Rishi Sunak
Main Page: Rishi Sunak (Conservative - Richmond (Yorks))Department Debates - View all Rishi Sunak's debates with the HM Treasury
(2 years, 4 months ago)
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Richard Burgon (Leeds East) (Lab)
The Chancellor of the Exchequer (Rishi Sunak)
I am pleased to say that the distribution analysis published in the Budget showed that the actions of this Government since 2019, over this Parliament, will benefit those on the lowest incomes the most. Income inequality is also lower than it was in 2010, and we on the Conservative Benches know that the best way to reduce inequality is to get people into fantastic, well-paid jobs, which is exactly what we are doing.
Rachel Hopkins
Income inequality in the UK has barely changed over the past 10 years, so how can it possibly be fair to ask working people to pay even more tax through the national insurance increase next year, while the Government are also giving away a £4 billion tax cut for banks’ profits through cutting the banks’ surcharge from 2023? Will the Chancellor set out the combined impact of those two decisions on inequality?
Rishi Sunak
Income inequality on the last published statistics is lower than it was in 2010. There are also fewer people living in absolute poverty. With regard to national insurance, we took a decision to fund the NHS in a progressive manner to clear the backlog and usher in reforms to the social care system that will benefit everyone in this country. As for banks, I am not sure whether the hon. Lady has seen that the rate of corporation tax that banks will pay is going up from 27% to 28% while the rest of the UK corporate base will pay 25%. It is right that the banks pay a fair contribution to our coffers, but we should also recognise that financial services is a fantastic UK asset that employs 1 million people, two thirds of whom are outside of London and the south-east.
Kate Osamor
Although discussions about regional inequality between the north and south in the UK are important, this must not be reduced to a simple and misleading binary. My area of Edmonton, north London, has an unemployment rate of 9.7%, almost double the national average. Will the Chancellor assure the House that he will provide the investment that London needs, starting by providing the funding that Transport for London requires to maintain its services, particularly the bus services, on which lower-income Londoners are disproportionately reliant and which face 20% reductions without support?
Rishi Sunak
If Londoners are worrying about the state of their transport system and who is responsible for it, I think we all know, and those problems were there before coronavirus. What we are responsible for is making sure that people have access to high-quality work, and I reassure the hon. Lady that we are investing in our plan for jobs right across the country. I have visited jobcentres in London. We are helping to get people into work and helping them to get the skills they need. I hope that I can work with her local area to bring that unemployment rate down.
Dr Huq
Covid has accelerated the decline of bank branches, so Acton now has none and no cashpoints, because our post office has gone. The resultant cashless society has hit constituents hard, from the chap who came to see me who has come a cropper because of Trump’s sanctions regime—he has had all his accounts frozen—to my son and his pals who cannot get a hot snack after school without plastic, to businesses that want to bank their takings. Will the Chancellor urgently look into this gross economic inequality that is hitting so many of the constituents of all of us?
Rishi Sunak
The hon. Lady makes a fair point; the Economic Secretary to the Treasury is doing work on exactly that issue. The Government have committed to bringing forward legislation, if required, on access to cash, but I would be very happy to look into the specific circumstances of her constituent. If she writes to me, we will do that.
Richard Burgon
As ever, the Chancellor’s warm words do not match the reality faced by so many people across the country. Take disabled people, for example—[Interruption.] Rather than groaning, will hon. Members please listen? Disabled people have been disproportionately attacked by Tory Governments over the past decade through austerity, cuts to benefits and, most recently, a cruel lack of support during covid. Nearly 2 million disabled people were not given the £20 uplift in benefits, including thousands of households in my seat of Leeds East. Every December, we mark the United Nations International Day of People with Disabilities, so if the Government are genuinely interested in tackling economic inequality, will they—[Interruption.] It is not funny, grow up. Will the Government backdate the payments to disabled people and others on so-called legacy benefits who have been left out and let down over the past 18 months? Disabled people deserve to be treated better.
