Rishi Sunak
Main Page: Rishi Sunak (Conservative - Richmond (Yorks))Department Debates - View all Rishi Sunak's debates with the HM Treasury
(3 years ago)
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John Nicolson (Ochil and South Perthshire) (SNP)
The Chancellor of the Exchequer (Rishi Sunak)
The Government are committed to supporting household living standards during this difficult time for our country. That is why we announced an unprecedented package of support to protect people’s jobs and incomes and to help those most in need.
Drew Hendry [V]
It is approaching two years since this Government said that they would review the way in which dying people were treated through social security. Meanwhile, Marie Curie and many other campaigners for change estimate that as many as 6,000 people have died while waiting for a decision on their claims. This Government have repeatedly promised to end the six-month rule, which is currently forcing terminally ill people to prove how long they have left to live before they can access fast-track support, so can the Chancellor confirm that this long overdue reform will be in the Queen’s Speech?
Rishi Sunak
It would be wrong for me to pre-empt the Queen’s Speech—I know that colleagues will understand that—but I can assure the hon. Gentleman that my right hon. Friend the Work and Pensions Secretary keeps all these matters under review, and of course we want to ensure that our welfare system is compassionate and effectively supports those who need our help.
John Nicolson [V]
My goodness, what a disastrous week for the UK Government. While they have been mired in scandal and slithering through sleaze, the SNP has committed to doubling the Scottish child payment and carers allowance and to introducing a new winter heating payment. Does the Chancellor accept that these are more noble social objectives than enriching well-placed cronies?
Rishi Sunak
What I believe to be a more noble objective is to focus on the day-to-day concerns of the Scottish people at this difficult time, which involves making sure that the economy recovers, that the vaccines are rolled out and, of course, that our children receive the education they deserve. These are the issues that I know the Scottish people will care most about in the coming weeks.
Mel Stride (Central Devon) (Con) [V]
Due to the increasing concentration of wealth in older generations, the value of the average inheritance received by younger generations is becoming significantly greater through time. Does my right hon. Friend recognise this trend and the fact that it means that living standards will increasingly be determined not by skill, entrepreneurship and hard work but by chance, which will have a detrimental impact on social mobility? While it is absolutely right that families can pass on wealth to their loved ones, does my right hon. Friend none the less recognise the strong trend here, and if so, what steps might he consider taking to address this?
Rishi Sunak
I would say two things to my right hon. Friend. First, he will know that in the Budget we recently froze the inheritance tax thresholds for four years, which will provide some alleviation on the concern that he mentioned. Secondly, I believe that the best way to drive social mobility in our society is to provide everyone with the skills and education they need to make a better life for themselves, which is what this Government are committed to delivering.
Alison Thewliss (Glasgow Central) (SNP) [V]
The Tories’ two-child limit, and the rape clause, which stands part of it, are having a devastating impact on living standards, with the Child Poverty Action Group and the Church of England estimating that 350,000 families and 1.25 million children have been affected so far. Scrapping the two-child limit would be the easiest and most cost-effective way of reducing child poverty in the UK, so will the Chancellor scrap it or will he push more families into poverty?
Rishi Sunak
Since 2010, over 1 million fewer people are now living in poverty, thanks to the actions of this Government and the coalition, and 300,000 fewer children are living in poverty. That is something to be celebrated, but of course there is work to do and we remain committed to making those improvements.
Alison Thewliss
It is interesting that the Chancellor ignores the findings of the Church of England and the CPAG, which tell a very different story from that which he is willing to tell. In Scotland, the Scottish National party is committed to doubling the Scottish child payment, a new benefit described as a “game changer”, to £20 a week; providing free school meals to all primary children; and extending wraparound childcare. All of those are a huge help to the families that this Tory Government choose to ignore. Does this not demonstrate the choice of two futures: more austerity and more child poverty under the Tories, or a Scotland working hard to be the best place for a child to grow up?
Rishi Sunak
I am glad that the Scottish Government are able to use the over £3.5 billion of Barnett consequentials that have been provided by the UK Government over the next year. Child poverty is of course an important issue and one that we remain committed to, which is why initiatives such as the troubled families programme are making an enormous difference to those families. Crucially, we also know that children growing up in a workless household are five times more likely to be in poverty, which is why this Government are committed to helping people find work and find well-paid work. That is something we have an excellent record of doing.
