Rishi Sunak
Main Page: Rishi Sunak (Conservative - Richmond and Northallerton)Department Debates - View all Rishi Sunak's debates with the HM Treasury
(3 years, 3 months ago)
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Karl MᶜCartney (Lincoln) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
It is absolutely right that we remain relentlessly focused on helping young people into work, and our plan for jobs does exactly that with a range of initiatives. I would just draw colleagues’ attention to the fantastic youth offer that our jobcentres are rolling out, providing 13 weeks of intensive tailored support for those young people who enter universal credit and creating 140 dedicated youth hubs across the country.
James Daly
In Bury, Ramsbottom and Tottington, the Government’s plan for jobs is working, saving jobs and getting people back into employment. As chair of the all-party parliamentary group on youth employment, may I ask my right hon. Friend to update the House specifically on how schemes such as kickstart are helping young people with employment and training opportunities throughout the country?
Rishi Sunak
I thank my hon. Friend for all the work he does as chair of the APPG on youth employment, and I thank him and his colleagues for their advice as we have developed these initiatives. He is right to highlight kickstart. This is a signature initiative of this Government, providing Government-funded, high-quality jobs for young people at risk of long-term unemployment. It has got off to a fantastic start, with 50,000 kickstarters already having started and thousands more to come.
Karl MᶜCartney
That initial response is helpful, and of course I commend the Chancellor and his Treasury colleagues for their financial support to some businesses over the last 18 months, and I realise important announcements from the Treasury and the Prime Minister are imminent. However, in a city such as Lincoln with such a vibrant hospitality sector, the cumulative impact of successive lockdowns has hit my constituents hard, especially young people, and my right hon. Friend knows that they are disproportionately employed in those businesses that are forced to close. Does the Chancellor agree that we must do everything possible to keep the economy open so that instead of paying young people not to work, we focus on creating well-paid jobs for them?
Rishi Sunak
My hon. Friend is absolutely right to highlight the importance of hospitality in employing young people, which is why, together with our VAT cut for that sector and indeed £16 billion of business rates reductions, we have helped support all those jobs. He should also know that employers do not pay employers national insurance on those young people under the age of 21, nor on most apprentices up to the age of 25, demonstrating our support to those employers to keep young people in work.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
When I was a very young MP, a Conservative Prime Minister introduced a windfall profit tax on the banks. When will this Administration and this Chancellor of the Exchequer have the imagination and leadership to introduce a windfall profit tax on those who have done very well over the last few years, and put it into green apprenticeships, green training and green skills, and do it now?
Rishi Sunak
Talking about young people and financial services, I was recently in Glasgow talking about young people starting exactly what the hon. Gentleman described: new apprenticeships in the financial services industry, growing in Glasgow, supported by this Government who have put more money behind apprenticeships than any previous Government.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
I am hearing from colleges that fewer level 1 and level 2 students are going to college as they are going straight into work and that is to be commended, but we know that having a level 3 increases people’s earnings potential in the long term and therefore opportunities to obtain that level 3 must be available to those young people as they get older. How can they achieve that, however, when the Chancellor has cut the adult skills budget by half since 2010?
Rishi Sunak
I point the hon. Lady to the Prime Minister’s speech on skills last year when he unveiled this Government’s lifetime skills guarantee, which delivers exactly what she is asking for. Those 10 million adults without a level 3 qualification, who she is absolutely right to highlight, will, for the first time, be able to get one, fully funded by this Government. That is a Conservative Government delivering for people, giving them the skills and opportunities they need.
Matt Hancock (West Suffolk) (Con)
The combination of the furlough scheme, the kickstart scheme and the youth offer the Chancellor has just discussed shows that his efforts are leading to the UK having one of the fastest economic recoveries in the world. Will he commit to working globally to ensure that the confidence and opportunities this brings are available globally as they increasingly are in the UK?