Rishi Sunak
I am enormously proud of the Government’s commitment to those who are disabled. We looked after them during the crisis and we continue to support them. We recently announced £500 million for the disabled facilities grant, more investment in the Department for Work and Pensions to help close the disability employment gap and—this is something I am personally proud of—investment in Changing Places, which means that those with disabled children or adults will have access to the high-quality facilities that they need to enjoy days out with their family. I assure the hon. Gentleman that I and the Government are committed to helping all those who need our help, and we will continue to deliver on that promise.
Esther McVey (Tatton) (Con)
There is currently huge inequality between the taxation of businesses online and those of bricks and mortar. I thank the Chancellor for the support that he has given to the high street during the pandemic through business rate relief. However, as I know that he believes in low taxes, I ask him: when will business rates be modernised so that we can get an even playing field for online and high street businesses, which is very important to the Blue Collar Conservative group?
Rishi Sunak
My right hon. Friend has rightly campaigned on this issue and she raises an excellent point. The good news on business rates is that, next year, thanks to the tax cut that we announced in the Budget, 90% of retail, hospitality and leisure businesses will see at least a 50% cut in their business rates bill. That is worth £1.7 billion; it is the biggest business rates tax cut since the system was created, other than during coronavirus. On her point about offline and online, she will know that we have helped to bring in an international tax treaty to tax large multinational digital companies, and we continue to consult on the pros and cons of an online sales tax.
Gareth Davies (Grantham and Stamford) (Con)
Does my right hon. Friend agree that one of the best ways in which we can reduce inequality is by ensuring that young people are equipped with the skills that they need to succeed, wherever they live? That is why the additional £126 million of funding for work placements and training is so important for young people in Grantham and Stamford.
Rishi Sunak
My hon. Friend is absolutely right; I know that he is a staunch supporter of skills and getting young people into work in his constituency. He mentions traineeships, which are fantastic initiatives with a 75% success rate in helping young people and a great example of our plan for jobs in action, spreading opportunity right across the country.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Boosting the minimum wage, reducing the universal credit taper rate and increasing the work allowance will make a tremendous difference to the real-world choices of people living and struggling on low incomes. Does my right hon. Friend agree that, along with those Budget measures, the fact that we now have a record number of job vacancies means that we have a tremendous opportunity as a nation to really bear down on long-term unemployment and reduce economic inactivity, especially among the most disadvantaged groups?
Rishi Sunak
My right hon. Friend obviously speaks with authority on the topic; I am grateful for his support and engagement on these matters over the past year and a half. He is absolutely right: thanks to the actions of this Government’s plan for jobs, unemployment has now been falling for nine months in a row, record numbers of people are in work and wages are rising. As my right hon. Friend says, that is the best way to help people. That is what this Government are doing.
Virginia Crosbie (Ynys Môn) (Con)
My Ynys Môn island constituency has one of the lowest gross value added levels in the UK and is in desperate need of investment to reverse that inequality. Can the Chancellor confirm that the match funding announced in the nuclear sector deal is in place for the proposed thermal hydraulic testing facility on Anglesey?
Rishi Sunak
I hope that my hon. Friend will forgive me for not treading on the toes of the Business Secretary, but what she will know is that we allocated £120 million for future nuclear development in the Budget and spending review. I know that the subject is of keen interest to her and that she has long campaigned on it in her area. I am happy to support her in her conversations with the Business Secretary as he decides how to allocate that funding.
Mr Pat McFadden (Wolverhampton South East) (Lab)
Thank you, Mr Speaker.
It takes some doing to come up with an inheritance tax aimed at people in the lowest-value properties, but that is exactly what the Chancellor and the Conservatives have done in the way they have designed the social care cap. Even the original author of the policy, Sir Andrew Dilnot, has said that the changes that the Government have made mean that
“the less well off will not gain any benefit from the cap.”
