today that the draconian powers in the Bill and in existing legislation will be used with an even softer touch over the next few years than they were supposed to be used with in the past. Otherwise, we will find that the difficulties that businesses are facing will get worse over the next few years, rather than better.

[Jesse Norman]

I thank both hon. Members for their questions. In a way, the clause is poorly named, because this is a change to allow information notices to be used to obtain documents; it is not, in and of itself, a measure that collects tax debt. The notice is an information power.

Tax authorities sometimes need to verify what they are told by taxpayers. A request that routinely arises is to look for details about transactions or movements of money in cases in which there is reason to believe that assets may have been concealed. A request may be an invitation to look for information to find out whether a bank account exists or has recently been closed. At its simplest, a request may be to find out the balance on an account.

It is important to say that the Government take very seriously all the input from our stakeholders, and the Chartered Institute of Taxation is an important stakeholder among many others. It has been striking how, over the past year or two, stakeholders have been very positive in flagging the degree of engagement that HMRC has had with them. There is a wide, close and professionally engaged relationship between the parties, and stakeholders’ concerns are carefully evaluated as part of the policy process.

It is also true that HMRC is bending over backwards to maintain its activities as a tax authority, while recognising—as the hon. Member for Glenrothes mentioned—the extremely difficult circumstances in which many companies have been placed by the pandemic and its effects. That is why there is a deferred payment scheme for VAT and Time To Pay arrangements that have been allowed to grow as they have done, and why in due course the Government are bringing in breathing space for people with debt.

A wide range of measures have been designed and put in place to protect people who may currently be vulnerable. In this case, the effect of expanding information notices is to implement a recommendation from the OECD’s global forum. Again, there was criticism from the forum that the UK was unable to use its information powers to enforce tax debts and unable to assist with information requests from other jurisdictions. Clause 123 will allow us to improve the already excellent levels of HMRC co-operation, which is only to the good in supporting international co-operation and exchange of information and the collection of tax debts that may be due.

Question put and agreed to.

Clause 123 accordingly ordered to stand part of the Bill.

Clause 124

Miscellaneous amendments of Schedule 36 to FA 2008

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Jesse Norman]

Clauses 131 and 132 simply set out the Bill’s legal interpretation and short title in the usual manner for such legislation.

Question put and agreed to.

Clause 131 accordingly ordered to stand part of the Bill.

Clause 132 ordered to stand part of the Bill.

New Clause 1

Review of capital allowances and business reliefs

“(1) The Chancellor of the Exchequer must review the impact on investment in parts of the United Kingdom and regions of England of the changes made by sections 15 to 20 and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must compare estimated GDP in each of the next five years under the follow scenarios—

(a) these provisons are enacted,

(b) these provisions are not enacted, and

(c) the UK fiscal stimulus package, as a percentage of GDP, mirrors that of the united States.

(3) In this section— “parts of the United Kingdom” means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland; and “regions of England” has the same meaning as that used by the Office for National Statistics.”.—(Peter Grant.)

This new clause would require a report on the impact of the capital allowance provisions on GDP, comparing them with the impact of copying the level of fiscal intervention in the US.

Brought up, and read the First time.

[Peter Grant]

I beg to move, That the Clause be read a Second time.

I am pleased to finally move the new clause after four or five days of heavy debate in Committee and two days of debate on Second reading, which is an indication of the way things happen here. The wording of the new clause is quite deliberately designed to tightly fit within the scope of the Bill, although it will be no surprise to Members that I will highlight a number of wider issues.

The UK Parliament’s and UK Government’s existing way of putting forward and approving tax and public spending plans does not really allow them to be gone into in a great deal of detail, so we ask for some way to compare what would have happened if none of the changes enacted by clauses 15 to 20 had been made, how the economy looks when they have happened and how the economy would have looked if the Government had done something a bit more ambitious and radical.

The phrase “be bold like Biden” has become very popular since the American presidential election. We do not need a comparison with the exact measures taken there, but we are seeing an economy that is in some ways quite similar to the United Kingdom’s beginning to take tax break and tax incentive decisions very different from those the current UK Government have taken. It would be good if there was some way in which we could look at what impact those UK Government decisions have had.

