Economic Update

Debate between Rishi Sunak and Peter Bone

Thursday 3rd February 2022 Commons Chamber

[Rishi Sunak]

Just to confirm for the hon. Lady, it is council tax bands A to D, so it is four out of every five households across England. Obviously, that will vary by region. I can confirm that it will be fully Exchequer-funded and, on top of that, there will be a discretionary fund of around £150 million, for which the Department for Levelling Up, Housing and Communities will decide the best allocation formula. Local authorities will be able to use that to help those low-income households that happen to live in higher council tax band properties and those people, such as students, who are exempt from paying council tax at all, but whom we would want to get that support to.

[Mr Peter Bone (Wellingborough) (Con)]

Conservatives believe in holding taxes down and putting more money in people’s pockets so that they can decide how to spend it. Socialists believe in raising taxes and then choosing to give it back, in the form of discounts and rebates, to selected people who the Government think need them. Could the Chancellor explain his approach in increasing national insurance contributions and then handing money back to different people through rebates and discounts? Is that a Conservative approach, or is it a socialist approach?

[Rishi Sunak]

With the greatest respect to my hon. Friend, I also believe that it is a Conservative approach to be responsible with this nation’s public finances. I believe that, after recovering from the worst economic shock in 300 years, where borrowing spiralled to levels that we have not seen since world war two, it is right and responsible to tackle that and get our borrowing and debt down to sustainable levels. That is why I have had to make difficult decisions, but also fund the country’s No. 1 priority: the NHS and the unacceptably high and growing number of people waiting for operations. That is what that funding will do. It is right that we provide a secure, long-term, sustainable funding stream for the country’s No. 1 priority, and people should be reassured that every penny of that levy is going to go to the thing that they care most about.

Economy Update

Debate between Rishi Sunak and Peter Bone

Thursday 5th November 2020 Commons Chamber

[Rishi Sunak]

I can give the hon. Lady that assurance. The CJRS has been extended to the end of March for all people in the United Kingdom, not dependent on the tiers. We will review in January whether it is appropriate at that point to ask employers to start making a contribution as the economy recovers. We will make that decision in January.

[Mr Peter Bone (Wellingborough) (Con) [V]]

I thank the Chancellor for coming to the House again to update us on the current situation, and congratulate him on the enormous amount of help that has been given to the British people throughout this pandemic, but could he tell us how the country is going to pay for that support?

[Rishi Sunak]

My hon. Friend asks an excellent question. In the short term, we are paying for this through extensive borrowing. He will see that this year our debt-to-GDP will rise to roughly 100%. We are also carrying a significant ongoing borrowing requirement, as is evident in the forecasts that have been seen. That is not a sustainable situation, so as we continue to recover and grow, we will have to make sure that we reduce our structural deficit over time, in line with the recommendations from the IMF, to stabilise it. In the first instance, that will come through growth, but we also need to make sure that our public finances are balanced appropriately so that we can pass a strong economy on to the next generation.

Oral Answers to Questions

Debate between Rishi Sunak and Peter Bone

Monday 5th November 2018 Commons Chamber

[Rishi Sunak]

This Government believe in backing local authorities to build strong communities. The hon. Lady mentioned parks and roads. Perhaps she heard in the Budget about £420 million for our councils to fix potholes this winter. My right hon. Friend the Secretary of State recently announced another round of our hugely successful pocket parks programme, and I encourage her local authority to bid as well.

[Mr Peter Bone (Wellingborough) (Con)]

In Northampton- shire, the borough councils, the district councils and the county council are all working together to set up two new unitary authorities. Is the excellent Minister able to say when he is going to consult on that? Secondly, is he able to say when he will make a decision on whether next year’s borough and district council elections need to go ahead?

[Rishi Sunak]

May I join my hon. Friend in paying tribute to all the local councillors in Northamptonshire, who are working very constructively together through a difficult situation to ensure that their residents benefit at the end of the process? I can tell him that reasonably shortly we will be issuing details about the next step of that process. As he rightly points out, as part of that the Government may have the ability to delay the elections next year, should that be requested by the authorities and make sense in the context of the new unitisation proposals.

Oral Answers to Questions

Debate between Rishi Sunak and Peter Bone

Monday 30th April 2018 Commons Chamber

[Mr Peter Bone (Wellingborough) (Con)]

The previous Secretary of State was minded to put commissioners into Northamptonshire County Council. Will the excellent Minister update the House on when that may happen and by what method the House will be notified?

[Rishi Sunak]

I thank my hon. Friend for his question; I know that he is following this matter carefully, as are his colleagues from across Northamptonshire. The Department and the new Secretary of State will consider all the representations received over the past couple of weeks, and we will be making an announcement shortly, most likely through a written ministerial statement.

Public Service Delivery: Northamptonshire

Debate between Rishi Sunak and Peter Bone

Tuesday 6th February 2018 Commons Chamber

[Rishi Sunak]

I thank the hon. Gentleman for welcoming me—albeit lukewarmly—to the Dispatch Box. He talks about the Secretary of State, but it is this Secretary of State who has taken action with regard to Northamptonshire. It was this Secretary of State who, in response to the negative opinions of the external auditors and the LGA peer review, decided to commission an independent inspection at the end of last year. That is exactly what responsible government looks like, and the Secretary of State should be commended for taking swift action.

The hon. Gentleman asked me to prejudge the outcome of the inspection, but it would be absolutely inappropriate and unfair to the council for me to do so. When the Government receive the results of the independent inspection, we will of course carefully consider its findings, but it would be wrong to draw conclusions about those findings today, as he suggests we do.

The hon. Gentleman mentioned finances. We will, of course, be discussing finances tomorrow. This Government have backed local authorities with an historic four-year funding deal that provides more than £200 billion and a real-terms increase in spending for next year and the year after. Everything is always about money for the Labour party, but the hon. Gentleman would do well to listen to the words of the chief executive officer of the Chartered Institute of Public Finance and Accountancy, who said:

“Whilst Northamptonshire has had a difficult context within which to balance its budget…other councils in a similar situation have successfully managed their budgets”.

As my hon. Friend the Member for Kettering (Mr Hollobone) pointed out, the issue is one of governance and culture. Those are the points that were highlighted and that the inspector will be considering.

[Mr Peter Bone (Wellingborough) (Con)]

I congratulate my hon. Friend the Member for Kettering (Mr Hollobone) on securing this very important urgent question. As he said, all seven Northamptonshire MPs have lost confidence in the leadership of the county council. There is no question that this is about money; it is about the governance of the county council. Its cabinet has to go, and it has to go now. The vast bulk of county councillors of all political parties on Northamptonshire County Council are impeccable, but there has been a clique running that cabinet, and that is the cause of the problem. If there had been a committee system, this could not have happened. I am not saying that a cabinet system does not work elsewhere, but we need to ensure that Northamptonshire County Council has a committee system in future. Does the Minister agree?

[Rishi Sunak]

My hon. Friend makes some intelligent points, and I know that he has represented his constituents well on this issue. I am sure he will understand that I cannot comment on the particular governance arrangements that should be in place at Northamptonshire, but he is right to highlight that governance is important to the conduct of the authority. I am sure that the independent inspector will consider that during his deliberations.