Rishi Sunak
My right hon. Friend is absolutely right, and I want to thank him for two things. First, when he was a Minister he created traineeships, and he will be pleased to know that this Government are tripling the number of them to give young people the best possible start in life, finding new skills and opportunities. Most importantly, this year, because of his success in making sure this country had the fastest roll-out of a vaccine anywhere in the world, we are enjoying the fastest opening up and the fastest economic recovery, and I pay tribute to him for that.
David Linden (Glasgow East) (SNP)
The Government announced the kickstart scheme to much fanfare. However, at the moment they publish the kickstarter statistics breakdown by gender and perhaps by race, but why do they not do so by disability? Will the Chancellor rectify that?
Rishi Sunak
I am always happy to look at what more we can do to improve the transparency of our statistics. However, with regard to kickstart in aggregate, I would just say that there have been 50,000 starts and, when compared with previous versions of similar schemes such as the future jobs fund under the last Labour Government, kickstart is delivering more young people into more jobs at a much faster pace and, importantly, many more of those jobs are in the private sector, not just the public sector.
Rob Butler (Aylesbury) (Con)
Gareth Davies (Grantham and Stamford) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
The Prime Minister is rightly ushering in an infrastructure revolution because infrastructure drives growth and productivity and creates jobs. We are doing that with over £100 billion of investment this year and, thanks to the efforts of the Financial Secretary to the Treasury, a world-leading UK Infrastructure Bank created and set up in Leeds.
Rob Butler
Does my right hon. Friend agree that all parts of the country can benefit from investment in infrastructure, and that an excellent way of achieving that in my constituency, in support of the substantial housing development there, would be to approve funding for the Aylesbury link of East West Rail, which would also help to achieve our target of net zero?
Rishi Sunak
My hon. Friend is absolutely right to focus on making sure that our investment reaches every part of the country, including his constituency. I am pleased to tell him that £760 million has been allocated by the Chief Secretary and the Transport Secretary to deliver East West Rail, and I understand that the Department for Transport is currently working with the East West Rail Company to figure out the best possible way to serve Aylesbury. I hope that my hon. Friend will engage with that process.
Gareth Davies
The Infrastructure Forum recently published a report that showed clearly that the super deduction is already having an impact, accelerating investment by businesses. Will my right hon. Friend join me in encouraging businesses across Grantham and Stamford to take up the relief, and does he agree that this is exactly the kind of investment that will boost jobs and level up our country?
Rishi Sunak
From the Office for Budget Responsibility to the Bank of England, many people have described the super deduction as doing exactly what my hon. Friend has said, and that is why we know it is working. I recently visited BT, for example, which, because of the super deduction, is now increasing the speed of its roll-out to millions more houses and creating thousands of new jobs in the process. My hon. Friend is absolutely right, and I encourage his businesses to take up the super deduction, and, indeed, we see that; a Deloitte survey recently showed that business intentions to invest in this country are the highest they have been in years.
Alison McGovern (Wirral South) (Lab)
I am afraid that I must tell the Chancellor that his infrastructure revolution is not very noticeable in cities in the north of England, which grind to a halt at rush hour. They desperately need infrastructure investment, particularly in public transport. Can he tell the House when he last met our city region Mayors in the north of England, and what his plans are for fiscal reform that will help them invest in public transport infrastructure?
Rishi Sunak
My entire team meet the regional Mayors all the time, and of course we will do so in the run-up to the spending review and the Budget. I agree with the hon. Lady that intra-city transportation is important. Unlocking the economic potential of our cities is important to driving our economic recovery. That is why last year, in my first Budget, we announced £4.2 billion for intra-city transport settlements for our largest several cities outside London so that they enjoy the same long-term funding as London and can invest in exactly the types of schemes that she describes.
Chris Elmore (Ogmore) (Lab)
That investment in infrastructure does not get to the south Wales railway service. DFT Ministers keep announcing increased services along the main line in south Wales, which includes Pencoed in my Ogmore constituency, but no increased investment in stations, level crossings or, indeed, the track. When will the Chancellor get a grip and start investing in much-needed railway infrastructure in south Wales?