There have been some indications from usually quite reliable commentators that—[Interruption.]

--- Later in debate ---

[Peter Grant]

Thank you, Dame Angela. Members will be pleased to hear that I will not repeat everything I said before the Division. It has been quite authoritatively suggested that if the stimulus package put forward by the UK Government had been as bold and radical as that put forward by President Biden, the impact in Scotland alone would have been 134,000 additional jobs, and the impact on UK debt would have been unnoticeable—the figures were that the debt-to-GDP ratio at the end of quarter 2 next year would have been 118% rather than 119%, which is easily within the margin of forecasting errors. That is just one example of where a different approach—had there been a way of arriving at one in time—may have made a significant difference, and I do not imagine that that would have applied only in Scotland. If we took equivalent figures England, we would be looking at maybe 1 million or 1.5 million more jobs by this time next year.

With all of these proposals, we are saying that there is a better way for this Parliament and Government to arrive at the final decisions on their tax and spending plans. If we look at what happens in some of the devolved Parliaments, their Budgets are significantly smaller. Arguably, they are not nearly as complex, because those Parliaments have few or no direct powers on most taxes or welfare payments. The Scottish Parliament’s Budget is on the go for most of the year, and almost every Budget eventually gets passed. Bits have been put in at the request of most, and sometimes all, of the Opposition groups in the Scottish Parliament. Even during the short period when there was an overall majority SNP Government, almost every Budget that was passed had bits put in, after the draft Budget had been published, at the request of Opposition parties. Incidentally, some of the most effective ones were submitted by the Scottish Conservative and Unionist party and accepted by an SNP Government, because both parties were prepared to look at what was in the best interests of Scotland, rather than caring about the party political advantage to be gained.

The difficulty in the way that we do Budgets here is that, by the time anything in the Budget is public, battle lines are already drawn. It is confrontational, rather than co-operative. It is about putting forward suggested changes that one almost hopes the other side will not accept, so as to have a go at them at election time. That is great fun and electioneering, and the tabloid press loves it because it raises the temperature quickly. I sometimes wonder whether, by doing things that way, we might be missing a chance to finish with a better set of proposals, whether on the tax-raising or public-spending side. We could end up with a set of proposals that would come much closer to what we all thought we wanted to achieve when we first arrived here. That is clearly not something that I can put forward as a proposal for this Bill. The difficulty with the way we do things here is that there is never a chance to do that.

It is not possible to set tax policies and then wonder where to make the cuts or invest the money. It is not possible to set spending decisions and then wonder how to raise the money. It has to be an iterative process and has to be gone round three or four times a year. It is much better if that is done by discussion and then, if necessary, to have the set-piece debates, the disagreements and Divisions at the end of the process.

I will simply leave those thoughts with the Committee. I hope the Minister will feed them back to his colleagues in the Treasury. Colleagues in the SNP who have been part of the Treasury team much longer than I have been pushing such ideas for a number of years. There have been some changes to practice as a result. I am even more convinced, having had my first shot at a Finance Bill as part of the SNP Treasury team, that there are better ways to do things. Believe it or not, I actually want to make things better for this place, during the relatively short time that I hope to be here. Finally, if it helps the Committee, I will not say anything on new clause 7, because any arguments on that have already been had.

[Jesse Norman]

I thank the hon. Member for Glenrothes. I must say that the Scottish National party does not have an international reputation for the bipartisan way in which it treats partisan party politics. I am delighted to hear that the hon. Gentleman is offering the cross-party approach he advocated in his remarks.

The hon. Gentleman says that there is a better way. He should know that the Government are very much committed to improving the tax process wherever we can. We operate within a set of existing arrangements and political procedures that have proven their worth over many decades, but we are constantly seeking to improve. The classic example was our tax policies and consultation day, which we had in March this year. That was an attempt to create more transparency and to give more prominence to measures that might otherwise have been lost in the Budget process, in order to allow the widest possible public scrutiny and debate.