Bridget Phillipson (Houghton and Sunderland South) (Lab)
David Cameron said that Greensill had
“the mandate for the UK Government”.
Greensill said that it was the
“sole provider of…supply chain finance”
across Government and that it had a model that brings several benefits to the UK public sector. Does the Chancellor still believe that he was right to bring in real-terms pay cuts for public sector workers, while allowing David Cameron and Lex Greensill to target their pay packets and giving them the run of Whitehall?
Rishi Sunak
With regard to public sector pay, I do believe it is right, at a time of extraordinary strain on our public finances—when those in the private sector have seen more than 1 million jobs lost, hours cut, wages cut and many millions furloughed, with the impact that that has on them—to take a fair and proportionate approach to public sector pay. That is why this Government have said that those on the lowest pay will see a pay rise this year, as will those in the NHS. Combined with all the other pay progression, this means that a majority of people in the public sector will see their pay increase this year, despite the difficult circumstances. Of course, the national living wage is also being increased ahead of inflation, making sure that those on the lowest incomes see an uplift in their take-home pay.
Giles Watling (Clacton) (Con)
Paul Holmes (Eastleigh) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
At the Budget, I announced the location of eight freeports in eight regions of England following a highly competitive process. The Ministry of Housing, Communities and Local Government is now leading a cross-Government effort to support the winning bidders to establish their freeport, and we expect the first freeports to open later this year.
Paul Holmes [V]
My right hon. Friend authored a report in 2017, which found that freeports could easily create up to 90,000 jobs if they were as successful as the US foreign trade zone programme. Does he agree that, by voting against our Finance Bill and the setting up of freeports earlier this month, such as the Solent freeport near my constituency, the Labour party has shown that it has no interest in creating jobs and levelling up opportunity across the country, as this Government are committed to doing?
Rishi Sunak
My hon. Friend is absolutely right and I congratulate everyone involved in the Solent freeport bid. This Government are using freeports to boost jobs, investment, trade and growth. Local communities, from Merseyside to Teesside, Humber and indeed the Solent, all agree with us and it is a shame that the Labour party does not support their aspirations.
Stephen Kinnock (Aberavon) (Lab)
Marco Longhi (Dudley North) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
Our plan for jobs supports retraining and upskilling by tripling the number of traineeships, expanding sector-based work academies, incentivising apprenticeship hiring and providing funding for new, free, advanced technical courses and digital skills bootcamps under the lifetime skills guarantee.
Gary Sambrook
People across Birmingham, Northfield remember only too well the impact that an economic shock can have on livelihoods and jobs in the community following the collapse of MG Rover many years ago. Does my right hon. Friend the Chancellor agree that things such as the lifetime skills guarantee will allow many adults to to train and retrain to get back into work so that they have the security of a pay packet as we ease out of lockdown and build back better following the coronavirus pandemic?
Rishi Sunak
My hon. Friend is absolutely right. Across our nation, over 10 million adults do not have a level 3 qualification. Thanks to this Government’s lifetime skills guarantee, they will now be able to get one, and we know what that will do: it will boost both their employability and their earnings, providing them with the opportunity of a better future.
Alexander Stafford
No matter where in the country people are from, everyone should be able to get the experience and knowledge they need to get the job they want. Does my right hon. Friend the Chancellor agree that the new flexi-job apprenticeships that he announced last month will boost opportunities in sectors key to Rother Valley, especially in high-end manufacturing, creating more chances for people to experience the life-changing opportunity that an apprenticeship can bring?
Rishi Sunak
My hon. Friend makes a really important point. We were delighted to announce at the Budget a £7 million fund to create and expand flexi-job apprenticeship schemes, which enable people who need to work across multiple projects with different employers still to benefit from the high-quality, long-term training that an apprenticeship provides. That is particularly important in the industries of high-end manufacturing that he mentioned. I know that this will make a difference in his constituency.
Dr Wallis [V]
Young people have been particularly affected by the pandemic, including in my Bridgend constituency. Can my right hon. Friend outline to the House what support he is putting in place to help young people get back into work and to boost opportunities?
