Oral Answers to Questions

Debate between Rishi Sunak and Mark Harper

Tuesday 28th June 2022 Commons Chamber

[The Chancellor of the Exchequer (Rishi Sunak)]

We are not immune to the global inflationary shocks that many countries are experiencing. Indeed, eurozone inflation is north of 8%, and inflation in the United States is closer to 9%. We have the determination we need to combat inflation and reduce prices, and we have the tools at our disposal, namely strong and forceful monetary policy, responsible fiscal policy and supply-side reforms.

[Mr Mark Harper (Forest of Dean) (Con)]

One of the really insidious effects of inflation is that it imposes more costs on the poorest in society. What steps will the Chancellor take to make sure not just that we protect people today, but that inflation expectations are not locked in, locking in high inflation for the future, which would be the worst thing we could do for the poorest in our society?

[Rishi Sunak]

As ever, my right hon. Friend makes an excellent and thoughtful point. He is right about the regressive nature of inflation, which is why our recent announcements have been specifically targeted at those on the lowest incomes—the most vulnerable in our society—to help them manage through the challenging months ahead. He is also right that inflation expectations are critical, and I know that the Bank of England will act forcefully, in its words, to restrain inflation and inflation expectations, because the quicker we get through this the better for everyone, particularly the most vulnerable.

Oral Answers to Questions

Debate between Rishi Sunak and Mark Harper

Tuesday 15th March 2022 Commons Chamber

[Rishi Sunak]

I can give my hon. Friend that reassurance. Representing as I do a rural constituency like hers, I know the difficulty that our constituents are facing. That is why our £9 billion package of support for energy that I announced earlier is done by electricity meter, ensuring that those who are off the gas grid also benefit.

[Mr Mark Harper (Forest of Dean) (Con)]

The impact on energy prices of the Russian invasion of Ukraine and the sanctions will inevitably mean that Britain is poorer. There is nothing that we can do about that overall, but we can help to smooth the impact. I welcome the announcement this morning that there are 275,000 extra people on payroll. What more can the Chancellor do to improve companies’ ability to hire workers and to enable people to keep more of their own money; for example, through the reduction in the taper rate on universal credit?

[Rishi Sunak]

I am grateful to my right hon. Friend for his typically thoughtful question. He is absolutely right about the circumstances we face. The data this morning shows record numbers of people on payroll, and that is to be welcomed. Indeed, the unemployment rate is now back to the levels we saw before the pandemic, thanks to our plan for jobs. There are record vacancies, and we want to get people into work. The best way to do that is to give them the skills they need and cut taxes to increase incentives. That is exactly what this Government are doing, and I expect us to make more progress in the months ahead.

Economic Update

Debate between Rishi Sunak and Mark Harper

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

The Labour party has proposals that would give considerably less to many people, so it is a bit rich to hear that. The hon. Member had a long list of numbers. I also have one: 400,000 more people on the payroll than there were before the crisis; 2 million jobs saved because of the actions of this Government; the national living wage going up by £1,000 a year in April; and a £1,000 tax cut for millions of people on universal credit. Those things are what we are doing to put more money into people’s pockets when they need it, and they can rely on us to continue supporting them not just now, but for days and years into the future.

[Mr Mark Harper (Forest of Dean) (Con)]

First, I thank the Chancellor for coming to the House to make his statement before he does a press conference. That is the right order of priorities. I also thank him for engaging with Conservative colleagues, listening to their concerns and responding to them in his statement. Finally, may I highlight the realism and honesty with which he has grappled with global gas prices? We cannot pretend that they have not gone up and what he has done is set out a package to smooth the impact for everybody and to help those on the lowest incomes. That is the right approach and it demonstrates why we have got it right and the Labour party is not fit for office.

[Rishi Sunak]

My right hon. Friend is absolutely right. Those of us in government make responsible decisions and we are honest with people. I think people respect that honesty and it is the right thing for us to do. He is right that there is a global surge in gas prices and it would be wrong to pretend that we do not have to adjust to that, but what we can do is take the sting out of that adjustment, spread its impact over time and limit its immediate impact. That is the right and responsible approach and I am grateful for his support on that plan.