To pick up the point the hon. Gentleman made about international comparisons, I can understand why it appears interesting to him, but a few seconds of reflection would yield the thought that it really is not for the Government to be publishing analyses of other countries’ tax policies or fiscal arrangements. It really is not for us to be choosing one country, even if we were committed on that route, rather than another, because where would that end? Of course, there are many other institutions around the world that will provide precisely that kind of global comparison service. I am afraid that I do not share the hon. Gentleman’s view about the efficacy of that approach.

I am grateful that the hon. Gentleman is not pressing new clause 7, on the correct grounds that we have discussed much of it already, but, in general, the Government do publish an awful lot of detailed information on the Exchequer, macroeconomic business and equalities impacts of not only these clauses but all clauses that are debated in Finance Bills. Those assessments are comprehensive and wide-ranging, and therefore we do not think that a detailed review would be useful. With that, I am grateful to the hon. Gentleman for his contribution.

[Peter Grant]

I think it was obvious that I did not expect the Government to accept the new clause with joyful acclamation. I deliberately tried to pitch my remarks in a co-operative vein, and it is disappointing that the Minister could not resist a bit of completely unnecessary playground politics. If he wants to look at the respective international standings of the two Governments and the international standing of the two Heads of Government as things stand right now, and if he wants to look at the current standing, credibility and trustworthiness of the two Heads of Government among the ordinary people of England, never mind the ordinary people of Scotland, that is a debate I would be delighted to have with him on another day, but I would have to caution him that it is not a debate that his party wants to get into just now. For the people of Scotland, the outcome of that debate will be seen on Thursday next week. I look forward to that, but I suspect that the Minister’s party is not looking forward to it as enthusiastically as I am. I am sorry that I have had to adopt that tone at the very end of our deliberations.

[Peter Grant]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

Question proposed, That the Chair do report the Bill, as amended, to the House.

[Jesse Norman]

On a point of order, Dame Angela. I would like to thank you and Sir Gary, Hansard, the Whips, parliamentary private secretaries and officials. I am sure that I speak for those on both sides of the Committee when I thank those who have supported us through the Committee stage. I would particularly like to call out the names of Edwin Ferguson and Sarah Hunt and of our Bill team at the Treasury, Bill manager, Mikael Shirazi, Helena Forrest, Barney Gibb and Sam Shirley. I thank colleagues across this Committee for their commitment to scrutinising and debating the legislation. I am keenly aware, as they will be, that we do so under the picture of William Gladstone and his Cabinet at the time—a very forbidding chancellorial figure. With that in mind, I thank everyone for their contributions, and thank you, Dame Angela, for presiding so ably.

[James Murray]

Further to that point of order, Dame Angela. I would like to put on record my thanks to you for being a very patient Chair on my first time in a Public Bill Committee, following Sir Gary Streeter last week. I also thank the Clerks for helping us to draft amendments, and the wider House authorities for making it possible to hold a Public Bill Committee in these strange circumstances. I would also like to thank all members of the Committee. On behalf of my hon. Friend the Member for Erith and Thamesmead, I particularly thank our Whip—my hon. Friend the Member for Manchester, Withington—and my hon. Friends the Members for Vauxhall and for Luton North for giving up their time to sit on this Committee.

Tax Avoidance and Evasion

Debate between Peter Grant and Jesse Norman

Tuesday 25th February 2020 Commons Chamber

[Peter Grant]

Will the Minister give way?

[Jesse Norman]

I am afraid that there is no time at all to do that, but I will pick up a couple of further points. Colleagues quite rightly had concerns about HMRC resourcing, and they are welcome to write to me if they want to discuss specific topics.

I mentioned the important point made by my hon. Friend the Member for Amber Valley, and I am pleased that he offered his qualified support for IR35. He is right that it is an important measure, and it will collect something like £1 billion of tax a year by the end of the period. As he will be aware, the Government are preparing to legislate to clarify the status of employment from a business standpoint, which is proper and correct.

I am surprised that the right hon. Member for North Durham (Mr Jones) was told that he could not be told anything. Of course, HMRC cannot discuss specific issues, but I hope that he will have a more interesting conversation than that.