Rishi Sunak
My hon. Friend is right to highlight the importance of our focus on young people. More than half the jobs that have been lost since the start of the pandemic have been of those under the age of 25 and their rates of furlough are much higher than others. That is why, acting very early last year, we created the kickstart programme, which is creating hundreds of thousands of jobs across the country, including in my hon. Friend’s constituency. I urge all Members to talk to their local businesses to get them excited and joined up to the kickstart scheme, and to provide young people with the chance of a brighter future.
Marco Longhi
Small and medium-sized enterprises are often referenced as the beating heart of the UK economy, employing the largest number of people. That is certainly the case in my Dudley North constituency and across the west midlands, so will my right hon. Friend commit to working with colleagues in the Department for Education, the Department for Work and Pensions and with business to ensure that we improve engagement with small businesses, in particular in the design and funding of apprenticeship schemes, as they need providers to deliver much more at foundation level 2, which the current funding framework is less able to deliver? This would help to bring about the retraining revolution that our brilliant Mayor Andy Street talks about.
Rishi Sunak
The brilliant Mayor Andy Street is right to talk about the retraining revolution that we need and that he is implementing in the west midlands. My hon. Friend makes an important point about the flexibility of the system to support SMEs. I am pleased to tell him that starting this August we are implementing a new scheme to allow SMEs to link with larger, levy-paying businesses through a new matching and levy transfer service that will help SMEs to access that funding and to provide the level 2 or 3 apprenticeships that he rightly identified as being important. He should also know that that scheme was based on, I think, a pilot programme that was launched in the west midlands.
Mrs Sheryll Murray (South East Cornwall) (Con)
Mr Marcus Fysh (Yeovil) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
Stimulating private sector investment will be key to our economic recovery. The recent Budget announced multiple policies to help achieve that, including freeports, the Help to Grow programme, the future fund breakthrough, the life sciences investment partnership, consultations on reforming R&D tax credits and, of course, our radical new super deduction to support business investment as we recover from the coronavirus.
Mr Fysh [V]
I thank my right hon. Friend and the whole Treasury team for the extensive package of support and investment incentives over the past year; I know that businesses and employees in Yeovil are incredibly grateful for that. There is a very welcome focus in the defence review on local prosperity in procurement decisions. Will he work with me to ensure that Leonardo and our wonderful local supply chain for the helicopter industry can take full advantage of that into the future?
Rishi Sunak
I thank my hon. Friend for all the advice and support he has provided for me and the team over the past year as we have sought to develop policies that will help businesses, including Leonardo in his constituency, which I know he champions. He is right to highlight the opportunities of better procurement, particularly for our defence supply chain, and I look forward to working with him and colleagues to ensure that we can support his local businesses and many others across the United Kingdom.
Mohammad Yasin (Bedford) (Lab)
Christian Matheson (City of Chester) (Lab)
The Chancellor of the Exchequer (Rishi Sunak)
This Government have supported our economy through coronavirus with more than £350 billion to protect jobs, families and businesses. As we approach the next phase of our road map out of lockdown, our support continues to ensure that we emerge from the pandemic stronger and more united.
Christian Matheson
The Financial Conduct Authority has asked John Swift QC to investigate the mis-selling of certain business loans to small businesses, as well as their response to complaints about that mis-selling. The review has refused to take into account any loans that were settled with non-disclosure agreements between the businesses and the banks, giving a skewed view and a skewed outcome. Will the Chancellor speak to the FCA and ask John Swift to ensure that all evidence is taken into account, so that we get a proper review of the FCA’s dealings?
Rishi Sunak
I thank the hon. Gentleman for his question, which is on an important matter. I welcome the conclusions of the Swift review, and I hope he will appreciate that it would not be appropriate for me to comment or intervene on the scope of that review, as it was set up to be completely independent of Government. That said, we have always been clear that the mis-selling of interest rate hedging products is wrong, and nothing that the redress scheme does means that businesses cannot still go to the FCA, the Financial Ombudsman Service or the courts if they wish. If he wishes to raise particular circumstances with either the FCA or the Swift review, he can do that directly.
