Oral Answers to Questions

Debate between Peter Kyle and Rishi Sunak

Tuesday 7th September 2021 Commons Chamber

[Peter Kyle (Hove) (Lab)]

T7. At the last Budget, the Chancellor gave a £25 billion tax break to the top 1% of businesses in the form of the super deduction, but when the school catch-up tsar came to him asking for £15 billion over a three-year period, he said that he could not fund“everybody who comes knocking on my door.”Why is it that when an Amazon-style business comes knocking, the door is wide open, but when students come knocking, asking for money to get over the challenges of the past few years, the door is slammed in their face?

[Rishi Sunak]

That is absolutely not right. When it comes to the super deduction, what the Labour party will never understand is that we want to support businesses to create jobs. That is what the super deduction does. I just gave the hon. Gentleman the example of BT creating thousands of new jobs because of the super deduction. When it comes to education, this Govt have invested £3 billion—£800 per pupil—in helping children to catch up with lost education, on top of a record increase in schools funding, which means that per-pupil funding in real terms at the end of this Parliament will be the highest it has been in over a decade.

International Aid: Treasury Update

Debate between Peter Kyle and Rishi Sunak

Programme motion
Tuesday 13th July 2021 Commons Chamber

[Peter Kyle (Hove) (Lab)]

Does the Chancellor accept that in areas of instability and potential social decline, if we withdraw aid and support people are more likely to end up needing the support of our military? We know that for a fact, because we have had to give that support a lot in the past. Does he not accept the principle that in areas that are extremely volatile it is much, much cheaper to the British purse to provide support via aid workers than to send the military in with hardware and put our soldiers on the frontline, often in danger?

[Rishi Sunak]

It is not an either/or. This Government are doing both. We are one of the largest donors to the UN peacekeeping operations and that is why we are making a difference in countries across the globe, not just through our ODA budget but through all the other ways we express global leadership.

Better Jobs and a Fair Deal at Work

Debate between Peter Kyle and Rishi Sunak

Wednesday 12th May 2021 Commons Chamber

[Rishi Sunak]

I will make a tiny bit of progress.

In the labour market, it is worth reminding the House that at the start of this crisis, unemployment was expected to reach 12% or more. It is now expected to peak at about half of that level. That means almost 2 million fewer people losing their jobs than previously feared. Our unemployment rate today is one of the lowest in the G7—lower than those of Italy, France, Canada and the United States. Our plan has protected incomes, too.

[Peter Kyle (Hove) (Lab)]

The Chancellor mentions countries in the G7. It is, without question, good news that our economy is back into positive growth territory, but why does he think that the British recession was so much worse than in all the countries he has mentioned and at the bottom of the G7 during the coronavirus?

[Rishi Sunak]

I am grateful to the hon. Member for raising this point; I have addressed it previously, but am happy to do so again. As the Office for National Statistics and others have said, is difficult to make accurate cross-country comparisons—

[Peter Kyle]

You just did it!

[Rishi Sunak]

It is difficult to make such comparisons on GDP figures specifically, for the simple reason that the way in which we calculate GDP in this country uses different deflators for the public sector. That has been explained by the Office for Budget Responsibility and the Office for National Statistics, and it actually means that we are disadvantaged relative to peers. If we look at it on nominal GDP, which corrects for that difference in calculation, as the ONS has said, our performance actually looks very comparable to all our major competitors. I could point the hon. Member to the box in the Office for Budget Responsibility report—an independent organisation that would verify what I have just said.

It is worth bearing in mind what I have always said—that GDP is of course important, but it is abstract. What matters to people are their jobs and livelihoods, so the fact that unemployment is as low as it is compared to the projections at the beginning of this crisis is something that everyone in this House will welcome.

Our plan has protected incomes too. The latest statistics show that real household disposable incomes in the last quarter of last year were only 0.2% below the same period the year before. Of course, many families are facing profound difficulties, but it is an extraordinary relief that in the face of one of the largest falls in output in 300 years, we could broadly maintain household incomes. In turn, that has meant that some people have saved more, with household savings last year £140 billion higher than the year before, and surveys now showing that consumer confidence is returning to its pre-crisis levels.

--- Later in debate ---

[Rishi Sunak]

I must now make some progress, because I am running out of time.

The Queen’s Speech gives people the skills they need to get good jobs and progress in their careers. Right now, 11 million adults in this country, nearly a third of our entire workforce, do not have a level 3 qualification. The Prime Minister’s lifetime skills guarantee will change that, giving every adult flexible access to fully-funded, high-quality education throughout their lives, and this will have a transformational impact on people’s lives and livelihoods.

This Government believe that we should value equally every path to a good career, not just a degree, so the Queen’s Speech provides landmark reforms to post-16 education and training. As I have mentioned, we have doubled to £3,000 the incentive payments for employers to hire new apprentices, and we are reshaping the system around the needs of employers so that people can get training in the skills we know the economy will need now and into the future.