When it comes to tax, we should look at what the Government do, not what they say or the newspapers they brief. Why is the Chancellor imposing a tax rise on almost everyone to pay for a policy that will hurt those with the lowest-value properties in the country?
Rishi Sunak
Our social care reforms will benefit millions of people up and down the country, because they will remove the anxiety that the entirety of their assets will be swamped by ever-escalating social care costs, but that is not all they do. It is important to recognise that they also invest in the social care workforce—half a billion pounds over the next few years to upskill, train and provide development for the social care workforce, which will benefit all of us. Critically, they will also help us to tackle the social care and elective backlog that has built up. I am sure that everyone in this House will want to see that. The waiting lists were scheduled to get to unprecedented levels; we wanted to tackle that, and that is what this funding will do.
Mr McFadden
Families are heading into the winter facing a cost of living crisis with rising prices and the Chancellor’s tax rises on the way. Last week, the Bank of England produced even lower growth forecasts than the Office for Budget Responsibility did at the time of the Budget, and now the Bank is forecasting that inflation will rise above 5% next year. Why does the Chancellor think that the Conservatives have produced such low levels of economic growth over the past 10 years? Has this lost decade of low growth not led directly to the cost-of-living crisis, the high taxes and the inequality that people are facing today?
Rishi Sunak
Forgive me, Mr Speaker; I should have welcomed the right hon. Gentleman to his new position. I look forward to working with him in his new role.
With regard to the winter and energy prices, of course many people are anxious about inflation. It is something that we are grappling with. What I will say to people is that we have put in place multiple interventions to help with those costs, notably the household support fund—half a billion pounds to help millions of our most vulnerable. That comes on top of our existing support, whether it is for pensioners or for those on lower incomes, to help with energy bills that were already in place. This Government remain committed to helping people with the cost of living. I assure the right hon. Gentleman that we will continue to look at the situation carefully.
Kevin Hollinrake (Thirsk and Malton) (Con)
Regional mutual banks are a feature of all the other G7 economies, which have much lower levels of regional inequality. They are key to the provision of small and medium-sized enterprise finance. We have a number around the UK that are ready to go, led by experienced professionals; all they need is some pump-prime funding. Will my right hon. Friend agree to meet me to discuss this very exciting policy area?
Rishi Sunak
I am always delighted to meet my hon. Friend and neighbour, and if we could do that in north Yorkshire, it would be fantastic. He is right—as he always is—to champion the need for small and medium-sized enterprises to have access to the finance that they need, and if he has come up with yet another idea to ensure that that happens, I should be delighted to learn more.
Mr Speaker
I call the Scottish National party spokesperson, Alison Thewliss.
Alison Thewliss (Glasgow Central) (SNP)
The Chancellor likes to talk a good game on the universal credit taper rate and his pretendy living wage, but that only benefits those who are lucky enough to be in work and ignores many people who are disabled, carers or out of work, and those who are still on legacy benefits. Why has he abandoned and forgotten that group when they face a cost-of-living crisis this winter which will often affect them more than the rest of the population?
Rishi Sunak
It is simply not right to say that we have forgotten anyone. We remain committed to supporting all the most vulnerable in our society. I have mentioned previously the various different mechanisms that we have to help people with energy bills, and indeed the recent increase in the local housing allowance.
The hon. Lady says that we talk a good game. Those of us on the Government Benches believe fundamentally in the power and ability of work to transform people’s lives. We want to make sure that people have great jobs, and we want to make sure that those jobs are well paid. The cut in the universal credit taper rate will ensure that there is a £2.2 billion tax cut for those on the lowest incomes, and we are insanely proud of that.
Saqib Bhatti (Meriden) (Con)
The Chancellor of the Exchequer (Rishi Sunak)
A month ago, I set out our plan for a stronger economy, protecting and supporting jobs, driving up economic growth and cutting the universal credit taper rate, giving the lower-paid in our society a tax cut worth £2.2 billion.