Sally-Ann Hart (Hastings and Rye) (Con) [V]
Rishi Sunak
Fishing is at the heart of many of our coastal communities, and I pay tribute to Mr Chapman and my hon. Friend for their commitment to the sector. I am happy that the Government are also championing and committed to the sector, and we have announced a £100 million fund to modernise our fleet and infrastructure. That is on top of £32 million that will replace EU funding this year, and £23 million that was made available earlier to support the sector, while adjusting to new export requirements.
Anneliese Dodds (Oxford East) (Lab/Co-op)
A year ago, the Chancellor personally announced the coronavirus large business interruption loan scheme, or “our loan scheme for large companies”, as his Department put it. Allowing Greensill Capital access to that scheme put hundreds of millions of pounds of taxpayers’ money and thousands of jobs at risk. The Prime Minister said he would publish every personal exchange related to covid contracts. Has the Chancellor published his every communication relating to Government business on Greensill, including with David Cameron—yes or no?
Rishi Sunak
We have actually responded to all the requests that I have been asked and, indeed, gone above and beyond in providing disclosure. I would say a couple of things to the hon. Lady. First of all, I am very happy to co-operate fully and constructively with both the independent Boardman review and the Treasury Committee inquiry, and those processes have begun. Secondly, on the substance, it is important to remember what was going on. We were in the midst of a financial crisis and we were keen to explore all avenues to support small and medium-sized businesses. We have heard in the House today that there are still challenges, so it was right to examine all avenues to do that. This was just one of many strands of work that the Treasury and I conducted, rightly and appropriately. It is important to notice that, in the end, we rejected the taking forward of any proposals on supply chain finance.
Anneliese Dodds
I will take that as a no. It appears that the Chancellor is less committed than the Prime Minister himself to transparency. That is not what I would call levelling with the British public. Let us see if he can level on another significant Government failure: the delay to imposing restrictions last autumn, which cost lives and our economy dear. In late October, when I asked the Chancellor if he was blocking a circuit breaker, he said,
“I agree with the Prime Minister”—[Official Report, 20 October 2020; Vol. 682, c. 889.]
Now it is being suggested that he sided with others against the Prime Minister. We have grown used to the Chancellor chopping and changing his mind, but can he explain whether this change of heart is driven by science and the needs of our economy, or by the internal politics of the Conservative party?
Rishi Sunak
The hon. Lady is confusing multiple things. She has asked me previously about circuit breakers. At the time there was a debate, appropriately, about whether a national intervention was right at a time when the epidemiology across this country was incredibly varied. That is something that the deputy chief medical officer himself spoke about at a press conference, and he said it would be inappropriate at that time to take forward national interventions. That is what I was referring to.
To go back to the shadow Chancellor’s previous comment about transparency, in fact I voluntarily published extra messages to aid the transparency of this process for people. I am fully committed to working constructively with the inquiry, both the Boardman review and the Treasury Committee inquiry. It is worth reminding the shadow Chancellor of something she herself wrote last April in The Daily Mirror:
“The ‘Coronavirus Business Interruption Loan Scheme’ seems to be stuck in the banks, and not getting to small businesses in particular, where cash flow is desperately needed.”
Well, the Government were also looking at how to get cash flow to small businesses, and I am sad and disappointed about what a conveniently short memory she has.
Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con) [V]
Rishi Sunak
In my previous job as Minister for local government, I enjoyed many conversations with my hon. Friend about local government matters. He will know it is not for the Chancellor or indeed national Government to implement redress processes. There are established redress processes, which I would be happy to write to him about, so he can seek redress for his particular concerns.
Alexander Stafford (Rother Valley) (Con)
Afzal Khan (Manchester, Gorton) (Lab) [V]
Rishi Sunak
I am very sorry for the hon. Gentleman’s loss, and I know the whole House will join me in passing on those condolences. I am not aware of the particular proposal that he mentions, but if he writes to me, I will be happy to take a look at it.
Gareth Davies (Grantham and Stamford) (Con)
Patricia Gibson (North Ayrshire and Arran) (SNP) [V]
Rishi Sunak
The Prime Minister has appointed Nigel Boardman to conduct an independent review of these various matters. With regard to covid in general, the Prime Minister has also said that at the appropriate time there will be all the necessary lessons to be learned.