International Aid: Treasury Update

Debate between Rishi Sunak and Christian Matheson

Programme motion
Tuesday 13th July 2021 Commons Chamber

[Rishi Sunak]

I completely agree with my right hon. Friend, and I will come on to that in a minute.

I am proud, too, of our response to last year’s economic crisis—the deepest recession this country has ever seen. In total, we have provided hundreds of billions of pounds to protect jobs, keep businesses afloat and help families to get by. That was the right approach, but we should be clear-eyed: covid has severely damaged our public finances. We have the highest level of borrowing since world war two, national debt of £2 trillion and rising, and debt expected to peak at 100% of GDP. If we want to continue to meet our commitments in the future, both at home and overseas, we must act now to rebuild our fiscal resilience.

[Christian Matheson]

This is all well and good, but the Government had already taken the decision to scrap the Department for International Development before covid came along. That is how committed they were to international aid.

[Rishi Sunak]

On the contrary; this Government have brought a coherence and a strategic symmetry to our approach to international development and foreign policy, which is improving how we project our influence and effectiveness around the world.

I have heard that this is the only difficult thing that we are doing, but that is simply not true. We have had to build fiscal resilience and have asked businesses to pay more tax. We have frozen the personal income tax allowance, taken a targeted approach to public sector pay and, yes, we also had to take the difficult decision to temporarily reduce our aid budget. This decision follows a path that Parliament explicitly envisaged when it enshrined the 0.7% target in law. Section 2(3) of the International Development (Official Development Assistance Target) Act 2015 clearly foresaw the fiscal circumstances that might mean the target could not be met. And let us be honest: if that test is not being met in the aftermath of the worst economic shock in 300 years, surely it never will.

This decision is categorically not a rejection of our global responsibilities. The UK will spend over £10 billion this year on overseas development. According to the latest figures, that is more as a proportion of national income than all but two of the G7 countries—more than Japan, Canada, Italy and the United States, and much more than the average of the 29 countries in the OECD’s Development Assistance Committee.

Our spending on humanitarian causes goes far beyond just our ODA budget. We have the fourth biggest defence and security budget in the world and the third largest diplomatic network. On average, we contribute nearly £500 million a year to the United Nations peacekeeping budget. We use our trade policy to reduce poverty, with developing countries benefiting from tariff savings of up to £1 billion a year. It is why we are working with the G7 to deliver the clean and green infrastructure financing initiative. With UK Government support, this year 1.5 billion people around the world will be vaccinated with the Oxford-AstraZeneca jab, provided at no profit whatsoever.

There is no question about our commitment to overseas aid. The only question is when we return to the 0.7% target. The motion puts beyond all doubt that we will do so once two clear objective tests have been met: our national debt is falling and we are no longer borrowing for day-to-day spending. Those tests are in line with the approach set out in our manifesto and at the Budget. They are practical and realistic.

If the House votes against the motion today, it is an effective vote. We will return, irrespective of the circumstances, to 0.7% next year. Instead of voting for responsibility, the House would in effect be voting to say that no circumstances could ever justify a move.

I know that a deep sense of conscience underpins the view that the amount we spend on overseas aid is a moral issue. Many hon. Members will know the words:

“Charity is patient, is kind.”

I think of those words and I share that sense of conscience. That is why we are maintaining the target, not abolishing it; why we are setting out the conditions, not obscuring them, and why we are basing the conditions independently—

Oral Answers to Questions

Debate between Rishi Sunak and Christian Matheson

Tuesday 27th April 2021 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

  If he will make a statement on his departmental responsibilities.

[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.

Oral Answers to Questions

Debate between Rishi Sunak and Christian Matheson

Tuesday 26th January 2021 Commons Chamber

[Christian Matheson (City of Chester) (Lab)]

The pubs and hospitality sector so far has done everything that has been asked of it during the pandemic, but so far 46% of pubs have not received local restrictions support grants for November, let alone December, and 74% of pubs have yet to receive the Prime Minister’s Christmas bonus of £1,000, so what will Ministers be doing to speed up these payments and when will the pubs and hospitality sector get its money?

[Rishi Sunak]

It is absolutely right that businesses get the funds as quickly as possible. What I would say is that central Government have disbursed that funding to local councils across the country, so it is actually for businesses to take up with their local authority why they have not received the money. There are two sets of grants: there are of course our monthly grants, which have been going for a while now, and the one-off payments of up to £9,000 that we announced earlier this year. But the hon. Gentleman is right to urge urgency. I know my colleagues in the Business Department are doing exactly that with local councils, but ultimately the responsibility will lie with individual councils.

Oral Answers to Questions

Debate between Rishi Sunak and Christian Matheson

Tuesday 24th March 2020 Commons Chamber

[Rishi Sunak]

Detailed guidance is available. Further guidance will be provided and our aim is to build the new scheme so that it is operational by the end of April. That is a challenge. We are already working night and day to construct something from scratch, but claims will be allowed to be backdated to 1 March so that businesses have the security of knowing that the cash-flow rebate will be coming. As I have said, the aim is to have the scheme up and running so that the April payroll can be reimbursed through it.

[Christian Matheson (City of Chester) (Lab)]

One of the problems with this crisis is that we do not know how long it is going to last. I have businesses in my constituency—events companies, conference companies and sporting companies—that have long lead-in times to organise their events, but they cannot cancel them yet and thereby claim insurance because there is no Government guidance. Do the Government have any plans to give guidance, particularly to the insurance companies and events companies, that will perhaps say, “No events for the next six months”?

Oral Answers to Questions

Debate between Rishi Sunak and Christian Matheson

Monday 10th December 2018 Commons Chamber

[Rishi Sunak]

My hon. Friend’s commitment to using technology and public services is well known to the House and is a passion I share. I was delighted that his council, Worcestershire, was involved in three winning bids to our £7. 5 million local digital innovation fund. I congratulate it and look forward to seeing the fruits of its innovation.

[Christian Matheson (City of Chester) (Lab)]

T8. Cheshire West and Chester Council activates its severe weather protocol for homeless people on the first night of bad weather. Share, the homeless charity in my constituency, would like this to be extended across the country. Will Ministers provide the funding for this extension to happen?

Oral Answers to Questions

Debate between Rishi Sunak and Christian Matheson

Monday 23rd July 2018 Commons Chamber

[Rishi Sunak]

My hon. Friend is right about that and right to highlight the work of his local authority, which is a pioneer in collaborating more closely with the local NHS. That is showing tremendous results on the ground in reducing delayed transfers of care, which are stopping people from getting into the NHS in the first place. I hope that others can learn from Gloucestershire’s example.

[Christian Matheson (City of Chester) (Lab)]

16. What assessment he has made of trends in homelessness since 2010.