Oral Answers to Questions

Debate between Rishi Sunak and Mark Harper

Tuesday 2nd November 2021 Commons Chamber

[Rishi Sunak]

There were no extra taxes for the self-employed in last week’s Budget; the right hon. Gentleman may be referring to a timing difference that was reflected in the Budget scorecard of previously announced policies. With regard to the self-employed, he should take a moment to reflect on the fact that this Government provided almost £30 billion of support to millions of self-employed people throughout the crisis, and I am very glad that we did so.

[Mr Mark Harper (Forest of Dean) (Con)]

May I first thank the Chancellor for the steps in the Budget to help retail, hospitality and leisure businesses? They have gone down very well in my constituency, where those businesses are important, were hit hard during in the pandemic and were grateful for the support they got. People have commented to me that the most useful thing he can do is to focus on getting the public finances in order, as he spoke about in the latter part of his speech, so that we get taxes on a downward path as we go through this Parliament. That is the best fiscal way to help businesses to prosper in the future.

[Rishi Sunak]

As always, my right hon. Friend makes an excellent point, and I thank him for the eloquent speech he made on this topic last week. I wholeheartedly agree with him. My intention and goal over the rest of this Parliament is to reduce taxes, and we both know that the best way to create growth and prosperity in this country is to unleash the entrepreneurial innovation of our private businesses.

Covid-19: Economic Package

Debate between Rishi Sunak and Mark Harper

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

I think I find myself in agreement with the hon. Member. He is fortunate to have such a fantastic company locally to him. I know that that company and its workers will be pleased that the Government, and their representative, are advocating on their behalf. We have extended some of our loan schemes for larger companies—not Jaguar Land Rover specifically—and many companies in the automotive supply chain, for example, will now be able to benefit from our larger CBILS programme, which went live last week and is already lending billions of pounds. The hon. Gentleman is right; these various schemes are important and the industry that he mentions is critical to the UK. I look forward to ensuring that it can have as strong and swift a recovery as possible.

[Mr Mark Harper (Forest of Dean) (Con) [V]]

I, too, welcome the announcement the Chancellor has made today. It will be particularly welcome to the businesses in the leisure, hospitality and tourism sector, which are very important in my area and have been very hard hit. I welcome the fact that the Chancellor has extended the scheme to October. Should businesses plan on that scheme coming to an end in October if we are able to stick to the timetable set out by the Prime Minister in the Government’s recovery strategy, or is there any chance that the Chancellor will be able to extend the scheme? I think some certainty for businesses will be helpful.

[Rishi Sunak]

We will of course keep everything under review, but my expectation is that by then the scheme should end. As I have said before, we have stretched and strained to be as generous as possible to businesses and workers. That is why we have made the decision we have made today, which is important to me personally, but of course as I have also said the scheme is expensive. It is the right thing to do—the cost of not acting would have been far higher—but it is not something that can continue indefinitely into the future. Eight months of total support is a considerable amount of time. Now that we have a plan from the Prime Minister, with a path to reopening those parts of our economy that are closed, I believe we can get the country back on track and get people back into work. This scheme will help them to do it in a measured and phased way, and protect as many jobs as possible.

Economic Update

Debate between Rishi Sunak and Mark Harper

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend the Health Secretary is working around the clock to support our healthcare workers to have everything they need to do the vital job that they are doing for us. They will get whatever support that they require.

[Mr Mark Harper (Forest of Dean) (Con)]

I welcome the scale of what the Chancellor has announced. It is up to the mark. Some of his specific measures will be welcomed by constituents who have contacted me, but may I press him a little on the employment support package? I recognise the importance of coming up with a package that is deliverable, but I fear that if he is unable to say anything more urgently, he needs to give businesses the confidence to keep those employees employed, because some of them will be facing massive reductions in cash flow immediately. Will he look at what he can say quicker than next week to give them the confidence that they will be supported in due course?

[Rishi Sunak]

I very much appreciate the strains that business cash flows are under, which is why, today, we have already taken steps with the announcement of new cash grants of £10,000, £25,000 and an extension of the business rate holiday to thousands more businesses.