Christine Jardine
In the 2019 Queen’s Speech, the rationale for reform was set out as being to
“ensure our tax system is supporting Scottish whisky and gin producers and protecting 42,000 jobs”—
including many in my constituency. How would the Chancellor square that with the actual proposals, which will tax domestic producers more than those of imported cava, prosecco and champagne; do not take into account how people consume spirits with mixers, the sugar and calorific content or his own Government’s health policies; and actually increase the competitive disadvantage of an important domestic sector compared with the international one?
Rishi Sunak
Our reforms of the alcohol duty system usher in a system that is simpler, fairer and better for public health. I am not entirely sure that the hon. Lady has got the details right on this. In fact, for Scotch whisky, this is an improvement because we have levelled the playing field for higher-strength drinks, which the Scotch Whisky Association had been calling for. With regard to the differential between domestic and foreign producers, because English sparkling wine is produced to a lower alcohol content naturally than foreign sparkling wine, it will actually, for the first time, enjoy a tax advantage under the new system. Perhaps most relevant immediately, we also froze all alcohol duties—a half-a-billion-pound tax cut for British people this year.
Rachel Reeves (Leeds West) (Lab)
I want to take this opportunity to put on record my thanks to the Mother of the House, my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman), who, in the nearly 40 years that she has been in this place, has done more for the rights and representation of women than anyone else.
At the weekend it was briefed that the Government will set up a star chamber to crack down on waste—which, frankly, has been the hallmark of this Government. Indeed, the Government’s own accounts show that the incompetent way in which the business support schemes were structured meant that the Chancellor has allowed fraudsters to walk away with £6.5 billion of taxpayers’ money. That would be more than enough to cut the basic rate of income tax by a penny in the pound, worth £370 a year to basic rate taxpayers. So can the Chancellor explain why quick electronic checks such as cross-referencing with HMRC tax data were not conducted before money was handed out? Given this huge waste of taxpayers’ money, can the Chancellor confirm that he will be the first witness in front of his own star chamber?
Rishi Sunak
The hon. Lady would usually be on top of the numbers. She will understand that there is a difference between a one-off saving of £6 billon and an annual saving on a tax cut of £6 billion. Those two things are not like-for-like comparable. On the numbers she refers to, I am happy to tell her that in the most recent analysis from the Department for Business, Energy and Industrial Strategy’s independent adviser, the estimate of fraud was reduced by a third because of the actions that the Government had taken, which is welcome news. But of course we remain committed to tackling fraud. That is why in the spring Budget we invested an extra £100 million in HMRC, with 1,200 new people to tackle fraud, and they are expected to recover over £2 billion over the next 12 months. With regard to bounce back loans, 55,000 loans worth up to £2 billion were recovered and stopped. We are absolutely committed to tackling fraud wherever we see it.
Rachel Reeves
The Chancellor might be relaxed about handing out £6.5 billion, or perhaps it is £4 billion, to companies that did not deserve it, but we on this side of the House are absolutely not. It is reported that a £4.7 million loan was given to a business founded just two days before it was handed the cash. It should not be beyond the wit of Government to get money to where it needs to go—to great British business—without allowing fraudsters to steal taxpayer funds. Leaving the till open and unattended for thieves to clear out would be a sackable offence for a shop worker, yet apparently it is acceptable for the Chancellor of the Exchequer. Staggeringly, only one in 40 cases where fraud has been reported is actually being pursued. Let me ask the Chancellor this: when was he first alerted to this fraud, and how much does he think taxpayers will get back from the billions of pounds lost to fraudsters?