Rishi Sunak
I am not sure that I entirely recognise the aggregate picture that the hon. Gentleman presents. Rail investment over the course of this Parliament is at record levels, under CP5—control period 5—and then CP6, to give the technical terms. I am very happy to take away the specific schemes. He will understand that those are a matter for the Welsh Government, but I am happy to facilitate with the Department for Transport as required.
Stephen Hammond (Wimbledon) (Con)
I commend my right hon. Friend for his commitment to infrastructure, and I particularly welcome the UK Infrastructure Bank. Will he consider introducing an infrastructure bond so that long-term pension funds can invest in the future of this country too?
Rishi Sunak
My hon. Friend is right. He has previously highlighted the importance of unlocking pension fund capital to invest in long-term assets such as infrastructure in the UK. He will know that the Prime Minister and I wrote to pension funds just recently discussing that, and my hon. Friend the Economic Secretary is actively working on creating a long-term asset fund, a new vehicle to unlock exactly the investment that my hon. Friend the Member for Wimbledon (Stephen Hammond) wants in exactly the type of infrastructure that this country needs.
Ben Lake (Ceredigion) (PC)
Alex Davies-Jones (Pontypridd) (Lab)
The Chancellor of the Exchequer (Rishi Sunak)
The Government have always been clear that the £20 increase to universal credit was a temporary measure, much like furlough and our other interventions to support this country through the acute phases of this crisis, but we are not done supporting those who need our help. This Government will always be on their side, and that is why we have created our plan for jobs. On the Government side of the House, we know that the best way to help people is to give them the skills and the opportunities they need to find high-quality work, and that is what the plan for jobs is delivering.
Ben Lake
Ending the uplift will mean £286 million less for families in Wales, and risks plunging 275,000 families into poverty. Figures from the Bevan Foundation suggest that families in Ceredigion stand to lose £5.7 million in support. What assessment has the Chancellor made of the economic impact of ending the £20 a week uplift for communities in Wales?
Rishi Sunak
The hon. Gentleman talks about those in poverty. The statistics most recently published show that 200,000 fewer people are living in absolute poverty in the United Kingdom than when this Government came into office. With regard to the economic impacts, I think all colleagues in the House can see the strength in our labour market: the need for businesses to find people and the fact that this Government are giving them the skills they need to get those jobs. That is the right strategy to help people and that is the economic strategy this Government are pursuing.
Ian Byrne
While the Chancellor was pondering the colour of the tiles for his new swimming pool and the site of his new tennis court for his country mansion this summer, back in the real world 20% of my constituency of Liverpool West Derby are facing a £20 a week cut to universal credit and sleepless nights about how they will survive. Can the Chancellor tell me what assessment the Government have made of the impact of the cut, and how many of the 12,530 people in Liverpool West Derby they estimate will be forced into poverty?
Rishi Sunak
I do not accept that people will be forced into poverty, because we know, and all the evidence and history tells us, that the best way to take people out of poverty is to find them high quality work. We are creating jobs at a rapid rate, with eight months of continuous growth in employment supported by this Government: traineeships, sector-based work academies, apprenticeships, kickstart. You name it, we are delivering it to help those people in Liverpool to get the skills and the jobs they need to help support their families.
Stephen Timms
Forty per cent. of the people who claim universal credit are already in work. Does the Chancellor understand that they will be very hard hit by this cut, which is the biggest overnight benefit cut in our history?
Rishi Sunak
Of course there are people already in work who are on universal credit, but our plan for jobs helps them too. We increased the national living wage this year by an inflation-busting amount—£350 a year to help those families. We talked earlier about the lifetime skills guarantee, about apprenticeships, about skills boot camps. Those are all ways the Government are supporting people; each one of those initiatives, by the way, is worth thousands of pounds of support. Those people will benefit from those increased skills and benefit from guaranteed new job interviews or higher wages at the end of it. That is the right strategy to help those people in work.