This Queen’s Speech delivers two critical pieces of Treasury-sponsored legislation. The National Insurance Contributions Bill will introduce new reliefs to encourage employers to employ veterans, to incentivise regeneration and job creation in freeports, and to provide relief on NHS Test and Trace payments. The public service pensions and judicial offices Bill will make sure that dedicated public servants are fairly rewarded for their service, while making sure that the system is affordable and sustainable into the future.

[Peter Kyle]

Will the Chancellor give way?

[Rishi Sunak]

I am just going to wrap up.

In conclusion, it is apt that today the Opposition broke with a minor tradition, choosing to debate economic matters first, not last, and specifically to cite jobs as a focus—not the wider economy, as is the norm. I have been saying for over a year, since the very outset of this crisis, that protecting jobs and livelihoods was this Government’s No. 1 economic priority. It has shaped my decisions and actions and I have said it over and over again, to leave the British people in no doubt that this Government are on their side.

Last week’s results showed that, from Hartlepool to Harlow, the people heard us, so I cannot welcome enough today’s debate to share with the Labour party our plans to continue protecting the jobs of the British people and to defend a record that has seen millions of livelihoods protected and hundreds of thousands of businesses supported, and has created the conditions for one of the strongest economic recoveries anywhere in the world. We have a plan, and that plan is working.

Spending Review 2020 and OBR Forecast

Debate between Peter Kyle and Rishi Sunak

Wednesday 25th November 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right. Although not part of the spending review, just very recently announced is the extension to the annual investment allowance, which was due to expire at the end of this year. This allows small and medium-sized companies to write off, in full, investments of up to £1 million, so that is a tax break that we are extending into next year. I know that it will be warmly welcomed by businesses in his constituency, and it will allow them to invest in their growth in a tax-advantaged way.

[Peter Kyle (Hove) (Lab)]

Brighton and Hove has double the national average number of people renting their homes, yet the cost of rental in Brighton and Hove is the same as in central London. I am hearing from an alarming number of people who are struggling to pay their rent. They are either running businesses or they are in employment that is not covering the bills. They are running out of savings, and soon they will be destitute. Can the Chancellor say—he did not say anything about rental homes in his statement—what assistance can be given to making sure that people can stay in their homes till the end of this crisis and then start earning money again?

[Rishi Sunak]

What I can say is that the local housing allowance uplift that we put in place this year will be maintained into next year—the £1 billion—and I know that is of benefit to about 1 million households, at about £600 each. That is the main announcement today, but I would be very happy to hear if there are further things. The hon. Member will know about our £12 billion affordable homes programme, which is designed to build 180,000 affordable homes over the coming years as well.

Future of Financial Services

Debate between Peter Kyle and Rishi Sunak

Monday 9th November 2020 Commons Chamber

[Peter Kyle (Hove) (Lab)]

I join the shadow Chancellor in celebrating the success and importance of the financial services sector in our country. The Chancellor said he was making a unilateral announcement about equivalence, so can he confirm that the British financial services sector now has to wait for the EU to make its unilateral announcement on equivalence and other measures that will dictate what is possible in terms of access for British businesses? The Government signed the political declaration that committed them to finding the agreement by June last year. If British business was as good as this Government at doing deals, there would be no financial sector in this country.

[Rishi Sunak]

Maybe I can help clear this up for the hon. Gentleman. There are a set of decisions that we can make unilaterally. There are others that we cannot, because the nature of the decision requires mutual collaboration between us and the other partner. We have obviously refrained from making those decisions. We have also refrained from making decisions where it would not be in our economic self-interest to do so. But we remain ready, and we stand ready, to talk constructively and co-operatively with our European partners and reach agreement on the remaining outstanding decisions.

The Economy

Debate between Peter Kyle and Rishi Sunak

Monday 27th April 2020 Commons Chamber

[Rishi Sunak]

As ever, my hon. Friend makes excellent and informed points on economic policy. I thank him for his support as well. He is absolutely right. I share with him, as does the Prime Minister, a sense of urgency about wanting to reopen our economy so that we can start driving growth, providing people with employment and paying for our public services. He is right to acknowledge that that must be done safely. Although we have made progress, we are not there yet, but I can reassure him that extensive work is under way to plan for phase 2 of the crisis so that we can get back to the economy that he and I both want to see.

[Peter Kyle (Hove) (Lab)]

In the past 10 years, there has been a very active debate about those relatively few companies that have so aggressively avoided paying tax in this country. Many of those same companies are now relying on the largesse and generosity of taxpayers to remain solvent in these difficult times. As the Chancellor and his Department start to plan for the recovery economy, will he take this opportunity to have conversations with those companies to make sure that when we do recover, they play a much fuller part in our economy going forward? Let us not aim for business as normal when we get back after this crisis; let us aim for business as better.

[Rishi Sunak]

I thank the hon. Member for that comment, and I like his phrase at the end—we will see whether it shows up in a future speech. He is absolutely right that we are all in this together. We have gone through this as a collective endeavour as a country, whether as business, Government or individuals, and it is right that people act responsibly during this process. That is something I have urged all businesses to do, and I hope they continue to do that. He is correct: as we emerge from this, it is right to look at things in the round. As we went through this together, we must repair the economy all together.