I thanked my hon. Friend the Member for Delyn (Rob Roberts) for his constructive attitude, and he was right to focus on the privilege of paying tax. There is an element of truth in that, and we should properly defend it. With that in mind, let me sit down.

Question put.

Growth Strategy

Debate between Peter Grant and Jesse Norman

Tuesday 21st January 2020 Westminster Hall

[The Financial Secretary to the Treasury (Jesse Norman)]

It is a delight to be able to speak for the Government in this first Westminster Hall debate of the new decade, as well as of the new parliamentary term. I congratulate my right hon. Friend the Member for Wokingham (John Redwood) for initiating this debate and for his very wide-ranging and thoughtful speech. I am sure he will be as pleased as I am and as I know Members across the House will be that today’s economic news reinforces a picture of an economy that is growing. The International Monetary Fund predicts that the UK is about to grow faster over the next few years than its major rivals in the eurozone and many of the G7—Germany, France, Italy and also Japan. PwC’s chief executive survey now rates UK attractiveness highly once again—I think we are the fourth most attractive global destination for location for businesses. That is very far from the narrative of isolation that we are hearing from the SNP and indicates the continuing international connectivity and scope for investment in our economy.

As my hon. Friend the Member for Derby North (Amanda Solloway) pointed out—I rejoice to see her back in this House—we are in the extraordinary position of having had 10 years of continuous annual economic growth. That is a remarkable achievement, and I am sure she will be as pleased as I am to see that the latest information is that the jobs market is strengthening, even from its already very strong current position. That economic growth is an amazing fact. If someone had said in the lee of the 2008 financial crisis that, beginning with the Conservative Government of 2010, there would be a full decade of uninterrupted annual economic growth, I do not think there is a person in this country, let alone this Chamber, who would not have bitten their arm off. That is something that we should all delight in, but that we should acknowledge has limitations that we need to try to overcome.

One of the things that was most interesting about my right hon. Friend’s speech was the way in which he highlighted the change in economic policy. He focused on the fiscal change and on the transition from the Budget restraint of the last two Governments to the more expansionary fiscal policy that this Government have indicated in the spending round and that we may see in the Budget. I would suggest there is something slightly deeper going on. There is a change in the Government’s conception of economic policy. We are not thinking of economic policy in what might be called a more purely general equilibrium way, by which investment flows automatically to investable propositions and finds returns. We are determined as a Government to build more energy into that and to adopt a focus that is more specifically targeted on regional needs and identities, and it is that sense of economic policy that marks a distinct intellectual step forward. If anyone is interested, I tried to explain this in a piece in the Financial Times yesterday that highlights this transition.

I will say a bit about the interesting speeches that were made by my right hon. Friend and other Members. He is right to say that lower taxes can be part of a fiscally expansionary policy. He possibly ignores some of the differences between ourselves and the USA. Obviously, the US had a massive fiscal boost, which is something it could do partly because of the dollar’s extreme strength as the global reserve currency. Of course, that was accompanied by a significant—in this country, it would be politically contentious—deregulation in energy. There are important differences between the US economy and our own.

My right hon. Friend mentioned the constraints under which the motor industry operates, but he did not mention dieselgate, which was an absolutely disastrous blow to the credibility of the global diesel manufacturers. Nor did he mention the fact that current diesels are still very heavy emitters—even Euro 6, compared with current environmental standards. The Government have frozen fuel duty and grown VED only in real terms. It is about trying to strike a balance between a shift towards a greener economy, particularly a green transport economy—at a time when we have not quite got to the point in the S-curve where the supply of electric vehicles is coming through at enough scale to warrant people using them—while moderating and mitigating the impact on households.

My right hon. Friend and the hon. Member for Oxford East (Anneliese Dodds) touched on what he described as the top-down imposition of IR35 rules. As he knows, IR35 rules have not changed. All that has changed is the way IR35 is being assessed, and we have called for a review in order to ensure that its implementation can be as smooth as possible. He touched on the issue of public sector productivity—again, rightly—and there might well be scope for using things such as telemedicine to improve the productivity of the public sector, but an intrinsic difficulty is one of the economic laws that we bump up against: Baumol’s cost disease. The cost of services relative to manufacturing continues to escalate, and it is not possible in the public sector to have industrial-type improvements in productivity. We do not want teachers to have too many pupils in the class, and we do not want nurses to have too many people to examine and support, so productivity is intrinsically more limited. The Government must therefore be cleverer about how we use technology, which is the purpose of the new GovTech fund that we have announced.