Alex Davies-Jones
This week, the charity Action for Children highlighted that a street cleaner with two children in private rented accommodation is already on average £729 worse off as a result of Conservative cuts since 2010, but that will soar to over £1,700 as a result of the Chancellor’s planned cut to universal credit. So I ask the Chancellor: how exactly are families meant to manage?
Rishi Sunak
Again, what we know is that children growing up in workless households are five times more likely to be in poverty than those whose parents work. That is why we are supporting their parents to get into work and why almost 800,000 fewer children are living in workless households than when this Government first came into office. That is the right way to support those families. Of course, there are other bits of our welfare system that we have maintained the generosity of, but when it comes to universal credit or employment, we on this side of the House we will support their parents into work and, crucially, with their childcare costs. Mr Speaker, we forget that 85% of childcare costs for people on universal credit are covered to support parents into work, which we know will make a difference to those children.
Stephen Timms (East Ham) (Lab)
The Chancellor of the Exchequer (Rishi Sunak)
Over a year ago, the Government launched their plan for jobs, a comprehensive and ambitious plan to help people back into work to earn more and to gain the skills they need to succeed in the jobs of tomorrow. The latest data shows that our GDP and our economy is recovering quickly, unemployment is falling, jobs are being created, and, indeed, household incomes have been protected. All of that tells me that this Government’s plan for jobs is working.
Stephen Timms
Cutting universal credit by £20 a week will hit working families very hard. It will leave support for unemployed families at the lowest real terms level for over 30 years. It will undermine the recovery and scupper the prospects for levelling up. Does the Chancellor of the Exchequer understand why every single former Work and Pensions Secretary since 2010 has opposed his cut?
Rishi Sunak
The right hon. Gentleman talks about economic recovery. We are forecast to grow faster this year than any other country in the G7. The recovery is under way. Jobs are being created, people are getting into work, wages are rising. That is the right strategy for us to pursue. Our plan is working and we will stick to it.
Theresa Villiers (Chipping Barnet) (Con)
Rishi Sunak
My right hon. Friend is right to highlight this issue, which I know is of particular importance to her and her constituency. I assure her that I have spoken to my team about it and, as part of the spending review, we will further those discussions with the Department for Education. I look forward to the Chief Secretary and she and I talking about this issue again.
Rachel Reeves (Leeds West) (Lab)
The Prime Minister’s and the Chancellor’s plans to increase national insurance will hit workers and businesses hard at the worst possible time. The British Chambers of Commerce described it as a “drag anchor” on jobs growth. The Federation of Small Businesses stated:
“If this hike happens, fewer jobs will be created”.
The TUC said that it is wrong to hit young and low-paid workers while “leaving the wealthy untouched”. We agree. Will the Chancellor of the Exchequer therefore explain why he is choosing a tax on jobs rather than on other forms of income?
Rishi Sunak
I am very pleased to see the Labour party finally focus on the importance of jobs in this House. We also agree that it is important to support companies to hire people, which is why there is no national insurance payable on those employing people under the age of 21, on most apprentices up to the age of 25 or on people who are going to be employed in new freeports. And, because of the steps that Conservative Governments have made to the employment allowance, 40% of all small businesses pay no employer’s national insurance at all.
Rachel Reeves
You cannot have it both ways. Cutting national insurance either benefits jobs or it does not. The Chancellor told voters at the election:
“Our plans are to cut taxes for the lowest paid through cutting national insurance”.
That promise is now in flames. The Chancellor is not cutting national insurance; he is putting it up. It cannot be right that nurses and builders are set to pay hundreds of pounds more each year in national insurance, yet those getting their incomes from a large portfolio of shares, stocks and property will pay not a penny more. Labour cannot and will not support this Tory Government’s manifesto-breaking, economically damaging and unfair tax on jobs. So let me ask the Chancellor again: why will this Government not fund health and social care in a way that is fair for families and for businesses?
Rishi Sunak
I will be brief, Mr Speaker. When the hon. Lady was appointed shadow Chancellor, she went out of her way to say that any policies that the Labour party put forward on her watch would be “fully costed and we will explain how they are paid for”. We have heard about uplifts to welfare. We have heard about more money for public sector pay. We have heard about opposing every difficult and responsible decision that this Government have made. We have not heard once how the Labour party will pay for anything and we know what happened last time around when it did that.