Rishi Sunak
As I have said, the new taxpayer protection taskforce at HMRC is expected to recover between £1 billion and £2 billion in the next 12 months, and has already made a good start on that. It is fair to reflect on where we were in spring 2020. I remember being at this Dispatch Box every other day. I remember Members from all parts of the House rightly holding the Government to account for getting money to businesses in a matter of hours and days, not weeks. In fact, I heard from the hon. Member for Oxford East (Anneliese Dodds), the shadow Chancellor at the time:
“We need a full guarantee for…some loans…We are running out of time, so how will the Chancellor ensure that the bounce-back loans get to the businesses that need them?”—[Official Report, 27 April 2020; Vol. 675, c. 110.]
The then shadow Business Secretary, the right hon. Member for Doncaster North (Edward Miliband), said that the Government should:
“urgently look at 100% underwriting of loans and simplified lending criteria.”
Indeed, the hon. Lady herself wrote to me and said that
“the process for SMEs to apply for such loans appears cumbersome.”
I make no apology for making sure—
Mr Speaker
Order. He might want to apologise now—we cannot take so long on the first two questions from either Front Bench.
Alison Thewliss (Glasgow Central) (SNP)
In this season of generosity and good will, will the Chancellor deliver a gift to the hard-pressed hospitality and tourism sector and amend the Finance (No. 2) Bill to extend the lower rate of VAT beyond March next year?
Rishi Sunak
I am glad that our VAT cuts extend all the way to spring. It is a £7 billion tax cut, and next year, as I have said, there is a 50% discount on business rates.
Dr Jamie Wallis (Bridgend) (Con)
Rishi Sunak
My hon. Friend makes an excellent point about the Welsh Government. This Government are supporting hospitality businesses with a lower rate of VAT till spring worth £7 billion and a business tax cut next year that has Barnett consequentials for the Welsh Government, so hopefully they can do the same.
Andy McDonald (Middlesbrough) (Lab)
Rishi Sunak
At the beginning of the crisis, we improved how statutory sick pay works, making it payable from day one. We also changed some things in universal credit and indeed expanded its definition. We also put in place self-isolation payments to help.
Karl Turner (Kingston upon Hull East) (Lab)
Sir David Evennett (Bexleyheath and Crayford) (Con)
May I advise my right hon. and learned Friend that the Government’s step in the Budget last month to cut business rates by 50% for retail, hospitality and leisure companies, which means that 90% of all eligible businesses will see a cut of at least 50%, has been warmly welcomed across my Borough of Bexley? It will help many business to not only survive, but flourish.
Andrew Jones (Harrogate and Knaresborough) (Con)
Harrogate has been the trial and development location for universal credit, and I have seen how it helps people make work pay. Does my right hon. Friend the Chancellor agree that rolling it out further, and migrating people currently on legacy benefits, will help even more people make work pay?
Rishi Sunak
My hon. Friend is absolutely right. This Government are committed to making sure that work always pays, and that is why universal credit is such an improvement on the previous system—an improvement that the Opposition did not support at all.
Stephen Morgan (Portsmouth South) (Lab)
The Minister will be aware that Viktor Fedotov, the secret co-owner of Aquind, has been implicated in a £72 million fraud scheme linked to Putin’s Russia. Can the Minister say what due diligence has been done on the project company and its owners, and if he and ministerial colleagues will protect our national infrastructure from these alleged fraudsters by stopping the disastrous project once and for all?
Jacob Young (Redcar) (Con)
A key way to support economic growth is to help level up our forgotten high streets, such as Eston Square, where the old precinct building is blocking key investment and preventing new businesses from moving in. When the Chancellor is next up in Teesside, will he come with me to Eston, and meet leaders at Redcar and Cleveland Borough Council to see what can be done to level up Eston Square?
Rishi Sunak
Yes, I would be very happy to. I am fresh from my visit to Yarm High Street last week to see levelling up in action, and I am back up in the north-east this week.
Gareth Thomas (Harrow West) (Lab/Co-op)
The Chancellor of the Exchequer will be aware of the considerable public unease about the proposed demutualisation of Liverpool Victoria. Will he therefore consider sympathetically the cross-party letter he has received from over 100 parliamentarians calling for a review of the law governing mutuals?