I will pick up on some of the other themes of the debate before turning to another point. I agree with the comments made by the hon. Member for East Londonderry (Mr Campbell) about the importance of spreading wage growth across the UK, which was a point also made by my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) in his very thoughtful speech. I also share the view of the hon. Member for Glenrothes (Peter Grant) that it is a mistake to see property as a speculative asset, and there is no doubt that the crash of 2008 was caused by a massive over-leveraging in the banking sector. As he will recall—Labour does not like it when I point this out—UK bank borrowing across the sector as a whole was 20 times equity for 40 years, encompassing 1960, 1970, 1980 and 1990. In 2000 it started to go up, and by 2017 it was 50 times equity. That was what fuelled the enormous speculative boom.

[Peter Grant]

Will the Minister give way?

[Jesse Norman]

I will not, because I am very short of time.

I share the concern expressed by the hon. Member for Strangford (Jim Shannon) about the toxic atmosphere in SW1.

I will mention another issue that is more specific and personal to me, and I hope colleagues will indulge me. In my constituency in Herefordshire, we have been trying to create a new model of higher education through what we call a new model institute in technology and engineering. It has attracted a great deal of attention across Government because it creates the possibility of significant regional economic growth that is closely tied to the creation of university campuses in cathedral cities such as Canterbury, York and Lincoln. I flag it now because, from a national perspective, it represents a portable model by which higher education of the most value-added kind, and that therefore has benefits for entrepreneurship and business formation, can be moved to all parts of the country, having been tested and developed in Herefordshire. One would think that this was something that Government at all levels would support. Her Majesty’s Government, in the form of the Department for Education, the Department for Business, Energy and Industrial Strategy, and the Ministry for Housing, Communities and Local Government, have been extremely supportive of it.

One might also think that the local enterprise partnership, the Marches LEP, would support it. I am sorry to tell colleagues that the Marches LEP—I say this having had at least a year of wrestling with it on this topic—has been absolutely diabolical in the way it has treated this very innovative project. It has received £23 million from Government and all the support one could imagine. It has received private sector investment, and investment from matched funds. The LEP, which by charter is supposed to support economic growth in the Marches, has done nothing but prevaricate and delay. Even now, it is seeking to impose a £5 million indemnity on Government investment, although the Government made it clear in letters from the Secretary of State and from senior civil servants as early as January 2019 that no such indemnity was required. The specific people involved—the then chairman of the LEP, Graham Wynn, and the chief executive, Gill Hamer—should be subjected to significant criticism in the House. I put it on record that this important opportunity for a portable model of regional growth in higher education, which was developed through a pioneering model of tech and engineering at university and which offers possibilities and creativity, has been ignored and is being actively undermined.

Having said that, let me congratulate my right hon. Friend the Member for Wokingham again on introducing this very wide-ranging and important debate, which has examined not merely specific policy change but the very basis of economics itself. I thank him for securing the debate.

Oral Answers to Questions

Debate between Peter Grant and Jesse Norman

Wednesday 12th October 2016 Commons Chamber

[Jesse Norman]

Exploration remains very important. The continental shelf is depleting. As the hon. Gentleman will know, the Government have taken some serious steps in Aberdeen with the city deal. I will not comment on the autumn statement, but it is an issue of some focus for the Government.

[Peter Grant (Glenrothes) (SNP)]

Since Question Time began this morning, five Members on the Scottish National party Benches have asked about membership of the European Union, and two have asked about Scottish jobs. Seven Members on the Conservative Benches wanted to talk about Scottish independence. Which group would the Secretary of State describe as being obsessed with independence?

[Jesse Norman]

I can do no better than to refer the hon. Gentleman to the words of Adam Smith, who said that the Union of 1707 was

“a measure from which infinite good has been derived”

for Scotland.