Dr Luke Evans (Bosworth) (Con)
Sir David Evennett (Bexleyheath and Crayford) (Con)
I commend my right hon. Friend the Chancellor for all his determination to create new jobs and new investment and to upskill the workforce; I believe it is paying dividends, as we are seeing in the economy. Does he agree that further education colleges have a vital role in upskilling our workforce, both young and not so young, to get the best jobs for the future?
Rishi Sunak
My right hon. Friend is absolutely right about the important role of FE colleges, which is why I was pleased in the last Budget to invest billions over this Parliament to improve the infrastructure and the quality of our FE estate. With the Prime Minister’s lifetime skills guarantee, FE colleges will be instrumental in delivering to all adults the extra qualification that they need to get better-paid jobs. My right hon. Friend is absolutely right to focus on that.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Kate Osborne (Jarrow) (Lab)
Rishi Sunak
I thank the hon. Lady for raising that important point. I would be very happy to make sure that it is considered as part of the spending review.
Martin Vickers (Cleethorpes) (Con)
The Chancellor referred earlier to the record amounts being invested in the rail network. May I urge him to ensure that one of the projects that he supports is an east-west freight corridor linking the Humber ports to the west coast? That would greatly maximise the benefits of freeport status; it would also aid the levelling-up agenda.
Peter Kyle (Hove) (Lab)
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.
Katherine Fletcher (South Ribble) (Con)
Jobs are the most important way of helping communities to move forward. Those who have been out of work for 12 months or more can access the restart scheme, worth nearly £3 billion. Will my right hon. Friend ensure that part of his plan is helping everyone to have proper, decent work and decent training to enable them to get the right job?
Alex Davies-Jones (Pontypridd) (Lab)
Rishi Sunak
This Government are proud of the record investment that we have made in our armed forces—a record settlement for the next few years to support our forces and the work that they do around the world to ensure that we can play our responsible role.
We will end on this note, I think. We have had a good debate today, but one thing is clear: the difference between us and the Labour party. We believe in supporting people into work, we believe in supporting their skills, and, crucially, we believe in our plan for jobs, because it is working.
Jeremy Hunt (South West Surrey) (Con)
I thank the Chancellor for his willingness to make extremely difficult decisions to fix the crisis in waiting lists in the NHS and the problems in the social care system. The Health and Social Care Committee heard this morning that we need 4,000 more doctors to tackle the backlog. Does he agree that this is about reform as well as money, particularly in respect of the way we plan our workforce?
Rishi Sunak
My right hon. Friend speaks on these matters with extreme authority and experience, and I thank him for all his engagement on them with me and others. He is right to want to make sure that we have a long-term plan for people in the NHS. He will know that we are committed to delivering 50,000 more nurses and 50 million more primary care appointments, but as part of that plan we must ensure that we get the number of GPs right as well, and I look forward to working with my right hon. Friend on that.
Dame Angela Eagle (Wallasey) (Lab)
Given that the Prime Minister and the Chancellor have already decided to break their manifesto commitment on overseas aid and are now gearing up to break their solemn manifesto promises on the tax lock and the pensions triple lock, why should any voter believe ever again that a Tory manifesto promise is worth the paper it is written on?
Rishi Sunak
What people know they get from this Conservative Government is a Government who are on their side, a Government who are delivering their priorities, whether their priority is 50,000 more nurses, 20,000 more police officers, record investment in every part of our country, or having a Government who are creating jobs and prosperity wherever people live. It says in that document that this is a people’s Government, and that is what we are delivering.
David Morris (Morecambe and Lunesdale) (Con)
I know that this Government are listening to the levelling-up agenda, especially in the north of England, and on that note I should like to suggest that the best way of getting people back into work is putting forward new initiatives. Will the Chancellor meet me shortly to talk about Eden Project North?